Home' Nufarm Annual Report : Nufarm Annual Report Contents NOTES TO THE FINANCIAL STATEMENTS
1. Reporting entity
Nufarm Limited (the ‘company’) is a company limited by shares and domiciled in Australia that is listed on the Australian
Securities Exchange. The address of the company’s registered office is 103–105 Pipe Road, Laverton North, Victoria, 3026.
The consolidated financial statements of the company as at and for the year ended 31 July 2014 comprise the company and
its subsidiaries (together referred to as the ‘group’ and individually as ‘group entities’) and the group’s interest in associates
and jointly controlled entities. The group is a for-profit entity and is primarily involved in the manufacture and sale of crop
protection products used by farmers to protect crops from damage caused by weeds, pests and disease, and seed
2. Basis of preparation
(a) Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in accordance with
Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations
Act 2001. The consolidated financial statements comply with International Financial Reporting Standards (IFRSs) adopted by
the International Accounting Standards Board (IASB).
The consolidated financial statements were authorised for issue by the board of directors on 23 September 2014.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for derivative financial
instruments, which are measured at fair value. The methods used to measure fair values are discussed further in note 4.
The group’s financial report has been prepared on the going concern basis, which assumes the realisation of assets and
extinguishment of liabilities in the ordinary course of business. The going concern basis is considered appropriate by the
directors having regard to the group’s access to appropriate lines of credit to support the group’s working capital and general
corporate financing requirements through its three-year $530 million syndicated bank facility, entered into in December 2013,
a debtors’ securitisation facility, entered into in August 2011, and the completion of a US$325 million senior unsecured notes
offering in October 2012.
(c) Functional and presentation currency
These consolidated financial statements are presented in Australian dollars, which is the company’s functional currency.
The company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and, in accordance with that Class Order,
all financial information presented in Australian dollars has been rounded to the nearest thousand unless otherwise stated.
(d) Use of estimates and judgements
The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future
Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that
have the most significant impact on the amount recognised in the financial statements are described below.
(i) Business combinations
Fair valuing assets and liabilities acquired in a business combination involves making assumptions about the timing of cash
inflows and outflows, growth assumptions, discount rates and cost of debt. Refer to note 14 for details of acquisitions made
during the period.
(ii) Impairment testing
The group determines whether goodwill and intangibles with indefinite useful lives are impaired on an annual basis or at each
reporting date if required. This requires an estimation of the recoverable amount of the cash-generating units, using a value
in use discounted cash flow methodology. The estimation of future cash flows requires management to make significant
assumptions concerning the identification of impairment indicators, earnings before interest and tax, growth rates, applicable
discount rates and useful lives. Further details can be found in note 23 on intangibles. Other non-current assets are also
assessed for impairment indicators.
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