Cutting the Clutter Publications

Cutting the clutter Review of recent financial report de-cluttering trends in the ASX 200

October 2014

kpmg.com.au Foreword – Delivering a clearer message Times have changed. For years, many have seen the financial report as a compliance document, requiring a significant amount of resources to prepare that is difficult to understand due to technical jargon used and the abundance of disclosures. This year a number of ASX200 companies have released shorter, de-cluttered financial reporting that represents a positive step forward in delivering a clearer message. Corporate reporting is quickly climbing up the board agenda. Boards are trying to do more with less - challenging themselves on how to clearly articulate their messages to investors and other stakeholders, while using their resources effectively. The ASX Corporate Governance Council has also put the spotlight on this area, recently releasing the third edition of their principles and recommendations. Principle 4 now states: “Safeguard integrity in corporate reporting – A listed entity should have formal and rigorous processes that independently verify and safeguard the integrity of its corporate reporting.” This principle explicitly puts director responsibility in the context of all corporate reporting. KPMG Australia has been working closely with a number of companies in helping them cut the clutter from their financial and other corporate reporting, obtain quick wins in their goal of delivering a clearer message to the capital markets and in managing stakeholder engagement through this process. We hope this publication encourages other companies to take up the challenge of producing clearer, de- cluttered financial and other corporate reports that focus on key performance measures and disclosures. Whilst for some this may take a “leap of faith”, the outcome should be a better quality financial report that is more focused on what is important to the reader. Organisations will then be ready to take next steps and de-clutter the entire corporate reporting portfolio, improve the user experience, reduce reporting costs and enhance capital allocation.

Bernie Szentirmay Partner

© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 2 The Changing Corporate Contents Reporting Landscape in 2014 • International Integrated Reporting Framework released Foreword 2 • B20 recommend G20 endorse corporate reporting reform to underpin more infrastructure investment Introduction 4 • ASX Corporate Governance Principle 4 amended to embrace all The principles of Cutting the Clutter 5 corporate reporting • Director liability being addressed Results 6 • Government asked to look at volume and complexity in corporate reporting to support voluntary cutting the clutter initiative Practical application 7 • Integrated Reporting Assurance Framework deliberations kick off globally Standard setters and regulators 9 KPMG – How we can help 10 Appendix 1 – Our methodology 11 Appendix 2 – Example reporting 12

© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 3 Introduction – About this report This report is designed to raise awareness and assist companies that are assessing whether to embrace the “cutting the clutter” trend in financial reporting, either in isolation or as part of a broader project to improve the quality of corporate reporting. A significant shift in Australian corporate reporting has occurred in recent times, taking external reporting beyond its traditional emphasis on compliance: • International and local accounting bodies are talking about de-cluttering and the need to re-focus disclosures in financial reports • ASIC released RG 247 Effective disclosure in an operating and financial review (OFR) in 2013, and have challenged organisations to better explain business models, operations, risks, strategies, financial results and future prospects • G100 has Integrated Reporting as the number one item on its agenda for 2014 • ASX Corporate Governance Council’s amendments to principle 4 reflects the reality that financial reporting is no longer the primary corporate reporting tool underpinning capital market analysis and capital allocation decisions • Companies in the UK, Asia and now in Australia are releasing de-cluttered reports to enable clearer delivery of key financial messages. Cutting the clutter is now being actively embraced by many ASX 200 companies. For some organisations these changes will prompt them to embark on a journey of corporate reporting reform. As the journey progresses, it should result in more meaningful corporate reporting for report users, less work for report preparers and better information for business and investment decision making. In short, it should help to deliver more transparency at less cost.

© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 4 The principles of Cutting the Clutter in financial reports are simple: Remove immaterial or irrelevant financial report disclosures that have built up over time Re-order and re-label accounting policies and detailed notes so that they better reflect the key financial measures and focus areas of most relevance Re-write technical wording into plain English, whilst still fully complying with relevant accounting standard and regulatory requirements.

We have looked at the emerging trend of companies cutting the clutter within their financial reports over the most recent reporting season, focussing on the ASX 200. This publication highlights entities that have reduced and/or reconfigured content, using company specific examples. Our review revealed the following results: • Whilst new accounting standards have increased disclosure, some companies have been able to “buck the trend”, reducing their total financial report page count compared to the prior year • 50% of organisations have financial reports that are shorter in length than the prior period • 37% of organisations were able to reduce the number of notes to the financial statements compared to the prior period • 19% of organisations have re-ordered their flow of notes to the financial statements, and 10% have used subheadings and re-grouped notes to focus attention on specific items of disclosure.

These results indicate that many entities in the ASX 200 have started to embrace de-cluttering the annual financial report. Refer to Appendix 1 for a summary of individual entity details, and Appendix 2 for a selection of company specific examples of financial report de-cluttering.

Remove No change No change 10% 10% No change 10% No chaDecngrease e NoD chaecrngeasee No change 50% 3150%% Decreas31e % Decrease 10% Decrease No change 37% 37% REDUCED NUMBER OF PAGES 50% Decrease 31% No change Decrease DE-CLUTTERING NOTES 50% 31% 37% Decrease 89 organisations reduced their total page numbers, with 65 organisations37% reduced the number of 46 organisations reducing the number of pages by more than 5, Increase Increase notes, with 45 organisations reducing despite the suite of new accounting standards becoming effective40% 40% Increase the number of notes by more than 2. for periods beginning on or after 1 January 2013 which added to 40% Increase disclosure requirements. 40% Increase Increase 32% 32% Increase 32% Increase 32%

No change 10% Re-label & Reorder Decrease No change 50% 31% Decrease Yes Yes Yes Yes Yes 37% Yes 19% 10% 10% 19% Yes 10% 10% Yes MAKING ACCOUNTS EASIER TO FOLLOW Yes 19% 10% 10% Yes DID THE FINANCIAL REPORT HAS THE ORDER OFYes THE NOTES 18 companies have grouped notes to Inthecreas financiale statements Yes 19% into categories, such as Result for the year,40% Operating Assets and 10% USE NEW SUB-HEADINGS10% TO TO THE FINANCIAL STATEMENTS Liabilities, Capital Management and Financing, and other notes. GROUP NOTES TOGETHER? CHANGED FROM PRIOR YEAR? In addition, 33 companies re-ordered their notes compared to the Increase 32% prior year. No No No No 81% 81% 90% 90% No No No No 81% 90% 90% 90% No 90% No No 81% 90% No 90%

Rewrite Yes Yes Yes 19% 10% 10%

WAS THERE ANY EVIDENCE TO SUGGEST THAT THE ENTITY HAD TRIED TO SIMPLIFY THE LANGUAGE USED IN FINANCIAL REPORT DISCLOSURES? * Note: Numbers and percentages exclude entities that have Most common simplification observed was in relation to not yet released 2014 financial reports and certain other No accounting policy wording. No 81% entities where data was not available 90% No 90%

© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 6 Practical application – the pathway Remove immaterial Move accounting Group notes Add additional to successful de-cluttering disclosures policies and/or & re-order information and simplify wording plain English explanations Financial report The results of our analysis indicate that de-cluttering the financial report is a scalable activity with application so far by Australian ASX 200 listed companies varying from simply removing immaterial Potential timeline and drivers of change: disclosures, to more extensive re-ordering and grouping of notes and including plain English explanations. 2014 Key Driver: RG247 • Further enhancements to the OFR, improving disclosure around strategy and Corporate reporting prospects for future financial years, including material business risks Successful de-cluttering does not stop with the financial report. While cutting the clutter can be a logical first step for many companies in Key Driver: ASX Corporate Governance Principles and Recommendations improving the clarity of reporting, the financial report only tells a small 2015 (third edition) part of the story. To maximise the benefits of de-cluttering, companies • Directors are now responsible for the integrity of all corporate reporting under should consider if their annual report and wider corporate reporting Principle 4 portfolio could also benefit from being redesigned and streamlined to more clearly and concisely communicate how they create value in the • Increased disclosure of economic, environmental and social sustainability risks short, medium and long term. and how they are managed in the Corporate Governance Statement Improving corporate reporting is a journey and is likely to be completed in several stages, occurring over a number of reporting periods. The Potential Driver: speed at which change is achieved will depend on the driver of the 2016 change, i.e., industry best practice, regulatory drivers such as RG247 • Increase pressure from market leaders and early adopters of the International and ASX Corporate Governance Principles and Recommendations Integrated Reporting Framework which have mandatory commencement dates, the appetite of the board and senior management, the take-up of market-driven initiatives such as Integrated Reporting , and the capacity within the organisation to 2017+ Potential Driver: implement change. • Endorsement of the International Integrated Reporting Framework • Development of a ‘flagship’ report

© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 7 Practical application – the pathway to successful de-cluttering

CFOs should ask themselves …

1. Are our financial reports cluttered with technical jargon that investors either don’t need to know or don’t understand? 2. Are our financial reports structured in a way Achieve quick wins by … that focuses investors on what I think they should focus on? • Identifying accounting policies that do not 3. Are our financial reports easy to read? relate to the prior or current year financial Do they include immaterial, redundant or performance or position and remove Keys to success are … boiler-plate disclosures that don’t add • Move accounting policies to the related anything? financial statement note, e.g. revenue Companies who have undertaken this process accounting policy with the revenue note, 4. Are our financial reports longer than they highlight the need for strong stakeholder to improve clarity need to be? engagement across the finance team, investor 5. Do we want to try and save costs in • Order notes in level of importance to relations, audit committee and relevant preparing our financial reports? investors – important information should be external users in order to gain support and read first manage expectations. • Group like notes together – presenting a Whilst for some it may take a ‘leap of faith’ to holistic view of key financial reporting focus embrace the de-cluttering process, the end areas, e.g. tax expense with deferred product should be a clearer and more focused tax balances document that will better tell your story. • Reword boiler-plate disclosure so that it actually describes your business circumstances with minimal technical jargon

© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 8 Standard setters and regulators – supporting de-cluttered reports “ASIC pay particular attention to “Removal of disclosures that are Standard setters and regulators alike are also discussing the whether retail investors are being immaterial will enable users to need to improve the quality of financial reports by focussing provided with clear, concise and focus on the key information about on disclosures. effective disclosure that satisfies the performance, position and their information needs”2 cash flows of the entity.”5 “The Disclosure Initiative is focused on ensuring that financial reports are instruments of communication and not simply compliance documents. These proposals form a small part of our efforts to encourage preparers, auditors and regulators away from a ticking-the-box mentality towards disclosures.”

