annual report 2011
annual report 2011
annual report 2011
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IOOF | <strong>annual</strong> <strong>report</strong> <strong>2011</strong><br />
Notes to the financial statements<br />
For the year ended 30 June <strong>2011</strong><br />
1 Reporting entity<br />
IOOF Holdings Ltd (the “Company”) is a company domiciled<br />
in Australia. The consolidated financial statements of the<br />
Company as at and for the year ended 30 June <strong>2011</strong> comprise<br />
the Company and its subsidiaries (together referred to as the<br />
“Group”) and the Group’s interest in associates. The Group<br />
primarily is involved in the provision of wealth management<br />
services.<br />
The Company’s registered office and its principal place of<br />
business are as follows:<br />
Registered office and principal place of business<br />
Level 6, 161 Collins Street, Melbourne, VIC 3000<br />
2 Basis of preparation<br />
(a) Statement of compliance<br />
The consolidated financial statements are general purpose<br />
financial statements which have been prepared in accordance<br />
with Australian Accounting Standards (AASBs) adopted by<br />
the Australian Accounting Standards Board (AASB) and the<br />
Corporations Act 2001. The consolidated financial statements<br />
comply with International Financial Reporting Standards (IFRS)<br />
adopted by the International Accounting Standards Board (IASB).<br />
The consolidated financial statements were authorised for issue<br />
by the Board of Directors on 25 August <strong>2011</strong>.<br />
(b) Basis of measurement<br />
The consolidated financial statements have been prepared on<br />
the historical cost basis except for the following material items in<br />
the statement of financial position:<br />
• financial instruments at fair value through profit or loss are<br />
measured at fair value;<br />
• available-for-sale financial assets are measured at fair value;<br />
and<br />
• share-buy back liabilities are measured at fair value.<br />
The statement of financial position is presented in order of<br />
liquidity.<br />
(c)<br />
Functional and presentation currency<br />
These consolidated financial statements are presented in<br />
Australian dollars, which is the Company’s functional currency.<br />
The Company is of a kind referred to in ASIC Class Order 98/100<br />
dated 10 July 1998 and in accordance with that Class Order, all<br />
financial information presented in Australian dollars has been<br />
rounded to the nearest thousand unless otherwise stated.<br />
Amounts included in narratives are expressed as whole dollars<br />
but rounded to the nearest thousand unless otherwise stated.<br />
(d) Use of estimates and judgements<br />
The preparation of financial statements in conformity with<br />
AASBs requires management to make judgements, estimates<br />
and assumptions that affect the application of accounting<br />
policies and the <strong>report</strong>ed amounts of assets, liabilities, income<br />
and expenses. Actual results may differ from these estimates.<br />
Estimates and underlying assumptions are reviewed on<br />
an ongoing basis. Revisions to accounting estimates are<br />
recognised in the period in which the estimates are revised<br />
and in any future periods affected.<br />
Information about critical judgements in applying accounting<br />
policies that have the most significant effect on the amounts<br />
recognised in the financial statements is included in the<br />
following notes:<br />
• note 3 (o)(i) - utilisation of tax losses and uncertain tax<br />
position<br />
• note 3(q) - Deferred acquisition costs<br />
• note 3(w) - Liability to buy back vested shares<br />
• note 18 - Goodwill<br />
• note 19 - Other intangible assets<br />
• note 31 - Share-based payments<br />
Information about assumptions and estimation uncertainties<br />
that have a significant risk of resulting in a material adjustment<br />
within the next financial year are included in the following<br />
notes:<br />
• note 18 & 19 - key assumptions used in discounted cash<br />
flow projections<br />
• note 24 & 37 - provisions and contingencies.<br />
(e) Changes in accounting policies<br />
From 1 July 2010 the Group has applied amendments to<br />
AASB 101 Presentation of Financial Statements outlined in<br />
AASB 2010-4 Further amendments to Australian Accounting<br />
Standards arising from the Annual Improvements Project.<br />
The change in accounting policy only relates to disclosures<br />
and has had no impact on consolidated earnings per share or<br />
net income. The changes have been applied retrospectively<br />
and allow the Group to disclose transactions recognised in<br />
other comprehensive income in the note 27 to the financial<br />
statements.<br />
From 1 July 2010 the Group has adopted a change in<br />
accounting policy for the recognition of the movement<br />
in liabilities to buy back vested shares. Under the previous<br />
accounting policy, the changes in the fair value of the liability<br />
was recorded in profit or loss. The change in accounting<br />
policy is to recognise these movements in a share buy back<br />
revaluation reserve which more accurately reflects the nature<br />
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