Home' Nufarm Annual Report : Nufarm Annual Report 2016 Contents NOTES TO THE FINANCIAL STATEMENTS
1. Reporting entity
Nufarm Limited (the ‘company’) is a company limited by shares and domiciled in Australia that is listed on the Australian
Securities Exchange. The address of the company’s registered office is 103–105 Pipe Road, Laverton North, Victoria, 3026.
The consolidated financial statements of the company as at and for the year ended 31 July 2016 comprise the company and
its subsidiaries (together referred to as the ‘group’ and individually as ‘group entities’) and the group’s interest in associates
and jointly controlled entities. The group is a for-profit entity and is primarily involved in the manufacture and sale of crop protection
products used by farmers to protect crops from damage caused by weeds, pests and disease, and seed treatment products.
2. Basis of preparation
(a) Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in accordance
with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the
Corporations Act 2001. The consolidated financial statements comply with International Financial Reporting Standards (IFRSs)
adopted by the International Accounting Standards Board (IASB).
The consolidated financial statements were authorised for issue by the board of directors on 21 September 2016.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for derivative financial instruments
and available-for-sale investments, which are measured at fair value, and defined benefit fund obligations that are measured
as the present value of the defined benefit obligation at the reporting date less the fair value of the pension plan’s assets.
The methods used to measure fair values are discussed further in note 4.
(c) Functional and presentation currency
These consolidated financial statements are presented in Australian dollars, which is the company’s functional currency.
The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) instrument 2016/191
and, in accordance with that instrument, all financial information presented in Australian dollars has been rounded to the
nearest thousand unless otherwise stated.
(d) Use of estimates and judgements
The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future
Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that
have the most significant impact on the amount recognised in the financial statements are described below.
(i) Business combinations
Fair valuing assets and liabilities acquired in a business combination involves making assumptions about the timing of cash
inflows and outflows, growth assumptions, discount rates and cost of debt. Refer to note 14 for details of acquisitions made
during the period.
(ii) Impairment testing
The group determines whether goodwill and intangibles with indefinite useful lives are impaired on an annual basis or at
each reporting date if required. This requires an estimation of the recoverable amount of the cash-generating units, using a
value-in-use discounted cash flow methodology. The estimation of future cash flows requires management to make significant
assumptions concerning the identification of impairment indicators, earnings before interest and tax, growth rates, applicable
discount rates and useful lives. Further details can be found in note 23 on intangibles. Other non-current assets are also
assessed for impairment indicators.
NUFARM LIMITED ANNUAL REPORT 2016
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