IFRS 10 replaces all of the guidance on control and consolidation in IAS 27 ‘Consolidated and Separate Financial Statements’, and SIC-12 ‘Consolidation – Special Purpose Entities’ . The core principle that a consolidated entity presents a parent and its subsidiaries as if they are a single economic entity remains unchanged, as do the mechanics of consolidation. However, the standard introduces a single definition of control that applies to all entities. It focuses on the need to have both power and rights or exposure to variable returns before control is present. Power is the current ability to direct the activities that significantly influence returns. Returns must vary and can be positive, negative or both. There is also new guidance on participating and protective rights and on agent/principal relationships. The Group does not expect the new standard to have any impact on its composition. 

IFRS 11 introduces a principles based approach to accounting for joint arrangements. The focus is no longer on the legal structure of joint arrangements but rather on how rights and obligations are shared by the parties to the joint arrangement. Based on the assessment of rights and obligations, a joint arrangement will be classified as either a joint operation or joint venture. Joint ventures are accounted for using the equity method, the choice to proportionately consolidate will no longer be permitted. Parties to a joint operation will account for their share of revenues, expenses, assets and liabilities in much the same way as under the previous standard. IFRS 11 also provides guidance for parties that participate in joint arrangements but do not share joint control. As the Group is only a participant in joint venture operations, this standard will not have any impact on its financial statements. 

IFRS 12 sets out the required disclosures for entities reporting under the above two new standards, IFRS 10 and IFRS 11, and replaces the disclosure requirements currently found in IAS 28. Application of this standard by the Group will not affect any of the amounts recognised in the financial statements. 

IAS 27 is renamed Separate Financial Statements and is now a standard dealing solely with separate financial statements. Application of this standard by the Group will not affect any of the amounts recognised in the financial statements. 

Amendments to IAS 28 provide clarification that an entity continues to apply the equity method and does not remeasure its retained interest as part of ownership changes where a joint venture becomes an associate, and vice versa. The amendments also introduce a partial disposal concept. Application of this standard by the Group will not affect any of the amounts recognised in the financial statements. 

The Group does not expect to adopt the relevant new Australian Accounting Standards before their operative date. 

## IFRS 13 ‘Fair Value Measurement’ (effective 1 January 2013) 

IFRS 13 was released during May 2011. The AASB is expected to issue an equivalent Australian Accounting Standard shortly. IFRS 13 explains how to measure fair value and aims to enhance fair value disclosures. The Group does not use fair value measurements extensively. It is therefore unlikely that the new rules will have a significant impact on any of the amounts recognised in the financial statements or disclosed in the notes to the financial statements. The Group does not intend to adopt the new standard before its operative date, which means that it would be first applied in the reporting period ending 30 June 2014. 

## (vi) Revised IAS 1 ‘Presentation of Financial Statements’ (effective 1 July 2012) 

During June 2011, the IASB made an amendment to IAS 1 ‘Presentation of Financial Statements’ . The AASB is expected to make equivalent changes to AASB 101 ‘Presentation of Financial Statements’  shortly. The amendment requires entities to separate items presented in other comprehensive income into two groups, based on whether they may be recycled to profit or loss in the future. It will not affect the measurement of any of the items recognised in the statement of comprehensive income. The Group does not intend to adopt the new standard before its operative date, which means that it would be first applied in the reporting period ending 30 June 2013. 

## (vii) AASB 2011-4 ‘Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements’ (effective 1 July 2013) 

During July 2011, the AASB decided to remove the individual key management personnel disclosure requirements from AASB 124 ‘Related Party Disclosures’ , to achieve consistency with the international equivalent standard and remove a duplication of the requirements with the Corporations Act 2001 . While this will reduce the disclosures that are currently required in the notes to the financial statements, it will not affect any of the amounts recognised in the financial statements. The amendments apply from 1 July 2013 and cannot be adopted early. 

The Group has not early adopted any of the above reporting requirements. 

