Good Group (Australia) Ltd
Good Group(Australia) LtdIllustrative Australian Company’sfinancial report for 31 December 2020(and 30 June 2021)
Good Group (Australia) provides illustrative examples of the types of disclosures which may be required (ifmaterial), and therefore the systematic ordering of the notes largely follows one possible grouping suggested byAASB 101 Presentation of Financial Statements. An alternate grouping according to nature and perceivedimportance may permit users of the financial statements to more effectively understand and compare theinformation provided. Further discussion on this and an example of such a grouping can be found on pages iv-v.In March 2020, the Australian Accounting Standards Board (AASB) issued AASB 2020-2 Amendments to AAS Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities which formalisesthe removal of certain for-profit private sector entities self-assessing their basis of financial statementpreparation (to be “non-reporting entities”) and prepare Special Purpose Financial Statements. The amendmentsare mandatory for annual reporting periods beginning on or after 1 July 2021. In addition, AASB 1060 GeneralPurpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities was alsoissued which replaces the current Reduced Disclosure Requirements with Simplified Disclosures for GPFS (Tier 2)reporting. It will also apply for annual periods beginning on or after 1 July 2021. For more discussion on thesechanges to the Australian financial reporting landscape, see our publication4I trust this publication will prove useful when preparing your financial statements for the next reporting season.Additional Australian disclosuresFrank PalmerPartner, Ernst & Young Australia and EY Oceania IFRS LeaderErnst & Young AustraliaIntroductionContentsGood Group (Australia) is based on Good Group (International) Limited – the global illustrative EY financialstatements prepared in accordance with International Financial Reporting Standards (IFRS). The globalillustrative financial statements are supplemented with the Australian-specific reporting requirements such asthe Directors Report, Remuneration Report and ASX additional information. To illustrate additional Australianspecific disclosures as well as alternative presentations commonly used in Australia, a separate section(additional Australian disclosures) is included.Directors’ reportThe COVID-19 pandemic has significantly impacted the global economy by causing significant volatility infinancial and commodities markets, lost revenue, increases in unemployment and disrupted supply chains. Inresponse, the Australian government has issued a package of interventions such as JobKeeper payments,infrastructure investment and tax cuts. For explanations of more accounting considerations for the financialeffects of the COVID-19 pandemic, see our publications for accounting considerations1 and disclosures2 in thefinancial statements. ASIC has addressed some frequently asked questions, which can be viewed on the ASICwebsite3.Consolidated financial statementsWelcome to the 2020 edition of Good Group (Australia) Limited. As the dust settles on a dynamic period ofaccounting change, Australia now faces an unprecedented economic challenge. Entities have transitioned to thenew accounting requirements for revenue (AASB 15), financial instruments (AASB 9) and leases (AASB 16).Preparers are now grappling with the numerous accounting challenges arising as a result of the financial effectsof the COVID-19 pandemic.NotesForewordAccounting considerations of the coronavirus pandemic (Updated November 2020)Applying IFRS Disclosure of COVID-19 questions-faqs/4The time has come: Changes to Australian financial reporting (April 2020)2Good Group (Australia) LimitediAppendices1
ContentsContentsAbbreviations and Key . iiiIntroduction . ivContents to annual report . 1Directors' report . 4Corporate governance . 32Consolidated statement of profit or loss . 34Consolidated statement of comprehensive income . 36IntroductionCorporate information . 2Consolidated statement of financial position . 38Consolidated statement of changes in equity . 40Notes to the consolidated financial statements . 46Additional Australian disclosures to the Financial Statements . 178Directors' declaration . 187ASX additional information. 189Appendix A – Consolidated statement of profit or loss and other comprehensive income (example of a single statement) 192Appendix B – Consolidated statement of profit or loss (example of expenses disclosed by nature) . 195Directors’ reportConsolidated statement of cash flows . 43Appendix D – Information in other illustrative financial statements available. 199Appendix E – Closed Group (ASIC specific) disclosures . 202Appendix F — Australian reporting requirements . 205CaveatAppendicesThe names of people and corporations, and also descriptions of events related to Good Group (Australia) included in theseillustrations are fictitious and have been created for the purpose of illustration only. Any resemblance to any person or businessis purely coincidental.Additional Australian disclosuresNotesAppendix G — Agriculture disclosures. 210Consolidated financial statementsAppendix C – Consolidated statement of cash flows (example of the direct method) . 197Good Group (Australia) Limitedii
ContentsAbbreviations and KeyThe following styles of abbreviation are used in this set of International GAAP Illustrative Financial Statements:International Accounting Standard No. 33, paragraph 41IAS 1.BC13International Accounting Standard No. 1, Basis for Conclusions, paragraph 13IFRS 2.44International Financial Reporting Standard No. 2, paragraph 44SIC 29.6Standing Interpretations Committee Interpretation No. 29, paragraph 6IFRIC 5.6IFRS Interpretations Committee (formerly IFRIC) Interpretation No. 5, paragraph 6IFRS 9.IG.G.2International Financial Reporting Standard No. 9 — Guidance on Implementing IFRS 9Section G: Other, paragraph G.2IAS 32.AG3International Accounting Standard No. 32 — Appendix A — Application Guidance, paragraph AG3CommentaryThe commentary explains how the requirements of IFRS have been implemented in arriving at theillustrative disclosureCovid-19CommentaryThis edition of Good Group (Australia) provides commentary on issues that an entity may need to considerdue to the impact of the Covid-19 pandemic.GAAPGenerally Accepted Accounting Principles/PracticeIASBInternational Accounting Standards BoardInterpretationsCommitteeIFRS Interpretations Committee(formerly International Financial Reporting Interpretations Committee (IFRIC))SICStanding Interpretations CommitteeAppendicesAdditional Australian disclosuresNotesConsolidated financial statementsDirectors’ reportIntroductionIAS 33.41Good Group (Australia) Limitediii
