AWB Limited - 2003 Annual Report

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2003
1. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued )
(s) Employee benefits
Provision is made for long service leave and annual leave estimated
to be payable to employees on the basis of their terms of
employment and statutory requirements. The provision calculations
include all employee related on–costs and are based on total
remuneration packages. This method of calculating provisions
provides a result that is materially correct in accordance with AASB
1028: Employee Benefits.
In respect of the consolidated entity's accumulation fund, any
contributions made to the superannuation funds by entities within
the consolidated entity are charged against profits when due.
(t) Interest bearing liabilities
All loans are measured at the principal amount. Interest is charged
as an expense as it accrues.
(u) Share capital
Ordinary share capital is recognised at the fair value of the
consideration received by AWB Limited. Any transaction costs
arising on the issue of ordinary shares are recognised directly in
equity as a reduction of the share proceeds received.
(v) Earnings per share
Basic earnings per share is calculated as net profit attributable to
members, adjusted to exclude costs of servicing equity (other than
dividends) and preference share dividends, divided by the weighted
average number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as the net profit
attributable to members, adjusted for:
costs of servicing equity (other than dividends) and preference
share dividends;
the after tax effect of dividends and interest associated with
dilutive potential ordinary shares that have been recognised as
expenses; and
other non–discretionary changes in revenues and expenses
during the period that would result from the dilution of potential
ordinary shares divided by the weighted average number of
ordinary shares and dilutive potential ordinary shares, adjusted
for any bonus element.
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