Page 47 - Bauxite Resources Annual Report 2014

Annual Report 2014 Bauxite Resources | 45
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements
45 Bauxite Resources Annual Report 2014
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 19 September 2014 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. The financial report is presented in Australian dollars.
(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 2014, the results of all subsidiaries and applicable joint arrangements for the year
then ended. Bauxite Resources Limited, its subsidiaries and joint arrangements 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.