Home' Select Harvests Annual Report : 2014 Contents SELECT HARVESTS ANNUAL REPORT 2014
The employee benefit expense
recognised each period takes into
account the most recent estimate.
The impact of the revision to original
estimates, if any, is recognised in the
income statement with a corresponding
adjustment to equity.
(Q) FINANCIAL INSTRUMENTS
Collectability of trade receivables is
reviewed on an ongoing basis. Trade
receivables are carried at full amounts
due less any provision for doubtful
debts. A provision for doubtful debts
is recognised when collection of the
full amount is no longer probable, and
where there is objective evidence of
impairment, debts which are known
to be non collectible are written
Amounts receivable from other debtors
are carried at full amounts due. Other
debtors are normally settled on 30 days
from month end unless there is
a specific contract which specifies
an alternative date.
Amounts receivable from related
parties are carried at full amounts due.
The bank overdraft disclosed within
interest bearing liabilities is carried at
the principal amount and is part of the
Net Cash balance in the Statement of
Cash Flows. Interest is charged as an
expense as it accrues.
Liabilities are recognised for amounts
to be paid in the future for goods and
services received, whether or not billed
to the Company.
Finance lease liabilities are accounted for
in accordance with AASB 117 Leases.
(R) FAIR VALUE ESTIMATION
The fair value of certain financial assets
and financial liabilities must be estimated
for recognition and measurement or for
The fair value of financial instruments
traded in active markets, such as foreign
exchange hedge contracts and the
interest rate swap, are based on quoted
market prices at the balance sheet date.
The quoted market price used for
financial assets held by the Company
is the current bid price; the appropriate
quoted market price for financial
liabilities is the current ask price.
The nominal value less estimated credit
adjustments of trade receivables and
payables are assumed to approximate
their fair values. The fair value of
financial liabilities for disclosure
purposes is estimated by discounting
the future contractual cash flows at
the current market interest rate that
is available to the Company for
Borrowings are initially recognised
at fair value, net of transaction costs
incurred. Borrowings are subsequently
measured at amortised cost. Any
difference between the proceeds
(net of transaction costs) and the
redemption amount is recognised in
the income statement over the period
of the borrowings using the effective
interest method. Fees paid on the
establishment of loan facilities are
recognised as transaction costs of the
loan to the extent that it is probable
that some or all of the facility will be
drawn down. In this case, the fee is
deferred until the draw down occurs.
To the extent there is no evidence that
it is probable that some or all of the
facility will be drawn down, the fee is
capitalised as a prepayment for liquidity
services and amortised over the period
of the facility to which it relates.
Borrowings are classified as current
liabilities unless the group has an
unconditional right to defer settlement
of the liability for at least 12 months
after the reporting period.
(T) BORROWING COSTS
Borrowing costs incurred for the
construction of any qualif ying asset
are capitalised during the period of
time that is required to complete and
prepare the asset for its intended use.
All other borrowing costs, inclusive
of all facility fees, bank charges, and
interest, are expensed as incurred.
Provisions are recognised when the
Company has a present legal or
constructive obligation as a result
of past events, it is probable that an
outflow of resources will be required
to settle the obligation, and the amount
has been reliably estimated.
(V) CONTRIBUTED EQUITY
Ordinary shares are classified as
equity. The value of new shares or
options issued is shown in equity.
(W) EARNINGS PER SHARE
(i) Basic Earnings Per Share
Basic earnings per share are calculated
by dividing the profit attributable to
equity holders of the company by the
weighted average number of ordinary
shares outstanding during the
(ii) Diluted Earnings Per Share
Diluted earnings per share adjusts the
figures used in the determination of
basic earnings per share to take into
account the weighted average number
of additional ordinary shares that would
have been outstanding assuming the
conversion of all dilutive ordinary
shares, and the after income tax effect
of interest and other financing costs
associated with dilutive potential
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