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Notes to the financial statements
Year ended 30 June 2007
Note 1. CORPORATE INFORMATION
The financial report of MLA for the year ended 30 June 2007
was authorised for issue in accordance with a resolution of
the directors on 13th September 2007.
MLA is a company limited by guarantee incorporated in
Australia.
The nature of the operations and principal activities of the
Group are described in the directors' report.
Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation
The financial report is a general-purpose financial report,
which has been prepared in accordance with the requirements
of the Corporations Act 2001 and Australian Accounting
Standards. The financial report has also been prepared on a
historical cost basis except for derivative financial instruments
which have been measured at fair value.
The financial report is presented in Australian dollars.
(b) Statement of compliance
Except for the amendments to AASB 114 Segment Reporting
which MLA has early adopted, Australian Accounting Standards
and Interpretations that have recently been issued or amended
but are not effective have not been adopted by the Company
for the annual reporting period ending 30 June 2007.
(c) Principles of consolidation
The consolidated financial statements are those of the
consolidated entity, comprising Meat & Livestock Australia
Limited (the "Company") and MLA Donor Company Limited.
The financial statements of MLA Donor Company Limited
are prepared for the same reporting period as the parent
company, using consistent accounting policies. All
intercompany balances and transactions have been
eliminated in full.
(d) Cash and cash equivalents
Cash on hand and in banks and short-term deposits are
stated at nominal value.
For the purposes of the statement of cash flows, cash
includes cash on hand and in banks, and money market
investments readily convertible to cash within two working
days, net of outstanding bank overdrafts.
Included in the balance of cash and cash equivalents are
funds received from the Commonwealth Government in
relation to the National Livestock Identification System
(NLIS). These funds are to be distributed as directed by the
NLIS Review Committee and the Minister generally to State
Governments based on approved business plans.
(e) Trade and other receivables
Trade receivables are recognised and carried at original
invoice amount less a provision for any uncollectible debts.
An estimate for doubtful debts is made when there is
objective evidence that the Company will not be able to
collect the debt. Bad debts are written-off as incurred.
Non-current receivables are discounted using the
Commonwealth Government bond rate.
(f) Taxes
Income tax
The Company is exempt from income tax under section
50-40 of the Income Tax Assessment Act 1997.
Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the
amount of GST except:
• Where GST incurred on a purchase of goods and services
is not recoverable from the taxation authority, in which case
the GST is recognised as part of the cost of acquisition of
the asset or as part of the expense item as applicable.
• Receivables and payables (except accrued income and
expenditure) are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to,
the taxation authority is included as part of receivables or
payables in the balance sheet.
Cash flows are included in the cash flow statement on a
gross basis and the GST component of cash flows arising
from investing activities, which is recoverable from or payable
to the taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the
amount of GST recoverable from, or payable to, the taxation
authority.
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