Annual Report - Bega Cheese

Notes
Notes Financial Statements
Period Ended 30 June 2010
Notes to the Financial Statements
Notes to the Financial Statements
Notes to the Financial Statements
Notes to the Financial Statements
1. Summary of Significant Accounting Policies
1. Summary of Significant The principal Accounting accounting Policies policies adopted in the preparation of the financial report are set out below. These policies have
The principal accounting been consistently policies adopted applied in to the all preparation the years presented, of the financial unless report otherwise are set stated. out below. The financial These report policies includes have separate financial
been consistently applied statements to all the for years Bega presented, Cheese as unless an individual otherwise entity stated. and The the financial consolidated report includes entity consisting separate financial of Bega Cheese and its
statements for Bega subsidiaries. Cheese as Bega an Cheese individual is domiciled entity and in the New consolidated South Wales entity and is consisting incorporated of in Bega Australia. Cheese The and address its of the registered
subsidiaries. Bega office Cheese is 23-45 is domiciled Ridge Street, in New Bega, South New Wales South and Wales. is incorporated in Australia. The address of the registered
office is 23-45 Ridge Street, Bega, New South Wales.
The financial statements were authorised for issue by the Directors on 28 September 2010. The Directors have the power to
The financial statements amend were and authorised re-issue the for financial issue by statements. the Directors on 28 September 2010. The Directors have the power to
amend and re-issue the financial statements.
a. Basis of Preparation
a. Basis of Preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other
These general purpose authoritative financial pronouncements statements have of been the prepared Australian in Accounting accordance Standards with Australian Board, Accounting Urgent Issues Standards, Group other Interpretations and the
authoritative pronouncements Corporations of Act the 2001. Australian Accounting Standards Board, Urgent Issues Group Interpretations and the
Corporations Act 2001.
At 30 June 2010 Tatura Milk Industries Limited (“Tatura Milk”), a subsidiary of Bega Cheese, has a material debt facility due
At 30 June 2010 Tatura for renegotiation Milk Industries within Limited 12 months (“Tatura from Milk”), the a date subsidiary of signing of Bega the financial Cheese, report. has a material The facility, debt a facility $60.0 due million facility of which
for renegotiation within $21.5 12 million months has from been the drawn date of down signing at year the end, financial is due report. for renewal The facility, on 31 a January $60.0 million 2011. facility This debt of which is currently disclosed as
$21.5 million has been current drawn in accordance down at year with end, the is relevant due for renewal accounting on 31 standards. January 2011. It is management’s This debt is currently intention disclosed to renegotiate as the facility for a
current in accordance further with 12 the months relevant such accounting that the full standards. amount does It is not management’s fall payable intention 31 January to renegotiate 2011. the facility for a
further 12 months such that the full amount does not fall payable on 31 January 2011.
Having reviewed and considered the banking arrangements, forecast profitability and cash flows and considering the
Having reviewed and strength considered of the entity's the banking relationship arrangements, with the financial forecast institution profitability the and Directors cash flows and management and considering have the formed the view that
strength of the entity's Tatura relationship Milk will with continue the financial as a going institution concern the from Directors the date and of management this report have and consequently formed the view will that realise its assets and
Tatura Milk will continue extinguish as a its going liabilities concern in the from normal the course date of of this business report at and the consequently amounts included will realise in the consolidated its assets and financial report. The
extinguish its liabilities financial the report normal for course the Group of business has therefore at the been amounts prepared included on a going the concern consolidated basis. financial report. The
financial report for the Group has therefore been prepared on a going concern basis.
Compliance with IFRS
Compliance with IFRS Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS).
Australian Accounting Compliance Standards with include AIFRS Australian ensures that equivalents the financial to International report of Bega Financial Cheese Reporting complies Standards with International (AIFRS). Financial Reporting
Compliance with AIFRS Standards ensures (IFRS). that the financial report of Bega Cheese complies with International Financial Reporting
Standards (IFRS).
Historical Cost Convention
Historical Cost Convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of
These financial statements available have for sale been financial prepared assets, under financial the historical assets and cost liabilities convention, (including as modified derivative by instruments) the revaluation at fair of value through profit
available for sale financial or loss, assets, certain classes financial of assets property, and plant liabilities and equipment (including derivative and investment instruments) property. at fair value through profit
or loss, certain classes of property, plant and equipment and investment property.
Critical Accounting Estimates
Critical Accounting The Estimates preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It
The preparation of also financial requires statements management in conformity to exercise with AIFRS its judgement requires in the use process of certain of applying critical accounting the Group’s estimates. accounting Itpolicies. There are
also requires management no areas to involving exercise a its high judgement degree of in judgement the process or of complexity. applying the Areas Group’s where accounting assumptions policies. and estimates There are are significant to the
no areas involving a financial high degree statements of judgement are disclosed or complexity. in the following Areas notes: where assumptions and estimates are significant to the
financial statements are disclosed in the following notes:
Note 8 Inventories
Note 8 Inventories
Note 10 Non-current assets – Other financial assets
Note 10 Non-current assets – Other financial assets
Note 12 Non-current assets – Intangible assets
Note 12 Non-current assets – Intangible assets
Financial Statement Presentation
Financial Statement The Presentation Group has applied the revised AASB 101 Presentation of Financial Statements which became effective on 1 January
The Group has applied 2009. the The revised AASB standard 101 Presentation requires the separate of Financial presentation Statements of a which statement became of comprehensive effective on 1 January income and a statement of
2009. The revised changes standard in requires equity. the All separate non-owner presentation changes in of equity a statement must now of comprehensive be presented in income the statement and a statement of comprehensive of income. As
changes in equity. a All consequence, non-owner changes the Group in equity had to must change now the be presentation presented in of the its statement financial statements. of comprehensive Comparative income. information As has been represented
Group had so to that change it is also the in presentation conformity of with its the financial revised statements. standard Comparative information has been re-
a consequence, the
presented so that it is also in conformity with the revised standard
The above statements of Cash Flows should be read in conjunction with the accompanying notes.
The above statements of Cash Flows should be read in conjunction with the accompanying notes.
Bega Cheese Limited 2010 Annual Report 17
Bega Cheese Limited 2010 Annual Report 17