Abacus Property Group – Annual Financial Report 2018
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NOTES TO THE FINANCIAL STATEMENTS<br />
30 JUNE <strong>2018</strong><br />
ABACUS PROPERTY GROUP<br />
22. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<br />
(c) New accounting standards and interpretations (continued)<br />
AASB 2014-10, AASB 2016-5, AASB 2017-1, AASB 2017-2, AASB 2017-5 and AASB Interpretation 23 are<br />
applicable to the <strong>Group</strong>, however will have no significant impact on the <strong>Group</strong>.<br />
AASB 2016-6, AASB 2017-3, AASB 2017-4, AASB 2017-6 AASB <strong>2018</strong>-1, AASB <strong>2018</strong>-2, AASB Interpretation 22,<br />
AASB 2017-8 and AASB 17 will have no application to the <strong>Group</strong>.<br />
(d) Basis of consolidation<br />
The consolidated financial statements comprise the financial statements of AGHL and its subsidiaries, AT and its<br />
subsidiaries, AGPL and its subsidiaries, AIT and its subsidiaries, ASPT and its subsidiaries and ASOL and its<br />
subsidiaries collectively referred to as the <strong>Group</strong>.<br />
Subsidiaries are all those entities over which the <strong>Group</strong> has power over the investee such that the <strong>Group</strong> is able<br />
to direct the relevant activities, has exposure or rights to variable returns from its involvement with the investee<br />
and has the ability to use its power over the investee to affect the amount of the investor’s returns.<br />
The adoption of AASB 10 resulted in the consolidation of <strong>Abacus</strong> Hospitality Fund and <strong>Abacus</strong> Wodonga Land<br />
Fund. This is due to the combination of the <strong>Group</strong>’s role as responsible entity and its exposure to variable returns<br />
arising from its collective equity and loan investments in these funds and certain guarantees.<br />
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using<br />
consistent accounting policies with adjustments made to bring into line any dissimilar accounting policies that may<br />
exist.<br />
All intercompany balances and transactions, including unrealised profits from intra-group transactions, have been<br />
eliminated in full and subsidiaries are consolidated from the date on which control is transferred to the <strong>Group</strong> and<br />
cease to be consolidated from the date on which control is transferred out of the <strong>Group</strong>. Where there is a loss of<br />
control of a subsidiary, the consolidated financial statements include the results for the part of the reporting period<br />
during which the <strong>Group</strong> has control.<br />
The acquisition of subsidiaries is accounted for using the purchase method of accounting. The purchase method<br />
of accounting involves allocating the cost of the business combination to the fair value of the assets acquired and<br />
the liabilities and contingent liabilities assumed at the date of acquisition.<br />
Non-controlling interests are allocated their share of net profit after tax in the consolidated income statement and<br />
are presented within equity in the consolidated statement of financial position, separately from the equity of the<br />
owners of the parent.<br />
Non-controlling interests represent those equity interests in <strong>Abacus</strong> Hospitality Fund, <strong>Abacus</strong> Wodonga Land<br />
Fund, <strong>Abacus</strong> Jigsaw Trust, Lutwyche City Shopping Centre Unit Trust and <strong>Abacus</strong> Independent Retail <strong>Property</strong><br />
Trust that are not held by the <strong>Group</strong> and are presented separately in the income statement and within equity in<br />
the consolidated statement of financial position.<br />
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