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(d) 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
consolidated 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.
Commitments and contingencies are disclosed
net of the amount of GST recoverable from,
or payable to, the taxation authority.
(e) Going concern
The consolidated financial statements
have been prepared on a going concern basis,
as the Director’s consider that the Group will
be able to meet the mandatory repayment
terms of banking facilities 6(d) and other
amounts payable.
At 30 June 2017, the Group has a net
deficiency of current assets to current
liabilities of $245.2m (2016: $53.0m).
Notwithstanding this deficiency, the Directors
remain confident that the Group will be able
to meet its debts as and when they fall
due. The Directors are of the opinion that
the financial statements are appropriately
prepared on a going concern basis having
regard to the following:
As at 30 June 2017
•
•
The Group has net assets of $3.514m
(2016: $3,490m)
•
•
The Group generated cash from operating
activities of $403m (2016: $445m)
•
•
The Group expects to continue to
generate positive cash flows from
operating activities in the next twelve
months
•
•
The Group has $485m of unutilised
funds available through a Syndicated
Debt Facility Agreement (2016: $355m)
(as detailed in note11(c))
•
•
The Group engages in active financial
risk management and an established
debit capital market programme which
are subject to ongoing governance at
Committee and Board level (as detailed
in note 11)
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NOTE 20
OTHER ACCOUNTING POLICIES (CONTINUED)