Page 53 - Bauxite Resources Annual Report 2014

Annual Report 2014 Bauxite Resources | 51
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements cont.
51 Bauxite Resources Annual Report 2014
(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) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the
current financial year.
Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its
financial statements, an additional (third) statement of financial position as at the beginning of the preceding period in addition to
the minimum comparative financial statements is presented.
(t) New and Amended Accounting Policies Adopted by the Group
The Group adopted the following Australian Accounting Standards, together with the relevant consequential amendments
arising from related Amending Standards, from the mandatory application date of 1 January 2013:
– AASB 10: Consolidated Financial Statements;
– AASB 11: Joint Arrangements
– AASB 12: Disclosure of Interests in Other Entities; and
– AASB 127: Separate Financial Statements.
AASB 10 provides a revised definition of “control” and may result in an entity having to consolidate an investee that was not
previously consolidated and/or deconsolidate an investee that was consolidated under the previous accounting
pronouncements.
The Group has applied these Accounting Standards with retrospective effect in accordance with their transitional requirements.
The Group has:
– presented quantitative information of the comparative period reflecting the adoption of AASB 10; and
– with respect to any previously unconsolidated investee that is a business, measured the assets, liabilities and non-
controlling interests as if the investee had been consolidated in accordance with the applicable version of AASB 3:
Business Combinations from the date when the Group gained control of the investee. When the date that control was
obtained was earlier than the beginning of the immediately preceding period, the Group recognises, as an adjustment to
equity at the beginning of the comparative period, any difference between:
– the amount of assets, liabilities and non-controlling interests recognised; and
– the previous carrying amount of the Group’s involvement with the investee.
The first-time application of AASB 10 has not resulted in any material changes to the Group’s financial statements: