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CIMIC Group Limited Annual Report 2016 |
Financial Report
Notes to the Consolidated Financial Statements continued
for the 12 months to 31 December 2016
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
CIMIC Group Limited (the “Company”) is a company domiciled in Australia. The consolidated financial statements of the Company comprise
the Company and its controlled entities (the “Consolidated Entity” or “Group”) and the Consolidated Entity’s interest in associates and joint
arrangements.
The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards
(“AASBs”) adopted by the Australian Accounting Standards Board (“AASB”) and in accordance with the
Corporations Act 2001
. The financial
report of the Consolidated Entity also complies with International Financial Reporting Standards (“IFRS”) as adopted by the International
Accounting Standards Board (“IASB”).
The standards, amendments to standards and interpretations available for early adoption at reporting date that have not been applied in
preparing this financial report are detailed in Note 39:
New accounting standards.
Basis of preparation
Presentation
The financial report is presented in Australian dollars which is the Company’s functional currency. All amounts disclosed in the financial
report relate to the Group unless otherwise stated. The financial report has been prepared on the historical cost basis, except for available-
for-sale assets and derivative financial instruments, which are measured at fair value.
The Company is a company of the kind referred to in
ASIC Corporations (Rounding in Financial / Directors’ Reports) Instrument 2016/191
dated 24 March 2016 and in accordance with that ASIC Instrument, amounts in the financial report have been rounded off to the nearest
hundred thousand dollars, unless otherwise stated.
The significant accounting policies adopted in the preparation of the financial report are set out below. These policies have been applied
consistently to all periods presented in the financial report.
New and amended standards adopted by the Company
In the current year, the Company has applied a number of new and revised accounting standards and amendments that are mandatorily
effective for an accounting period that begins on or after 1 January 2016, as follows:
•
AASB 2014-3
Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations;
•
AASB 2014-4
Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and
Amortisation;
•
AASB 2014-9
Amendments to Australian Accounting Standards – Equity method in separate financial statements
•
AASB 2015-1
Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-
2014 Cycle;
•
AASB 2015-2
Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101;
•
AASB 2015-3
Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality;
and
•
AASB 2015-4
Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a
Foreign Parent
.
•
AASB 2015-5
Investment Entities: Applying the Consolidation Exception; and
•
AASB 1057
Application of Australian Accounting Standards, AASB 2015-9 Amendments to Australian Accounting Standards –
Scope and Application Paragraphs.
While these standards introduced new disclosure requirements, they do not affect the Group’s accounting policies or any of the amounts
recognised in the financial statements.
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