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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
NOTE 1: CORPORATE INFORMATION
THE PRINCIPAL ACCOUNTING POLICIES ADOPTED IN THE PREPARATION OF THE FINANCIAL REPORT ARE SET OUT BELOW. THESE POLICIES HAVE BEEN CONSISTENTLY APPLIED TO ALL THE YEARS PRESENTED, UNLESS OTHERWISE STATED. THE FINANCIAL REPORT INCLUDES SEPARATE FINANCIAL STATEMENTS FOR GLOBAL CONSTRUCTION SERVICES LIMITED (THE ÔCOMPANYÕ) AND ITS SUBSIDIARIES (TOGETHER REFERRED TO AS THE ÔCONSOLIDATED ENTITYÕ OR ÔGROUPÕ). GLOBAL CONSTRUCTION SERVICES LIMITED IS A COMPANY LIMITED BY SHARES INCORPORATED IN AUSTRALIA, WHOSE SHARES ARE PUBLICLY TRADED ON THE AUSTRALIAN SECURITIES EXCHANGE.
THE FINANCIAL REPORT WAS AUTHORISED FOR ISSUE IN ACCORDANCE WITH A RESOLUTION OF THE DIRECTORS ON 30 SEPTEMBER 2009.
NOTE 2: STATEMENT OF COMPLIANCE
BASIS OF PREPARATION
THIS GENERAL PURPOSE FINANCIAL REPORT HAS BEEN PREPARED IN ACCORDANCE WITH AUSTRALIAN ACCOUNTING STANDARDS, OTHER AUTHORITATIVE PRONOUNCEMENTS OF THE AUSTRALIAN ACCOUNTING STANDARDS BOARD (AASB), INTERPRETATIONS AND THE CORPORATIONS ACT 2001.
HISTORICAL COSTS
THE FINANCIAL REPORT HAS BEEN PREPARED ON A HISTORICAL COST BASIS, EXCEPT FOR THE REVALUATION OF CERTAIN NON-CURRENT ASSETS AND FINANCIAL INSTRUMENTS. COST IS BASED ON THE FAIR VALUE OF CONSIDERATION GIVEN IN EXCHANGE FOR ASSETS.
CURRENCY AND ROUNDING
THE AMOUNTS CONTAINED IN THIS REPORT AND IN THE FINANCIAL REPORT ARE PRESENTED IN AUSTRALIAN DOLLARS; THE FUNCTIONAL CURRENCY OF GLOBAL CONSTRUCTION SERVICES LIMITED AND EACH OF ITS SUBSIDIARIES AND HAVE BEEN ROUNDED TO THE NEAREST THOUSAND DOLLARS ($000) WHERE ROUNDING IS APPLICABLE UNDER THE OPTION AVAILABLE TO THE COMPANY UNDER ASIC CLASS ORDER 98/0100. THE COMPANY IS AN ENTITY TO WHICH THE CLASS ORDER APPLIES.
CRITICAL ACCOUNTING ESTIMATES
THE PREPARATION OF FINANCIAL STATEMENTS IS IN ACCORDANCE WITH AUSTRALIAN EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (AIFRS), OTHER AUTHORITATIVE PRONOUNCEMENTS OF THE AUSTRALIAN ACCOUNTING STANDARDS BOARD, URGENT ISSUES GROUP INTERPRETATIONS AND THE CORPORATIONS ACT 2001.
THE PREPARATION OF THE FINANCIAL STATEMENTS REQUIRES THE USE OF CRITICAL ACCOUNTING ESTIMATES AND THE NEED FOR MANAGEMENT TO EXERCISE JUDGEMENT IN APPLYING GROUP ACCOUNTING POLICIES WHERE ESTIMATIONS AND JUDGEMENT REQUIRING A SIGNIFICANT DEGREE OF COMPLEXITY ARE EMPLOYED THE ASSUMPTIONS IN THEIR APPLICATION ARE DISCLOSED IN THE NOTES.
NEW AUSTRALIAN ACCOUNTING STANDARDS
RECENTLY ISSUED AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS AND INTERPRETATIONS HAVE BEEN IDENTIFIED AS HAVING POTENTIAL IMPACT TO THE GROUP IN THE PERIOD OF INITIAL APPLICATION.
THE STANDARDS ARE AVAILABLE FOR EARLY ADOPTION AT JUNE 30 2009 BUT HAVE NOT BEEN APPLIED TO THIS GENERAL PURPOSE FINANCIAL REPORT. THE FOLLOWING AMENDMENTS TO STANDARDS AND INTERPRETATIONS ARE IN THE PROCESS OF BEING ASSESSED. (I) AASB 3 BUSINESS COMBINATIONS
THE REVISED AASB IS APPLICABLE TO THE ANNUAL REPORTING PERIODS COMMENCING ON OR AFTER 1 JANUARY 2009.
THE STANDARD INTRODUCES MORE DETAILED GUIDANCE ON ACCOUNTING FOR ACQUISITIONS.
¥ CONTINGENT CONSIDERATION MEASURED AT FAIR VALUE, WITH SUBSEQUENT ADJUSTMENTS RECOGNISED IN PROFIT AND LOSS
¥ TRANSACTION COSTS OTHER THAN SHARE AND DEBT ISSUE COSTS WILL BE EXPENSED AS INCURRED RATHER THAN RECOGNITION AS PART OF GOODWILL.
¥ PRE EXISTING INTERESTS IN THE ACQUIREE WILL BE MEASURED AT FAIR VALUE WITH GAIN OR LOSS RECOGNISED IN PROFIT AND LOSS. ADOPTION OF THE STANDARD WILL NOT REQUIRE RETROSPECTIVE RESTATEMENT UNDERTAKEN BEFORE THE FIRST PERIOD OF ADOPTION.
50 GLOBAL CONSTRUCTION SERVICES LIMITED - 2009 ANNUAL REPORT
(II)
(III)
(IV)
(V)
(VI)
(VII)
(VIII)
NOTE 3:
(A)
(I)
AASB 127 CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
CHANGES IN OWNERSHIP INTERESTS BY THE GROUP IN A SUBSIDIARY WHICH RESULT IN RETENTION OF CONTROL ARE ACCOUNTED FOR AS EQUITY TRANSACTIONS.
AASB 2 SHARE BASED PAYMENTS
THE REVISED AASB IS APPLICABLE TO THE ANNUAL REPORTING PERIODS COMMENCING ON OR AFTER 1 JANUARY 2009. THE DEFINITION OF VESTING CONDITIONS AND THE ACCOUNTING TREATMENT IS CLARIFIED FOR CANCELLATIONS TO SHARE BASED PAYMENT ARRANGEMENTS BY THE COUNTERPARTY.
TO DATE THE ENTITY HAS NOT ISSUED ANY OPTIONS TO EMPLOYEES THAT INCLUDE NON-VESTING CONDITIONS AND AS SUCH THERE WILL BE NO IMPACT ON THE FINANCIAL STATEMENTS WHEN THIS REVISED STANDARD IS ADOPTED FOR THE FIRST TIME.
AASB 2008-3 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARD
WHEN JOINTLY CONTROLLED ENTITIES THAT EQUITY ACCOUNTED BY THE GROUP CEASE TO BE AN ASSOCIATE THE INVESTMENT IS RECOGNISED AT FAIR VALUE RATHER THAN THE CARRYING VALUE OF THE EQUITY ACCOUNTED INVESTMENT.
AASB 2008-5 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARD ARISING FROM THE ANNUAL IMPROVEMENTS PROJECT
CHANGES FOR PRESENTATION, DISCLOSURE RECOGNITION AND MEASUREMENT PURPOSES. THE GROUP IS YET TO DETERMINE THE POTENTIAL EFFECT OF THE AMENDMENTS.
