2012 Annual Report - Domino's Pizza

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NOTES TO THE FINANCIAL STATEMENTS CONTINUED 2.3 Standards and Interpretations in issue not yet adopted At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective. These are not expected to significantly affect the reporting results or financial position for the Consolidated entity going forward. STANDARD/INTERPRETATION AASB 9 Financial Instruments, AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 and AASB2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) AASB 10 ‘Consolidated Financial Statements’ AASB 11 ‘Joint Arrangements’ AASB 12 ‘Disclosure of Interests in Other Entities’ AASB 127 ‘Separate Financial Statements’ (2011) AASB 128 ‘Investments in Associates and Joint Ventures’ (2011) AASB 13 ‘Fair Value Measurement’ and AASB 2011-8 ‘Amendments to Australian Accounting Standards arising from AASB 13’ AASB 119 ‘Employee Benefits’ (2011) and AASB 2011-10 ‘Amendments to Australian Accounting Standards arising from AASB 119 (2011)’ AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying Assets AASB 2011-4 ‘Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements’ AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements standards’ AASB 2011-9 ‘Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income’ Interpretation 20 ‘Stripping Costs in the Production Phase of a Surface Mine’ and AASB 2011-12 ‘Amendments to Australian Accounting Standards arising from Interpretation 20’ EFFECTIVE FOR ANNUAL REPORTING PERIODS BEGINNING ON OR AFTER EXPECTED TO BE INITIALLY APPLIED IN THE FINANCIAL YEAR ENDING 1 January 2013 30 June 2014 1 January 2013 30 June 2014 1 January 2013 30 June 2014 1 January 2013 30 June 2014 1 January 2013 30 June 2014 1 January 2013 30 June 2014 1 January 2013 30 June 2014 1 January 2013 30 June 2014 1 January 2012 30 June 2013 1 July 2013 30 June 2014 1 January 2013 30 June 2014 1 July 2013 30 June 2013 1 January 2013 30 June 2014 The following IASB Standards and IFRIC Interpretations are also in issue but not yet effective, although Australian equivalent Standards/Interpretations have not yet been issued. STANDARD/INTERPRETATION EFFECTIVE FOR ANNUAL REPORTING PERIODS BEGINNING ON OR AFTER EXPECTED TO BE INITIALLY APPLIED IN THE FINANCIAL YEAR ENDING Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32) 1 January 2014 30 June 2015 Disclosures – Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7) 1 January 2013 30 June 2014 Mandatory Effective Date of IFRS 9 and Transition Disclosures (Amendments to IFRS 9 and IFRS 7) 1 January 2015 30 June 2016 34 ANNUAL REPORT 2012 DOMINO’S PIZZA ENTERPRISES LIMITED
3. SIGNIFICANT ACCOUNTING POLICIES 3.1 Statement of compliance These financial statements are general purpose financial statements which have been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and comply with other requirements of the law. The financial statements comprise the consolidated financial statements of the Consolidated entity for the 52-week period ended 1 July 2012. For the purposes of preparing the consolidated financial statements, the Company is a for-profit entity. Accounting Standards include Australian Accounting Standards. Compliance with Australian Accounting Standards ensures that the financial statements and notes of the Company and the Consolidated entity comply with International Financial Reporting Standards (‘IFRS’). The financial statements were authorised for issue by the directors on 13 August 2012. 3.2 Basis of preparation The financial report has been prepared on the basis of historical cost, except for the revaluation of certain financial instruments. Historical cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. The Company is a company of the kind referred to in ASIC Class Order 98/0100, dated 10 July 1998, and in accordance with that Class Order amounts in the financial report are rounded off to the nearest thousand dollars, unless otherwise indicated. The following significant accounting policies have been adopted in the preparation and presentation of the financial report: 3.3 Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) (referred to as ‘the Consolidated entity’ in these financial statements). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Consolidated entity. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. 3.4 Business combinations Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration for each acquisition is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Consolidated entity in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred. Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify as measurement period adjustments (see below). All other subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify as contingent consideration classified as an asset or liability and are accounted for in accordance with relevant Standards. Changes in the fair value of contingent consideration classified as equity are not recognised. Where a business combination is achieved in stages, the Consolidated entity previously held interests in the acquired entity are remeasured to fair value at the acquisition date (i.e. the date the Consolidated entity attains control) and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under AASB 3(2008) are recognised at their fair value at the acquisition date, except that: • deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised and measured in accordance with AASB 112 Income Taxes and AASB 119 Employee Benefits respectively; • liabilities or equity instruments related to the replacement by the Consolidated entity of an acquiree’s share-based payment awards are measured in accordance with AASB 2 Share-based Payment; and • assets (or disposal groups) that are classified as held for sale in accordance with AASB 5 ‘Non-current Assets Held for Sale and Discontinued Operations’ are measured in accordance with that Standard. