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Practical guide
September 2013
Practical guide Draft
Contents
Supplement to the practical guide – Understanding the disclosure
requirements in IFRS 12 1
Appendices 5
Appendix 1: Example disclosures for subsidiaries 6

Appendix 2: Example disclosures for unconsolidated structured entities 13
Appendix 3: Illustration of disclosures for interests in joint arrangements and
associates 16
Appendix 4: Disclosure checklist extracts 22
PwC  Contents
Supplement to the practical guide

– Understanding the disclosure
requirements in IFRS 12
What do the requirements cover? In particular, an entity should disclose significant
judgements and assumptions made in
IFRS 12, ‘Disclosure of Interests in Other Entities’, determining that:
requires extensive disclosures for:
 it holds more than half of the voting rights of
 interests in subsidiaries; another entity where it does not have control;
 structured entities (both consolidated and not  it holds less than half of the voting rights of
consolidated); another entity where it has control; and
 joint arrangements; and  it is an agent or principal with respect to
 associates. another entity.
IFRS 12 is applicable for annual reporting periods

beginning on or after 1 January 2013. In this paper, Interest in subsidiaries
we highlight the key disclosure requirements and IFRS 12 requires disclosures for each of an entity’s
provide example disclosures. subsidiaries that have material non-controlling
interests. Such disclosures assist users when
IFRS 12 aims to provide the users of financial estimating future profit or loss and cash flows (for
statements with sufficient disclosures for them to example, by identifying the assets and liabilities that
assess the nature of, and risks and financial effects are held by subsidiaries, risk exposures of particular
associated with, the entity’s interests in subsidiaries, group entities, and those subsidiaries that have
joint arrangements, associates and unconsolidated significant cash flows). The disclosures are as follows
structured entities. Entities should consider the (new disclosures compared to the previous standard
level of detail that is needed to satisfy this objective, are in bold):
how much emphasis to place on each of the
requirements, and to what extent it should  The subsidiary’s name1.
aggregate the information (taking consideration of  Its principal place of business (and country of
materiality). Useful information should not be incorporation, if different)1.
obscured by the inclusion of a large amount of  The proportion of ownership interests held by
insignificant detail, on the one hand, or by too much non-controlling interests1.
aggregation of items with different risk and return  The proportion of voting rights held by non-
characteristics, on the other. controlling interests, if different from the
proportion of ownership interests held1.
Significant judgements and  The profit or loss allocated to non-controlling
interests of the subsidiary during the
assumptions reporting period.
IFRS 12 requires an entity to disclose information  The accumulated non-controlling interests of the
about the significant judgements and assumptions it subsidiary at the end of the reporting period.
has made, including those relating to whether it has  Summarised financial information about
control of another entity, and where changes in the subsidiary.
circumstances alter the entity’s conclusion about
whether it has control.
1These disclosures only had to be made in separate financial

statements of a parent entity. However, information of this
nature would also be required under IAS 24, ‘Related Party
Disclosures’.
PwC  1
Non-controlling interests If the entity holds interests in consolidated

structured entities, it must disclose information that
The summarised financial information referred to enables users of its financial statements to evaluate
above helps users to understand the interest that non- the nature of, and changes in, the risks associated
controlling interests have in the group’s activities and with its interests in consolidated structured entities.
cash flows. It includes the assets, liabilities, profit or This includes:
loss and cash flows of the subsidiary. It might include,
but is not limited to, current/non-current assets,  the terms of any contractual arrangements that
current/non-current liabilities, revenue, profit or loss, could require any entity within the group to
and total comprehensive income. Dividends paid to provide financial support to a consolidated
non-controlling interests should also be disclosed. structured entity;
The amounts disclosed should be given before inter-  the type and amount of financial or other
company eliminations. support provided to a consolidated structured
entity during the reporting period (including
Significant restrictions assistance to the structured entity in obtaining
An entity must explain if there are any significant financial support), and the reasons for providing
restrictions on its ability to access or use the assets such support;
and settle the liabilities of the group (for example, a  if an entity within the group has provided
limited ability to transfer cash or assets within the financial or other support to a previously
group, restrictions on distributions or loan unconsolidated structured entity (without
repayments, and the existence of protective rights the obligation to do so) which resulted in the
held by non-controlling interests). entity controlling the structured entity, an
explanation of the relevant factors in reaching
this decision; and
Changes in a parent’s ownership  disclosure of any current intentions to
interest provide financial or other support to a
consolidated structured entity (including
If there is a change in a parent's ownership interest in
intentions to assist the structured entity in
a subsidiary that does not result in loss of control, an
obtaining financial support).
entity should present a schedule that shows the effects
on the equity attributable to the parent’s owners. This
would typically be in relation to a share buyback or a Interests in unconsolidated
subsidiary issuing shares in a stock-based
compensation arrangement.
structured entities
If the entity has any interests in unconsolidated
Conversely, if the entity has lost control of a structured entities, there are a number of new
subsidiary during the reporting period, it disclosures that will apply for the first time. In
must disclose: summary, it must disclose information that enables
users of its financial statements:
 the gain or loss, calculated in accordance with
paragraph 25 of IFRS 10; and  to understand the nature and extent of its
 the portion of that gain or loss that is attributable interests in unconsolidated structured
to measuring any investment retained in the entities; and
former subsidiary at its fair value at the date when  to evaluate the nature of, and changes in, the
control is lost, and the line item(s) in profit or loss risks associated with its interests in
in which the gain or loss is recognised (if not unconsolidated structured entities (including
presented separately). an entity’s exposure to risk from involvement
with unconsolidated structured entities in
previous periods, even if the contractual
Consolidated structured entities involvement had ceased at the reporting date).
– Nature of the risks
A structured entity is an entity that has been designed
so that voting or similar rights are not the dominant
factor in deciding who controls the entity. An example
would be when voting rights relate to administrative
tasks only, and the relevant activities are directed by
means of contractual arrangements.
PwC  2
To achieve this, the entity should provide: Joint arrangements and

