FirstChoice Wholesale Investments part 2 - Colonial First State

COLONIAL FIRST STATE - FIRSTCHOICE WHOLESALE INVESTMENT FUNDS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE REPORTING PERIOD ENDED 30 JUNE 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(r)
(i)
Derivatives and Hedging Activities (continued)
Derivative Instruments That Are Not Designated for Hedge Accounting
Derivative instruments that are not designated for Hedge Accounting are initially recognised at fair value on the date the
derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting
period. Changes in the fair value of derivative instruments are recognised in the Statement of Comprehensive Income as
changes in fair value of financial instruments held for trading.
(s)
Principles of Consolidation
The consolidated financial statements comprise the financial statements of the Parent Entities and their subsidiaries
("the Group").
Subsidiaries are all those entities over which the parent entity has control. The financial statements of subsidiaries are
prepared for the same reporting period as their Parent Entities, using consistent accounting policies.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Parent Entity. The
purchase method measures the acquiree's assets and liabilities at their fair value at acquisition date.
All inter-fund balances and transactions, including unrealised profits arising from intra-group transactions have been
eliminated in full.
Minority interest in the net profit and net assets of subsidiaries are shown separately in the Statement of Comprehensive
Incomes and Balance Sheets respectively.
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