## 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

## (q) Contributed equity 

Ordinary shares are classified as equity� Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds� 

Share based remuneration associated with our employee share plans are recognised as additional share capital� 

## (r) Revenue recognition 

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is being made� Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty� 

(i) Livestock and crops 

Revenue from the sale of livestock and crops is recognised when: 

 there has been a transfer of risks and rewards to the customer (through the execution of a sales agreement at the time of delivery of the goods to the customer); 

 no further work or processing is required; 

 the quantity and quality of the goods has been determined; and 

 the price is fixed and generally title has passed (for shipped goods this is the bill of lading date)� 

The timing of the transfers of risks and rewards varies depending on the individual terms of the contract of sale� 

We recognise revenue on cropping operations at the market value of the harvest� 

## Livestock growth and fair value adjustments 

At the end of each quarter and at the end of each reporting date, we measure livestock at net market value (refer note (g))� The net market value is determined through price movements, natural increase and the weight of the herd� 

We recognise the net increments or decrements in the market value of livestock as either revenue or expense in the income statement, determined as: 

  The difference between the total net market value of livestock recognised at the beginning of the financial year and the total net market value of livestock recognised as at the reporting date; less 

 Costs expected to be incurred in realising the market value (including freight and selling costs)� 

## Crops in the ground at the reporting date 

Crops in the ground at the reporting date are measured at their fair value less costs to sell or at cost if the value is not reliably measurable� Immediately prior to harvest the fair value is determined on an estimated yield per hectare basis at the commodity’s quoted spot price in the market place� At the reporting date if the crop is immature (i�e� it is too early to reliably predict yield), then fair value equates to the costs incurred on the crop to the reporting date� 

(ii) Interest revenue 

We record interest revenue on an accruals basis� For financial assets, interest revenue is determined by the effective yield on the instrument� 

## (s) Non-current assets held for sale and discontinued operations 

Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell� Non-current assets are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use� This condition is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its present condition� We should be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification� 

In the income statement, income and expenses from discontinued operations are reported separately from income and expenses from continuing operations, down to the level of profit after taxes, even when we retain a non-controlling interest in the subsidiary after the sale� The resulting profit or loss (after taxes) is reported separately in the income statement� 

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised� 

