## Notes to the financial statements For the year ended 30 June 2012 

## 1 Reporting entity 

IOOF Holdings Ltd (the “Parent” or the “Company”) is a company domiciled in Australia. The consolidated financial statements of the Company as at and for the year ended 30 June 2012 comprise the Company and its subsidiaries (together referred to as “IOOF” or the “Group”) and the Group’s interest in associates. 

The Group is a for-profit entity and primarily is involved in the provision of wealth management services. 

The Company’s registered office and its principal place of business are as follows: 

Level 6 161 Collins Street MELBOURNE VIC 3000 

## 2 Basis of preparation 

## (a) Statement of compliance 

The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial statements comply with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB). 

The consolidated financial statements were authorised for issue by the Board of Directors on 23 August 2012. 

## (b) Basis of measurement 

The consolidated financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position: 

• financial instruments at fair value through profit or loss are measured at fair value; 

• available-for-sale financial assets are measured at fair value; and 

• share-buy back liabilities are measured at fair value. 

The statement of financial position is presented in order of liquidity. 

## (c) Functional and presentation currency 

These consolidated financial statements are presented in Australian dollars, which is the Company’s functional currency. 

The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, all financial information presented in Australian dollars has been rounded to the nearest thousand unless otherwise stated. 

Amounts included in narratives are expressed as whole dollars but rounded to the nearest thousand unless otherwise stated. 

## (d) Use of estimates and judgements 

The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. 

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. 

Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes: 

• note 3(q) - Deferred acquisition costs 

• note 3(l) - Revenue (upfront service fees) 

• note 3(w) - Liability to buy back vested shares 

• note 17 - Goodwill 

• note 18 - Other intangible assets 

• note 31 - Share-based payments 

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: 

• note 3 (o) - Utilisation of tax losses and uncertain tax position; 

• note 17 & 18 - Key assumptions used in discounted cash flow projections; and 

• note 23 & 37 - Provisions and contingencies. 

## 3 Significant accounting policies 

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, and have been applied consistently by Group entities. 

Certain comparative amounts have been reclassified to conform with the current year’s presentation. 

## (a) Basis of consolidation 

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Company as at 30 June 2012 and the results of all controlled subsidiaries for the year then ended. This includes the benefit funds of its subsidiary, IOOF Ltd, and any controlled trusts. 

