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## Notes to the Consolidated Financial Statements for the Year Ended 30 June 2014 

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## Nature and purpose of Reserves 

## Share Based Payments Reserve 

The Share-based Payments Reserve represents the expense attributed to options based on a Black Scholes valuation method for vested options. 

## Foreign currency translation reserve 

The Foreign currency translation reserve represents the currency translation movements of subsidiary company balances denominated in foreign currencies at year end. 

## NOTE 18: OPERATING SEGMENTS 

## Business Segments 

The Group had only one business segment during the financial year, being the global commercialisation by licensing and partnering of patents and licences in biotechnology, more specifically in functional genomics, with applications in biomedical research and human therapeutics. 

## Geographical Segments 

Business operations are principally conducted in Australia, with laboratory and other activities in the USA. 

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## Accounting Policies 

Segment revenues and expenses are directly attributable to the identified segments and include joint venture revenue and expenses where a reasonable allocation basis exists. Segment assets include all assets used by a segment and consist mainly of cash, receivables, inventories, intangibles and property, plant and equipment, net of any allowances, accumulated depreciation and amortisation. Where joint assets correspond to two or more segments, allocation of the net carrying amount has been made on a reasonable basis to a particular segment. Segment liabilities include mainly accounts payable, employee entitlements, accrued expenses, provisions and borrowings. Deferred income tax provisions are not included in segment assets and liabilities. 

