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

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* Designates the beginning of the applicable annual reporting period unless otherwise stated. 

** Only applicable to not-for-profit/public sector entities. 

*** Only applicable to entities that would fit in Tier 2 (Reduced Disclosure Requirements) category. 

**** The AASB has not issued this standard, which was finalised by the IASB in May 2011. 

## (C) CHANGES IN ACCOUNTING POLICY 

The accounting policies used in the preparation of these financial statements are consistent with those used in previous years. 

## (D) BASIS OF CONSOLIDATION 

The consolidated financial statements comprise the financial statements of the parent entity and its subsidiaries (‘the Consolidated Entity’) as at 30 June each year. 

Subsidiaries are all those entities over which the Consolidated Entity has the power to govern the financial and operating policies so as to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether a consolidated entity controls another entity. 

The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. In preparing consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-group transactions, have been eliminated in full. 

Subsidiaries are fully consolidated from the date on which control is obtained by the Consolidated Entity and cease to be consolidated from the date on which control is transferred out of the Consolidated Entity. 

Where there is loss of control of a controlled entity, the consolidated financial statements include the results for the part of the reporting period during which the Company has control. 

Non-controlling interests are allocated their share of net profit after tax in the statement of comprehensive income and are presented within equity in the consolidated statement of financial position, separately from the equity of the owners of the parent. 

Changes in ownership interest of a subsidiary (without a change in control) is accounted for as a transaction with owners in their capacity as owners. 

