COMPUTERSHARE ANNUAL REPORT 2008

More documents

Recommendations

Info

Business combinationsThe purchase method of accounting is used for all business combinations regardless of whether equity instruments or other assetsare acquired. Cost is measured as the fair value of the assets given up, shares issued or liabilities undertaken at the date of theacquisition plus incidental costs directly attributable to the acquisition. Where equity instruments are issued in an acquisition, thevalue of the instruments is their market price as at acquisition date, unless it can be demonstrated that the published price at thedate of exchange is an unreliable indicator of fair value and that other evidence and valuation methods provide a more reliablemeasure of fair value. Transaction costs arising on the issue of equity instruments are recognised directly in equity.Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their presentvalue as at the date of the acquisition. The discount rate used is the entity’s incremental borrowing rate, being the rate at which asimilar borrowing could be obtained from an independent financier under comparable terms and conditions.Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at theirfair values at acquisition date. The excess of the cost of acquisition over the fair value of the Group’s share of identifiable net assetsacquired is recorded as goodwill. Where an entity or operation is acquired and the fair value of the identifiable net assets acquiredexceeds the cost of acquisition, the difference is recognised as income directly in the income statement.Employee benefitsProvision has been made in the balance sheet for benefits accruing to employees in relation to annual leave, long service leave,workers compensation and vested sick leave. No provision is made for non-vesting sick leave as the anticipated pattern of futuresick leave taken indicates that accumulated non-vesting sick leave will never be paid.Superannuation is included in the determination of provisions. Vested sick leave and annual leave are measured at the amountsexpected to be paid when the liabilities are settled.The long service leave provision is measured at the present value of estimated future cash flows, discounted by the interest rateapplicable to Commonwealth Government securities maturing in the period the liability is expected to fall due. Consideration is givento expected future wage and salary levels, experience of employee departures and periods of service.Retirement benefitsContributory superannuation and pension plans exist to provide benefits for the consolidated entity’s employees and theirdependants on retirement, disability or death. The plans are accumulation plans. The employee sponsors contribute to the plans atvarying rates of contribution depending on the employee classification. The contributions made to the funds by Group entities arecharged against profits.Defined benefit superannuation and pension plans are operated in Germany and India only. Where material to the group, a liabilityor asset in respect of the these plans is recognised on the balance sheet, and is measured as the present value of the definedbenefit obligation at the reporting date plus unrecognised actuarial gains (less unrecognised actuarial losses) less the fair value ofthe superannuation fund’s assets at that date and any unrecognised past service cost.Executive share and performance right schemesCertain employees are entitled to participate in share and performance rights schemes.The market value of shares issued to employees for no cash consideration issued under the employee and executive share schemesis recognised as a personnel expense over the vesting period with a corresponding increase in share based payments reserve.The fair value of performance rights issued under the Computershare Deferred Long Term Incentive Plan are recognised as apersonnel expense over the vesting period with a corresponding increase in share based payments reserve.The fair value of performance rights granted is determined using a pricing model that takes into account factors that includethe exercise price, the term of the performance right, the vesting and performance criteria, the share price at grant date andthe expected price volatility of the underlying share. The fair value calculation excludes the impact of any non market vestingconditions. Non market vesting conditions are included in assumptions about the number of performance rights that are expectedto become exercisable. At each balance date, the entity revises its estimate of the number of performance rights that are expectedto become exercisable. The personnel expense recognised each period takes into account the most recent estimate.Where shares are procured by the Group with cash to satisfy obligations for vested employee entitlements, under these plans, areduction in the share capital is shown.Shares issued under employee and executive share plans are held in trust until vesting date. Unvested shares held by the trust areconsolidated into the group financial statements.Termination benefitsLiabilities for termination benefits, not in connection with the acquisition of an entity or operation are recognised when a detailedplan for the terminations has been developed and a valid expectation has been raised in those employees affected that theterminations will be carried out. The liabilities for termination benefits are recognised in other payables unless the amount or timingof the payments is uncertain, in which case they are recognised as provisions.Liabilities for termination benefits relating to an acquired entity or operation that arise as a consequence of an acquisition arerecognised as at the date of acquisition if, at or before the acquisition date, the acquiree had an existing liability for restructuring.02-13Overview14-36Governance37-88Financials89-92Reports93-96Further InformationPAGE 45
Notes to the Financial StatementsNon-current assets (or disposal groups) held for saleNon-current assets and liabilities (or disposal groups) classified as held for sale are presented separately from other assets andliabilities in the balance sheet. They are stated at the lower of their carrying amount and fair value less costs to sell if their carryingamount will be recovered principally through a sale transaction rather than through continuing use.An impairment loss is recognised for any initial or subsequent write down of the asset (or disposal group) to fair value less coststo sell. Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expensesattributable to the liabilities of a disposal group classified as held for sale continue to be recognised.Share capitalOrdinary share capital bears no special terms or conditions affecting income or capital entitlements of the shareholders andis classified as equity. Costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, fromthe proceeds.Investments and other financial assetsThe Group classifies its investments and other financial instruments in the following categories: financial assets at fair valuethrough profit or loss, loans and receivables and available for sale assets. The classification depends on the purpose for which theinvestments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates thisdesignation at each reporting date.i. Financial assets at fair value through profit or lossThis category has two sub categories: financial assets held for trading and those designated at fair value through profit or loss oninitial recognition. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term orif so designated by management.ii. Loans and receivablesLoans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an activemarket. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet datewhich are classified as non-current assets. Loans and receivables are included within receivables in the balance sheet.iii. Available for sale assetsAvailable for sale financial assets are non-derivatives that are either designated in this category or not classified in any of the othercategories. They are included in non-current assets unless management intends to dispose of the investment within 12 months ofthe balance sheet date.Initial recognition and subsequent measurementAll financial assets are initially recognised at fair value plus transaction costs. Loans and receivables are subsequently carried atamortised cost using the effective interest method. Subsequently, available for sale financial assets and financial assets at fair valuethrough profit or loss are carried at fair value. Realised and unrealised gains and losses arising from changes in fair value of financialassets at fair value through profit or loss category are included in the income statement in the period in which they arise. Unrealisedgains and losses for changes in fair value of available for sale assets are recognised in equity in the available for sale asset reserve.When these assets are sold or impaired, the accumulated fair value adjustments are included in the income statement.The fair values of quoted investments (classified as available for sale assets or held for trading assets) are based on current bidprices. If the market for a financial asset is not active (and for unlisted securities), the Group establishes the fair value by usingaccepted valuation techniques.The Group assesses at each balance date whether there is objective evidence that a financial asset or group of financial assetsis impaired.BorrowingsBorrowings are initially recognised at fair value. Borrowings are subsequently measured at amortised cost. Any difference betweenthe proceeds and the redemption amount is recognised in the income statement over the period of the borrowing using theeffective interest method. Borrowings are classified as current liabilities unless the Group has a legal right to defer settlement of theliability for at least 12 months after the balance sheet date.Derivative InstrumentsThe Group uses derivative financial instruments to manage specifically identified interest rate and foreign currency risks.Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measuredto their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as ahedging instrument, and if so, the nature of the item being hedged. The Group designates certain financial instruments, includingderivatives, as either; (1) hedges of net investments of a foreign operation; (2) hedges of firm commitments (cash flow hedges); or(3) fair value hedges.PAGE 46 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 42 and 43: Notes to the Financial Statements1.
Page 44 and 45: Impairment of assetsAll non-current
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
show all

COMPUTERSHARE ANNUAL REPORT 2008

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?