 qualitative and quantitative information about its associates
interest in unconsolidated structured entities The new guidance could significantly change the way
(nature, purpose, size and activities of the entity, that companies present and disclose information
and how the entity is financed); about their interests in joint arrangements and
 the carrying amounts of assets and liabilities associates. The disclosures for individual joint
recognised in its financial statements relating ventures and associates are far more detailed than
to its interests in unconsolidated structured previously required by IAS 31, ‘Interests in Joint
entities, and the line items in the statement of Ventures’, and IAS 28, ‘Investments in Associates’.
financial position in which those assets and Disclosure is required of certain classes of assets and
liabilities are recognised; liabilities of the joint venture or associate, as well as
 the amount that best represents its maximum particular totals of assets and liabilities. Certain items
exposure to loss from its interests in of revenue and expenses also need to be disclosed.
unconsolidated structured entities, including how
the maximum amount is determined; The disclosure requirements in IFRS 12 do not apply
 a comparison of the amounts from the last two to parties to a joint arrangement that do not share
points above; joint control, except where such parties significantly
 if it has provided financial or other support to influence the arrangement.
an unconsolidated structured entity (without
having a contractual obligation to do so) in The following information must be disclosed in
which it previously had or currently has an relation to an entity’s involvement with joint
interest, an explanation of the type of and arrangements and associates:
amount of support provided and the reasons for
providing the support;  significant judgements and assumptions made
 any current intentions to provide financial or (and changes to those judgements and
other support to an unconsolidated structured assumptions) in determining:
entity, including intentions to assist the entity in
obtaining financial support; and - whether there is joint control of an
 information about sponsored unconsolidated arrangement;
structured entities which are not included in - whether there is significant influence over
the disclosures above (for example, because another entity; and
the entity does not have an interest in the - the type of joint arrangement (that is, joint
unconsolidated structured entity at the operation or joint venture) where the
reporting date), including income from those arrangement is structured through a
entities and the carrying amount of assets separate vehicle;
transferred to those entities during the
reporting period. The sponsoring activities  the nature, extent and financial effects of an
should be classified into relevant categories entity’s interest in joint arrangements and
(see paras B2–B6 of IFRS 12 for guidance). associates, including the nature and effects of its
contractual relationship with other investors with
The quantitative disclosures above should be joint control of, or significant influence over, joint
provided in tabular format, unless another format arrangements and associates; and
is more appropriate.  the nature of, and changes in, the risks associated
with its interests in joint ventures and associates.
Relief in the first year
IFRS 12 provides relief from disclosing some
information about structured entities for the
comparative period in the first year of adoption.
Entities do not need to disclose comparative
information about the nature and extent of their
interests and the nature of (and changes to) the
risks of their interests in unconsolidated
structured entities.
PwC  3
Other disclosure requirements  the amount of the adjustment relating to periods

before those presented, to the extent practicable;
to consider and
If a reporting entity has significant interests in joint  if retrospective application is impracticable, the
operations, it should consider disclosing the interests circumstances that led to that impracticability,
in the assets employed and liabilities incurred in and a description of how and from when the
relation to these joint operations. This information change in accounting policy has been applied.
will assist users in assessing the extent and financial
impact of the joint operations, and it might even be Financial statements of subsequent periods need not
required under IAS 1 if it is relevant to an repeat these disclosures.
understanding of the financial statements.
IAS 8, ‘Accounting Policies, Changes in Accounting
Where an interest in a joint venture or an associate Estimates and Errors’, does not prescribe any format
(or a portion of an interest) is classified as held for for these disclosures. The sample disclosures below
sale in accordance with IFRS 5, ‘Non-current Assets use a tabular format, but other ways of presenting this
Held for Sale and Discontinued Operations’, the information could be equally suitable, depending on
reporting entity does not need to disclose, for that the circumstances.
joint venture or associate, the summarised financial
information required under IFRS 12. Additional comparative
Changes in accounting policy information – Third balance
Additional disclosures are required when applying a sheet and related notes
new accounting standard for the first time. Where If an entity has applied an accounting policy
initial application has an effect on the current period retrospectively, restated items retrospectively or
or any prior period, and would have such an effect reclassified items in its financial statements, it must
except that it is impracticable to determine the present a third balance sheet (statement of financial
amount of the adjustment, or it might have an effect position) as at the beginning of the earliest
on future periods, an entity must disclose: comparative period presented. However, where the
retrospective change in policy or the restatement has
 the title of the IFRS; no effect on this earliest statement of financial
 where applicable, that the change in accounting position, we believe that it would be sufficient for the
policy is made in accordance with its transitional entity to merely disclose that fact.
provisions;
 the nature of the change in accounting policy; The requirement to present comparative information
 where applicable, a description of the transitional for the beginning of the earliest period presented does
provisions; not extend to the related notes, because the IASB has
 where applicable, the transitional provisions that issued amendments to IAS 1 which have removed the
might have an effect on future periods; requirement with effect from 1 January 2013. The
 for the current period and the immediately amendments are available for early adoption.
preceding period presented, to the extent
practicable, the amount of the adjustment for Further reading
each financial statement line item affected; and,  PwC’s IFRS Manual of Accounting 2012
if IAS 33, ‘Earnings per Share’, applies, for  IFRSs 10 and 12 – Questions and Answers
basic and diluted earnings per share (disclosure  A practical guide to IFRS – Classification of Joint
of the impact on the current period is not arrangements
required for the adoption of IFRS 10, because  PwC – Illustrative IFRS consolidated financial
of specific relief provided); statements for 2012 year ends
PwC  4
Appendices
PwC  5
Appendix 1: Example disclosures

for subsidiaries
1. Accounting policy note The group has reviewed its investments in other
entities to assess whether the conclusion to
(b) Principles of consolidation consolidate is different under IFRS 10 than under IAS
27. No differences were found for any of the
(extracts) investments with the exception of VALUE
(i) Subsidiaries ACCOUNTS Overseas Ltd. The group has determined
that, while it did not have control over this entity
Subsidiaries are all entities (including structured under the principles of IAS 277, it now does have
entities) over which the group has control. The group control over the entity under the current standard.
controls an entity where the group is exposed to, or The group acquired its 45% interest in this entity on 1
has rights to, variable returns from its involvement July 2009. The remaining interests in the entity are
with the entity and has the ability to affect those widely held and dispersed. The application of IFRS 10
returns through its power to direct the activities of the resulted in the group concluding it had de facto
entity. Subsidiaries are fully consolidated from the control of the entity.
date on which control is transferred to the group.
They are deconsolidated from the date that control As required under IFRS 10, the change in policy has
ceases. been applied retrospectively and, as a consequence,
adjustments were recognised in the balance sheet as
(ii) Change in accounting policy of 1 July 2012.
IFRS 10, ‘Consolidated Financial Statements’, was
The tables below show the effect of the change in
issued in August 2011 and replaces the guidance on
accounting policy on individual line items in each of
control and consolidation in IAS 27, ‘Consolidated
the financial statements. Line items that were not
and Separate Financial Statements’, and in SIC 12,
affected by the change have not been included. As a
‘Consolidation – Special Purpose Entities’.
result, the sub-totals and totals disclosed cannot be
recalculated from the numbers provided.
PwC  6
The impact of this change in the entity’s accounting policy on individual line items in the financial statements
can be summarised as follows:
Prior year restatement
Income statement (extract) 2013 Profit 2013 (restated)

