Page 49 - Bauxite Resources Annual Report 2013

Notes to the Financial Statements cont.
(q) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial
year, adjusted for bonus elements in ordinary shares issued during the year.
(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
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
(r) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which
are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
(s) New Accounting Standards for Application in Future Periods
The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application
dates for future reporting periods, some of which are relevant to the Group. The Group has decided not to early adopt any of the
new and amended pronouncements. The Group’s assessment of the new and amended pronouncements that are relevant to the
Group but applicable in future reporting periods is set out below:
AASB 9: Financial Instruments (December 2010) and AASB 2010–7: Amendments to Australian Accounting Standards arising
from AASB 9 (December 2010).
These Standards are applicable retrospectively and include revised requirements for the classification and measurement of
financial instruments, as well as recognition and derecognition requirements for financial instruments.
The key changes made to accounting requirements include:
• simplifying the classifications of financial assets into those carried at amortised cost and those carried at fair value;
• simplifying the requirements for embedded derivatives;
• removing the tainting rules associated with held-to-maturity assets;
• removing the requirements to separate and fair value embedded derivatives for financial assets carried at amortised cost;
• allowing an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that
are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on
investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument;
These Standards were mandatorily applicable for annual reporting periods commencing on or after 1 January 2013. However,
AASB 2012–6: Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transition
Disclosures (issued September 2012) defers the mandatory application date of AASB 9 from 1 January 2013 to 1 January 2015.
In light of the change to the mandatory effective date, the Group is expected to adopt AASB 9 and AASB 2010–7 for the annual
reporting period ending 30 June 2016. Although the directors anticipate that the adoption of AASB 9 and AASB 2010–7 may
have a significant impact on the Group’s financial instruments, it is impracticable at this stage to provide a reasonable estimate of
such impact.
AASB 10: Consolidated Financial Statements, AASB 11: Joint Arrangements, AASB 12: Disclosure of Interests in Other Entities,
AASB 127: Separate Financial Statements (August 2011) and AASB 128: Investments in Associates and Joint Ventures (August
2011) (as amended by AASB 2012–10: Amendments to Australian Accounting Standards – Transition Guidance and Other
Amendments), and AASB 2011–7: Amendments to Australian Accounting Standards arising from the Consolidation and Joint
Arrangements Standards (applicable for annual reporting periods commencing on or after 1 January 2013).
Annual Report 2013 Bauxite Resources 47