Axiom 2014 Annual Report - page 57

Notes to the Financial Statements
for the year ended 30 September 2014
2014 Annual Report
2. Significant accounting policies (continued)
Non-monetary assets and liabilities that are
measured in terms of historical cost in a foreign
currency are translated using the foreign exchange
rates ruling at the transaction dates. Non-monetary
assets and liabilities denominated in foreign
currencies that are stated at fair value are translated
using the foreign exchange rates ruling at the dates
the fair value was determined.
The results of foreign operations are translated
into Australian dollars at the exchange rates
approximating the foreign exchange rates ruling at
the dates of the transactions. Balance sheet items
are translated into Australian dollars at the foreign
exchange rates ruling at the balance sheet date. The
resulting exchange differences are recognised directly
in other comprehensive income and accumulated
separately in equity in the exchange reserve.
On disposal of a foreign operation, the cumulative
amount of the exchange differences relating to that
foreign operation is reclassified from equity to profit or
loss when the profit or loss on disposal is recognised.
t. Earnings per share
The Group presents basic and diluted earnings per
share (EPS) data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable
to owners of the Company by the weighted average
number of ordinary shares outstanding during the
year. Diluted EPS is determined by adjusting the
profit or loss attributable to owners and the weighted
average number of ordinary shares outstanding for
the effects of all dilutive potential ordinary shares,
which comprise convertible notes and share options
granted to employees.
u. Segmental reporting
Operating segments, and the amounts of each segment
item reported in the financial statements, are identified
from the financial information provided regularly to
the Group’s most senior executive management for the
purposes of allocating resources to, and assessing the
performance of, the Group’s various lines of business
and geographical locations.
Individually material operating segments are not
aggregated for financial reporting purposes unless the
segments have similar economic characteristics and
are similar in respect of the nature of products and
services, the nature of production processes, the type
or class of customers, the methods used to distribute
the products or provide the services, and the nature
of the regulatory environment. Operating segments
which are not individually material may be aggregated
if they share a majority of these criteria.
v. Convertible notes
Convertible notes that do not contain an equity
component are accounted for as follows:
At initial recognition the derivative component of
the convertible notes is measured at fair value and
presented as part of derivative financial instruments
(see Note 2(w)). Any excess of proceeds over the amount
initially recognised as the derivative component is
recognised as the liability component. Transaction
costs that relate to the issue of the convertible note are
allocated to the liability and derivative components in
proportion to the allocation of proceeds. The portion of
the transaction costs relating to the liability component
is recognised initially as part of the liability. The portion
relating to the derivative component is recognised
immediately in profit or loss.
The derivative component is subsequently re-measured
in accordance with Note 2(w). The liability component
is subsequently carried at amortised cost. The
interest expense recognised in profit or loss on the
liability component is calculated using the effective
interest method.
If the note is converted, the carrying amounts of the
derivative and liability components are transferred to
share capital as consideration for the shares issued.
If the note is redeemed, any difference between
the amount paid and the carrying amounts of both
components is recognised in profit or loss.
w. Derivative financial instruments
Derivative financial instruments are recognised initially
at fair value. At the end of each reporting period the fair
value is re-measured. The gain or loss on re-measurement
to fair value is recognised immediately in profit or loss.
x. Applications of new and revised AASBs
The AASB has issued a number of amendments to AASBs
that are first effective for the current accounting period
of the Group. Of these, the following were relevant to the
Group’s financial statements:
1...,47,48,49,50,51,52,53,54,55,56 58,59,60,61,62,63,64,65,66,67,...116
Powered by FlippingBook