(previously stated) increase/(decrease)
Revenue 84,460 3,957 88,417
Other income 2,481 129 2,610
Cost of sales (43,524) (1,284) (44,808)
Distribution expenses (18,548) (297) (18,845)
Marketing expenses (8,966) (150) (9,116)
Administrative expense (5,877) (325) (6,202)
Share of net profits of associates 170 (170) 0
Profit for the period 10,196 1,860 12,056
Profit is attributable to:
Owners 10,196 1,302 11,498
Non-controlling interests 0 558 558
10,196 1,860 12,056
Other comprehensive income for 5,599 0 5,599

the period
Total comprehensive income 15,795 1,860 17,655

for the period
Total comprehensive income

attributable to:
Owners 15,795 1,860 17,655
Non-controlling interests 0 0 0
15,795 1,860 17,655
Basic earnings per share xx xx
Diluted earnings per share xx xx
PwC  7
Prior year restatement
Statement of cash flows 2013 Increase/(decrease) 2013 (restated)

(extract) (previously stated)
Gross cash flow from operating 41,067 1,965 43,032

activities
Interest paid (4,124) (149) (4,273)
Net cash flows from operating 36,943 1,816 38,759

activities
Cash flows from investing

activities
Purchase of property, plant and (18,132) (638) (18,770)

equipment
Acquisition of intangible assets (760) (23) (783)
(18,892) (661) (19,553)
Cash flow from financing

activities
Repayment of borrowings (25,255) (192) (25,447)
Net movements in cash flows (7,204) 963 (6,241)
PwC  8
Prior years restatement
Balance sheet (extract) 30 June 2013 Increase/ 30 June 2013 1 July 2012 Increase/ 1 July 2012
(previously stated) (decrease) (restated) (previously stated) (decrease) (restated)
Current Assets
Cash 24,473 1,000 25,473 17,145 759 17,904
Trade receivables 12,564 585 13,149 8,573 590 9,163
Inventories 16,942 900 17,842 13,960 823 14,783
Non-current assets
Property, plant and equipment 100,830 34,890 135,720 88,835 29,754 118,589
Associate 4,956 (4,401) 555 3,754 (2,541) 1,213
Intangible assets 22,795 395 23,190 22,780 299 23,079
Total assets 182,560 33,369 215,929 155,047 29,684 184,731
Current liabilities
Trade and other payables 12,827 498 13,325 13,180 365 13,545
Non-current liabilities
Borrowings 62,575 19,786 82,361 59,400 20,172 79,572
Total liabilities 75,402 20,284 95,686 72,580 20,537 93,117
Net assets 107,158 13,085 120,243 82,467 9,147 91,614
Equity attributable to:
Parent 107,158 9,160 116,318 82,467 6,403 88,870
Non-controlling interests 0 3,926 3,926 0 2,744 2,744
107,158 13,085 120,243 82,467 9,147 91,614
Please note that the disclosures and financial impacts are purely for illustrative purposes and are not necessarily consistent with the numbers in the
statement of comprehensive income.
PwC  9
2. Critical accounting estimates and judgements (extracts)

(b) Critical judgements in applying the entity’s accounting policies (extracts)
(i) Consolidation of entities in which the group holds less than 50%
The directors have concluded that the group controls value accounts Overseas Ltd, even though it holds less
than half of the voting rights of this subsidiary. This is because the group is the largest shareholder with a 45%
equity interest, while the remaining shares are held by eight investors.
An agreement signed between the shareholders and value accounts Overseas Ltd grants Value Accounts
Holdings Ltd the right to appoint, remove and set the remuneration of management responsible for directing
the relevant activities. A 67% majority vote is required to change this agreement, which cannot be achieved
without the group’s consent as the group holds 45% of the voting rights.
(ii) Non-consolidation of entities in which the group holds more than 50%
The directors have also determined that they do not control a company called value accounts Trustee Pty Ltd
even though value accounts Holdings Ltd owns 100% of the issued capital of this entity. Value Accounts Trustee
Pty Ltd is the trustee of the Value Accounts Employees’ Superannuation Fund. It is not a controlled entity of
Value Accounts Holdings Ltd, because Value Accounts Holdings Ltd is not exposed, and has no right, to
variable returns from this entity and is not able to use its power over the entity to affect those returns.
Note 42 Subsidiaries and transactions with non-controlling interests (extract)
(a) Interest in subsidiaries

Set out below are the group’s principal subsidiaries at 30 June 2014. Unless otherwise stated, the subsidiaries
have share capital consisting solely of ordinary shares, which are held directly by the group, and the proportion
of ownership interests held equals the voting rights held by the group. The country of incorporation or
registration is also their principal place of business.
Name of entity Place of % of ownership % of ownership Principal

business/Country interest held by the interest held by the activities
of incorporation group non-controlling
interests (NCI)
2014 2013 2014 2013
Value Accounts Australia 100 100 0 0 Furniture retail

Retail Ltd stores
Value Accounts Australia 88.3 85 11.7 15 Furniture

Manufacturing manufacture
Ltd
Value Accounts Australia 70 0 30 0 Electronic

Electronics Pty equipment
Ltd manufacture
Value Accounts Indonesia 45 45 55 55 Furniture

Overseas Ltd manufacture
Value Accounts Australia 100 100 0 0 IT consulting

Consulting Ltd
Value Accounts Australia 100 100 0 0 Development of

Development Ltd residential land
PwC  10
(b) Significant restrictions

Cash and short-term deposits held in Asian countries (including Indonesia) are subject to local exchange
control regulations. These regulations provide for restrictions on exporting capital from those countries, other
than through normal dividends.
The carrying amount of the assets included within the consolidated financial statements to which these
restrictions apply is CU650,000 (2013 – CU410,000).
(c) Non-controlling interests

Set out below is summarised financial information for each subsidiary that has non-controlling interests
(NCI) that are material to the group. The amounts disclosed for each subsidiary are before inter-
company eliminations.
Value accounts Value accounts Value accounts

Manufacturing Ltd Overseas Ltd Electronics Ltd
Summarised balance sheet 30 June 30 June 30 June 30 June 30 June 30 June

