Brambles 2006 Annual Report - Alle jaarverslagen

94
Brambles
2006 Annual Report
NOTES TO AND FORMING PART OF
THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 30 June 2006
Note 2.
Significant accounting policies continued
STATEMENT OF COMPLIANCE
The financial statements comply with IFRS. These are the first full
year financial statements prepared under IFRS and are covered
by IFRS 1: First-time Adoption of IFRS and AASB 1: First-time
Adoption of AIFRS. In the year ended 30 June 2005, the Annual
Review of BIP was prepared under UK GAAP and the Annual
Report of BIL under AGAAP. In preparing the financial statements
under IFRS, management has amended certain accounting and
valuation methods that previously applied under UK GAAP and
AGAAP. Descriptions of the changes and reconciliations of the
effect of the transition from UK GAAP and AGAAP on Brambles’
equity, net income and cash flows are provided in Notes 38 and
39 respectively.
Comparatives for the period ended 30 June 2005 have been
restated accordingly, or, where necessary, reclassified for
consistency with current year disclosures.
The policies set out below have been consistently applied to
all the years presented except for those relating to financial
instruments. Brambles has used the exemption available
under IFRS 1 and AASB 1 to apply IAS 32/AASB 132: Financial
Instruments: Disclosure and Presentation and IAS 39/AASB 139:
Financial Instruments: Recognition and Measurement from 1 July
2005. The fair values disclosed in 2005 are calculated under prior
UK GAAP and AGAAP.
Notes 38 and 39 set out details of adjustments made to the
unaudited 2005 full year results that were reported within the
consolidated financial report for the half-year ended 31 December
2005. These adjustments impacted retirement benefit obligations
and operating leases.
NEW ACCOUNTING STANDARDS AND
INTERPRETATIONS
As at 30 June 2006, a number of accounting standards have
been issued or amended with applicable commencement dates
subsequent to year end. Except for revised IAS 19/AASB 119:
Employee Benefits, Brambles has not elected to early adopt these
accounting standards. The expected impact of these accounting
standards should not materially alter the accounting policies of
Brambles at the date of this report.
Brambles is currently assessing the impact of the adoption of
IFRIC 4/UIG 4: Determining whether an Arrangement contains a
Lease which will be effective for the reporting period beginning
on 1 July 2006.
BASIS OF CONSOLIDATION
The consolidated financial statements of Brambles include the
financial statements of BIL and BIP and all their subsidiaries.
The consolidation process eliminates all inter-entity accounts and
transactions. The financial statements of overseas subsidiaries
have been prepared in accordance with overseas accounting
practices and, for consolidation purposes, have been adjusted
to comply with IFRS. The financial statements of all subsidiaries
are prepared for the same reporting period as BIL and BIP.
On acquisition, the assets and liabilities and contingent liabilities
of a subsidiary are measured at their fair values at the date of
acquisition. Any excess of the cost of acquisition over the fair
values of the identifiable net assets acquired is recognised as
goodwill. Any deficiency of the cost of acquisition below the
fair values of the identifiable net assets acquired (i.e. discount
on acquisition) is credited to the income statement in the period
of acquisition. The interest of minority shareholders is stated
at the minority’s proportion of the fair values of the assets and
liabilities recognised.
The results of subsidiaries acquired or disposed of during the
year are included in the consolidated income statement from the
effective date of acquisition or up to the effective date of disposal,
as appropriate.
Brambles has taken advantage of the exemption permitted by
IFRS 1/AASB 1 and elected not to apply IFRS 3/AASB 3: Business
Combinations retrospectively to business combinations, including
the creation of the DLC structure itself, entered into prior to the
transition to IFRS.
Fair values at the time of executing the DLC Structure Sharing
Agreement between BIL and BIP were not applied in the
preparation of the combined financial statements under UK GAAP
and AGAAP. Previously, the combined financial statements
were prepared by applying accounting principles similar to those
adopted under UIG Abstract 13: The Presentation of the Financial
Report of Entities whose Securities are ‘Stapled’. The continuation
of this consolidation basis under IFRS is in accordance with UIG
Interpretation 1001: Consolidated Financial Reports in relation to
Pre-Date-of-Transition Dual Listed Company Arrangements.
INVESTMENT IN JOINT VENTURES AND ASSOCIATES
Investments in associates, where Brambles exercises significant
influence, and other joint venture entities are accounted for using
the equity method in the consolidated financial statements, and
include any goodwill arising on acquisition. Under this method,
Brambles’ share of the profits or losses of associates and joint
ventures is recognised in the consolidated balance sheet and its
share of movements in reserves is recognised in consolidated
reserves. Cumulative movements are adjusted against the cost
of the investment.
If Brambles’ share of losses in an associate or joint venture
exceeds its interest in the associate or joint venture, Brambles
does not recognise further losses unless it has incurred
obligations or made payments on behalf of its associate
or joint venture.
Loans to equity accounted associates and joint ventures under
formal loan agreements are long term in nature and are included
as investments.
Where there has been a change recognised directly in the joint
venture’s or associate’s equity, Brambles recognises its share
of any changes as a change in equity.
NON-CURRENT ASSETS HELD FOR SALE
Non-current assets and disposal groups classified as held for sale
are measured at the lower of carrying amount and fair value less
costs to sell.
Non-current assets and disposal groups are classified as held
for sale if their carrying amount will be recovered through a sale
transaction rather than through continuing use. This condition
is regarded as met only when the sale is highly probable and
the asset (or disposal group) is available for immediate sale in
its present condition. Management must be committed to the
sale which should be expected to qualify for recognition as a
completed sale within one year from the date of classification.
DISCONTINUED OPERATIONS
The trading results for business operations disposed during the
year or classified as held for sale are disclosed separately as
discontinued operations in the income statement. The amount
disclosed includes any related impairment losses recognised
and any gains or losses arising on disposal.