Hans Hoogervorst, IASB Chairman – announcing the IASB Disclosure Initiative proposal The IASB feel the need for disclosure reform and to: “Clarify the materiality requirements”and put “emphasis on the potentially detrimental effect of overwhelming useful information with immaterial disclosure”, and “clarify that entities have flexibility as to the order in which they present the notes”1

“The AASB strongly supports the The FRC “agreed that preparers, Disclosure Initiative Project”3 and auditors and directors need to recommends using ‘plain English’ address this issue in light of expressions in IFRSs to distinguish clarifications from the standard information displayed on the setters and ASIC, recognising that face of a financial statement and too much irrelevant information is information displayed in a distraction to understanding the the notes”3 financial report”4

Sources: 1 IASB Press Release, 25 March 2014 2 ASIC Regulatory Guide 175. 3 AASB’s comment letter on IASB Exposure Draft ED/2014/1 Disclosure Initiative 4 Financial Reporting Council Minutes – 11 April 2014 5 The Group of 100’s comment letter on IASB Exposure Draft ED/2014/1 Disclosure Initiative

© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 9 KPMG – How we can help KPMG can help you streamline your financial reports in a number of ways by providing: • thought leadership and examples of de-cluttered disclosures • feedback on your current financial reports and how you compare to benchmark companies • management and Audit Committees with insight on the best way to approach the de-cluttering process • assistance in identifying quick wins using our experience from working with clients who have undertaken a de-cluttering process • assistance in drafting de-cluttered financial reports and participating in project workshops and discussions

The contacts at KPMG in connection with this publication are:

Bernie Szentirmay Michael Bray Emma Roche Simon Dubois Partner Partner Senior Manager Senior Manager T: +61 3 9288 5423 T: +61 3 9288 5720 T: +61 2 9455 9257 T: +61 3 9288 6927 M: +61 422 005 780 M: +61 417 257 226 M: +61 407 651 772 M: +61 409 302 275 [email protected] [email protected] [email protected] [email protected]

The contacts at KPMG in connection with Better Business Reporting are:

Nick Ridehalgh Simone Schlitter Kylie Dumble Partner Director Manager T: +61 2 9455 9312 T: +61 2 9335 8511 T: +61 2 9335 7292 M: +61 417 661 927 M: +61 400 469 628 M: +61 426 966 911 [email protected] [email protected] [email protected]

In preparing this report we have reviewed the most recent annual financial reports of the ASX 200 companies as at 22 October 2014.* The financial reports subject to our review covered the annual reporting periods from 31 December 2013 to 31 August 2014. The following table shows the organisations for which we could see evidence of applying the de-cluttering principles. In addition, we noted that a number of organisations also simplified wording in their note disclosures.

Ticker Company Notes Notes Page Ticker Company Notes Notes Page Ticker Company Notes Notes Page re-ordered? reduced? numbers re-ordered reduced? numbers re-ordered? reduced? numbers reduced? reduced? reduced? AGK AGL Energy Limited √ √ √ HVN Harvey Norman Holdings Limited √ SGM Sims Metal Management Limited √ AGO Atlas Iron Limited √ IAG Insurance Australia Group Limited √ SGP Stockland √ √ √ AHE Automotive Holdings Group Limited √ IFL IOOF Holdings Limited √ √ √ SGT Singapore Telecommunications √ √ AMC Amcor Limited √ IGO Independence Group NL √ Limited ANN Ansell Limited √ √ IIN Iinet Limited √ √ SHL Sonic Healthcare Limited √ √ AOG Aveo Group √ √ ILU Iluka Resources Limited √ √ SKT SKY Network Television Limited √ ARI Arrium Limited √ IOF Investa Office Fund √ SPK Spark New Zealand Limited √ √ √ ASX ASX Limited √ √ √ LLC Lend Lease Group √ √ SWM Seven West Media Limited √ AWC Alumina Limited √ √ LNG Liquefied Natural Gas Limited √ SXY Senex Energy limited √ BCI BC Iron Limited √ LYC Lynas Corporation Limited √ TAH Tabcorp Holdings Limited √ √ BEN Bendigo and Adelaide Bank √ √ MFG Magellan Financial Group Limited √ TLC Transurban Group √ BGA Bega Cheese Limited √ √ √ MGR MIRVAC Group √ TEN Ten Network Holdings Limited √ √ √ BPT Beach Energy Limited √ MGX Mount Gibson Iron Limited √ TGR Tassal Group Limited √ CAB Cabcharge Australia Limited √ MML Medusa Mining Limited √ TME Trade Me Group Limited √ √ √ CBA Commonwealth Bank of Australia √ MSB Mesoblast Limited √ √ TOL Toll Holdings Limited √ √ COH Cochlear Limited √ √ MTS Metcash Limited √ √ TPI Transpacific Industries Group Ltd √ √ √ CPU Computershare Limited √ MTU M2 Group LTD √ TPM TPG Telecom Limited √ √ CSL CSL Limited √ NVT Navitas Limited √ TSE Transfield Services Limited √ √ √ DUE Duet Group √ ORA Orora Limited √ TTS Tatts Group Limited √ EGP Echo Entertainment Group Limited √ √ PBG Pacific Brands Limited √ VED Veda Group Limited √ FBU Fletcher Building Limited √ √ PDN Paladin Energy LTD √ √ VRL Village Roadshow Limited √ FDC Federation Centres √ √ √ QAN Qantas Airways Limited √ WES Wesfarmers Limited √ √ √ FLT Flight Centre Limited √ √ REA REA Group Ltd √ WHC Whitehaven Coal Limited √ FMG Fortescue Metals Group Ltd √ √ RFG Retail Food Group Limited √ FXJ Fairfax Media Limited √ RIO Rio Tinto Limited √ GEM G8 Education Limited √ RRL Regis Resources Limited √ √ GMG Goodman Group √ √ √ SDF Steadfast Group Limited √ √ GWA GWA Group Limited √ SEK Seek Limited √

* Excludes entities that have not yet released 2014 financial reports and certain other entities where data was not available, for example; no prior year comparatives

AGL Financial Report 2014 AGL Financial Report 2013

Contents Page Example 1 – AGL Contents Page Consolidated Statement of Profit or Loss 3 Consolidated Statement of Profit or Loss 3 Consolidated Statement of Comprehensive Income 4 Consolidated Statement of Comprehensive Income 4 Consolidated Statement of Financial Position 5 AGL’s 2014 financial report is Consolidated Statement of Financial Position 5 Consolidated Statement of Changes in Equity 6 Consolidated Statement of Changes in Equity 6 29 pages shorter and contains Consolidated Statement of Cash Flows 7 Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements 7 15 less notes compared to the 1 Summary of significant accounting policies 8 Notes to the Consolidated Financial Statements 2 Significant accounting judgements, estimates and assumptions 21 1 - Summary of significant accounting policies 8 2013 financial report. 3 Segment information 23 2 - Significant accounting judgements, estimates and assumptions 25 3 - Correction of unbilled distribution liability 26 4 Revenue 28 4 - Segment information 27 5 Expenses 28 5 - Revenue 32 6 Finance costs 28 6 - Other income 32 7 Income tax 29 7 - Expenses 32 8 Dividends 31 8 - Net financing costs 33 9 Trade and other receivables 32 9 - Profit before income tax 33 10 Inventories 33 10 - Income tax 35 11 Other financial assets 33 11 - Dividends 38 12 - Cash and cash equivalents 38 12 Other assets 34 13 - Trade and other receivables (current) 39 13 Investments in associates and joint ventures 34 14 - Inventories (current) 40 14 Exploration and evaluation assets 35 15 - Other financial assets (current) 40 15 Oil and gas assets 36 16 - Other assets (current) 40 16 Property, plant and equipment 36 17 - Trade and other receivables (non-current) 40 17 Intangible assets 38 18 - Inventories (non-current) 40 18 Assets classified as held for sale 40 19 - Investments accounted for using the equity method 41 20 - Exploration and evaluation assets 43 19 Trade and other payables 41 21 - Oil and gas assets 44 20 Borrowings 41 22 - Property, plant and equipment 45 21 Provisions 42 23 - Intangible assets 47 22 Other financial liabilities 43 24 - Other financial assets (non-current) 49 23 Other liabilities 43 25 - Other assets (non-current) 49 24 Issued capital 44 26 - Trade and other payables (current) 49 25 Reserves 45 27 - Borrowings (current) 49 28 - Provisions (current) 50 26 Retained earnings 45 29 - Other financial liabilities (current) 50 27 Earnings per share 46 30 - Other liabilities (current) 50 28 Commitments 46 31 - Borrowings (non-current) 50 29 Contingent liabilities and contingent assets 47 32 - Provisions (non-current) 52 30 Remuneration of auditors 47 33 - Other financial liabilities (non-current) 53 31 Subsidiaries 48 34 - Other liabilities (non-current) 53 32 Business combinations 50 35 - Issued capital 54 36 - Reserves 55 33 Joint operations 51 37 - Retained earnings 56 34 Deeds of cross guarantee 52 38 - Earnings per share (EPS) 56 35 Defined benefit superannuation plans 54 39 - Capital and other expenditure commitments 57 36 Share-based payment plans 57 40 - Lease commitments 58 37 Related party disclosures 62 41 - Contingent liabilities and contingent assets 59 38 Cash and cash equivalents 63 42 - Remuneration of auditors 59 39 Financial instruments 64 43 - Subsidiaries 60 44 - Acquisition of subsidiaries and businesses 62 40 Parent entity 73 45 - Disposal of subsidiaries 65 41 Subsequent events 74 46 - Jointly controlled operations and assets 66 Directors’ Declaration 75 47 - Deed of cross guarantee 67 Auditor’s Independence Declaration 76 48 - Key management personnel disclosures 69 Independent Auditor’s Report 77 49 - Defined benefit superannuation plans 75 50 - Share-based payment plans 78 51 - Related party disclosures 83 52 - Cash flow information 85 53 - Financial instruments 86 54 - Subsequent events 101 55 - Parent Entity information 102 Source: ASX Release – AGL Energy Limited Financial Reports for the year ended 30 June 2014 56 - Net tangible asset backing 103 Date: 20 August 2014 Directors' Declaration 104 Auditor's Independence Declaration 105 Independent Auditor's Report 106

AGL Financial Report 2013 2 Source: ASX Release – AGL Energy Limited Financial Report Date: 28 August 2013

© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. AGL Financial Report 2014 Operating and financial reviews: October 2014 12 Appendix 2 – Example Reporting Re-label & Reorder / Rewrite / Remove

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Example 2 – Transfield Year ended 30 June 2014 FOR YEAR ENDED 30 JUNE 2013

Page BASIS OF PREPARATION NOTES number Transfield have grouped the notes These consolidated financial statements are general purpose financial statements. They have been prepared in accordance with to the financial statements into Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Note 1. Summary of significant accounting policies 103 Act 2001. They also comply with IFRS as issued by the International Accounting Standards Board. Note 2. Financial, capital and other risk management 121 specific categories, identified Details of the Group’s accounting policies, including changes during the year, are included in the following notes: Note 3. Critical accounting estimates and judgements 127 immaterial notes for removal and • Change in Accounting policies and presentation of comparatives ...... 114 Note 4. Operating segments 128 • Summary of significant accounting policies ...... 116 Note 5. Revenue 132 have also moved the summary of Note 6. Impairment 133 Note 7. Expenses 133 significant accounting policies to NOTE INDEX be the last note within the financial Note 8. Income taxes 134 GROUP PERFORMANCE TAXATION Note 9. Cash and cash equivalents 135 report resulting in a shortening of Operating segments ...... 80 Income taxes ...... 102 Note 10. Trade and other receivables 135 their financial report by 28 pages. Revenue ...... 84 Deferred tax assets ...... 103 Note 11. Inventories 136 Expenses ...... 84 Deferred tax liabilities ...... 103 Note 12. Prepayments and other assets 136 Discontinued operations ...... 85 NET DEBT Note 13. Other financial assets 136 Earnings / (loss) per share ...... 86 Cash and cash equivalents ...... 104 Note 14. Property, plant and equipment 136 Subsequent events ...... 86 Reconciliation of operating profit after income tax to net cash Note 15. Deferred tax assets 137 inflow from operating activities ...... 104 RISK MANAGEMENT Note 16. Intangible assets 139 Loans and borrowings ...... 105 Critical accounting estimates and judgments ...... 87 Note 17. Trade and other payables 142 Note 18. Loans and borrowings 142 Financial, capital and other risk management ...... 88 EQUITY Note 19. Employee benefits 143 Contingent assets and liabilities ...... 91 Contributed equity ...... 106 Note 20. Derivatives 143 Commitments for expenditure ...... 92 Share-based payments ...... 106 Note 21. Other provisions 144 Dividends ...... 108 WORKING CAPITAL Note 22. Deferred tax liabilities 146