2013 2012 2013 2012 2013 2012
CU000 CU000 CU000 CU000 CU000 CU000
Current assets 13,870 13,250 11,500 9,800 7,825 -
Current liabilities 12,570 7,595 10,570 8,300 1,200 -
Current net assets 1,300 5,655 930 1,500 6,675
Non-current assets 28,010 22,910 15,570 12,730 18,900 -
Non-current liabilities 5,800 3,400 12,735 10,748 10,100 -
Non-current net assets 22,210 19,510 2,835 1,982 8,800 -
Net assets 23,510 25,164 3,765 3,482 15,475 -
Accumulated NCI 2,751 3,775 2,071 1,914 4,641 -

Summarised statement of 2013 2012 2013 2012 2013 2012

comprehensive income
CU000 CU000 CU000 CU000 CU000 CU000
Revenue 30,200 27,800 14,100 14,450 3,850 -
Profit for the period 10,745 7,900 2,412 2,062 1,405 -
Other comprehensive income 1,265 830 (447) 243 - -
Total comprehensive 12,010 8,730 1,965 2,305 1,405 -

income
Profit/(loss) allocated to NCI 1,257 1,185 1,327 1,134 422 -
Dividends paid to NCI 1,262 935 925 893 830 -
PwC  11

Summarised cash flows 2013 2012 2013 2012 2013 2012
CU000 CU000 CU000 CU000 CU000 CU000
Cash flows from operating 2,989 2,780 1,203 1,160 980 -

activities
Cash flows from investing (1,760) (1,563) (584) (859) (870) -

activities
Cash flows from financing 390 (950) 256 330 (235) -

activities
Net increase/(decrease) in 1,619 267 875 631 (125) -

cash and cash equivalents
(d) Transactions with non-controlling interests

On 21 April 2014, VALUE ACCOUNTS Holdings Ltd acquired an additional 3.35% of the issued shares of
VALUE ACCOUNTS Manufacturing Ltd for a purchase consideration of CU500,000. The carrying amount of
the non-controlling interests in VALUE ACCOUNTS Manufacturing Ltd on the date of the transaction was
CU1,300,000. The group recognised a decrease in non-controlling interests of CU290,000, and a decrease in
equity attributable to owners of the parent of CU210,000. The effect of changes in the ownership interest of
VALUE ACCOUNTS Manufacturing Ltd on the equity attributable to the owners of VALUE ACCOUNTS
Holdings Ltd during the year is summarised as follows:
2013 CU000 2012 CU000
Carrying amount of non-controlling interests acquired 1,167 -
Consideration paid to non-controlling interests (1,500) -
Excess of consideration paid recognised in the transactions with non-controlling (333) -

interests reserve within equity
There were no transactions with non-controlling interests in 2013.
PwC  12
Appendix 2: Example disclosures

for unconsolidated structured
entities
Notes – Summary of accounting policies (extracts)
Standards effective for annual periods beginning on or after 1 January 2013 and which have been adopted by
the Fund.
IFRS 12, ‘Disclosure of Interests in other Entities’: the standard requires entities to disclose significant
judgements and assumptions made in determining whether the entity controls, jointly controls, significantly
influences or has some other interests in other entities. Entities are also required to provide more disclosures
around certain ‘structured entities’. Adoption of the standard has impacted the Fund’s level of disclosures in
certain of the above-noted areas, but has not impacted the Fund’s financial position or results of operations.
IFRS 10, ‘Consolidated Financial Statements’, IFRS 11, ‘Joint Arrangements’, IAS 27 (revised 2011), ‘Separate
Financial Statements’, IAS 28 (revised 2011), ‘Associates and Joint Ventures’ and the ‘Transition Guidance
(Amendments to IFRS 10, IFRS 11 and IFRS 12)’ have also been early adopted, as required by IFRS 12; however,
these standards and amendments have had no significant impact on the Fund.
Structured entities
A structured entity is an entity that has been designed so that voting or similar rights are not the dominant
factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only,
and the relevant activities are directed by means of contractual arrangements. A structured entity often has
some or all of the following features or attributes: (a) restricted activities; (b) a narrow and well-defined
objective, such as to provide investment opportunities for investors by passing on risks and rewards associated
with the assets of the structured entity to investors; (c) insufficient equity to permit the structured entity to
finance its activities without subordinated financial support; and (d) financing in the form of multiple
contractually linked instruments to investors that create concentrations of credit or other risks (tranches).
The Fund has determined that all of its investments in other funds (‘Investee Funds’) are investments in
unconsolidated structured entities. The Fund invests in Investee Funds whose objectives range from achieving
medium- to long-term capital growth and whose investment strategy does not include the use of leverage. The
Investee Funds are managed by unrelated asset managers and apply various investment strategies to
accomplish their respective investment objectives. The Investee Funds finance their operations by issuing
redeemable shares which are puttable at the holder’s option and entitle the holder to a proportional stake in the
respective fund’s net assets.
The Fund holds redeemable shares in each of its Investee Funds.
The change in fair value of each Investee Fund is included in the statement of comprehensive income in ‘Net
gains/(losses) on financial instruments held at fair value through profit or loss’.
Commentary – sponsored structural entities

For the purpose of this example disclosure, it is assumed that the Fund has not sponsored any structured
entities; if the Fund had sponsored a structured entity, it would need to make the additional disclosures
required by paragraph 27 of IFRS12.
PwC  13
Notes – financial risk management (extracts)

The Fund’s investments in Investee Funds are subject to the terms and conditions of the respective Investee
Fund’s offering documentation and are susceptible to market price risk arising from uncertainties about future
values of those Investee Funds. The investment manager makes investment decisions after extensive due
diligence of the underlying fund, its strategy and the overall quality of the underlying fund’s manager. All of the
Investee Funds in the investment portfolio are managed by portfolio managers who are compensated by the
respective Investee Funds for their services. Such compensation generally consists of an asset-based fee and a
performance-based incentive fee and is reflected in the valuation of the Fund’s investment in each of the
Investee Funds.
The right of the Fund to request redemption of its investments in Investee Funds ranges in frequency from
weekly to semi-annually.
The exposure to investments in Investee Funds at fair value, by strategy employed, is disclosed in the
following table.
These investments are included in financial assets at fair value through profit or loss in the statement of
financial position.
Strategy Number of Net asset value of Fair value of % of net assets

investee funds investee fund (range fund’s assets attributable to
and weighted of investment holders of
average) CUmillion CU000* redeemable shares**
Equity long/short 12 25–60/(45) 55,548 40.6
Event driven 10 75–107/(82) 41,531 37.2
Directional trading 6 100–225/(175) 9,668 8.7
Multi-strategy 2 37–45/(41) 5,752 5.2
Fund of Funds 2 21–25/(23) 5,565 5.0
Relative value 5 25–100/(66) 1,456 1.3
119,520
*The fair value of financial assets (CU119,520) is included in financial assets at fair value through profit or loss
in the statement of financial position
**This represents the entity’s percentage interest in the total net assets of the Investee Funds
Commentary – paragraph 26 of IFRS 12 and comparative disclosure

