Abacus Property Group – Annual Financial Report 2018

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
ABACUS PROPERTY GROUP
22. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001 and Australian Accounting Standards. The financial report has also
been prepared on a historical cost basis, except for investment properties and derivative financial instruments
which have been measured at fair value, interests in joint ventures and associates which are accounted for using
the equity method, and certain investments and financial assets measured at fair value.
The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars
($'000) unless otherwise stated under the option available to the Group under ASIC Corporations Instrument
2017/191. The Group is an entity to which the class order applies.
(b) Statement of Compliance
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS), as issued by the AASB and IASB respectively.
(c) New accounting standards and interpretations
(i)
Changes in accounting policy and disclosures
The accounting policies adopted are consistent with those of the previous financial year except for the adoption of
new standards and interpretations effective as of 1 July 2017.
The Group has adopted the following new or amended standards which became applicable on 1 July 2017:
- AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for
Unrealised Losses
- AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to
AASB 107
The adoption of these amended standards has no material impact on the financial statements of the Group.
(ii) Accounting Standards and Interpretation issued but not yet effective
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
effective have not been adopted by the Group for the annual reporting period ended 30 June 2018. The
significant new standards or amendments are outlined below:
- AASB 9 Financial Instruments (effective 1 January 2018 / applicable for Group 1 July 2018)
This standard includes requirement to improve and simplify the approach for classification and measurement
of financial assets compared with the requirements of AASB 139 Financial Instruments: Recognition and
Measurement. The Standard contains requirements in the areas of classification, measurement, hedge
accounting and derecognition.
The most significant change for the adoption of AASB 9 will be the introduction of the new impairment model
relating to the Group’s property loans. The Group is currently finalising its quantification of the impairment
that will be recognised on initial application of the accounting standard. As the year ending 30 June 2019 will
be the first time application of the Standard, the Group has elected to adjust the retained earnings of the
Group as at 1 July 2018 as opposed to restating the previous year amounts.
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