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Consolidated entity reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see below), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date. The measurement period is the period from the date of acquisition to the date the Consolidated entity obtains complete information about facts and circumstances that existed as of the acquisition date – and is subject to a maximum of one year. 3.5 Investments in associates An associate is an entity over which the Consolidated entity has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but has no control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with AASB 5 ‘Non-current Assets Held for Sale and Discontinued Operations’. Under the equity method, investments in associates are carried in the consolidated balance sheet at cost as adjusted for post-acquisition changes in the Consolidated entity’s share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of the Consolidated entity’s interest in that associate (which includes any long-term interests that, in substance, form part of the Consolidated entity’s net investment in the associate) are recognised only to the extent that the Consolidated entity has incurred legal or constructive obligations or made payments on behalf of the associate. Any excess of the cost of acquisition over the Consolidated entity’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the associate recognised at the date of the acquisition is recognised as goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of that investment. Any excess of the Consolidated entity’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of the acquisition, after reassessment, is recognised immediately in profit or loss. Where a group entity transacts with an associate of the Consolidated entity, profits and losses are eliminated to the extent of the Consolidated entity’s interest in the relevant associate. ANNUAL REPORT 2012 DOMINO’S PIZZA ENTERPRISES LIMITED 35
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Theatre Of Food ANNUAL REPORT 2012
Page 3 and 4:
RECORD GROWTH IN EUROPE - TOTAL NET
Page 5 and 6:
CHAIRMAN’S message Embracing tech
Page 7 and 8:
Financial PERFORMANCE Investing in
Page 9 and 10: Digital Australia and New Zealand O
Page 11 and 12: New stores new designs Australia an
Page 13 and 14: The Future We remain focused and de
Page 15 and 16: Healthier CHOICES A rally to health
Page 17: Healthier ingredients Domino’s pr
Page 20 and 21: Theatre Of Food For THE LOve of FOO
Page 22 and 23: Connecting Through technology Techn
Page 24 and 25: FRANCE AND BELGIUM To interact with
Page 26 and 27: Domino’s Pizza Enterprises Ltd 8t
Page 28 and 29: KEY FINANCIAL INDICATORS 2006 2007
Page 30 and 31: CORPORATE GOVERNANCE STATEMENT CONT
Page 36 and 37: DIRECTORS’ REPORT The directors o
Page 38 and 39: DIRECTORS’ REPORT CONTINUED Share
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Page 42 and 43: DIRECTORS’ REPORT CONTINUED REMUN
Page 44 and 45: DIRECTORS’ REPORT CONTINUED BONUS
Page 46 and 47: DIRECTORS’ REPORT CONTINUED The f
Page 48 and 49: AUDITOR’S INDEPENDENCE DECLARATIO
Page 50 and 51: INDEPENDENT AUDITOR’S REPORT CONT
Page 53 and 54: INDEX TO THE FINANCIAL REPORT CONTE
Page 55 and 56: CONSOLIDATED STATEMENT OF FINANCIAL
Page 57 and 58: CONSOLIDATED STATEMENT OF CASH FLOW
Page 59: 2.2 Standards and Interpretations a
Page 63 and 64: 3.8.5 Dividend and interest revenue
Page 65 and 66: For certain categories of financial
Page 67 and 68: 3.20 Impairment of tangible and int
Page 69 and 70: 4. CRITICAL ACCOUNTING JUDGEMENTS A
Page 71 and 72: 6.3 Segment assets and liabilities
Page 73 and 74: 10. INCOME TAXES 10.1 Income tax re
Page 75 and 76: 10.4 Deferred tax balances 2012 OPE
Page 77 and 78: 11. PROFIT FOR THE YEAR FROM CONTIN
Page 79 and 80: 13. TRADE AND OTHER RECEIVABLES Tra
Page 81 and 82: Ageing of loans to franchisees Amou
Page 83 and 84: 18. PROPERTY, PLANT AND EQUIPMENT 2
Page 85 and 86: Key assumptions The key assumptions
Page 87 and 88: 22. TRADE AND OTHER PAYABLES Trade
Page 89 and 90: 26. OTHER LIABILITIES 2012 $’000
Page 91 and 92: 29. RESERVES Foreign currency trans
Page 93 and 94: 32.1.1 Gearing ratio Debt (i) 14,04
Page 95 and 96: The following table details the val
Page 97 and 98: 32.9 Liquidity risk management The
Page 99 and 100: The following share-based payment a
Page 101 and 102: 34. KEY MANAGEMENT PERSONNEL COMPEN
Page 103 and 104: The compensation of each member of
Page 105 and 106: Executive share options of Domino
Page 107 and 108: 36. ACQUISITION OF BUSINESSES NAME
Page 109 and 110: 37.1 Reconciliation of profit for t
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43. PARENT ENTITY INFORMATION 43.1
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TWENTY LARGEST HOLDERS OF QUOTED EQ
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CORPORATE DIRECTORY DIRECTORS Ross
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ANNUAL REPORT 2012 DOMINO’S PIZZA
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2012 Annual Report - Domino's Pizza

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