IFRS 12 requires disclosure of qualitative and quantitative information about an entity’s interests in
unconsolidated structured entities, including, but not limited to, the nature, purpose, size and activities of the
structured entity and how the structured entity is financed. Paragraph C2B of IFRS12 states that ‘the
disclosure requirements of paragraphs 24–31 and the corresponding guidance in paragraphs B21–B26 of this
IFRS need not be applied for any period presented that begins before the first annual period for which IFRS
12 is applied’. As such, no comparative disclosure has been included above.
PwC  14
The Fund’s maximum exposure to loss from its interests in Investee Funds is equal to the total fair value of its
investments in Investee Funds.
Once the Fund has disposed of its shares in an Investee Fund, it ceases to be exposed to any risk from that
Investee Fund.
The Fund’s investment strategy entails trading in other funds on a regular basis. Total purchases in Investee
Funds during the year ended 30 June 2014 was CU35,345,000. The Fund intends to continue opportunistic
trading in other funds. As at 30 June 2014 and 30 June 2013, there were no capital commitment obligations
and no amounts due to Investee Funds for unsettled purchases.
During the year ended 30 June 2014, total net losses incurred on investments in Investee Funds were
CU17,381,000.
Commentary – IFRS 7
The disclosure requirements of IFRS 7 and IFRS 12 might overlap to some extent. However, the intention is
that both standards complement each other. [IFRS 12 paras BC72–BC74]. Therefore, in situations where a
fund invests in other funds, which fall within the definition of a structured entity, additional disclosures
requirements will result from the application of IFRS 12.
PwC  15
Appendix 3: Illustration of
disclosures for interests in joint
arrangements and associates
Illustrated below are some of the key disclosure requirements for the example scenario presented.
Please note:, this is not a complete listing – these are example extracts only.
Background information and assumptions

In compiling this illustrative example, we have made the following assumptions:
 All joint arrangements and associates have the same financial year end as the reporting entity.
 None of the joint arrangements or associates are measured at fair value.
 None of the entity’s investments in the joint arrangements or associates are impaired.
 There are no unrecognised losses in relation to any equity accounted investments.
 There are no changes to the facts and circumstances during the period that would lead to a change in
classification of the joint arrangements or associates.
 The reporting entity has three material arrangements for disclosure: Kangaroo Pty Ltd (associate); Koala
Pty Ltd (joint venture); and Crocodile Venture Agreement (joint operation).
 The reporting entity also has interests in five individually immaterial associates that are accounted for using
the equity method.
1. Accounting policy note disclosure

(a) Associates
Associates are all entities over which the group has significant influence but not control or joint control,
generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates
are accounted for using the equity method of accounting, after initially being recognised at cost. The group’s
investment in associates includes goodwill identified on acquisition.
The group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share
of post-acquisition other comprehensive income is recognised in other comprehensive income. The cumulative
post-acquisition movements are adjusted against the carrying amount of the investment. Dividends receivable
from associates are recognised as a reduction in the carrying amount of the investment.
Where the group’s share of losses in an associate equals or exceeds its interest in the associate, including any
other unsecured long-term receivables, the group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the associate.
Unrealised gains on transactions between the group and its associates are eliminated to the extent of the
group’s interest in the associates. Unrealised losses are also eliminated, unless the transaction provides
evidence of an impairment of the asset transferred. Accounting policies of associates have been changed, where
necessary, to ensure consistency with the policies adopted by the group.
IAS 28 paras 28, 35
PwC  16
(b) Joint arrangements

Under IFRS 11, ‘Joint Arrangements’, investments in joint arrangements are classified as either joint operations
or joint ventures, depending on the contractual rights and obligations that each investor has, rather than the
legal structure of the joint arrangement. The entity has assessed the nature of its joint arrangements and
determined that it has both joint operations and joint ventures.
IFRS 11 para 14
(i) Joint operations

The entity recognises its direct rights to the (and its share of) jointly held assets, liabilities, revenues and
expenses of joint operations. These have been incorporated in the financial statements under the appropriate
headings.
IFRS 11 para 20
(ii) Joint ventures

Interests in joint ventures are accounted for using the equity method. Under this method, the interests are
initially recognised in the consolidated balance sheet at cost and adjusted thereafter to recognise the group’s
share of the post-acquisition profits or losses, and movements in other comprehensive income, in profit or loss
and other comprehensive income respectively.
Where the group’s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which
include any long-term interests that, in substance, form part of the group’s net investment in the joint
ventures), the group does not recognise further losses, unless it has incurred obligations or made payments on
behalf of the joint ventures.
Unrealised gains on transactions between the group and its joint ventures are eliminated to the extent of the
group’s interest in the joint ventures. Unrealised losses are also eliminated, unless the transaction provides
evidence of an impairment of the asset transferred.
Accounting policies of the joint ventures have been changed where necessary, to ensure consistency with the
policies adopted by the group.
IFRS 11 para 24
2. Critical accounting estimates and significant judgements

note disclosures
IAS 1 para 122
Classification of joint arrangements

The entity’s joint venture, Koala Ltd, is structured in a separate incorporated company. The reporting entity
holds 50% of the interest in the arrangement and, under the joint arrangement agreement, unanimous
consent is required from all parties to the agreement for all relevant activities. The reporting entity and the
parties to the agreement only have rights to the net assets of the company through the terms of the contractual
arrangement. Other facts and circumstances, however, have also been considered to determine the
classification of this arrangement.
PwC  17
The parties to the arrangement take 60% of the output produced by the venture, with the remaining 40% being
sold to third party customers. The level of output taken by the parties to the joint arrangement is not considered
substantial to indicate that the arrangement has been set up primarily for the provision of output to the parties
and that they have direct rights to substantially all of the economic benefits of the arrangement. Similarly, the
parties are not considered to be substantially the only source of cash flows contributing to the continuity of the
arrangement, indicating that the parties do not have a direct obligation for the liabilities relating to the
arrangement.
This arrangement is therefore classified as a joint venture of the reporting entity.
IFRS 12 para 7
3. Associates and joint arrangements note disclosure

