2012 Annual Report (2 April 2013) - Grange Resources

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2012 ANNUAL REPORT
Notes to the Financial Statements (cont.)
NOTE 1. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (cont.)
(af) Earnings per share (EPS)
(i)
Basic earnings per share
Basic earnings per share is calculated by dividing:
◆◆
◆◆
the profit attributable to equity holders of the Company,
excluding any costs of servicing equity other than ordinary
shares;
by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the period and
excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into account:
◆◆
◆◆
the after income tax effect of interest and other financing
costs associated with dilutive potential ordinary shares; and
the weighted average number of additional ordinary shares
that would have been outstanding assuming the conversion of
all dilutive potential ordinary shares.
(ag) Parent entity financial information
The financial information for the parent entity, Grange Resources
Limited, disclosed in Note 42 has been prepared on the same
basis as the consolidated financial statements, except as set out
below.
Investments in subsidiaries, associates and
joint venture entities
Investments in subsidiaries, associates and joint venture entities
are accounted for at cost in the financial statements of Grange
Resources Limited. Dividends received from associates are
recognised in the parent entity’s profit or loss, rather than being
deducted from the carrying amount of these investments.
Financial guarantees
Where the parent entity has provided financial guarantees
in relation to loans and payables of subsidiaries for no
compensation, the fair values of these guarantees are accounted
for as contributions and recognised as part of the cost of the
investment.
(ah) Rounding of amounts
The Company is a kind referred to in Class Order 98/100, issued
by the Australian Securities and Investments Commission, relating
to the “rounding off” of amounts in the financial report. Amounts in
the financial report have been rounded off in accordance with that
Class Order to the nearest thousand dollars, or in certain cases,
the nearest dollar.
(ai) New accounting standards and interpretations
Certain new accounting standards and interpretations have
been published that are not mandatory for 31 December 2012
reporting periods. The Group’s assessment of the impact of
these new standards and interpretations is set out below.
(i) AASB 9 Financial Instruments, AASB 2009-11
Amendments to Australian Accounting Standards
arising from AASB 9 and AASB 2010-7 Amendments
to Australian Accounting Standards arising from AASB
9 (December 2010) and AASB 2012-6 Amendments to
Australian Accounting Standards – Mandatory Effective
Date of AASB 9 and Transition Disclosures (effective
from 1 January 2015)
AASB 9 Financial Instruments addresses the classification,
measurement and derecognition of financial assets and
financial liabilities. The standard is not applicable until
1 January 2015 but is available for early adoption. The
Company intends to apply the standard from 1 January 2015.
Application of this standard will not have a significant impact
on the Group.
(ii) AASB 10 Consolidated Financial Statements, AASB 11
Joint Arrangements, AASB 12 Disclosure of Interests
in Other Entities, revised AASB 127 Separate Financial
Statements and AASB 128 Investments in Associates
and Joint Ventures and AASB 2011-7 Amendments
to Australian Accounting Standards arising from the
Consolidation and Joint Arrangements Standards
(effective 1 January 2013)
In August 2011, the AASB issued a suite of five new and
amended standards which address the accounting for
joint arrangements, consolidated financial statements and
associated disclosures.