Transfield Services Limited 69 000 484 417 Trade and other receivables ...... 93 OTHER INFORMATION Note 23. Contributed equity 147 Inventories ...... 94 Related party transactions ...... 109 Note 24. Non-controlling interest 148 Trade and other payables ...... 94 Remuneration of auditors ...... 110 Note 25. Dividends 149 CAPITAL EMPLOYED GROUP STRUCTURE Note 26. Related party transactions 149 Employee benefits ...... 95 Subsidiaries ...... 110 Note 27. Key management personnel 152 Other provisions ...... 95 Deed of cross guarantee ...... 111 Note 28. Business combinations 156 Interests in joint ventures ...... 96 Parent entity financial information ...... 113 Note 29. Investment in associate 158 Other financial assets ...... 99 Note 30. Interests in joint ventures and partnerships 159 Property, plant and equipment ...... 99 Note 31. Reconciliation of operating profit after income tax to net cash inflow from operating activities 161 Intangible assets ...... 100 Note 32. Earnings / (loss) per share 162 Note 33. Remuneration of auditors 163 Note 34. Events occurring after statement of financial position date 163 ANNUAL REPORT 2014 Note 35. Contingent assets and liabilities 163 Note 36. Commitments for expenditure 165 Source: Transfield Annual Report 2014 Note 37. Share based payments 166 Date: 3 October 2014 Note 38. Deed of cross guarantee 169 Note 39. Parent entity financial information 171 ANNUAL REPORT Source: Transfield Annual Report 2013 Date: 23 September 2013

Transfield Services Annual Report 2014 |79

© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 13 102 TRANSFIELD SERVICES 2013 Appendix 2 – Example Reporting Re-label & Reorder

notes to the FinanCiaL statements Example 3 – Flight Centre notes to the Flight Centre have grouped the FinanCial statements notes to the financial statements 1. summary oF signiFiCant aCCounting PoliCies The principal accounting policies adopted in the consolidated financial report’s Critical accounting estimates into specific categories. In addition, preparation are set out below. These policies have been consistently applied to The preparation of financial statements in conformity with Australian Accounting all the years presented, except as stated below. The financial report is for the Standards requires the use of certain critical accounting estimates. It also they provide an introduction to consolidated entity consisting of Flight Centre Limited (FLT) and its subsidiaries. requires management to exercise its judgment when applying the group’s accounting policies. The areas involving a higher degree of judgment or each section and include specific Presentation of transactions recognised in other comprehensive income complexity or areas where assumptions and estimates are significant to the From 1 July 2012, FLT applied amendments to AASB 101 Presentation of financial statements are disclosed in note 2. accounting policies in the note Financial Statements outlined in AASB 2011–9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income. (B) Principles of consolidation dealing with the related balance. The change in accounting policy only relates to disclosures and has no impact on consolidated earnings per share or net income. The changes have been applied (i) Subsidiaries retrospectively and require the group to separately present those items of other The consolidated financial statements incorporate the assets and liabilities of all comprehensive income that may be reclassified to profit or loss in the future FLT subsidiaries at 30 June 2013 and the subsidiaries’ results for the year then from those that will never be reclassified to profit and loss. These changes are ended. FLT and its subsidiaries together are referred to in this financial report as significant matters in the current reporting period ...... 34 included in the statement of comprehensive income. the group or the consolidated entity.

a FinanCiaL overview ...... 35 F other inFormation ...... 62 Presentation of expenses in consolidated income statement Subsidiaries are entities (including special purpose entities) over which the group has the power to govern the financial and operating policies. The existence and A1 Segment information ...... 35 F1 Other expenses ...... 62 For the half year ended 31 December 2012 and going forward, the group has effect of potential voting rights that are currently exercisable or convertible are voluntarily changed the presentation of expenses in the consolidated income considered when assessing whether the group controls another entity. A2 Revenue ...... 39 F2 Earnings per share ...... 63 statement from function to nature. The group determined the further disclosure of the nature of the expenses provided more relevant information to the financial Subsidiaries are fully consolidated from the date on which control is transferred to A3 Other income ...... 40 F3 Trade and other receivables ...... 64 statements’ users. the group and are deconsolidated when that control ceases. A4 Expenses ...... 40 F4 Property, plant and equipment ...... 66 The prior year expense presentation by function cannot be readily mapped into The acquisition method of accounting is used to account for the group’s A5 Intangible assets ...... 41 F5 Trade and other payables ...... 67 the nature as presented currently for the prior year. As such, the detail of the acquisition of subsidiaries (refer to note 1(g)). reclassifications has not been disclosed. A6 Business combinations ...... 43 F6 Financial liabilities at fair value through P&L ...... 68 Intercompany transactions, balances and unrealised gains on transactions F7 Provisions ...... 69 The adjustment is shown in the consolidated income statement and the between group companies are eliminated. Unrealised losses are also eliminated B Cash management ...... 45 comparative amounts in the prior period have also been adjusted to show unless the transaction provides evidence of the transferred asset’s impairment. F8 Reserves ...... 70 the nature of the expense. The amount of expenses recorded in each period Subsidiaries’ accounting policies have been changed, where necessary, to ensure B1 Cash and cash equivalents ...... 45 F9 Tax ...... 71 presented has not changed, only the presentation has changed. consistency with the group’s policies. B2 Available-for-sale (AFS) financial assets ...... 46 F10 Auditor’s remuneration...... 73 (a) Basis of preparation Non–controlling interests in the results and equity of subsidiaries are shown B3 Cash & AFS - financial risk management ...... 46 separately in the consolidated balance sheet, income statement, statement of This general purpose financial report has been prepared in accordance with comprehensive income and statement of changes in equity respectively. B4 Borrowings ...... 47 g group struCture ...... 74 Australian Accounting Standards and interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. FLT is a for–profit Investments in subsidiaries are accounted for at cost in FLT’s individual B5 Ratios ...... 48 G1 Subsidiaries ...... 74 entity for the purpose of preparing the financial statements. financial statements. Etihad’s The Residence B6 Dividends ...... 49 G2 Deed of cross guarantee ...... 74 Compliance with IFRS (ii) Associates B7 Capital expenditure ...... 50 G3 Parent entity financial information...... 77 the dawn of a The group’s consolidated financial statements also comply with International Associates are all entities over which the group has significant influence but not Financial Reporting Standards (IFRS), as issued by the International Accounting control or joint control. Investments in associates are accounted for by the parent C FinanCiaL risk management ...... 51 h unreCognised items ...... 79 Standards Board (IASB). using the cost method and in the consolidated financial statements using the golden era in equity method of accounting, after initially being recognised at cost. The group’s C1 Financial risk management...... 51 H1 Commitments ...... 79 New & amended standards adopted by the group investment in associates includes goodwill (net of any accumulated impairment world travel C2 Derivative financial instruments ...... 54 H2 Contingencies ...... 79 None of the new standards and amendments of standards that are mandatory loss) identified on acquisition (refer to note 19). C3 Other financial assets ...... 54 H3 Events occurring after the end of the reporting period ...... 79 for the first time for the financial year beginning 1 July 2012 affected any of the The group’s share of its associates’ post‑acquisition profits or losses is amounts recognised in the current period or any prior period and are not likely to recognised in the income statement and its share of post‑acquisition movements affect future periods. i summarY oF aCCounting poLiCies ...... 80 in reserves is recognised in other comprehensive income reserves. The d reward and reCognition ...... 55 cumulative post‑acquisition movements are adjusted against the investments’ Cheaper airfares D1 Key management personnel ...... 55 Early adoption of standards carrying amounts. Dividends receivable from associates are recognised in the more airline choice B caSh ManageMent The group has not elected to apply any pronouncements before their operative parent entity’s income statement. In the consolidated financial statements, they D2 Business ownership scheme (BOS) ...... 55 date in the annual reporting period beginning 1 July 2012. reduce the investments’ carrying amounts. FLT has a focus on maintaining a strong balance sheet through increasing cash and investments and reducing debt. The strategy also considers the group’s greater comfort expenditure, growth and acquisition requirements and the desire to return dividends to shareholders. D3 Share-based payments ...... 56 When the group’s share of losses in an associate equals or exceeds its interest B1 Cash and cash equivalents Historical cost convention less flying time D4 Contributed equity ...... 58 in the associate, including any other unsecured long–term receivables, the group B2 Available-for-sale (AFS) financial assets These financial statements have been prepared under the historical cost does not recognise further losses, unless it has incurred obligations or made B3 Cash & AFS - financial risk management convention, as modified by the revaluation of available‑for‑sale financial assets payments on the associate’s behalf. e reLated parties ...... 59 B4 Borrowings and financial assets and liabilities (including derivative financial instruments) at B5 Ratios fair value through profit and loss. Unrealised gains on transactions between the group and its associates are E1 Investments accounted for using the equity method ...... 59 • Net debt • Gearing ratio annual report 2013/14 40 ABN 25 003 377 188 E2 Related party transactions ...... 60 B6 Dividends B7 Capital expenditure

B1 caSh and caSh equiVaLentS

FLIGHT CENTRE TRAVEL GROUP LIMITED annuaL report 13/14 Accounting policy 33 Source: Flight Centre Travel Group Limited Client cash represents amounts from customers held before release to service and product suppliers. Source: Flight Centre Limited Annual Report 12/13 Additional information on cash accounting policies is included in note I(j). Annual Report 13/14 Date: 27 September 2013 2014 2013 Date: 27 August 2014 $’000 $’000 General cash at bank and on hand 476,042 433,799 Client cash 785,640 793,220 © 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. 1,261,682 1,227,019 Operating and financial reviews: October 2014 14 For the purpose of the consolidated statement of cash flows, cash and cash equivalents is equal to the balance as disclosed above. reconciliation of profit after tax to net cash inflow from operating activities Profit for the year 206,918 246,082 Depreciation and amortisation 53,777 49,812 Net (gain) / loss on disposal of non-current assets 4,662 1,087 Net (gain) on reversal of impairment - (5,562) Impairment charges against assets 61,300 - Net (gain) / loss on sale of financial assets at fair value (5,127) (2,572) Share of (profits) / losses of joint ventures and associates not received as dividends or distributions (1,346) 1,004 Net exchange differences 12,772 (15,429)