(a) Joint operations
The reporting entity has entered into a joint arrangement, called the Crocodile Venture Agreement, to
develop properties for residential housing. The reporting entity has a 40% participating interest in this
arrangement and, under the terms of the agreement, has a direct share in all of the assets employed by the
arrangement and is liable for its share of the liabilities incurred. There is no legal or contractual separation
between the arrangement and the parties to the arrangement. The reporting entity has therefore classified this
arrangement as a joint operation. It has included its interests in the assets, liabilities, revenue and expenses in
the appropriate line items in the balance sheet and income statement respectively, in accordance with the
accounting policy.
IFRS 11 paras 7, 15, 21
The principal place of business of the joint operation is in Australia.
IFRS 12 para 21
(b) Interests in associates and joint ventures

Set out below are the associates and joint ventures of the reporting entity as at 30 June 20XX which, in the
opinion of the directors, are material to the reporting entity. The entities listed below have share capital
consisting solely of ordinary shares, which are held directly by the reporting entity. The country of
incorporation or registration is also their principal place of business, and the proportion of ownership interest
is the same as the proportion of voting rights held.
Name of Place of % of ownership Nature of Measurement Quoted fair

entity business/country interest relationship method value
of incorporation
20XX 20XY 20XX 20XY
% % CU CU
Kangaroo Australia 30 30 Associate (1) Equity method 750 650

Pty Ltd
Koala Pty Australia 50 50 Joint venture Equity method -* -*

Ltd (2)
(1) Kangaroo Pty Ltd develops residential land. It is a strategic investment which uses the reporting entity’s
knowledge and expertise in the development of residential land but, at the same time, limits the reporting
entity’s risk exposure through a reduced equity holding.
PwC  18
(2) Koala Pty Ltd is a manufacturer of specialised equipment for the hospitality industry. It is a strategic joint
venture for the reporting entity which complements the services provided by its own hospitality sector.
* Private entity – no quoted price available.
IFRS 12 para 21
(c) Commitments and contingent liabilities in respect of
20XX 20XY
CU000 CU000
(i) Commitments – joint ventures
Commitment to provide funding for capital commitments, if called 250 200
(ii) Contingent liabilities – associates
Share of contingent liabilities incurred jointly with other investors of the 150 100
associate
Contingent liabilities relating to liabilities of the associate for which the - 50

reporting entity is severally liable
(iii) Contingent liabilities – joint ventures
Share of contingent liabilities in respect of a legal claim lodged against 200 150
the partnership
IFRS 12 para 23 and B19
(d) Summarised financial information for associates and joint ventures

The tables below provide summarised financial information for those associates and joint ventures that are
material to the reporting entity. The information disclosed reflects the amounts presented in the financial
statements of the relevant associates and joint ventures, and not the reporting entity’s share of those amounts.
They have been amended to reflect adjustments made by the reporting entity when using the equity method,
including fair value adjustments and modifications for differences in accounting policy.
PwC  19
Summarised balance sheet Kangaroo Ltd Koala Ltd
30 June 30 June 30 June 30 June 20XY

20XX 20XY 20XX
CU000 CU000 CU000 CU000
Current assets
Cash and cash equivalents 300 250
Other current assets 1,500 1,300
Total current assets 800 600 1,800 1,550
Non-current assets 3,500 3,000 7,000 6,500
Current liabilities
Financial liabilities (excluding trade payables) 150 250
Other current liabilities 1,000 600
Total current liabilities 350 250 1,150 850
Non-current liabilities
Financial liabilities (excluding trade payables) 2,000 2,200
Other non-current liabilities 300 350
Total non-current liabilities 1,600 1,300 2,300 2,550
Net assets 2,350 2,050 5,350 4,650
Reconciliation to carrying amounts:
Opening net assets 1 July 2,050 1,650 4,650 4,450
Profit/(loss) for the period 450 300 600 500
Other comprehensive income - 400 350 -
Dividends paid (150) (300) (250) (300)
Closing net assets 2,350 2,050 5,350 4,650
Reporting entity’s share in % 30% 30% 50% 50%
Reporting entity’s share in CU 705 615 2,675 2,325
Goodwill - - - -
Carrying amount 705 615 2,675 2,325
PwC  20
Summarised statements of Kangaroo Ltd Koala Ltd

comprehensive income
30 June 20XX 30 June 20XY 30 June 20XX 30 June 20XY
CU000 CU000 CU000 CU000
Revenue 5,200 5,000 10,000 9,500
Interest income - -
Depreciation and amortisation (2,800) (1,800)
Interest expense (350) (250)
Income tax expense - -
Profit from continuing operations 450 300 600 500
Profit from discontinued operations - - - -
Profit for the period 450 300 600 500
Other comprehensive income - 400 350 -
Total comprehensive income 450 700 950 500
Dividends received from associates and 45 90 125 150

joint venture entities
* Shading indicates disclosures that are not required for investments in associates
IFRS 12 paras 21, B12, B13, B14
(e) Individually immaterial associates

