AWB Limited - 2004 Annual Report

More documents

Recommendations

Info

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2004 36. DISCLOSING THE IMPACT OF ADOPTING AASB EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (A-IFRS) (continued) (d) Inventories AASB 102 Inventories will not be applicable to the measurement of inventories held by commodity broker–traders who acquire inventories principally with the purpose of selling in the near future and generating a profit from fluctuations in price or broker–traders' margin. The inventories of commodity broker–traders will be able to be measured at fair value less costs to sell with changes in fair value less costs to sell recognised in the statement of financial performance. AWB grain acquisition and trading activities are conducted as a commodity broker–trader. The consolidated entity's current policy is to recognise grain acquisition and trading inventories at the lower of cost or net realisable value. Reliable estimation of the future financial impact is impracticable because the scale of future inventories and the conditions under which their fair value will be assessed are not yet known. (e) Financial instruments: recognition and measurement Classification of financial instruments Under AASB 139 Financial Instruments: Recognition and Measurement, financial instruments will be required to be classified into one of the following categories which will, in turn, determine the accounting treatment of the item. (i) loans and receivables– measured at amortised cost; (ii) held to maturity – measured at amortised cost; (iii) held for trading – measured at fair value with fair value changes charged to net profit or loss; (iv) available for sale – measured at fair value with fair value changes taken to equity; and (v) non–trading liabilities – measured at amortised cost. This will result in a change in the current accounting policy that does not classify financial instruments in this prescribed manner. In addition, the fair value of certain derivative financial instruments is separately disclosed (refer Note 31 (f ) Financial Instruments) but not recognised the statement of financial position. The future financial effect of this change in accounting policy is not yet known as the classification and measurement process has not yet been fully completed and the conditions under which gains or losses will be measured are not yet known. Hedge accounting Under AASB 139 Financial Instruments: Recognition and Measurement, in order to achieve a qualifying hedge the consolidated entity is required to meet the following criteria: identify the type of hedge – fair value or cash flow; identify the hedged item or transaction; identify the nature of the risk being hedged; identify the hedging instrument; demonstrate that the hedge has been and will continue to be highly effective; and document the hedging relationship, including the risk management objectives and strategy for undertaking the hedge and how effectiveness will be tested. The consolidated entity applies hedge accounting to derivatives entered into for the purpose of hedging anticipated transactions as outlined at Note 1(h). These contracts are general hedges and may not be able to be separately identified and documented in accordance with the requirements of AASB 139. Where hedge accounting will no longer be able to be applied, all gains and losses on the contracts will be recognised in the statement of financial performance. Reliable estimation of the future financial impact is impracticable because assessment of the impact of implementing the required documentation changes is yet to be completed. (f) Income taxes Under AASB 112 Income Taxes, the consolidated entity will be required to use a balance sheet liability method which focuses on the tax effects of transactions and other events that affect amounts recognised in either the statement of financial position or a tax–based statement of financial position. Under current Australian Accounting Standards, income tax losses can only be brought to account as an asset if they are considered virtually certain of realisation. AASB 112 requires income tax losses to be brought to account as an asset if they are probable of realisation. Probable is defined as more likely than not. It is not expected that there will be any material impact as a result of adoption of this standard. 102
DIRECTORS' DECLARATION In accordance with a resolution of the directors of AWB Limited, we state that: (1) in the opinion of the directors: (a) the financial statements and notes of the company and of the consolidated entity are in accordance with the Corporations Act 2001, including: – giving a true and fair view of the company's and consolidated entity's financial position as at 30 September 2004 and of their performance for the year ended on that date; and – complying with Accounting Standards and the Corporations Regulations 2001; and (b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and (2) in the opinion of the directors, as at the date of this declaration, there are reasonable grounds to believe that the companies and parent entity which are party to the Deed of Cross Guarantee identified in Note 32 will be able to meet any obligations or liabilities to which they are or may become subject, by virtue of the Deed of Cross Guarantee. This declaration is made in accordance with a resolution of the directors on behalf of the board. Brendan Stewart Chairman Sydney 24 November 2004 Andrew Lindberg Managing Director 103
Page 1 and 2:
Annual Report 2004
Page 3 and 4:
Who We Are AWB Limited (AWB) is Aus
Page 5 and 6:
Finance AWB harvest finance book pe
Page 7 and 8:
Five Year Summary 2004 2003 2002 20
Page 9 and 10:
Chairman’s and Managing Director
Page 11 and 12:
To continue building its capability
Page 13 and 14:
Pool Management Services Highlights
Page 15 and 16:
AWB National Pool participants. AWB
Page 17 and 18:
Landmark Highlights Integrated Land
Page 19 and 20:
the integration, Landmark has reloc
Page 21 and 22:
Finance and Risk Management Highlig
Page 23 and 24:
Finance Limited, a wholly owned, ba
Page 25 and 26:
Grain Acquisition and Trading Highl
Page 27 and 28:
through the AWB Geneva office, both
Page 29 and 30:
Supply Chain & Other Investments Hi
Page 31 and 32:
The Five Star Feed Mill, located on
Page 33 and 34:
Our People AWB employs over 2,700 p
Page 35 and 36:
More than 70% of AWB’s employees
Page 37 and 38:
Our Social Commitment Together with
Page 39 and 40:
Social service providers While not
Page 41 and 42:
7. Richard Fuller General Manager,
Page 43 and 44:
Independence All of the current 11
Page 45 and 46:
Services Agreement Committee The Se
Page 47 and 48:
its observance provides the foundat
Page 49 and 50:
Promotion Committee and Founding Ch
Page 51 and 52:
1. Brendan Stewart Chairman, Non-ex
Page 54 and 55: DIRECTORS' REPORT Your directors su
Page 56 and 57: DIRECTORS' REPORT (continued) REMUN
Page 58 and 59: DIRECTORS' REPORT (continued) DIREC
Page 60 and 61: DIRECTORS' REPORT (continued) DIREC
Page 62 and 63: STATEMENT OF FINANCIAL PERFORMANCE
Page 64 and 65: STATEMENT OF CASH FLOWS FOR THE YEA
Page 66 and 67: NOTES TO AND FORMING PART OF THE FI
Page 106 and 107: INDEPENDENT AUDIT REPORT TO THE MEM
Page 108 and 109: SHAREHOLDER COMMUNICATION FINANCIAL
Page 110 and 111: GLOSSARY AWB Basis Pool AWB Basis P
Page 112: Head Office 380 La Trobe Street Mel
show all

AWB Limited - 2004 Annual Report

Create successful ePaper yourself

Delete template?

Save as template?