(Increase) / decrease in trade and other receivables (73,559) (46,864) (Increase) / decrease in deferred tax assets 8,040 (1,623) (Increase) / decrease in inventories (86) 6 Increase / (decrease) in trade creditors, other payables and financial liabilities at fair value through profit or loss (5,371) 136,271 Increase / (decrease) in net income taxes payable (35,612) (2,605) Increase / (decrease) in deferred tax liabilities (3,547) (1,423) Increase / (decrease) in other provisions 4,272 12,139 Net cash inflow / (outflow) from operating activities 227,093 370,323

FLIGHT CENTRE TRAVEL GROUP LIMITED annuaL report 13/14 45 Appendix 2 – Example Reporting Remove / Re-label & Reorder

Iluka Resources Limited Notes to the consolidated financial statements 31 December 2012

Example 4 – Contents of the notes to the financial statements Contents of the notes to the financial statements Page Page Iluka Resources 1 Summary of significant accounting policies 50 Basis of preparation 96 2 Critical accounting estimates and judgements 60 The Iluka Resources December 1. Reporting entity 96 3 Financial risk management 61 2. Basis of preparation 96 4 Segment information 64 2013 financial report: 3. Critical accounting estimates and judgements 97 5 Revenue 66 6 Other income 66 Performance for the year 99 7 Expenses 67 • Utilises subheadings to group 4. Segment information 99 8 Income tax 68 5. Revenue 101 9 Cash and cash equivalents 69 notes together 6. Expenses 102 10 Receivables 69 7. Earnings per share 103 11 Inventories 69 • Does not have a separate 8. Income tax 104 12 Property, plant and equipment 70 9. Dividends 105 13 Intangible assets 71 summary of significant 10. Reconciliation of profit after income tax to net cash inflow from operating activities 105 14 Deferred tax 71 accounting policies note – Operating assets and liabilities 106 15 Payables 72 11. Receivables 106 16 Interest-bearing liabilities 73 now included within 12. Inventories 106 17 Provisions 75 associated notes 13. Property, plant and equipment 107 18 Contributed equity 76 14. Payables 109 19 Reserves 77 15. Provisions 110 20 Dividends 78 • is 10 pages shorter compared 21 Key Management Personnel 79 Capital structure and finance costs 112 22 Remuneration of auditors 81 to the December 2012 report 16. Net debt and finance costs 112 23 Retirement benefit obligations 82 17. Financial risk management 114 24 Contingent liabilities 85 18. Contributed equity 116 25 Commitments 86 26 Controlled entities and deed of cross guarantee 87 Other notes 117 27 Reconciliation of profit after income tax to net cash inflow from operating activities 89 19. Events occurring after the reporting period 117 28 Earnings per share 89 20. Other income 117 21. Remuneration of auditors 117 29 Share-based payments 90 22. Deferred tax 118 30 Parent entity financial information 91 23. Reserves and retained earnings 119 31 Related party transactions 92 24. Share-based payments 120 32 Events occurring after the reporting period 92 25. Commitments 121 26. Retirement benefit obligations 122 27. Key Management Personnel 123 28. Controlled entities and deed of cross guarantee 125

Annual Report 29. Parent entity financial information 127 2013 30. Contingent liabilities 128 31. Related party transactions 128 32. Other accounting policy 128 33. New accounting standards and interpretations 129 FOCUS ON SHAREHOLDER RETURNS THROUGH THE CYCLE / FLEX OPERATIONS IN LINE WITH MARKET DEMAND / CONTINUE MARKET DEVELOPMENT / MAINTAIN STRONG BALANCE SHEET / PRESERVE AND ADVANCE MINERAL SANDS GROWTH OPPORTUNITIES / CONTINUE TO EVALUATE/ PURSUE CORPORATE GROWTH OPPORTUNITIES / ACT COUNTER-CYCLICALLY WHERE APPROPRIATE Source: ASX release: Iluka Annual Report 2013 Source: ASX release: Iluka Annual Report 2012 Date: 28 March 2013 Date: 25 March 2014

CREATE AND DELIVER VALUE FOR SHAREHOLDERS

49 95

IOOF HOLDINGS LTD IOOF Annual Financial Report 2014 Annual Financial Report for the year ended 30 June 2013

Contents Page Note Contents Page Number Directors' Report 1 Directors' Report 1 Remuneration Report 10 Remuneration Report 12 Example 5 – IOOF Directors' Declaration 31 Directors' Declaration 37 Lead Auditor's Independence Declaration 32 Lead Auditor's Independence Declaration 38 The IOOF 2014 financial report Independent Auditor's Review Report to the Members 33 Independent Auditor's Report to the Members 39 Consolidated Statement of Comprehensive Income 35 is 13 pages shorter compared Consolidated Statement of Financial Position 36 Statement of Comprehensive Income 41 Consolidated Statement of Changes in Equity 37 Statement of Financial Position 42 to the 2013 report and utilises Consolidated Statement of Cash Flows 39 Statement of Changes in Equity 43 subheadings to group like notes Notes to the financial statements Statement of Cash Flows 46 together. Notes to the Financial Statements Section 1 - Risk management 40 1 Reporting entity 47 1-1 Risk management 40 1-2 Capital risk management 46 2 Basis of preparation 47 1-3 Financial Instruments 47 3 Significant accounting policies 48 4 Risk management 61 Section 2 - Results for the year 49 5 Financial instruments 68 2-1 Operating segments 49 6 Operating segments 69 2-2 Revenue 51 7 Revenue 71 2-3 Expenses 52 2-4 Net cash provided by operating activities 54 8 Expenses 72 2-5 Income taxes 55 9 Finance costs 72 2-6 Dividends 58 10 Income tax expense 73 2-7 Earnings per share 58 11 Cash and cash equivalents 74 Section 3 - Capital management and financing 59 12 Receivables 74 3-1 Borrowings 59 13 Other financial assets 75 3-2 Share capital 61 14 Other assets 75 3-3 Capital commitments and contingencies 62 3-4 Reserves 63 15 Equity‐accounted investees 76 16 Property and equipment 77 Section 4 - Operating assets and liabilities 63 17 Deferred tax assets and liabilities 78 4-1 Acquisitions 63 4-2 Equity-accounted investees 64 18 Goodwill 79 4-3 Intangible assets (other than goodwill) 65 19 Other intangible assets 81 4-4 Goodwill 66 20 Payables 82 4-5 Provisions 68 21 Borrowings 82 Section 5 - Statutory funds 69 22 Other financial liabilities 83 5-1 Assets relating to statutory funds 69 23 Provisions 84 5-2 Liabilities relating to statutory funds 69 24 Other liabilities 84 5-3 Reconciliation of movements in contract liabilities 70 5-4 Contribution to profit or loss of statutory funds 71 25 Share capital 85 IOOF Holdings Ltd 5-5 Actuarial assumptions and methods 72 26 Reserves 87 ABN 49 100 103 722 5-6 Disclosures on asset restrictions, managed assets and trustee activities 72 27 Retained profits/(losses) 88 5-7 Capital adequacy position 73 28 Dividends 88 30 June 2014 Section 6 - Other disclosures 73 29 Earnings per share 89 Annual Financial Report 6-1 Parent entity financials 73 30 Acquisition of subsidiary 90 6-2 Group subsidiaries 74 31 Share‐based payments 91 6-3 Share-based payments 74 32 Remuneration of auditors 95 6-4 Remuneration of auditors 78 6-5 Key management personnel 78 33 Key management personnel 96 6-6 Related party transactions 79 34 Related party transactions 96 35 Operating leases 98 Section 7 - Basis of preparation 80 7-1 Reporting entity 80 36 Capital commitments 98 7-2 Basis of preparation 80 37 Contingencies 98 7-3 Other significant accounting policies 81 38 Reconciliation of cash flows from operating activities 101 7-4 New standards and interpretations not yet adopted 84 39 Group entities 102 7-5 Subsequent events 84 40 Statutory funds 105 41 Subsequent events 108

Source: ASX release: IOOF Full Year Statutory Accounts and Appendix 4E Date: 22 August 2014 Source: ASX release: IOOF Holdings Limited Full Year Statutory Accounts Date: 25 October 2013