In addition to the interests in associates disclosed above, the reporting entity also has interests in a number of
individually immaterial associates that are accounted for using the equity method.
20XX 20XY
CU000 CU000
Aggregate carrying amount of individually immaterial associates 400 350
Aggregate amounts of the reporting entity’s share of:
Profit/(loss) from continuing activities 50 10
Post-tax profit or loss from discontinued operations - -
Other comprehensive income - -
Total comprehensive income 50 10
IFRS 12 paras 21, B16
PwC  21
Appendix 4: Disclosure
checklist extracts
Disclosures Appropriate
disclosures
made?
(Yes/No*/NA)
Significant judgements and assumptions
An entity shall disclose information about significant judgements and assumptions it has
made (and changes to those judgements and assumptions) in determining that it has control
of another entity (that is, an investee as described in paras 5 and 6 of IFRS 10).
The entity is also required to disclose the significant judgements and assumptions where
there are changes in facts and circumstances such that the conclusion about whether it has
control changes during the reporting period.
An entity shall disclose significant judgements and assumptions including those made in
determining that:
a) it does not control another entity, even though it holds more than half of the voting
rights of the other entity;
b) it controls another entity, even though it holds less than half of the voting rights of the
other entity; and
c) it is an agent or a principal (see paras B58–B75 of IFRS 10).
An entity shall disclose information about significant judgements and assumptions made
(and changes thereto) in determining whether:
a) an entity has joint control or an arrangement or significant influence over another
entity; and
b) the type of joint arrangement (that is, joint venture or joint operation) where the
arrangement has been structured through a separate vehicle.
The entity is also required to disclose the significant judgements and assumptions where
there are changes in facts and circumstances such that the conclusion about whether it has
joint control or significant influence changes during the reporting period.
An entity shall disclose significant judgements and assumptions including those made in
determining that:
a) it does not have significant influence, even though it holds 20% or more of the voting
rights of another entity; and
b) it has significant influence, even though it holds less than 20% of the voting rights of
another entity.
PwC  22
disclosures
made?
(Yes/No*/NA)
Interests in subsidiaries
An entity shall disclose information that enables users of its consolidated financial
statements to understand:
a) the composition of the group; and
b) the interest that non-controlling interests have in the group’s activities and cash flows –
that is, for each of its subsidiaries that have non-controlling interests that are material to
the reporting entity, it discloses:
i. the name of the subsidiary;
ii. the principal place of business (and country of incorporation, if different from the
principal place of business) of the subsidiary;
iii. the proportion of ownership interests held by non-controlling interests;
iv. the proportion of voting rights held by non-controlling interests, if different from
the proportion of ownership interests held;
v. the profit or loss allocated to non-controlling interests of the subsidiary during the
reporting period;
vi. accumulated non-controlling interests of the subsidiary at the end of the reporting
period; and
vii. summarised financial information about the subsidiary, as follows:
(a) dividends paid to non-controlling interests; and
(b) summarised financial information about the assets, liabilities, profit or loss and
cash flows of the subsidiary that enables users to understand the interest that non-
controlling interests have in the group’s activities and cash flows. That
information might include, but is not limited to, current assets, non-current assets,
current liabilities, non-current liabilities, revenue, profit or loss and total
comprehensive income.
statements to evaluate the nature and extent of significant restrictions on its ability to access
or use assets, and settle liabilities, of the group. In particular, an entity shall disclose:
a) significant restrictions (such as statutory, contractual and regulatory restrictions) on its
ability to access or use the assets and settle the liabilities of the group, such as:
i. those that restrict the ability of a parent or its subsidiaries to transfer cash or other
assets to (or from) other entities within the group; and
ii. guarantees or other requirements that might restrict dividends and other capital
distributions from being paid, or loans and advances from being made or repaid, to
(or from) other entities within the group;
b) the nature and extent to which protective rights of non-controlling interests can
significantly restrict the entity’s ability to access or use the assets and settle the liabilities
of the group, such as where a parent is obliged to settle liabilities of a subsidiary before
settling its own liabilities, or the approval of non-controlling interests is required either
to access the assets or to settle the liabilities of a subsidiary; and
c) the carrying amounts in the consolidated financial statements of the assets and
liabilities to which those restrictions apply.
PwC  23
disclosures
made?
(Yes/No*/NA)
statements to evaluate the nature of, and changes in, the risks associated with its interests in
consolidated structured entities, by disclosing:
a) the terms of any contractual arrangements that could require the parent or its
subsidiaries to provide financial support to a consolidated structured entity, including
events or circumstances that could expose the reporting entity to a loss (for example,
liquidity arrangements or credit rating triggers associated with obligations to purchase
assets of the structured entity or provide financial support);
b) if, during the reporting period, a parent or any of its subsidiaries has, without having a
contractual obligation to do so, provided financial or other support to a consolidated
structured entity (for example, by purchasing assets of or instruments issued by the
structured entity):
i. the type and amount of support provided, including situations in which the parent
or its subsidiaries assisted the structured entity in obtaining financial support; and
ii. the reasons for providing the support;
c) if, during the reporting period, a parent or any of its subsidiaries has, without having a
contractual obligation to do so, provided financial or other support to a previously
unconsolidated structured entity and that provision of support resulted in the entity
controlling the structured entity, an explanation of the relevant factors in reaching that
decision; and
d) any current intentions to provide financial or other support to a consolidated structured
entity, including intentions to assist the structured entity in obtaining financial support.
statements to evaluate the consequences of changes in its ownership interest in a subsidiary
that do not result in a loss of control, by disclosing a schedule that shows the effects on the
equity attributable to owners of the parent of any changes in its ownership interest in a
subsidiary that do not result in a loss of control.
statements to evaluate the consequences of losing control of a subsidiary during the
reporting period, by disclosing:
a) any gain or loss arising from the loss of control, calculated in accordance with paragraph
25 of IFRS 10;
b) the portion of that gain or loss attributable to measuring any investment retained in the
former subsidiary at its fair value at the date when control is lost; and
c) the line item(s) in profit or loss in which the gain or loss is recognised (if not presented
separately).
Where the financial statements of a subsidiary used in the preparation of consolidated

financial statements are as of a date or for a period that is different from that of the
consolidated financial statements (see paras B92 and B93 of IFRS 10), an entity shall
disclose:
a) the date of the end of the reporting period of the financial statements of that subsidiary;
and
b) the reason for using a different date or period.
PwC  24
disclosures
made?
(Yes/No*/NA)
Interests in unconsolidated structured entities
An entity shall disclose information that enables users of its financial statements to
understand the nature and extent of its interests in unconsolidated structured entities, as
follows:
a) An entity shall disclose qualitative and quantitative information about its interests in
unconsolidated structured entities, including, but not limited to, the nature, purpose,
size and activities of the structured entity and how the structured entity is financed.
b) If an entity has sponsored an unconsolidated structured entity for which it does not
provide information required by paragraph 29 of IFRS 12 (for example, because it does
not have an interest in the entity at the reporting date), the entity shall disclose:
i. how it has determined which structured entities it has sponsored;
ii. income from those structured entities during the reporting period, including a
description of the types of income presented; and
iii. the carrying amount (at the time of transfer) of all assets transferred to those
structured entities during the reporting period.
c) An entity shall present the information in points (ii) and (iii) of (b) above in tabular
format, unless another format is more appropriate, and classify its sponsoring activities
into relevant categories.
An entity shall disclose information that enables users of its financial statements to evaluate
the nature of, and changes in, the risks associated with its interests in unconsolidated
structured entities, as below:
In accordance with paragraph 29 of IFRS 12, an entity shall disclose in tabular format, unless
another format is more appropriate, a summary of:
a) the carrying amounts of the assets and liabilities recognised in its financial statements
relating to its interests in unconsolidated structured entities;
b) the line items in the statement of financial position in which those assets and liabilities
are recognised;
c) the amount that best represents the entity’s maximum exposure to loss from its interests
in unconsolidated structured entities, including how the maximum exposure to loss is
determined; if an entity cannot quantify its maximum exposure to loss from its interests
in unconsolidated structured entities, it shall disclose that fact and the reasons; and
d) a comparison of the carrying amounts of the assets and liabilities of the entity that relate
to its interests in unconsolidated structured entities and the entity’s maximum exposure
to loss from those entities.
If, during the reporting period, an entity has, without having a contractual obligation to do
so, provided financial or other support to an unconsolidated structured entity in which it
previously had or currently has an interest (for example, by purchasing assets of or
instruments issued by the structured entity), the entity shall disclose:
a) the type and amount of support provided, including situations in which the entity
assisted the structured entity in obtaining financial support; and
b) the reasons for providing the support.
An entity shall disclose any current intentions to provide financial or other support to an
unconsolidated structured entity, including intentions to assist the structured entity in
obtaining financial support.
PwC  25
disclosures
made?
(Yes/No*/NA)
The information required in this row includes information about an entity’s exposure to risk
from involvement that it had with unconsolidated structured entities in previous periods (for
example, sponsoring the structured entity), even if the entity no longer has any contractual
involvement with the structured entity at the reporting date.
Nature, extent and financial effects of an entity’s interests in joint

