## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

For the three months ended 31 March 2013 

## 1. CORPORATE INFORMATION 

Australian Agricultural Company Limited is a company limited by shares, incorporated and domiciled in Australia� The Company’s shares are publicly traded on the Australian Securities Exchange (ASX)� 

The consolidated financial statements of Australian Agricultural Company Limited (the Company or parent Company) for the three months to 31 March 2013 were authorised for issue in accordance with a resolution of the Directors on 24 May 2013� 

The Australian Securities and Investments Commission (ASIC) acknowledged the Company’s year-end change from 31 December to 31 March� This change more closely aligns the Company’s reporting period with its sale cycles, assisting with forecasting, cash flow management and investment decisions� The Board determined this change was in the best interests of the Company� The results for the three months to 31 March 2013 are therefore not directly comparable with the results for 31 December 2012� As a result we have also included comparative information for the three months to 31 March 2012, which has been reviewed (not audited) by the Company’s auditor� 

We recommend the financial statements be considered together with any public announcements made by the Company during the three months to 31 March 2013 in accordance with the Company’s continuous disclosure obligations arising under the Corporations Act 2001  and ASX listing rules� 

The nature of the operations and principal activities of Australian Agricultural Company Limited are described in the Directors’ Report� 

## 2. BASIS OF PREPARATION 

The financial statements are general purpose financial statements, prepared by a for-profit entity, in accordance with the requirements of the Corporations Act 2001 , Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board� 

## (a) Terminology used in the financial statements 

In these financial statements, any references to we, us, our, AACo, the Group and consolidated, all refer to Australian Agricultural Company Limited and the entities it controlled at the financial year end or from time to time during the financial year� 

Any references to subsidiaries or controlled entities in these financial statements refer to those entities that are controlled and consolidated by Australian Agricultural Company Limited� 

The Company has a 31 March financial year end� The Company changed its financial year end date from 31 December to 31 March which means that the financial year of the Company is a transitional one from 1 January 2013 to 31 March 2013 (three months)� Hereafter the Company will report its results as normal with respect to a 31 March financial year end� Where we refer to the reporting date, this means 31 March� 

## (b) Historical cost convention 

The financial statements have been prepared on a historical cost basis, except for land and buildings, livestock, crops and derivative financial instruments, which have been measured at fair value� Under the historical cost basis, assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition� Liabilities are recorded at the amount of proceeds received in exchange for the obligation, or in some circumstances, at the amounts of cash and cash equivalents expected to be paid to satisfy the liability in the normal course of business� 

## (c) Compliance with IFRS 

The financial statements also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)� 

## (d) Critical accounting estimates 

The preparation of financial statements requires the use of certain critical accounting estimates� It also requires management to exercise its judgement in the process of applying the group’s accounting policies� The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 5� 

## (e) Rounding 

The financial statements are presented in Australian dollars and all dollar amounts in the financial statements (except where indicated) have been rounded to the nearest thousand dollars ($’000) for presentation� This has been done in accordance with Australian Securities and Investments Commission (ASIC) Class Order 98/100, dated 10 July 1998, issued under section 341(1) of the Corporations Act 2001 � AACo is an entity to which this class order applies� 

