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BRICKWORKS LIMITED
AND CONTROLLED ENTITIES A.B.N. 17 000 028 526
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2008
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Brickworks Limited is a listed public company, incorporated and domiciled in Australia. These accounts were authorised for issue in
accordance with a resolution of the directors on 25 September 2008.
The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently
applied to all the years presented, unless otherwise stated. The financial report includes separate financial statements for Brickworks
Limited as an individual entity and the consolidated entity consisting of Brickworks Limited and its subsidiaries (“the Group”).
(a) Basis of preparation and Statement of compliance
The financial report is a general purpose financial report that has been prepared in accordance with the requirements of the
Corporations Act 2001 and Australian Accounting Standards.
The financial report complies with Australian Accounting Standards and International Financial Reporting Standards (IFRS).
These financial statements have been prepared under the historical cost convention, except for available-for-sale financial assets,
held for trading financial assets, derivatives and investment property, which have been measured at fair value.
(b) Principles of consolidation
The consolidated financial statements are those of the consolidated entity, comprising Brickworks Ltd (the parent entity) and all
entities that Brickworks controlled from time to time during the period and at reporting date. Control exists where Brickworks has the
capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity
operates with Brickworks to achieve the objectives of Brickworks.
There are no dissimilarities in reporting periods or accounting policies between Brickworks or any of its controlled entities.
Investments in subsidiaries in the parent entity financial statements are shown at cost.
All inter-company balances and transactions between entities in the economic entity, including any unrealised profits or losses, have
been eliminated on consolidation.
Where controlled entities have entered or left the economic entity during the period, their operating results have been included from
the date control was obtained or excluded from the date control ceased.
(c) Revenue
Sales revenue is recognised when the significant risks and rewards of ownership of the items sold have passed to the buyer, and the
revenue is also able to be measured reliably.
For revenue from the sale of goods, this occurs upon the delivery of goods to customers.
For revenue from the sale of land held for resale, this is recognised at the point at which any contract of sale in relation to industrial
land has become unconditional, and at which settlement has occurred for residential land.
Interest revenue is recognised on a time proportionate basis that takes into account the effective interest rate applicable to the net
carrying amount of the financial asset.
Dividend revenue is recognised when the right to receive a dividend has been established. Dividends received from associates and
joint venture entities are accounted for in accordance with the equity method of accounting.
Rental revenue is recognised on an accruals basis.
Profits on disposal of investments and property, plant and equipment are recognised at the point where title to the asset has
passed.
All revenue is stated net of the amount of goods and services tax (GST).
(d) Finance costs
Borrowing costs incurred for the construction of a qualifying asset are capitalised up to the point that the asset is ready for its intended
use. Other finance costs are recognised as an expense over the period to which the expense relates.
(e) Income tax
Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or loss for
the period. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by reporting date. Current
tax for current and prior periods is recognised as a liability or asset to the extent that it is unpaid or refundable.
Deferred tax
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. The tax cost base of assets is calculated based
on managements intention for that asset on either use or sale as appropriate. No deferred income tax will be recognised from the
initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or
loss. In addition, no deferred income tax is recognised for a taxable temporary difference arising from an investment in a subsidiary,
associate or joint venture where the timing of the reversal of the temporary difference can be controlled and it is probable that the
difference will not reverse in the foreseeable future.

 

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