INSTRUCTIONS - Realview

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2009Note 1 Summary of significant accountingpolicies cont.(b) Principles of consolidation cont.(i) Subsidiaries cont.Subsidiaries are all those entities (including special purposeentities) over which the Group has the power to govern thefinancial and operating policies so as to obtain benefitsfrom its activities, generally accompanying a shareholdingof more than one half of the voting rights. The existenceand effect of potential voting rights that are currentlyexercisable or convertible are considered when assessingwhether the Group controls another entity.Subsidiaries are consolidated from the date on whichcontrol commences until the date control ceases.Intercompany transactions, balances and unrealised gainson transactions between Group companies are eliminated.Unrealised losses are also eliminated unless the transactionprovides evidence of the impairment of the asset transferred.Accounting policies of subsidiaries have been changedwhere necessary to ensure consistency with the policiesadopted by the Group.Investments in subsidiaries are accounted for at cost inthe individual financial statements of St Barbara Limited.(ii) Associates and jointly controlled entitiesAssociates are all entities over which the Group hassignificant influence but not control, generally accompanyinga shareholding of between 20% and 50% of voting rights.An interest in an associate and a jointly controlled entityis accounted for in the consolidated financial statementsusing the equity method and is carried at cost by the parententity. Under the equity method, the share of the profitsor losses of the partnership is recognised in the incomestatement, and the share of movements in reserves isrecognised in reserves in the balance sheet.Profits or losses on transactions establishing the joint ventureentity and transactions with the joint venture are eliminatedto the extent of the Group’s ownership interest until suchtime as they are realised by the joint venture entity onconsumption or sale, unless they relate to an unrealisedloss that provides evidence of the impairment of anasset transferred.(iii) Jointly controlled operations and assetsDetails of unincorporated joint ventures and jointlycontrolled assets are set out in Note 31.(c) Segment reportingA business segment is a group of assets and operationsengaged in providing products or services that are subjectto risks and returns that are different to those of otherbusiness segments. A geographical segment is engaged inproviding products or services within a particular economicenvironment and is subject to risks and returns that aredifferent from those of segments operating in othereconomic environments.(d) Foreign currency translation(i) Functional and presentation currencyThe consolidated financial statements are presented inAustralian dollars, which is St Barbara Limited’s functionaland presentation currency.(ii) Transactions and balancesForeign currency transactions are translated into the functionalcurrency using the exchange rates prevailing at the datesof the transactions. Foreign exchange gains and lossesresulting from the settlement of such transactions and fromthe translation at year end exchange rates of monetaryassets and liabilities denominated in foreign currencies arerecognised in the income statement, except when deferredin equity as qualifying cash flow hedges and qualifying netinvestment hedges.Translation differences on non-monetary financial assetsand liabilities are reported as part of the fair value gain orloss. Translation differences on non-monetary financialassets and liabilities such as equities held at fair valuethrough profit or loss are recognised in the income statementas part of the fair value gain or loss. Translation differenceson non-monetary financial assets, such as equities classifiedas available-for-sale financial assets, are included in thefair value reserve in equity.(e) Revenue recognitionRevenue is measured at the fair value of the considerationreceived or receivable. Amounts disclosed as revenue arenet of amounts collected on behalf of third parties. TheGroup recognises revenue when the significant risks andrewards of ownership have been transferred to the buyer,the amount of revenue can be reliably measured, andthe associated costs and possible return of goods can beestimated reliably, and it is probable that future economicbenefits will flow to the Group.Where material, the proportionate interests in the assets,liabilities and expenses of a joint venture activity areincorporated in the financial statements under theappropriate headings.stbarbara.com.au – Annual Report 2009: 51