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NOTES TO THE FINANCIAL STATEMENTS (CONT.)
Parent entity information Operating segments
In accordance with the Corporations Act 2001, these Operating segments are presented using the ‘management
financial statements present the results of the consolidated approach’, where the information presented is on the
entity only. Supplementary information about the parent same basis as the internal reports provided to the Chief
entity is disclosed in note 36. Financial information for the Operating Decision Makers (‘CODM’). The CODM is
parent entity has been prepared on the same basis as the responsible for the allocation of resources to operating
consolidated financial statements, with the exception of segments and assessing their performance.
investments in subsidiaries which are measured at cost.
Foreign currency translation
Principles of consolidation
The financial statements are presented in Australian
The consolidated financial statements incorporate dollars, which is Specialty Fashion Group Limited’s
the assets and liabilities of all subsidiaries of Specialty functional and presentation currency.
Fashion Group Limited (‘Company’ or ‘parent entity’) as
at 30 June 2015 and the results of all subsidiaries for the Foreign currency transactions
year then ended. Specialty Fashion Group Limited and Foreign currency transactions are translated into
its subsidiaries together are referred to in these financial Australian dollars using the exchange rates prevailing at
statements as the ‘Group’ or ‘consolidated entity’. the dates of the transactions. Foreign exchange gains and
losses resulting from the settlement of such transactions
Subsidiaries are all those entities over which the and from the translation at financial year-end exchange
consolidated entity has control. The consolidated entity rates of monetary assets and liabilities denominated in
controls an entity when the Group is exposed to, or has foreign currencies are recognised in profit or loss.
rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through Foreign operations
its power to direct the activities of the entity. Subsidiaries The assets and liabilities of foreign operations are
are fully consolidated from the date on which control is translated into Australian dollars using the exchange
transferred to the Group. They are de-consolidated from rates at the reporting date. The revenues and expenses
the date that control ceases. of foreign operations are translated into Australian dollars
using the average exchange rates, which approximate
Intercompany transactions, balances and unrealised gains the rates at the date of the transactions, for the period.
on transactions between entities in the consolidated All resulting foreign exchange differences are recognised
entity are eliminated. Unrealised losses are also in other comprehensive income through the foreign
eliminated unless the transaction provides evidence of the currency reserve in equity.
impairment of the asset transferred. Accounting policies
of subsidiaries have been changed where necessary The foreign currency reserve is recognised in profit or
to ensure consistency with the policies adopted by the loss when the foreign operation or net investment is
consolidated entity. disposed of.
The acquisition of subsidiaries is accounted for using the Revenue recognition
acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as Revenue is recognised when it is probable that the
an equity transaction, where the difference between the economic benefit will flow to the consolidated entity
consideration transferred and the book value of the share and the revenue can be reliably measured. Revenue is
of the non-controlling interest acquired is recognised measured at the fair value of the consideration received
directly in equity attributable to the parent. or receivable, and recognised for the major business
activities as follows:
Where the consolidated entity loses control over a Retail sales
subsidiary, it derecognises the assets including goodwill, Revenue is recognised at the point of sale, which is where
liabilities and non-controlling interest in the subsidiary the customer has taken delivery of the goods, the risks and
together with any cumulative translation differences rewards are transferred to the customer and there is a valid
recognised in equity. The consolidated entity recognises sales contract. Amounts disclosed as revenue are net of
the fair value of the consideration received and the fair sales returns, trade discounts and commission paid.
value of any investment retained together with any gain
or loss in profit or loss. Lay-by sales
Revenue is recognised upon receiving final payment from
the customer.
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