ANNUAL%20REPORT%202015%20eng

Notes to Consolidated Financial Statements
2 SIGNIFICANT ACCOUNTING POLICIES (Continued)
(z)
Segment reporting
Operating segments, and the amounts of each segment item reported in the financial statements,
are identified from the financial information provided regularly to the Group’s most senior executive
management for the purposes of allocating resources to, and assessing the performance of, the
Group’s various lines of business and geographical locations.
Individually material operating segments are not aggregated for financial reporting purposes unless the
segments have similar economic characteristics and are similar in respect of the nature of products
and services, the nature of production processes, the type or class of customers, the methods used to
distribute the products or provide the services, and the nature of the regulatory environment. Operating
segments which are not individually material may be aggregated if they share a majority of these
criteria.
3 ACCOUNTING JUDGEMENTS AND ESTIMATES
In determining the carrying amounts of certain assets and liabilities, the Group makes assumptions of
the effects of uncertain future events on those assets and liabilities at the balance sheet date. These
estimates involve assumptions about such items as risk adjustment to cash flows or discount rates used,
future changes in salaries and future changes in prices affecting other costs. The Group’s estimates and
assumptions are based on the expectations of future events and are reviewed periodically. In addition to
assumptions and estimations of future events, judgements are also made during the process of applying
the Group’s accounting policies. In addition to those disclosed in Note 27 about equity-settled share-based
payment transactions and in Note 31(c) about the environmental contingencies, other significant accounting
estimates and judgements were summarised as follows:
(a)
Critical accounting judgements in applying the Group’s accounting policies
(i)
Reserves
The Group estimates and reports Mineral Resources and Ore Reserves, commonly referred to
as Coal Resources and Coal Reserves in the coal mining industry, meeting requirements of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“the
JORC Code”), and subsequently the Australian Guidelines for the Estimation and Classification of
Coal Resources (2014) to which are referred.
The JORC Code is a professional code of practice that sets minimum standards for Public
Reporting of minerals Exploration Results, Mineral Resources and Ore Reserves. The JORC
Code provides a mandatory system for the classification of minerals Exploration Results, Mineral
Resources and Ore Reserves according to the levels of confidence in geological knowledge and
technical and economic considerations in Public Reports.
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Annual Report 2015