COMPUTERSHARE ANNUAL REPORT 2008

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Notes to the Financial Statements1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESThis general purpose financial report for the reporting period ended 30 June <strong>2008</strong> has been prepared in accordance withAustralian equivalents to International Financial Reporting Standards (AIFRS), other authoritative pronouncements of the AustralianAccounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001.The Group has adopted AASB 7 Financial Instruments: Disclosures for the accounting period beginning 1 July 2007. This had noeffect on the results, cash flows or financial position of the Group or company. However, there are changes to the notes on theaccounts and comparative information is presented accordingly.This report is to be read in conjunction with any public announcements made by Computershare Limited during the reportingperiod in accordance with the continuous disclosure requirements of the Corporations Act 2001 and Australian Stock ExchangeListing Rules.Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current period.Basis of preparation of full year financial reportThe principal accounting policies adopted in the preparation of the financial report are set out below. These policies have beenconsistently applied to all the periods presented, unless otherwise stated. The financial report includes separate financial statementsfor Computershare Limited as an individual entity and the consolidated entity consisting of Computershare Limited and itssubsidiaries.Compliance with IFRSThe financial report, comprising the financial statements and notes of Computershare Limited, complies with InternationalFinancial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The parent entity financialstatements and notes also comply with IFRS as issued by the IASB.Historical cost conventionThe financial statements have been prepared under the historical cost convention as modified by the revaluation of available-forsalefinancial assets and financial assets and liabilities (including derivative instruments) at fair value through profit or loss.Principles of consolidationThe consolidated financial statements include the assets and liabilities of the parent entity, Computershare Limited, and itssubsidiaries, referred to collectively throughout these financial statements as the “consolidated entity” or “the Group”.All inter-entity balances and transactions have been eliminated. Where an entity either began or ceased to be controlled during theyear, the results are consolidated only from the date control commenced or up to the date control ceased.Financial statements of foreign subsidiaries, associates and joint ventures presented in accordance with overseas accountingprinciples are, for consolidation purposes, adjusted to comply with Group policy and AIFRS.SubsidiariesInvestments in subsidiaries are carried in the company’s financial statements at the lower of cost and recoverable amount.Dividends from subsidiaries are brought to account in the income statement when they are declared by the subsidiaries.AssociatesAssociates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding ofbetween 20% and 50% of the voting rights. Interests in material associated entities are brought to account using the equity method.Under this method the investment in associates is initially recognised at its cost of acquisition and its carrying value is subsequentlyadjusted for increases or decreases in the investor’s share of post-acquisition results and reserves of the associate. The Group’sshare of its associates’ post acquisition profits or losses is recognised in the income statement. The investment in associated entitiesis decreased by the amount of dividends received or receivable. Investments in associates are carried at the lower of cost andrecoverable amount in the accounts of the parent entity.Joint venturesInterests in joint venture partnerships are accounted for in the consolidated financial statements using the equity method and arecarried at cost by the parent entity.Foreign currency translationFunctional and presentation currencyItems included in the financial statements of each of the Group’s entities are measured using the currency of the primary economicenvironment in which the entity operates (the ‘functional currency’). The consolidated and parent entity financial statementsare presented in US dollars, as a significant portion of the Group’s activity is denominated in US dollars. Computershare Limited’sfunctional currency is Australian dollars.02-13Overview14-36Governance37-88Financials89-92Reports93-96Further InformationPAGE 41
Notes to the Financial StatementsTransactions and balancesForeign currency transactions are converted to US dollars at exchange rates approximating those in effect at the date of eachtransaction. Amounts payable and receivable in foreign currencies at balance date are converted to US dollars at the average ofthe buy and sell rates available on the close of business at balance date. Revaluation gains and losses are brought to account asthey occur.Exchange differences relating to monetary items are included in the income statement, as exchange gains or losses, in theperiod when the exchange rates change, except when deferred in equity as qualifying cash flow hedges and qualifying netinvestment hedges.Group companiesAll resulting exchange differences from the translation of the results and financial position of all the Group entities that havea functional currency other than US dollars are recognised as a separate component of equity. On consolidation, exchangedifferences arising from the translation of any net investment in foreign entities, and of borrowings and other currency instrumentsdesignated as hedges of such investments, are taken to shareholders’ equity.Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreignentity and translated at the closing rate.Income taxThe financial statements apply the principles of tax-effect accounting. The income tax expense in the income statement representstax on the pre-tax accounting profit adjusted for income and expenses never to be assessed or allowed for taxation purposes. This isalso adjusted for changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assetsand liabilities and their carrying amounts in the financial statements.Deferred tax assets and liabilities are recognised for temporary differences calculated at the tax rates expected to apply when thedifferences reverse. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it isprobable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets andliabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred taxbalances relate to the same taxation authority.Deferred tax assets and liabilities are not recognised for temporary differences between the carrying amount and tax bases ofinvestments in subsidiaries where the parent entity is able to control the timing of the reversal of the temporary differences and it isprobable that the differences will not reverse in the foreseeable future.Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.Tax consolidation legislationComputershare Limited and its wholly-owned Australian entities implemented the tax consolidation regime with effect from1 July 2002. The Australian Taxation Office has been formally notified of this decision.The relevant entities have also entered into a tax sharing deed, which includes tax funding arrangements. As a consequence,Computershare Limited, as the head entity in the tax consolidation Group, has recognised the current tax liability relating totransactions, events and balances of the wholly owned Australian subsidiaries in this Group in the financial statements as if thatliability was its own, in addition to recognising the current tax liability arising in relation to its own transactions, events and balances.Amounts receivable or payable under the tax sharing deed are recognised separately as tax related intercompany payables orreceivables. The parent entity and the other relevant entities continue to account for their own deferred tax amounts.LeasesLeases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classifiedas finance leases. Assets acquired under finance leases are capitalised and amortised over the life of the relevant lease, or whereownership is likely to be obtained on expiration of the lease, over the life of the asset. Lease payments are allocated betweeninterest expense and reduction in the lease liability.Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operatingleases. Operating lease assets are not capitalised and rental payments (net of any incentives received from the lessor) are chargedagainst operating profit on a straight line basis over the period of the lease.Leasehold improvementsThe cost of improvements to or on leasehold properties is amortised over the unexpired period of the lease or the estimated usefullife of the improvement to the consolidated entity, whichever is the shorter.Software and research and development costsInternally developed software and related research and development costs are expensed in the year in which they are incurred asthey do not meet the recognition criteria for capitalisation.PAGE 42 Computershare Annual Report <strong>2008</strong>
Page 7 and 8: Management Discussion and AnalysisC
Page 9 and 10: North America Regional OverviewDesp
Page 12: 2008 HIGHLIGHTS> Acted for all majo
Page 16 and 17: As at the date of this Annual Repor
Page 18 and 19: 4. BOARD INDEPENDENCEThe Board has
Page 20 and 21: With limited exceptions, the Compan
Page 22 and 23: PricewaterhouseCoopers rotates audi
Page 24 and 25: DIVIDENDSThe following dividends of
Page 26 and 27: LIKELY DEVELOPMENTS AND FUTURE RESU
Page 28 and 29: No incentives, either short or long
Page 30 and 31: In the case of key management perso
Page 32 and 33: Key management personnel and most h
Page 34 and 35: Value of options included in key ma
Page 36 and 37: Details of the amounts paid to the
Page 38 and 39: Income Statements for the year ende
Page 40 and 41: Statements of Changes in Equity for
Page 44 and 45: Impairment of assetsAll non-current
Page 46 and 47: Business combinationsThe purchase m
Page 48 and 49: HedgingThe Group documents at the i
Page 50 and 51: 2. REVENUE AND EXPENSES FROM CONTIN
Page 52 and 53: 5. INCOME TAXa) Income tax expenseC
Page 54 and 55: Reconciliation of weighted average
Page 56 and 57: ConsolidatedLand atcost$00016. PROP
Page 58 and 59: ConsolidatedParent Entity2008 2007
Page 60 and 61: Impairment tests for goodwillGoodwi
Page 66 and 67: Nature and purpose of reservesi. Fo
Page 68 and 69: Defined Benefit Funds1) Karvy Compu
Page 70 and 71: Name of subsidiaryPlace of incorpor
Page 72 and 73: Name of subsidiaryPlace of incorpor
Page 74 and 75: The assets and liabilities arising
Page 76 and 77: Computershare Limited Closed Group
Page 78 and 79: 33. RELATED PARTY DISCLOSURESKey ma
Page 80 and 81: (a) Interest rate riskInterest rate
Page 82 and 83: The consolidated entity minimises c
Page 84 and 85: (c) OtherThe Group is subject to re
Page 86 and 87: SECONDARY BASIS - Business Segments
Page 88 and 89: 40. ASSOCIATED ENTITIESDetails of i
Page 90 and 91: Directors’ DeclarationIn the dire
Page 92 and 93:
Independent Auditor’s Report02-13
Page 94 and 95:
Shareholder InformationThis section
Page 96 and 97:
Office Locations02-13Overview14-36G
Page 98:
HEAD OfficeComputershare LimitedABN
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COMPUTERSHARE ANNUAL REPORT 2008

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