Endeavour (International) Limited 2017 - EY

1 Endeavour ( international ) LimitedIllustrative Australian company s financial report for the 31 December 2016 (and 30 June 2017 ) year endsEndeavour readership surveyTo allow us to continually improve Endeavour , could you please take a moment to complete a short online survey on how you use can be accessed at: you would like further information please email us EndeavourTM ( international ) Limited i Frank Palmer Partner and EY Oceania IFRS Leader Ernst & Young Australia Contents Introduction Appendices Directors report Consolidated financial statements Notes ForewordAs 1 January 2018 draws near, the changes to accounting standards impacting financial years ending 31 December 2016 and 30 June 2017 are minimal. However, given the far reaching effects of implementingAASB 15 Revenue from Cont ract s wit h Cust omers and AASB 9 Financial Inst rument sfor years beginningfrom 1 January 2018, management should be currently focussing on preparing for transition to the newStandards.

2 Some approaches to managing this change are to consider the new requirements as newagreements are currently being negotiated, and to participate in industry discussion new edition ofEndeavour (Internat ional) Limitedprovides illustrative financial statements prepared inaccordance with Australian Accounting Standards and is designed to assist you when preparing your ownfinancial reports. It continues to be closely aligned withGood Group (Int ernat ional) Limit ed the EY globalillustrative financial statements prepared in accordance with international Financial Reporting Standards(IFRS), which will facilitate comparability with companies around the provides illustrative examples of the types of disclosures which may be required (wherematerial), and therefore the systematic ordering of the notes largely follows one possible groupingsuggested by AASB 101 Presentation of Financial Statements.

3 An alternate grouping according to natureand perceived importance may more effectively permit users of the financial statements to understandand compare the information provided. Further discussion on this and an example of such a grouping canbe found on itsDisclosur e Init iat ive project, the international Accounting Standards Board (IASB) hasprogressed in improving disclosures in financial reporting. The IASB is expected to issue aPrinciples ofDisclosureDiscussion Paper in the coming months. Furthermore, the Australian Accounting StandardsBoard (AASB) and IASB have amended AASB 107 / IAS 7St at ement of Cash Flows to improve disclosuresof changes in liabilities arising from financing AASB has issued AASB 16 Leases which is applicable for annual reporting periods beginning on orafter 1 January 2019. This concludes the leases deliberations and results in most lease obligations beingrecognised as liabilities on the balance sheets of lessees.

4 The impact of this change on the financialstatements may affect financial ratios used in lending arrangements and remuneration practises ofentities, particularly those leasing property, plant and trust this publication will prove useful when preparing your financial statement disclosures for the nextreporting season. The next step is for you to consider your financial statement format and structure; thetailoring of the disclosures; and materiality. ii EndeavourTM ( international ) Limited Contents Abbreviations and key .. iv Introduction .. v Contents to annual report .. 1 Corporate information .. 3 Directors' 4 Corporate governance .. 31 Consolidated statement of profit or loss .. 33 Consolidated statement of comprehensive income .. 35 Consolidated statement of financial position .. 36 Consolidated statement of changes in equity .. 38 Consolidated statement of cash flows.

5 40 Notes to the consolidated financial statements .. 41 1. Corporate information .. 41 2. Significant accounting policies .. 41 Basis of preparation .. 41 Basis of consolidation .. 42 Summary of significant accounting policies .. 42 Changes in accounting policies and disclosures .. 63 Correction of an error .. 66 3. Significant accounting judgements, estimates and assumptions .. 67 4. Segment information .. 72 5. Capital management .. 75 6. Group information .. 76 7. Business combinations and acquisition of non-controlling interests .. 77 8. Material partly-owned subsidiaries .. 81 9. Interest in a joint venture .. 84 10. Investment in an associate .. 85 11. Fair value measurement .. 86 12. Other income/expenses .. 90 Other operating income .. 90 Other operating expenses .. 90 Finance costs .. 91 Finance income .. 91 Depreciation, amortisation, foreign exchange differences and costs of inventories included in the consolidated statement of profit or loss.