arrangements and associates
For each joint arrangement and associate that is material to the reporting entity, the entity
shall disclose:
a) the name of the joint arrangement or associate;
b) the nature of the entity’s relationship with the joint arrangement or associate;
c) the principal place of business (and country of incorporation, if applicable and different
from the principal place of business) of the joint arrangement or associate; and
d) the proportion of ownership interest or participating share held by the entity and, if
different, the proportion of voting rights held (if applicable).
For each joint venture and associate that is material to the reporting entity, the entity shall
disclose:
a) whether the investment in the joint venture or associate is measured using the equity
method or fair value;
b) if the joint venture or associate is accounted for using the equity method, the fair value
of its investment in the joint venture or associate, if there is a quoted market price for
the investment;
c) dividends received from the joint venture or associate; and
d) summarised financial information** for the joint venture or associate, as presented
within the joint venture’s or associate’s IFRS financial statements (and not the entity’s
share of those amounts), including, but not limited to:
 current assets;
 non-current assets;
 current liabilities;
 non-current liabilities;
 revenue;
 profit or loss from continuing operations;
 post-tax profit or loss from discontinued operations;
 other comprehensive income; and
 total comprehensive income.
** If the entity accounts for its interest in the joint venture or associate using the equity method, the equity
accounted investment could be adjusted by the entity (for example, to align accounting policies). The
summarised financial information of the joint venture or associate should include these adjustments and a
reconciliation between the summarised financial information presented and the carrying amount of its interest
in the joint venture or associate.
Where an entity measures its interest in the joint venture or associate at fair value, and IFRS financial
statements are not prepared by the joint venture or associate (and preparation on that basis would be
impracticable or cause undue cost), the entity is required to disclose the basis on which the summarised
financial information has been prepared.
* If the answer is ‘no’, further justification should be provided.
PwC  26
This material has been prepared by PwC for general circulation on matters of interest only. It is not advice and does not
take into account the objectives, financial situation or needs of any recipient. Any recipient should, before acting on this
material, make their own enquiries and obtain their own professional advice in relation to any issue or matter referred to
herein. We do not, in preparing this material, accept or assume responsibility for any purpose or to any person to whom this
material is shown and shall not be liable in respect of any loss, damage or expense whatsoever caused by any use the
reader may choose to make of this material. © 2013 PwC. All rights reserved. "PwC" refers to PricewaterhouseCoopers, an
Australian limited liability partnership, or as the context requires, the PricewaterhouseCoopers global network or other
member firms of the network each of which is a separate and independent legal entity.
© 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to the UK member firm, and may
sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for
further details.
130918-103713-MF-OS

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Appendix 1: Example disclosures for subsidiaries 6

Supplement to the practical guide

IFRS 12 is applicable for annual reporting periods

1These disclosures only had to be made in separate financial

Non-controlling interests If the entity holds interests in consolidated

To achieve this, the entity should provide: Joint arrangements and

Other disclosure requirements  the amount of the adjustment relating to periods

Appendix 1: Example disclosures

Prior year restatement

Income statement (extract) 2013 Profit 2013 (restated)

Revenue 84,460 3,957 88,417

Other income 2,481 129 2,610

Cost of sales (43,524) (1,284) (44,808)

Distribution expenses (18,548) (297) (18,845)

Marketing expenses (8,966) (150) (9,116)

Administrative expense (5,877) (325) (6,202)

Share of net profits of associates 170 (170) 0

Profit for the period 10,196 1,860 12,056

Profit is attributable to:

Owners 10,196 1,302 11,498

Non-controlling interests 0 558 558

10,196 1,860 12,056

Other comprehensive income for 5,599 0 5,599

Total comprehensive income 15,795 1,860 17,655

Total comprehensive income

Owners 15,795 1,860 17,655

15,795 1,860 17,655

Basic earnings per share xx xx

Diluted earnings per share xx xx

Prior year restatement

Statement of cash flows 2013 Increase/(decrease) 2013 (restated)

Gross cash flow from operating 41,067 1,965 43,032

Interest paid (4,124) (149) (4,273)

Net cash flows from operating 36,943 1,816 38,759

Cash flows from investing

Purchase of property, plant and (18,132) (638) (18,770)

Acquisition of intangible assets (760) (23) (783)

(18,892) (661) (19,553)

Cash flow from financing

Repayment of borrowings (25,255) (192) (25,447)

Net movements in cash flows (7,204) 963 (6,241)

Prior years restatement

Cash 24,473 1,000 25,473 17,145 759 17,904

Trade receivables 12,564 585 13,149 8,573 590 9,163

Inventories 16,942 900 17,842 13,960 823 14,783

Associate 4,956 (4,401) 555 3,754 (2,541) 1,213

Intangible assets 22,795 395 23,190 22,780 299 23,079

Total assets 182,560 33,369 215,929 155,047 29,684 184,731

Borrowings 62,575 19,786 82,361 59,400 20,172 79,572

Total liabilities 75,402 20,284 95,686 72,580 20,537 93,117

Net assets 107,158 13,085 120,243 82,467 9,147 91,614

Equity attributable to:

Parent 107,158 9,160 116,318 82,467 6,403 88,870

Non-controlling interests 0 3,926 3,926 0 2,744 2,744

107,158 13,085 120,243 82,467 9,147 91,614

2. Critical accounting estimates and judgements (extracts)

Note 42 Subsidiaries and transactions with non-controlling interests (extract)

(a) Interest in subsidiaries

Name of entity Place of % of ownership % of ownership Principal

2014 2013 2014 2013

Value Accounts Australia 100 100 0 0 Furniture retail

Value Accounts Australia 88.3 85 11.7 15 Furniture