Lend Lease ANNUAL REPORT 2014 99 Example 6 – Lend Lease Lend Lease 124 annual report 2013 Lend Lease have included the 2. Revenue notes to the ConsoLIdated FInanCIaL stateMents CONTINUED accounting policies that relate to specific balances within the Accounting Policies Revenue from the provision of services is recognised in the Income Statement in proportion to the stage of completion of the transactions at 1. significant accounting policies continued The standards above become mandatory for the June 2014 financial associated note in their 2014 the balance sheet date. year, with the exception of AASB 9 which will apply to the June 1.3 Impact of New/Revised Accounting Standards 2016 financial year. With the exception of AASB 13, which applies ¡ Fo r construction and development: the value of work performed using the percentage complete method, which is measured by reference to continued prospectively, the standards are to be applied retrospectively. report. The Significant Accounting costs incurred to date as a percentage of total forecast costs for each contract. new accounting standards and Interpretations not Yet adopted 1.4 Revenue, Other Income and Profits ¡ De velopment also includes retirement living Deferred Management Fees (‘DMF’). A typical DMF contract provides for an annual fee for a fixed Certain new accounting standards and interpretations have been Policies note principally contains revenue from the provision of services period on the property occupied by a resident (e.g. 3% per annum of purchase or resale price for a period up to 10–12 years, or 30%–36% in published that are not mandatory for the financial year ended 30 June Revenue from the provision of services is recognised in the Income total) plus a share of the capital gain realised on turnover. For both owned retirement villages (investment property) and managed retirement 2013 but are available for early adoption and have not been applied in the statement of compliance, preparing this report. Statement in proportion to the stage of completion of the transactions villages, DMF income is recognised on an annual accrual basis based upon the expected term of the resident’s licence and estimates of The potential effect of these is outlined below: at the balance sheet date. capital growth since the resident first occupied the unit. basis of preparation and impact n AASB 9 Financial Instruments, AASB 2009-11 Amendments to For property construction: the value of work performed using the ¡ For infrastructure development: origination, asset management and facility management fee entitlements are recognised for services rendered. Australian Accounting Standards arising from AASB 9, AASB percentage complete method, which is measured by reference to costs of new / revised accounting ¡ Fo r investment management: funds and asset management fee entitlements are recognised for services rendered. 2010-7 Amendments to Australian Accounting Standards arising incurred to date as a percentage of total forecast costs for each contract. from AASB 9 (December 2010) and AASB 2012-6 Amendments For property and funds management: property development and Revenue from the sale of development properties is recognised in the Income Statement when: to Australian Accounting Standards – Mandatory Effective Date of standards policies. management fee entitlements for services rendered. ¡ Th e significant risks and rewards have been transferred to the buyer; AASB 9 and Transition Disclosures (September 2012). These standards address the classification, measurement and For aged care and retirement living: ¡ The Group retains neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the derecognition of financial assets and financial liabilities. The potential n Deferred Management Fees (‘DMF’): development properties sold; effect of this standard is yet to be determined. A typical DMF contract provides for an annual retainer for a fixed ¡ Th e revenue can be measured reliably and it is probable that the Group will receive the consideration due; and n AASB 10 Consolidated Financial Statements introduces a new period (e.g. 3% per annum of purchase or resale price for a period definition of control and addresses whether an entity should be included ¡ Th e Group can reliably measure the costs incurred or to be incurred in respect of the transaction. up to 12 years, or 36% in total) plus a share of the capital gain within the consolidated financial statements of the parent company. realised on turnover. Rental revenue is recognised in the Income Statement on a straight line basis over the term of the lease unless another systematic basis is more n AASB 11 Joint Arrangements establishes principles for financial For both owned retirement villages (investment property) and appropriate. Lease incentives granted are recognised as an integral part of the total rental income. reporting by parties to a joint arrangement. managed retirement villages, DMF income is recognised on an The Group’s assessment of the impact of AASB 10 and AASB 11 annual accrual basis based upon the expected term of the resident’s Other revenue primarily includes dividends/distributions and miscellaneous items. Dividend/distribution income is recognised when the right to indicates that the application of these standards is unlikely to have a licence and estimates of capital growth since the resident first receive payment is established, usually on declaration of the dividend/distribution. occupied the unit. 2000 SYDNEY OLYMPIC VILLAGE 2006 TORINO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPTEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE significant impact on the Group’s financial position and performance. CANBERRA ADELAIDE WOMEN’S AND CHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELBOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND n n PARK BARANGAROO SOUTH BBC HEADQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON SECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG AASB 12 Disclosure of Interests in Other Entities relates to disclosure Aged Care Revenue: CRAIGIEBURN DARLING HARBOUR & COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE GATEWAY BRIDGE GOLD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTORATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPMENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEM SINGA- requirements for all forms of interests in other entities, including Aged Care revenue comprises daily resident living contributions, PORE KUALA LUMPUR PETRONAS TOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC subsidiaries, joint arrangements, associates and unconsolidated CENTRE MID–CITY SHOPPING CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE PARRAMATTA STADIUM PORT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL retention fees and government funding, which are all determined in QUEENSLAND CHILDREN’S HOSPITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELBOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTTISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION structured entities. Application of this standard will not affect amounts accordance with Federal Government authorised rates. SUNSHINE COAST UNIVERSITY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDNEY OLYMPIC AQUATICLEND CENTRE SYDNEY OPERALEASE HOUSE – STAGE 1 SYDNEY SHAN- June 2014 June 20131 GRI–LA HOTEL TAIPEI 101 THE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY LODGING THREDBO VILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO recognised in the financial statements, however it will impact the type This revenue is recognised as the services are provided. The Group VICTORIA HARBOUR MELBOURNE WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC VILLAGE 2006 TORINO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEP- A$m A$m TEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE WOMEN’S AND CHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELBOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE Financial Disclosure of information disclosed in relation to the Group’s investments. is entitled to charge an annual retention fee to hostel residents. AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO SOUTH BBC HEADQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTREANNUAL BON SECOURS ST FRANCIS MEDICAL REPORT PAVILION BRISBANE INTERNATIONAL AIRPORT BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN DARLING HARBOUR & COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE n AASB 13 Fair Value Measurements and AASB 2011-8 Amendments These annual fees are regulated by the Federal Government and are DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE GATEWAY BRIDGE GOLD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTORATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOP- Revenue from the provision of services MENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEM SINGAPORE KUALA LUMPUR PETRONAS TOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M22014 MOTORWAY M7 MOTORWAY to Australian Accounting Standards arising from AASB 13 paid by a resident on departure. These fees are accrued during the MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE MID–CITY SHOPPING CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE Construction 11,011.3 11,466.4 PARRAMATTA STADIUM PORT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL QUEENSLAND CHILDREN’S HOSPITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELBOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOT- introduce new guidance on fair value measurement and disclosure resident’s period of occupancy. TISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION SUNSHINE COAST UNIVERSITY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYD- requirements when fair value is permitted by accounting standards. NEY OLYMPIC AQUATIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHANGRI–LA HOTEL TAIPEI 101 THE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY Development 295.6 273.2 LODGING THREDBO VILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO VICTORIA HARBOUR MELBOURNE WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC VILLAGE 2006 TORINO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE Application of this standard will not affect amounts recognised in the revenue and profits from the sale of development properties 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPTEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE WOMEN’S AND CHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MEL- BOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO SOUTH BBC HEADQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON Infrastructure Development 238.9 313.0 financial statements, however it will impact the type of information Revenue and profits from the sale of development properties are SECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN DARLING HARBOUR & COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE GATEWAY BRIDGE GOLD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTO- disclosed in relation to the fair value hierarchy. recognised in the Income Statement when: RATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPMENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEM SINGAPORE KUALA LUMPUR PETRONAS TOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL Investment Management 205.4 130.4 SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE MID–CITY SHOPPING CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM n The revised AASB 119 Employee Benefits (June 2011) and n The significant risks and rewards have been transferred to the buyer; CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE PARRAMATTA STADIUM PORT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL QUEENSLAND CHILDREN’S HOSPITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MEL- BOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTTISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION SUNSHINE COAST UNIVERSITY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY Total revenue from the provision of services 11,751.2 12,183.0 AASB 2011-10 Amendments to Australian Accounting Standards n The Group retains neither continuing managerial involvement to the INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDNEY OLYMPIC AQUATIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHANGRI–LA HOTEL TAIPEI 101 THE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMOD- ELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY LODGING THREDBO VILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO VICTORIA HARBOUR MELBOURNE WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC arising from AASB 119 (September 2011) introduce changes degree usually associated with ownership, nor effective control over VILLAGE 2006 TORINO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPTEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE Revenue from the sale of development properties 2,079.6 898.2 WOMEN’S AND CHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELBOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO to the accounting for and presentation of pensions and other the development properties sold; SOUTH BBC HEADQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON SECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN post-employment benefits. The revised standard eliminates the DARLING HARBOUR & COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE Rental revenue 53.3 48.9 n The revenue can be measured reliably and it is highly probable that GATEWAY BRIDGE GOLD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTORATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPMENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEM SINGAPORE KUALA corridor approach which defers the recognition of actuarial gains LUMPUR PETRONAS TOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE the Group will receive the consideration due; and, MID–CITY SHOPPING CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE PARRAMATTA STADIUM PORT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL Other revenue 51.8 32.5 and losses attributable to the Group’s defined benefit plans in the QUEENSLAND CHILDREN’S HOSPITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELBOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTTISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION n The Group can reliably measure the costs incurred or to be incurred SUNSHINE COAST UNIVERSITY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDNEY OLYMPIC AQUATIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHAN- Statement of Comprehensive Income. The revised standard also GRI–LA HOTEL TAIPEI 101 THE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY LODGING THREDBO VILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO Total revenue 13,935.9 13,162.6 in respect of the transaction. VICTORIA HARBOUR MELBOURNE WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC VILLAGE 2006 TORINO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEP- requires the net interest expense on fund obligations and interest TEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE WOMEN’S AND CHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELBOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE income on assets to be determined by applying the discount AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO SOUTH BBC HEADQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON SECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT 1 June 2013 has been adjusted to reflect the impact of the first time adoption of the new AASB 11 Joint Arrangements standard (refer to Note 1.3 ‘Impact of New/Revised rental revenue BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN DARLING HARBOUR & COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE Accounting Standards’). rate used to measure the fund obligations. Previously, the Group DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE GATEWAY BRIDGE GOLD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTORATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOP- Rental revenue is recognised in the Income Statement on a straight line MENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEM SINGAPORE KUALA LUMPUR PETRONAS TOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY determined interest income on fund assets based on the expected MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE MID–CITY SHOPPING CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE basis over the term of the lease unless another systematic basis is more PARRAMATTA STADIUM PORT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL QUEENSLAND CHILDREN’S HOSPITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELBOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOT- long term return for each asset class. TISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION SUNSHINE COAST UNIVERSITY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYD- appropriate. Lease incentives granted are recognised as an integral part NEY OLYMPIC AQUATIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHANGRI–LA HOTEL TAIPEI 101 THE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY Had the revised standard been applied at 30 June 2013, LODGING THREDBO VILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO VICTORIA HARBOUR MELBOURNE WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC VILLAGE 2006 TORINO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE of the total rental income. 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPTEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE WOMEN’S AND CHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MEL- and previously unrecognised cumulative gains and losses BOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO SOUTH BBC HEADQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON SECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN DARLING HARBOUR & COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING had been recognised, total equity would have decreased by QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE GATEWAY BRIDGE GOLD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTO- A$63.8 million, after tax. The amount recognised in the Statement RATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPMENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEMOVER SINGAPORE KUALA LUMPUR PETRONAS TOWERS LAKESIDE JOONDALUP 50 LANCASHIRE COUNTY COUNCIL SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE MID–CITY SHOPPING CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM of Comprehensive Income for current year actuarial gains to CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE PARRAMATTA STADIUM PORT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL QUEENSLAND CHILDREN’S HOSPITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MEL- Source: Lend Lease Annual Report 2014 BOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTTISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION SUNSHINE COAST UNIVERSITY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY 30 June 2013 would have been A$23.2 million, after tax. In INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDNEY OLYMPIC AQUATIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHANGRI–LA HOTEL TAIPEI 101 THE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMOD- ELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY LODGING THREDBO VILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO VICTORIA HARBOUR MELBOURNE WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC Date: 30 September 2014 addition, the impact to the defined benefit expense on adopting the VILLAGE 2006 TORINO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPTEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE WOMEN’S AND CHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELBOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO amendments would decrease profit after tax by A$2.8 million, for the SOUTH BBC HEADQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON SECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN DARLING HARBOUR & COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE YEARS DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE year ended 30 June 2013. GATEWAY BRIDGE GOLD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTORATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPMENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEM SINGAPORE KUALA LUMPUR PETRONAS TOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE MID–CITY SHOPPING CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADECREATING PARRAMATTA STADIUM PORT BOTANY EXPANSION THEQANTAS DOMESTIC TERMINAL QUEENSLAND CHILDREN’S HOSPITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELBOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTTISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION SUNSHINE COAST UNIVERSITY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDNEY OLYMPIC AQUATIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHAN- GRI–LA HOTEL TAIPEI 101 THE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY LODGING THREDBO VILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO VICTORIA HARBOUR MELBOURNE WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC VILLAGE 2006 TORINO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGEBEST 313@SOMERSET SHOPPING PLACES CENTRE 30 THE BOND, SYDNEY NATIONAL SEP- TEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE WOMEN’S AND CHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELBOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO SOUTH BBC HEADQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON SECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN DARLING HARBOUR & COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE GATEWAY BRIDGE GOLD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTORATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOP- Source: Lend Lease Annual Report 2013 MENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEM SINGAPORE KUALA LUMPUR PETRONAS TOWERS LAKESIDE 2014 LEND LEASE ANNUAL REPORT JOONDALUP LANCASHIRE COUNTY COUNCIL SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE MID–CITY SHOPPING CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE PARRAMATTA STADIUM PORT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL QUEENSLAND CHILDREN’S HOSPITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELBOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOT- Date: 30 September 2013 TISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION SUNSHINE COAST UNIVERSITY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYD- NEY OLYMPIC AQUATIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHANGRI–LA HOTEL TAIPEI 101 THE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY

Financial Report Contents Page Contents Example 7 – Seek Financial statements Page 52 Consolidated income statement 53 Consolidated statement of comprehensive Income Seek have grouped the notes Financial statements 54 Consolidated balance sheet 55 Consolidated income statement to the financial statements into 55 Consolidated statement of changes in equity 56 Consolidated statement of comprehensive income specific categories. They have also 57 Consolidated balance sheet 56 Consolidated statement of cash flows 58 Consolidated statement of changes in equity Notes to the consolidated financial statements moved the summary of significant 59 Consolidated statement of cash flows 57 Note 1 Summary of significant accounting policies 71 Note 2 Financial risk management accounting policies to be the last Notes to the consolidated financial statements 78 Note 3 Critical accounting estimates and judgements 60 Note 1 Critical accounting estimates and judgements note within the financial report. 80 Note 4 Segment information Performance 85 Note 5 Revenue 62 Note 2 Segment information 69 Note 3 Revenue 86 Note 6 Other income 69 Note 4 Other income 86 Note 7 Expenses 70 Note 5 Expenses 87 Note 8 Income Tax 71 Note 6 Earnings per share (EPS) 90 Note 9 Cash and cash equivalents 72 Note 7 Income tax 90 Note 10 Trade and other receivables Cash 92 Note 11 Investments accounted for using the equity method 76 Note 8 Cash and cash equivalents 95 Note 12 Other financial assets 77 Note 9 Reconciliation of profit for the year to net cash inflow from operating activities 96 Note 13 Plant and equipment 78 Note 10 Financial risk management 97 Note 14 Intangible assets Assets 100 Note 15 Trade and other payables 87 Note 11 Trade and other receivables 100 Note 16 Borrowings 88 Note 12 Other financial assets 102 Note 17 Other financial liabilities 89 Note 13 Plant and equipment 103 Note 18 Provisions 90 Note 14 Intangible assets 106 Note 19 Contributed equity 93 Note 15 Net tangible asset backing 107 Note 20 Other equity Liabilities 109 Note 21 Dividends 93 Note 16 Trade and other payables 110 Note 22 Key management personnel disclosures 94 Note 17 Borrowings 114 Note 23 Remuneration of auditors 95 Note 18 Other financial liabilities Note 19 Provisions 115 Note 24 Contingent liabilities Equity 116 Note 25 Commitments for expenditure 100 Note 20 Contributed equity 117 Note 26 Share-based payments 101 Note 21 Equity 119 Note 27 Related party transactions 106 Note 22 Dividends 120 Note 28 Deed of cross guarantee Group structure 123 Note 29 Business combinations 107 Note 23 Business combinations 127 Note 30 Interests in controlled entities Appendix 4E and 108 Note 24 Discontinued operation 129 Note 31 Events occurring after balance date Statutory Accounts 110 Note 25 Interests in other entities 129 Note 32 Reconciliation of profit for the year to net cash inflow from operating activities 118 Note 26 Deed of cross guarantee 130 Note 33 Earnings per share (EPS) For the year ended 30 June 2014 121 Note 27 Parent entity financial information 130 Note 34 Net tangible asset backing Unrecognised items 131 Note 35 Parent entity financial information 122 Note 28 Contingent liabilities 132 Directors’ declaration 122 Note 29 Commitments for expenditure 133 Independent auditor’s review report to the member of SEEK Limited 123 Note 30 Events occurring after the balance sheet date Others 124 Note 31 Share-based payments This Financial Report covers SEEK Limited as a consolidated entity A description of the nature of the consolidated entity’s operations consisting of SEEK Limited and its controlled entities. The financial and its principal activities is included in the review of operations 128 Note 32 Related party transactions report is presented in the Australian currency. The Financial Report and activities in the Directors Report on pages 7 to 40, which are 129 Note 33 Remuneration of auditors Source:was authorised Seek for Limited issue by the Annual directors on Report 21 August 20132013. The not part of this Financial Report. Through the use of the internet, 130 Note 34 Summary of significant accounting policies Date:Company 30 Octoberhas the power 2013 to amend and reissue the Financial Report. we have ensured that our corporate reporting is timely, complete and available globally at minimum cost to the Company. All press 144 Directors’ declaration SEEK Limited is a company limited by shares, incorporated and releases, financial reports and other information are available at our 145 Independent auditor’s report to the members of SEEK Limited domiciled in Australia. Its registered principal place of business is: Investor Relations page on our website at www.seek.com.au. Level 6, 541 St Kilda Road, MELBOURNE VIC 3004 Lodged with the ASX under Listing Rule 4.3A SEEK Limited ABN 46 080 075 314

54 SEEK Limited Annual Report 2014 SEEK Limited Annual Report 2013 51 Source: Seek Limited Appendix 4E and statutory accounts 2014 Date: 20 August 2014

Consolidated Notes Year Ended 30 June 2014 Consolidated Notes Year Ended 30 June 2014 59 59 Consolidated Notes Year Ended 30 June 2014 65

ConsolidatedConsolidated Notes Notes YearYear ended ended 30 June 30 June 2014 2014 Example 8 – Stockland (A) Basis of Preparation 60 Financial Report 2013 (A) Basis of Preparation 60 (B) Results for the year (B) Results for the year 65 Consolidated Statements of Changes in Equity (continued) (B1) Revenue 65 (B) Results for the year 65 FOR THE YEAR ENDED 30 JUNE 2013 Stockland has grouped its note (B2) Operating segments 66 (B1) Revenue In this section 65 ATTRIBUTABLE TO UNITHOLDERS OF THE STOCKLAND TRUST GROUP disclosures into six sections in the (B3) Personnel expenses This section explains the results and performance of 72Stockland and the Stockland Trust Group. Executive Cash fl ow (B4)(B2) Taxation Operating segments 73 66 Issued remuneration hedge Undistributed Total This section provides additional information about those individual line items in the financial statements that capital reserve reserve income equity 2014 financial report. Each section (B5)(B3) Earnings Personnel per security/unit expenses the Directors consider most relevant in the context of77 the operations of the entity,72 including: Notes $M $M $M $M $M Balance as at 1 July 2012 7,179.8 17.6 3.4 835.3 8,036.1 (C)(B4) Operating Taxation assets and liabilities (a) Accounting policies that are relevant for understanding78 the items recognised73 in the financial Profi t for the period – – – 646.6 646.6 sets out the accounting policies statements. (C1)(B5) Real Earnings Estate assets per security/unitand liabilities 78 77 Other comprehensive income – – 8.2 – 8.2 (b) Analysis of the Group’s result for the year by reference to key areas, including: revenue, results Total comprehensive income – – 8.2 646.6 654.8 (C2) Financial assets and liabilities 93 applied in preparing the relevant by operating segment, personnel costs, income tax and earnings per security. Securities bought back during on-market buyback, net of transaction costs 27 (2.8) – – – (2.8) (C) Operating assets and liabilities 78 (C3) Other non-financial assets and liabilities 94 Securities issued from capital raising, net of transaction costs 27 381.5 – – – 381.5 note. They have also included (C1) Real Estate assets and liabilities 78 Securities purchased and held in Employee Share Plan (Treasury Shares) 27 (4.6) – – – (4.6) (D) Capital Structure and Financing Costs 98 (B1) Revenue Distributions to unitholders 29 – – – (541.7) (541.7) (D1)(C2) Net Financial financing costs assets and liabilities 98 93 Expense relating to rights and securities granted under share plans, net of tax 28 – (0.8) – – (0.8) “Keeping it simple” text boxes Revenue is recognised at the fair value of the consideration received or receivable, net of the amount of goods and 374.1 (0.8) – (541.7) (168.4) (D2)(C3) Cash Other and cashnon-financial equivalents assets and liabilitiesservices tax (“GST”) levied. 100 94 Balance as at 30 June 2013 7,553.9 16.8 11.6 940.2 8,522.5 to provide commentary on more (D3) Interest-bearing loans and borrowings 100 Property development sales Balance as at 1 July 2011 7,700.3 21.3 6.6 771.2 8,499.4 (D4)(D) Other Capital financial Structure assets and and liabilities Financing Costs 104 98 complex sections in plain English, Revenue from land and property sales is recognised when Stockland has transferred significant risks and rewards Profi t for the period – – – 606.1 606.1 (D5)(D1) Fair Net value financing hierarchy costs of ownership to the buyer and the amount of revenue can106 be reliably measured. 98 Other comprehensive expense – – (3.2) – (3.2) and have reduced total page length (D6) Financial risk factors 110 Total comprehensive (expense)/income – – (3.2) 606.1 602.9 (D2) Cash and cash equivalents Rent from investment properties 100 Securities bought back during on-market buyback, net of transaction costs 27 (524.7) – – – (524.7) (D7) Issued capital 118 (D3) Interest-bearing loans and borrowingsRent is recognised on a straight-line basis over the lease term, net of any incentives.100 Units issued during the year, net of transaction costs 27 4.2 – – – 4.2 by 14. (D8) Dividends and distributions 122 Distributions to unitholders 29 – – –(542.4)(542.4) (D4) Other financial assets and liabilities Rent from investment properties includes $9 million (2013: $8 million) contingent104 rent billed to tenants. Contingent Units exercised under share plans transferred to undistributed income 28 – (0.4) – 0.4 – (E) Group Structure rent represents 1% of gross lease income. 123 (D5) Fair value hierarchy 106 Vested units purchased on-market 28 – (6.8) – – (6.8) Expense relating to rights and securities granted under share plans, net of tax 28 – 3.5 – – 3.5 (E1) Investments in associates Deferred Management Fees 124 (520.5) (3.7) – (542.0) (1,066.2) (E2)(D6) Investments Financial in riskjoint venturefactors entities 124 110 Deferred Management Fees (“DMF”) are recognised over the tenancy period. DMF’s include both fixed fees Balance as at 30 June 2012 7,179.8 17.6 3.4 8 35.3 8,0 3 6.1 (E3)(D7) Investments Issued capital in unconsolidated structured entitiesrecognised on a straight line basis and contingent fees125 recognised when earned.118 The above consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. (E4)(D8) Controlled Dividends entities and distributions DMF are calculated on the entry price of the unit. DMF126 are recognised each period,122 however fees are only realised (E5) Deed of Cross Guarantee in cash at the end of the residents tenure. 128 (E6)(E) Parent Group entity Structure disclosures DMF calculated on the exit price of the unit are recognised130 and realised in cash123 at the end of the resident’s tenure.

