Annual integrated report 2017

All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the group are

eliminated on consolidation.

Changes in the group’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying

amount of the group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the

subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration

paid or received is recognised directly in equity and attributed to the owners of the company.

1.3 Business combinations

The group accounts for business combinations using the acquisition method. The consideration transferred for the acquisition of a business

is the fair value of assets transferred, the liabilities incurred and the equity issued by the group. The consideration transferred includes the

fair value of any asset or liability resulting from a contingent arrangement. If the contingent arrangement is classified as equity, then it is not

remeasured and settlement is accounted for in equity. Subsequent changes in the fair value of other contingent arrangements are recognised

in profit or loss. Acquisition-related costs, apart from costs directly related to the raising of debt and/or equity, are expensed as incurred.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value

at acquisition date. The group recognises any non-controlling interest, at the non-controlling interest’s proportionate share of the subsidiary’s

net assets on an acquisition-by-acquisition basis. When a business combination is achieved in stages, the group’s previously held equity

interest in an entity is remeasured to its acquisition date fair value and the resulting gain or loss recognised in profit or loss.

The excess of the consideration transferred, the amount of any non-controlling interest in the entity and the acquisition date fair value of any

previous equity interest in the business over the fair value of the group’s share of the identifiable net assets acquired is recorded as goodwill.

If this is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised in profit or loss as a bargain purchase

gain.

The company carries its investments in subsidiaries at cost less accumulated impairment losses.

1.4 Business combinations under common control

For business combinations involving entities under common control of the group, the group has accounted for the difference between the

book value of the transferred assets as a result of unbundling and the fair value of the consideration transferred as an adjustment to equity.

1.5 Puttable non-controlling interests

Put options held by non-controlling interests in the group’s subsidiaries entitle the non-controlling interest to sell its interest in the subsidiary to

the group at predetermined values and on contracted dates. In such cases, the group consolidates the non-controlling interest’s share of the

equity in the subsidiary and recognises the fair value of the non-controlling interest’s put option, being the present value of the estimated future

purchase price, as a financial liability in the statement of financial position. In raising this liability, the non-controlling interest is derecognised

and any excess or shortfall is charged or realised directly in retained earnings in the statement of changes in equity.

The unwinding of the present value discount on these liabilities is recorded within finance charges in the statement of profit or loss using the

effective interest method. The financial liability is fair valued at the end of each financial year and any changes in the value of the liability as

a result of changes in assumptions used to estimate the future purchase price are recorded directly in retained earnings in the statement

of changes in equity.

1.6 Revenue

Revenue comprises amounts earned from customers for goods and services and excludes value added tax. Revenue is net of returns and

allowances, trade discounts and volume rebates.

1.7 Revenue recognition

Revenue is recognised when significant risks and rewards of ownership of the goods are transferred to the buyer, recovery of the

consideration is considered probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing

management involvement with the goods, and the amount of revenue can be measured reliably.

Revenue from commissions and fees is recognised in the statement of profit or loss in proportion to the stage of completion of the transaction

at the statement of financial position date.

Finance income comprises interest receivable on funds invested. Finance income is recognised using the effective interest method.

Dividends are recognised when the right to receive payment is established.

FINANCIAL OVERVIEW

Notes to the consolidated financial statements

for the year ended June 30

FINANCIAL STAT MENTS

Annual integrated report 2017

Bid Corporation Limited