Notes to the Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This financial report includes the consolidated financial statements and notes of Bauxite Resources Limited and controlled entities
(‘Consolidated Group’ or ‘Group’). The financial statements were authorized for issue on 20 September 2013 by the directors of
the Company.
(a) Basis of preparation
This general purpose financial report has been prepared in accordance with Australian Accounting Standards, other authoritative
pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the
Corporations Act 2001
.
The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
Compliance with IFRS
Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS).
Compliance with AIFRS ensures that the financial report of Bauxite Resources Limited complies with International Financial
Reporting Standards (IFRS).
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-
for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through profit or loss, certain
classes of property, plant and equipment and investment property.
(b) Principles of consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Bauxite Resources Limited
(“Company” or “parent entity”) as at 30 June 2013, the results of all subsidiaries and joint ventures for the year then ended.
Bauxite Resources Limited, its subsidiaries and joint ventures together are referred to in this financial report as the Group or
consolidated entity.
Subsidiaries are all of those entities (including special purpose entities) over which the Group has the power to govern the
financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence
and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the
Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the
date that control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group.
The Group applies a policy of treating transactions with minority interests as transactions with parties external to the Group.
Disposals to minority interests result in gains and losses for the Group that are recorded in the income statement. Purchases from
minority interests result in goodwill, being the difference between any consideration paid and the relevant share acquired of the
carrying value of identifiable net assets of the subsidiary.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised
losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies
of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
Minority interests in the results and equity of subsidiaries are shown separately in the consolidated income statement and
balance sheet respectively.
Investments in subsidiaries are accounted for at cost in the individual financial statements of Bauxite Resources Limited.
(c) Interests in joint ventures
The Group’s shares of the assets, liabilities, revenue and expenses of jointly controlled operations have been included in the
appropriate line items of the consolidated financial statements. Details of the Group’s interests are provided in Note 17.
Where the Group contributes assets to the joint venture or if the Group purchases assets from the joint venture, only the portion of
the gain or loss that is not attributable to the Group’s share of the joint venture shall be recognised. The Group recognises the full
amount of any loss when the contribution results in a reduction in the net realisable value of current assets or an impairment loss.
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Bauxite Resources
Annual Report 2013
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