(F)(E1) Other Investments items in associates Accounting for DMF is further explained in Note B2. 132 124 Source: Stockland Financial Report 2013 Stockland Financial Report 2013 55 (F1)(E2) Contingent Investments liabilities in joint venture entities Dividends and distributions 132 124 (F2)(E3) Commitments Investments in unconsolidated structuredRevenue entities from dividends and distributions are recognised132 in profit or loss on the125 date they are declared by the Date: 25 September 2013 (F3) Notes to Cash Flow Statements relevant entity. 133 (E4) Controlled entities 126 (F4) Related party disclosures Revenue recognised during the year is set out below: 134 (E5) Deed of Cross Guarantee 128 (F5) Key Management Personnel disclosures 136 Stockland (F6)(E6) Auditor’s Parent remuneration entity disclosures 137 Stockland130 Trust Group (F7) Events subsequent to the end of the year 137 2014 2013 2014 2013 (F) Other items $M 132$M $M $M

104(F1) ContingentStockland liabilities Financial PropertyReport development sales 1,109 132955 – – Rent from investment properties 674 680 (F2) Commitments 679 132 681 Deferred Management Fees from Retirement Living 74 55 – – (F3) Notes to Cash Flow Statements 133 Dividend and distribution income 19 1 – 1 (F4) Related party disclosures 134 Other revenue 58 43 13 – (F5) Key Management Personnel disclosuresTotal revenue 1,939 1361,728 694 681 (F6) Auditor’s remuneration 137 (F7) Events subsequent to the end of the year 137

(D4) Other financial assets and liabilities

Financial Report Keeping it simple . . . 30 June 2014 A derivative is a type of financial instrument typically used to manage risk. A derivative's value changes over time in response to underlying variables such as exchange rates or interest rates and is entered into for a Focused fixed period. A hedge is where a derivative is used to manage an underlying exposure. Stockland uses on growth derivatives to manage exposure to foreign exchange and interest rate risk.

DerivativeSource: Stockland financial instruments Financial Report 2014 DerivativeDate: 18 financialAugust instruments 2014 are recognised initially at fair value and remeasured at each balance date. The gain or loss on re-measurement to fair value is recognised in profit or loss. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged, refer to Note D6(d). © 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 19 The fair value of interest rate swaps is the estimated amount that the Group would receive or pay to terminate the swap at the reporting date, taking into account current interest rates and the current creditworthiness of swap counterparties. The fair value of forward foreign exchange contracts is determined by using the difference between the contract exchange rate and the quoted forward exchange rate at the reporting date. Third party valuations are used to determine the fair value of the Group's derivatives. The valuation techniques use inputs such as interest rate yield curves and currency prices/yields, volatilities of underlying instruments and correlations between inputs.

Other financial assets Investments in other financial assets which are managed in accordance with Stockland’s documented risk policy based on their fair value and held-for-trading purposes will be designated as financial assets carried at fair value through profit or loss. Investments in other financial assets will be recognised at fair value with movements recognised in other comprehensive income. The fair value of “Securities in listed entities” is determined by reference to the quoted bid price of the entity at balance date. The fair value of “Units in unlisted entities” is determined by reference to the net assets of the underlying investments at balance date. These investments are included in “Non-current assets – Other financial assets” unless Stockland intends to dispose of the investment within twelve months of balance date in which case the investment is classified as “Current assets – Other financial assets”.

During the year, Stockland obtained a 19.9% (115,166,597 securities) stake in Australand at an average price of $3.78. This comprises a 15.7% direct holding in securities of Australand and 4.2% indirect interest via a cash settled equity swap agreement. The direct holding is included in “Securities in listed entities” while the indirect holding is included in “Other Financial Instrument”. Based on the closing price of Australand at 30 June 2014, this holding has resulted in the following gains: x $52 million (net of tax) of fair value gains recognised in Other Comprehensive Income x $1 million (net of tax) recognised in the Statement of Profit & Loss on partial sale of the indirect holding

Both the direct holding and indirect interest have been classified as current as at 30 June 2014. An investment is derecognised when Stockland has transferred the contractual rights to receive cash flows from the investment and substantially all the risks and rewards of ownership of the investment to a third party. If an investment does not qualify for derecognition, the investment will continue to be recognised and a liability recognised for the consideration received. If the investment will qualify for derecognition within twelve months of balance date, the liability is recorded as “Current liabilities – Other liabilities”.

Appendix 2 – Example Reporting Re-label & Reorder

Wesfarmers | aNNUaL report 2013 Financial statements Financial statements for the year ended 30 June 2014 - Wesfarmers Limited and its controlled entities for the year ended 30 June 2013 – Wesfarmers Limited and its controlled entities

Contents Example 9 – Wesfarmers Contents Income statement 96 Directors’ declaration 176 A CENTURYceNtury OF PROGRESSPrOGreSS Statement of comprehensive income 97 Independent auditor’s report 177 financial Income statement Page 104 Balance sheet 98 Annual statement of coal resources and reserves 178 statements Wesfarmers have grouped notes Statement of comprehensive income Page 105 Cash flow statement 99 Shareholder information 180 Balance sheet Notes to thePage 106financial statements: Segment information into six key sections: Key numbers, Statement of changes in equity 100 Five-year financial history 182 notes to the financial statements: About this report | for the year ended 30 June 2014 Cash flow statement for the year ended 30 JunePage 2014 107 Notes to the financial statements 101 Investor information 183 Capital, Risk, Group structure, Statement of changes in equity Page 108 1 Corporate information 101 Corporate directory 184 2 summary of significant accounting policies 101 Unrecognised items and Other. 3 segment information 115 notes to About this report Page 109 4 Income and expenses 118 They have also explained their the notes to the financial statements Significantthe financial changes in the current reporting period The Group’s operating segments are organised and managed separately c5hemicals, Income tax e nergy and Fertilisers (WesceF) 119 Segment information Page 111 6 earnings per share 121 The notes include information which is required to understand the The financialstatements position and performance of the Group was particularly according to the nature of the products and services provided. – Manufacture and marketing of chemicals for industry, mining and 7 Dividends paid and proposed 121 “basis of materiality” in selecting financial statements and is material and relevant to the operations, affected by the following events and transactions during the reporting mineral processing; Each segment represents a strategic business unit that offers 8 Cash and cash equivalents 122 financial position and performance of the Group. Information is period: Key numbers Capital risk Group structure unrecognised items other – Manufacture and marketing of broadacre and horticultural fertilisers; different products and operates in different industries and markets. 9 trade and other receivables 123 considered material and relevant if, for example: The Board and executive management team (the chief operating notes to be included in the – The disposal of the underwriting, premium funding and broking – 10National Inventories marketing and distribution of LPG and124 LNG; 1. Income 10. Capital 15. Financial risk 18. Associates 21.decision-makers) Commitments and monitor23. Parent the operating results of the business units – the amount in question is significant because of its size or nature; operations, which collectively constituted themanagement entire businessmanagement and joint contingencies disclosures – 11LPG Investments and LNG backing extraction insurance for contracts,domestic and export markets; and arrangements separately for the purpose of making decisions about resource operations of the Wesfarmers’ Insurance division, in June 2014. – Manufacture,reinsurance and marketing other recoveries and distribution of industrial,124 medical and financial report, and have reduced the – it is important for understanding the results of the Group; allocation and performance assessment. Wesfarmers recorded a2. combined Expenses pre-tax 11. profit Dividends of and $1,040 16. Hedgingmillion 19. Subsidiaries 22. Subsequent events 24. Deed of Cross 12specialty Investments gases. in associates 125 – it helps to explain the impact of significant changes in the Group’s during the year in relation to these discontinueddistributions operations (refer Guarantee The types of products and services from which each reportable 13 property, plant and equipment 126 length of the financial report by business – for example, acquisitions and impairment writedowns; to note 20); Other or 3. Tax expense 12. Equity and 17. Impairment of 20. Discontinued segment derives its25. revenues Auditors’ are disclosed below. Segment 14 Intangible assets and goodwill 128 – The disposal of the Group’s 40 per cent interestreserves in the Westernnon-financial operations performance is evaluatedremuneration based on operating profit or loss (segment Includes:15 other assets 131 – it relates to an aspect of the Group’s operations that is important assets 37 pages Australian-based industrial gas producer and supplier Air Liquide result), which in certain respects, is presented differently from 16 trade and other payables 131 to its future performance. WA Pty Ltd and its associated4. Cash and interest cash in13. the Earnings Kwinana per Industrial 26. Related party – Forest products: non-controlling interest in Wespine Pty Ltd; operating profit or loss in the consolidated financial statements. 17 Interest‑bearing loans and borrowings 132 Gas Joint Venture in Decemberequivalents 2013. On completionshare of the transactions The notes are organised into the following sections: – 18Property: provisions non-controlling interest in BWP Trust;134 transaction Wesfarmers recognised a pre-tax profit of $95 million; Interest income and expenditure are not allocated to operating 5. Trade and other 14. Interest-bearing 27. Other – 19Investment Insurance liabilities banking: non-controlling interest in 136Gresham Partners – Key numbers: provides a breakdown of individual line items in the – The carrying value of the Target cash generating unit (CGU) segments, as this type of activity is managed on a group basis. receivables loans and accounting 20Group other liabilitiesLimited; 140 financial statements that the directors consider most relevant and exceeded its recoverable amount and an impairmentborrowings of policies Transfer prices between business segments are set on an arm’s – 21Private Contributed equity equity investment: non-controlling interests in141 Gresham Private summarises the accounting policies, judgements and estimates $677 million was recognised6. Inventories in respect of its goodwill in 28. Share-based relevant to understanding these line items; ‘impairment expenses’. The decrease in the recoverable amount length basis in a mannerpayments similar to transactions with third parties. 22Equity retained Fund earnings No. 2 and Gresham Private Equity Fund143 No. 3; and – Capital: provides information about the capital management largely reflects a financial performance in 2014 below expectations Segment revenue, expenses and results include transfers between – 23Corporate: reserves includes treasury, head office, central143 support functions practices of the Group and shareholder returns for the year; as a result of difficult trading7. Property, conditions plant and an increase in the business segments.29. Those Director transfers and are eliminated on consolidation 24and financial other riskcorporate management entity objectives expenses. and policiesCorporate 144 is not considered an discount rate on account ofand the equipment risk associated with Target’s and are not consideredexecutive material. operating segment and includes activities that are not allocated to – Risk: discusses the Group’s exposure to various financial risks, disclosures 25 Hedging activities 154 turnaround strategy (refer to note 17); other operating segments. explains how these affect the Group’s financial position and 8. Goodwill and The operating segments and their respective types of products and 26 Commitments and contingencies 157 performance and what the Group does to manage these risks; – The recognition of a $94 millionintangible provision for restructuring 27 events after the balance sheet date 158 assets services are as follows: Seasonality activities commenced within the Coles Liquor business; 28 Interest in jointly controlled assets 159 – Group structure: explains aspects of the group structure and how 9. Provisions Revenue and earnings of various divisions are affected by seasonality – The acquisition of additional coal resources, being Mineral retail 29 parent disclosures 160 changes have affected the financial position and performance of and cyclicality as follows: the Group; Development Licence 162, from Peabody Energy Budjero Pty coles 30 subsidiaries 161 – Unrecognised items: provides information about items that are Ltd for $70 million in January 2014, which is expected to extend – Supermarket and liquor retailer, including a hotel portfolio; – 31For Deed retail of Crossdivisions, Guarantee earnings are typically greater167 in the December not recognised in the financial statements but could potentially Curragh’s mine life and provide future options to further optimise 32half related of the party financial transactions year due to the impact of the169 Christmas holiday mine operations; – Retailer of fuel and operator of convenience stores; and have a significant impact on the Group’s financial position and 33shopping auditor’s remunerationperiod; 169 signed Directors’ declaration – Coles property businessPage operator. 147 performance; and – The sale and lease back of a portfolio of 27 Bunnings Warehouse – 34For share‑based the Resources payment division, plans the majority of the entity’s170 coal A CENTURY OF PROGRESS propertiesreports for $591 million; and – Other: provides information on items which require disclosure Independent auditor’s report Home Improvement andPage Office 148 Supplies (HIOS) 35contracted pension plan tonnages are renewed on an annual172 basis from April each calendar year and are subject to price renegotiation on a to comply with Australian Accounting Standards and other – A capital return to shareholders of 50 cents per fully-paid ordinary – Retailer of building material and home and garden improvement 36 Director and executive disclosures 173 quarterly basis; and regulatory pronouncements however, are not considered critical in and partially protected share in November 2013, accompanied by products; understanding the financial performance or position of the Group. a proportionate share consolidation (refer to note 10). – For the Chemicals, Energy and Fertilisers division, earnings are Delivering today. – Servicing project builders and the housing industry; and asX Annual statement of coal resources and reserves Page 149 typically greater in the second half of the financial year due to the Value tomorrow. – Office supplies products. impact of the Western Australian winter season break on fertiliser information Shareholder information Page 152 sales. Kmart Wesfarmers | Annual Report 2014 Five-year financial history – Retailer of apparel andPage general 153 merchandise, including toys, leisure, Geographical information entertainment, home and consumables; and Source: WesfarmersThe table below provides Annual information Report on the 2013geographical location Investor information Page 154 – Provision of automotive service, repairs and tyre service. of revenue and non-current assets (other than financial instruments, Corporate directory Page 155 Date: 26 Septemberdeferred tax assets 2013 and pension assets). Revenue from external target customers is allocated to a geography based on the location of the – Retailer of apparel, homewares and general merchandise, including operation in which it was derived. Non-current assets are allocated accessories, electricals and toys. based on the location of the operation to which they relate. Revenue Wesfarmers annual report 2014 103 and non-current assets from the Insurance division have been Insurance excluded. – Supplier of specialist rural and small business regional insurance; Source: Wesfarmers Annual Report 2014 and revenue Non-current assets 95 Date: 09 September 2014 – Supplier of broking services and general insurance through broking 2014 2013 2014 2013 intermediaries. $m $m $m $m

