NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
NOT E 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued  
 
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent 
that the gain or loss is directly recognised in equit y, otherwise the exchange di fference is recognised in the 
consolidated statement of profit or loss and other comprehensive income. 
 
Group Companies 
The financial results and position of foreign subsidiaries whose functional currency is di fferent from the Group ’s 
presentation currency are translated as follows: 
 
- assets and liabilities are translated at year-end exchange rates prevailing at that reporting date; 
- income and expenses are translated at average exchange rates for the period; and  
- retained profits, issued capital and paid-in-capital are translated at the exchange rates prevailing at the 
date of the transaction. 
 
Exchange differences arising on translation of foreign operations are transferred directly to the Group ’s foreign 
currency translation reserve. These di fferences are recognised in the statement of profit or loss and other 
comprehensive income upon disposal of the foreign operation. 
 
h) Employee Benefits 
A provision is made for the Group ’s liability for employee benefits arising from services rendered by employees to 
the balance sheet date. Employee benefits that are expected to be settled within one year have been measured at 
the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later 
than one year have been measured at the present value of the estimated future cash outflows to be made for these 
benefits. Those cash flows are discounted using market yields on national government bonds with terms to maturity 
that match the expected timing of cash flows. 
 
Equity - Settled Compensation  
The Group has an incentive compensation plan where employees may be issued shares and/or options. The fair 
value of the equity to which employees become entitled is measured at grant date and recognized as an expense 
over the vesting period with a correspo nding increase in equity.  The fair value of shares issued is determined with 
reference to the latest ASX share price.  Options are fair valued using an appropriate valuation technique which takes 
into account the vesting conditions. 
 
Restricted Share Unit Plan 
The group has a restricted share unit (“RSU”) plan to motivate management and employees to make decisions 
benefiting long-term value creation, retain management and employees and reward the achievement of the Group’s 
long-term goals.   The target RSUs are based on goals established by the Remuneration and Nominations Committee 
and approved by the Board.   The actual RSUs, awarded annually, are modified according to actual results and 
generally vest in four equal tranches beginning on the grant date and each of the first three subsequent 
anniversaries. 
 
i) Provisions 
Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which 
it is probable that an outflow of economic benefits will result and that o utflow can be reliably measured. 
  
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