AASB 2008-7 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS Ð COST OF AN INVESTMENT IN A SUBSIDIARY, JOINTLY HELD ENTITY OR ASSOCIATE
THE REMOVAL OF THE DEFINITION OF THE ÒCOST METHODÓ IN AASB 127, MEANING THAT PRE-ACQUISITION AND POST-ACQUISITION DIVIDENDS NO LONGER REQUIRE DIFFERENTIATION AND ARE TO BE RECOGNISED AS REVENUE.
THERE WILL BE NO IMPACT AS THESE REQUIREMENTS ARE PROSPECTIVE FOR PERIODS COMMENCING ON OR AFTER 1 JANUARY 2009. HOWEVER, ANY PRE ACQUISITION DIVIDENDS RECEIVED AFTER THIS DATE MAY RESULT IN ADDITIONAL IMPAIRMENT CHARGES ON INVESTMENTS IN SUBSIDIARIES.
AASB INTERPRETATION 17 Ð DISTRIBUTION OF NON-CASH ASSETS TO OWNERS
GUIDANCE IN RESPECT OF MEASURING THE VALUE OF NON-CASH DISTRIBUTIONS TO OWNERS. THE GROUP IS YET TO DETERMINE THE POTENTIAL EFFECT OF THE AMENDMENTS.
AASB 101 Ð PRESENTATION OF FINANCIAL STATEMENTS
AMENDMENTS TO PRESENTATION AND NAMING OF THE FINANCIAL STATEMENTS APPLICABLE TO ANNUAL REPORTING PERIODS COMMENCING ON OR AFTER 1 JANUARY 2009. AS THIS IS A DISCLOSURE STANDARD ONLY, THERE WILL BE NO IMPACT ON AMOUNTS RECOGNISED IN THE FINANCIAL STATEMENTS. HOWEVER, THERE WILL BE VARIOUS CHANGES TO THE WAY FINANCIAL STATEMENTS ARE PRESENTED AND VARIOUS CHANGES TO NAMES OF INDIVIDUAL FINANCIAL STATEMENTS.
SIGNIFICANT ACCOUNTING POLICIES
PRINCIPLES OF CONSOLIDATION
SUBSIDIARIES
THE CONSOLIDATED FINANCIAL STATEMENTS COMPRISE THE FINANCIAL STATEMENTS OF GLOBAL CONSTRUCTION SERVICES LIMITED AND ITS SUBSIDIARIES AT 30 JUNE EACH YEAR (ÒTHE GROUPÓ). SUBSIDIARIES ARE ENTITIES OVER WHICH THE GROUP HAS THE POWER TO GOVERN THE FINANCIAL AND OPERATING POLICIES GENERALLY ACCOMPANYING A SHAREHOLDING OF MORE THAN ONE HALF OF THE VOTING RIGHTS. POTENTIAL VOTING RIGHTS THAT ARE CURRENTLY EXERCISABLE OR CONVERTIBLE ARE CONSIDERED WHEN ASSESSING CONTROL. CONSOLIDATED FINANCIAL STATEMENTS INCLUDE ALL SUBSIDIARIES FROM THE DATE THAT CONTROL COMMENCES UNTIL THE DATE THAT CONTROL CEASES. THE FINANCIAL STATEMENTS OF SUBSIDIARIES ARE PREPARED FOR THE SAME REPORTING PERIOD AS THE PARENT, USING CONSISTENT ACCOUNTING POLICIES.
ALL INTERCOMPANY BALANCES AND TRANSACTIONS, INCLUDING UNREALISED PROFITS ARISING FROM INTRAGROUP TRANSACTIONS HAVE BEEN ELIMINATED. UNREALISED LOSSES ARE ALSO ELIMINATED UNLESS COSTS CANNOT BE RECOVERED.
MINORITY INTERESTS IN THE RESULTS AND EQUITY OF SUBSIDIARIES ARE SHOWN SEPARATELY IN THE CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET RESPECTIVELY.
SUBSIDIARIES ARE ACCOUNTED FOR IN THE PARENT ENTITY FINANCIAL STATEMENTS AT COST.
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