Notes forming part of the financial statements (continued)
Consolidated Parent entity
2007
$’000
2006
$’000
2007
$’000
2006
$’000
Note 9. Current assets – Inventories
Raw materials and stores
– At cost
– At net realisable value
Work in progress at cost
Finished goods
– At cost
– At net realisable value
10,779
614
1,824
65,670
1,747
9,989
978
1,578
70,016
1,371
—
—
—
—
—
—
—
—
—
—
80,634 83,932 — —
Inventory Expense
Inventories, raw materials and consumables recognised as expense during the year ended 30 June 2007 amounted to $174,685,000
(2006: $176,866,000).
Write-down of inventories to net realisable value recognised as an expense
during the year ended 30 June 2007 amounted to $743,000
(2006: $3,837,000). The expense has been included in raw materials and consumables
used in the income statement.
Consolidated Parent entity
2007
$’000
2006
$’000
2007
$’000
2006
$’000
Note 10. Derivative financial instruments
Forward foreign exchange contracts held for cash flow hedges 3 — — —
The Group’s activities expose it to a variety of financial risks: currency
risk, interest rate risk, credit risk and liquidity risk. The Group's overall
risk management program focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the
financial performance of the Group. The Group uses derivative financial instruments
such as foreign exchange contracts to hedge certain
risk exposures. The Group uses different methods to measure different types
of risk to which it is exposed. These methods include
sensitivity analysis in the case of interest rate and foreign exchange risks
and ageing analysis for credit risk.
The Group purchased plant & equipment from Belgium in June 2007 totalling
700,000 Euros. In order to protect against exchange rate
movements, the Group has entered into forward exchange contracts to purchase
Euros. These contracts are hedging firm commitment
purchases for the ensuing financial year. The contracts are timed to mature
when progress payments for the equipment are scheduled
to be made.
At balance date the details of outstanding contracts are:
Buy Euros Sell Australian dollars Exchange rate
2007
$’000
2006
$’000
2007 2006
Maturity
March 2008
May 2008
454
342
–
–
0.6165
0.6141
–
–
Consolidated Parent entity
2007
$’000
2006
$’000
2007
$’000
2006
$’000
Note 11. Non-current assets – Receivables
Amounts owing by controlled entities — — 218,047 224,802
Note 12. Non-current assets –
Other financial assets
Other (non-traded investments)
Shares in controlled entities – at cost (note 36) — — 31,094 26,094
Consolidated Parent entity
2007
$’000
2006
$’000
2007
$’000
2006
$’000
Note 13. Non-current assets –
Property, plant and equipment
Land and buildings
Freehold
– At cost
– Accumulated depreciation
63,861
(4,051)
63,083
(2,819)
—
—
—
—
59,810 60,264 — —
Leasehold improvements
– At cost
– Accumulated amortisation
3,478
(1,716)
2,716
(1,400)
—
—
—
—
1,762 1,316 — —
Total land and buildings 61,572 61,580 — —
Plant and equipment
– At cost
– Accumulated depreciation
114,921
(83,666)
107,372
(75,352)
—
—
—
—
31,255 32,020 — —
Plant and equipment under lease
Accumulated amortisation
—
—
110
(110)
—
—
—
—
— — — —
Total plant and equipment 31,255 32,020 — —
Total property, plant and equipment 92,827 93,600 — —
Reconciliations
Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current financial
year are set out below.
Freehold Plant and
land & Leasehold Plant and equip. under
buildings improvements equipment construction Total
$’000 $’000 $’000 $’000 $’000
Consolidated
Carrying amount at 1 July 2005 62,550 1,443 26,916 4,450 95,359
Additions 59 244 7,672 22 7,997
Disposals (15) (79) (208) — (302)
Depreciation/amortisation expense (1,447) (288) (6,610) — (8,345)
Foreign currency exchange differences (883) (4) (222) — (1,109)
Reclassifications — — 3,830 (3,830) —
Carrying amount at 30 June 2006 60,264 1,316 31,378 642 93,600
Consolidated
Carrying amount at 1 July 2006 60,264 1,316 31,378 642 93,600
Additions 298 773 5,052 1,234 7,357
Disposals — (26) (12) — (38)
Depreciation/amortisation expense (1,457) (304) (7,351) — (9,112)
Foreign currency exchange differences 805 3 212 — 1,020
Reclassifications (100) — 737 (637) —
Carrying amount at 30 June 2007 59,810 1,762 30,016 1,239 92,827
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