## Note 1 – Summary of significant accounting policies (continued) 

> AASB 10 Consolidated Financial Statements  is effective for annual reporting periods beginning on or after 1 January 2013. 

 AASB 10 requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in AASB 127 Consolidated and Separate Financial Statements  and Interpretation 112 Consolidation – Special Purpose Entities . 

 AASB 10 identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements. 

 The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in ‘special purpose entities’). 

 AASB 10 will be mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential impact on the consolidated entity’s financial statements has not yet been determined. 

> AASB 11 Joint Arrangements  is effective for annual reporting periods beginning on or after 1 January 2013. 

 AASB 11 replaces AASB 131 Interests in Joint Ventures . Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement. Joint arrangements are either joint operations or joint ventures. 

 A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognise their assets, liabilities, revenue and expenses in relation to their interest in a joint operation (including their share of any such items arising jointly). 

 A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with AASB 128 Investments in Associates and Joint Ventures (2011) . 

 AASB 11 will be mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential impact on the consolidated entity’s financial statements has not yet been determined. 

> AASB 12 Disclosure of Interests in Other Entities  is effective for annual reporting periods beginning on or after 1 January 2013. 

 AASB 12 requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows. 

 This new Standard contains the disclosure requirements for entities that have interests in subsidiaries, joint arrangements, associates and unconsolidated structured entities. 

 AASB 12 will be mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential impact on the consolidated entity’s financial statements has not yet been determined. 

> AASB 13 Fair Value Measurement  and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 are effective for annual reporting periods beginning on or after 1 January 2013. 

 AASB 13 replaces the guidance on fair value measurement in existing AASB accounting literature with a single standard. 

 AASB 13 defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, AASB 13 does not change the requirements regarding which items should be measured or disclosed at fair value. 

 AASB 13 will be mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential impact on the consolidated entity’s financial statements has not yet been determined. 

> AASB 119 Employee Benefits (2011)  and AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 are effective for annual reporting periods beginning on or after 1 January 2013. 

 The amendments to AASB 119 focus on but are not limited to the accounting for defined benefit plans. In addition it changes the definition of short-term and other long-term employee benefits and some disclosure requirements. 

 AASB 119 will be mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential impact on the consolidated entity’s financial statements has not yet been determined. 

> AASB 127 Separate Financial Statements (2011)  is effective for annual reporting periods beginning on or after 1 January 2013. 

 Amended version of AASB 127 which now only deals with the requirements for separate financial statements, which have been carried over largely unamended from AASB 127 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in AASB 10 Consolidated Financial Statements . 

 The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with AASB 9 Financial Instruments . 

 The Standard also deals with the recognition of dividends, certain group reorganisations and includes a number of disclosure requirements. 

 AASB 127 will be mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential impact on the consolidated entity’s financial statements has not yet been determined. 

> AASB 128 Investments in Associates and Joint Ventures (2011) is effective for annual reporting periods beginning on or after 1 January 2013. 

 This Standard supersedes AASB 128 Investments in Associates  and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures. 