The Group has classified the Insurance segment as a discontinued Australia 58,959 56,787 28,949 29,558 operation in 2014. New Zealand 1,218 961 574 611 Industrial Other foreign countries 4 1 5 19 60,181 57,749 29,528 30,188 resources – Coal mining and development; and – Coal marketing to both domestic and export markets. Industrial and Safety (WIS) – Supplier and distributor of maintenance, repair and operating products; – Manufacture and marketing of industrial gases and equipment; – Specialised supplier and distributor of industrial safety products and services; and – Provider of risk management and compliance services.

110 Wesfarmers annual report 2014 Wesfarmers annual report 2014 111

© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 20 Appendix 2 – Example Reporting Re-label & Reorder / Rewrite / Remove

2014 Financial Report Contents 2013 Financial Report Contents Example 10 – Steadfast

Steadfast applied judgement Directors’ report 25 Remuneration report – audited 34 to their financial statements Lead auditor’s independence declaration 51 21 Directors’ report Notes to the financial statements and removed immaterial notes, 28 Remuneration report – audited 46 Note 1. General information FINANCIAL STATEMENTS 46 Note 2. Significant accounting policies reducing them by 18. They also Consolidated statement of comprehensive 52 41 Lead auditor’s independence declaration income 53 Note 3. Critical accounting judgements, estimates and assumptions re-ordered and re-wrote Consolidated statement of financial position 54 Financial statements 42 Statement of comprehensive income 54 Note 4. Operating segments Consolidated statement of changes in equity 56 accounting policies to aid 55 Note 5. Revenue Consolidated statement of cash flows 58 43 Statement of financial position 55 Note 6. Expenses improvement in communication Notes to the financial statements 59 44 Statement of changes in equity Directors’ declaration 96 56 Note 7. Income tax expense/(benefit) with a focus on what was 45 Statement of cash flows Independent auditor’s report 97 57 Note 8. Current assets – cash and cash equivalents 46 Notes to the financial statements significant to the financial 57 Note 9. Current assets – trade and other receivables statements. NOTES TO THE FINANCIAL STATEMENTS 89 Directors’ declaration 57 Note 10. Current assets – other Note 1. General information 59 90 Independent auditor’s report 57 Note 11. Non-current assets – investments Note 2. Significant accounting policies 59 58 Note 12. Non-current assets – property, plant and equipment Note 3. Critical accounting judgements, 61 59 Note 13. Non-current assets – intangible assets and goodwill estimates and assumptions Note 4. Operating segments 62 61 Note 14. Non-current assets – deferred tax assets Note 5. Earnings per share 63 61 Note 15. Current liabilities – trade and other payables Note 6. Dividends 64 62 Note 16. Current liabilities – borrowings Note 7. Intangible assets and goodwill 65 62 Note 17. Current liabilities – income tax payable Note 8 Borrowings 67 62 Note 18. Current liabilities – provisions Note 9. Notes to the statement of changes in 68 63 Note 19. Non-current liabilities – other payables equity and reserves 63 Note 20. Non-current liabilities – borrowings Note 10. Business combinations 70 64 Note 21. Non-current liabilities – deferred tax liabilities Note 11. Subsidiaries 76 65 Note 22. Non-current liabilities – provisions Note 12. Investments in associates 78 Note 13. Investment in joint venture 81 65 Note 23. Equity – issued capital Note 14. Financial instruments 82 67 Note 24. Equity – reserves Notes to the FinancialNote Statements 15. Contingencies 83 68 Note 25. Equity – non-controlling interest FOR THE YEAR ENDED 30 JUNE 2014 Note 16. Commitments 84 68 Note 26. Equity – dividends Note 17. Events after the reporting period 84 69 Note 27. Financial instruments Note 18. Profit and loss information 86 71 Note 28. Key management personnel disclosures NOTE 1. GENERAL INFORMATION Note 19. Share based remuneration 86 This general purpose financial report is for the year ended 30 June 2014 and comprises the consolidated financial statements for Steadfast 72 Note 29. Remuneration of auditors Group Limited (Steadfast or the Company) and its subsidiaries,Note 20. Taxation and the Group’s interests in associates and89 a joint venture (Steadfast Group 73 Note 30. Contingent assets or the Group). These financial statements are presentedNote 21. in NotesAustralian to thedollars, statement which of is cashSteadfast’s flows functional91 and presentation currency. 73 Note 31. Contingent liabilities Note 22. Related party transactions 92 The Company is a for-profit listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and 73 Note 32. Commitments principal place of business is Level 3, 99 Bathurst Street,Note 23.Sydney Parent NSW entity 2000. information 94 73 Note 33. Related party transactions A description of the nature of the Group’s operationsNote and 24. its Remuneration principal activities of auditors is included in the Directors’95 report, which is not part of the financial report. 75 Note 34. Parent entity information This general purpose financial report was authorised for issue by the Board on 27 August 2014. 76 Note 35. Business combinations 80 Note 36. Subsidiaries This year’s financial report is re-ordered and re-written to aid improvement in communication. The flow of information is grouped as follows: 81 Note 37. Investments in associates • significant accounting policies and critical accounting judgements, estimates and assumptions – Notes 2 and 3; 82 Note 38. Interests in joint venture • key financial indicators of the Group – Notes 4 to 6; Scale. • significant assets and liabilities – Notes 7 to 8; 83 Note 39. Events after the reporting period • equity related matters – Note 9; 24 | Steadfast Group Annual Report 2014 87 Note 40. Reconciliation of profit/(loss) after income tax Strength. • group structure – Notes 10 to 13; to net cash from operating activities 87 Note 41. Earnings per share Steadfast. Annual Report 2014 • risk and unrecognised items – Note 14 to 16; and • additional information and disclosures required by Accounting Standards – Notes 17 to 24. 88 Note 42. Share based payments

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Source:A. STATEMENT Steadfast OF COMPLIANCE Annual Report 2014 Source: Steadfast Annual Report 2013 Date:This financial 27 August report has 2014 been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards and other Date: 30 August 2013 authoritative pronouncements of the Australian Accounting Standards Board, as appropriate for for-profit oriented entities and the Australian Securities Exchange (ASX) Listing Rules. 22 Steadfast Group Annual Report 2013 © 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD. Operating and financial reviews: October 2014 21 International Financial Reporting Standards (IFRS) refer to the overall framework of standards and pronouncements approved by the International Accounting Standards Board. IFRS forms the basis of the Australian Accounting Standards. This financial report of the Group complies with IFRS.

B. BASIS OF PREPARATION OF THE FINANCIAL REPORT The significant accounting policies adopted in the preparation of this financial report are set out below. The accounting policies adopted in the preparation of this financial report have been applied consistently by all entities in the Group and are the same as those applied for the previous reporting period unless otherwise noted. These financial statements have been prepared under the historical cost convention, modified, where applicable, by the measurement at fair value of certain non-current assets, financial assets and financial liabilities.

I. Changes in accounting polices The Company has adopted all of the new recognition and measurement requirements, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the year ended 30 June 2014. There were a number of new and revised Australian Accounting Standards applicable for the current reporting period. Adoption of these standards has not had any material effect on the financial position or performance of the Group. The Group elected to early adopt AASB2013-3 Amendments to AASB136 – Recoverable Amount Disclosures for Non-Financial Assets, adoption of this standard only affects disclosures in Note 7 Intangible assets and goodwill for the year ended 30 June 2014.

II. Reclassification of comparatives Certain prior year comparative information has been revised in this financial report to conform to the current period’s presentation. The reclassifications are for: • improving readability of the statement of comprehensive income and the statement of financial position by providing further details/ breakdown of expenses and assets and liabilities on the face of these two statements; and • aligning the nature of the rebate to Steadfast Network Brokers as accrued expenditure (which is grouped with trade and other payables). The rebate was classified as a provision in the prior period. The comparatives of current trade and other payables and current provisions were increased and decreased by $6.020 million, respectively. The reclassification has no profit and loss impact.

III. Rounding The Group is of the kind referred to in the class order 98/100 dated 10 July 1998 issued by the Australian Securities & Investment Commission. In accordance with that class order, amounts in this financial report have been rounded to the nearest thousand dollars, unless otherwise stated.

C. REVENUE RECOGNITION Revenue is recognised when it is probable that the economic benefit will flow to the Group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

Steadfast Group Annual Report 2014 | 59 kpmg.com.au

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