6 91 Employee benefits expense .. 92 Research and development costs .. 92 Components of OCI .. 93 Administrative expenses .. 93 13. Discontinued operations .. 94 14. Income tax .. 97 15. Earnings per share (EPS) .. 102 16. Property, plant and equipment .. 103 17. Investment properties .. 106 18. Intangible assets .. 108 19. Goodwill and intangible assets with indefinite lives .. 108 20. Financial assets and financial liabilities .. 111 Financial assets .. 111 Financial liabilities: Interest-bearing loans and borrowings .. 112 Hedging activities and derivatives .. 114 Fair values .. 116 Contents Introduction Appendices Directors report Consolidated financial statements Notes EndeavourTM ( international ) Limited iii Financial instruments risk management objectives and policies .. 121 21. Inventories .. 127 22. Trade and other receivables.

7 127 23. Cash and short-term deposits .. 128 24. Issued capital and reserves .. 130 25. Distributions made and proposed .. 132 26. Provisions .. 133 27. Government grants .. 134 28. Deferred revenue .. 134 29. Employee benefit liability .. 135 30. Share-based payments .. 141 31. Trade and other payables .. 143 32. Commitments and contingencies .. 143 33. Related party disclosures .. 146 34. Standards issued but not yet effective .. 148 35. Events after the reporting period .. 149 36. Auditors' remuneration .. 149 37. Information relating to Endeavour ( international ) Limited (the Parent) .. 150 Directors' declaration .. 151 ASX additional information .. 152 Appendix A Consolidated statement of profit or loss (example of expenses disclosed by nature) .. 154 Appendix B Closed Group class order disclosures .. 155 Appendix C Half-year financial report.

8 157 Appendix D Australian reporting requirements .. 196 Contents Introduction Appendices Directors report Consolidated financial statements Notes iv EndeavourTM ( international ) Limited Abbreviations and key The following styles of abbreviation are used in this set of international GAAP Illustrative Financial Statements: IAS international Accounting Standard No. 33, paragraph 41 IAS international Accounting Standard No. 1, Basis for Conclusions, paragraph 13 IFRS international Financial Reporting Standard No. 2, paragraph 44 SIC Standing Interpretations Committee Interpretation No. 29, paragraph 6 IFRIC IFRS Interpretations Committee (formerly IFRIC) Interpretation No. 4, paragraph 6 IAS international Accounting Standard No. 39 Guidance on Implementing IAS 39 Section G: Other, paragraph IAS international Accounting Standard No.

9 39 Appendix A Application Guidance, paragraph AG71 Commentary The commentary explains how the requirements of IFRS have been implemented in arriving at the illustrative disclosure GAAP Generally Accepted Accounting Principles/Practice IASB international Accounting Standards Board Interpretations Committee IFRS Interpretations Committee (formerly international Financial Reporting Interpretations Committee (IFRIC)) SIC Standing Interpretations Committee AASB Australian Accounting Standards that are issued by the Australian Accounting Standards Board (AASB). The numbering convention is as follows: AASB 1 AASB 16 represents Australian Accounting Standards issued by the AASB that are equivalent to the IFRS issued by the IASB. For example, AASB 15 is the equivalent of IFRS 15. AASB 101 AASB 141 represents Australian Accounting Standards issued by the AASB that are equivalent to the IAS issued by the IASB.

10 For example, AASB 108 is the equivalent of IAS 8. AASB 1004 AASB 1057 represents Australian Accounting Standards issued by the AASB that have no equivalent in IFRS. That is, they are Australian-specific reporting requirements. AASB Int Australian Interpretations that are issued by the AASB. The numbering convention is as follows: AASB Interpretations 1 21 represents Australian Interpretations issued by the AASB that are equivalent to the Interpretations issued by the IFRS Interpretations Committee. For example, AASB Interpretation 14 is the equivalent to Interpretation 14. AASB Interpretations 107 132 represents Australian Interpretations issued by the AASB that are equivalent to the Interpretations issued by the SIC. For example, AASB Interpretation 115 is the equivalent of SIC 15. AASB Interpretations 1003 AASB 1055 represents Australian Interpretations issued by the AASB that have no equivalent international Interpretation.