ContentsIntroductionUsers of this publication are encouraged to prepare entity-specific disclosures. Transactions and arrangements other thanthose applicable to the Group may require additional disclosures. It should be noted that the illustrative financial statementsof the Group are not designed to satisfy any stock market or country-specific regulatory requirements, nor is this publicationintended to reflect disclosure requirements that apply mainly to regulated or specialised industries.Notations shown in the right-hand margin of each page are references to IFRS paragraphs that describe the specific disclosurerequirements. Commentaries are provided to explain the basis for the disclosure or to address alternative disclosures not includedin the illustrative financial statements. For a more comprehensive list of disclosure requirements, please refer to EY's InternationalGAAP Disclosure Checklist. If questions arise as to the IFRS requirements, it is essential to refer to the relevant source materialand, where necessary, to seek appropriate professional advice.Improving disclosure effectivenessTerms such as ’disclosure overload’ and ‘cutting the clutter’, and more precisely ‘disclosure effectiveness’, describe a problem infinancial reporting that has become a priority issue for the International Accounting Standards Board (IASB or Board), localstandard setters, and regulatory bodies. The growth and complexity of financial statement disclosure is also drawing significantattention from financial statement preparers, and more importantly, the users of financial statements.Considering the purpose of Good Group (International) Limited – Illustrative consolidated financial statements for the year ended 31December 2020, the notes largely follow the order in which items are presented in the primary financial statements. Paragraph113 of IAS 1 Presentation of Financial Statements requires the notes to be presented in a systematic manner and paragraph 114provides examples of different systematic orderings and groupings that preparers may consider. An alternative structure that somemay find more effective in permitting the users to identify the relevant information more easily, involves reorganising the notesaccording to their nature and perceived importance. An illustrative ordering of the alternative structure that is based on sevendifferent notes sections is summarised in the table below:SectionsFor example, comprising:Corporate and Group information Corporate and Group informationBasis of preparation and othersignificant accounting policies Basis of preparation Impact of standards issued but not yet effective Revenue from contracts with customers Distributions made and proposedAdditional Australian disclosuresChanges in accounting policies and disclosuresFair value measurement and related fair value disclosuresFinancial instruments risk management objectives and policiesHedging activities and derivativesCapital managementSegment informationBasis of consolidation and information on material partly owned subsidiariesInterest in joint ventures and investment in associatesAppendicesGroup business, operations, andmanagementOther significant accounting policies not covered in other sections (below)Directors’ reportHow to use these illustrative financial statements to prepare entity-specific disclosuresConsolidated financial statementsThis set of illustrative financial statements is one of many prepared by EY to assist you in preparing your own financial statements.The illustrative financial statements are intended to reflect transactions, events and circumstances that we consider to be mostcommon for a broad range of companies across a wide variety of industries. Certain disclosures are included in these financialstatements merely for illustrative purposes, even though they may be regarded as items or transactions that are not material forGood Group.NotesObjectiveIntroductionThis publication contains an illustrative set of consolidated financial statements for Good Group (International) Limited (the parent)and its subsidiaries (the Group) that is prepared in accordance with International Financial Reporting Standards (IFRS). The Group isa fictitious, large publicly listed manufacturing company. The parent is incorporated in a fictitious country within Europe. Thepresentation currency of the Group is the euro ( ).LeasesGood Group (Australia) Limitediv
SectionsFor example, comprising:Significant transactions and events Business combinations and acquisitions of non-controlling interests Events after the reporting period Other operating income and expenses Share-based payments Components of other comprehensive income Income tax payable Provisions Trade payables Pensions and other post-employment benefits Other commitments GuaranteesFinance income and costsDepreciation, amortisation, foreign exchange differences and costs of inventoriesIntroductionRelated party disclosuresEarnings per shareProperty, plant and equipment, investment properties and intangible assetsFinancial assets and liabilitiesDirectors’ reportDetailed breakdown of administrative, employee benefits and research anddevelopment expensesInventoriesConsolidated financial statementsCommitments and contingenciesImpairment of goodwill and intangible assets with indefinite livesTrade receivables and contract assetsCash and short-term depositsIssued capital and reservesGovernment grants receivableContract liabilitiesLegal claim contingencyOther contingent liabilitiesAppendicesBy structuring the notes according to their nature and perceived importance, users may find it easier to extract the relevantinformation. In addition, the significant accounting policies, judgements, key estimates and assumptions could alternatively beplaced within the same note as the related qualitative and quantitative disclosures to provide a more holistic discussion to users ofthe financial statements. The alternative structure summarised above has been applied in Good Group (International) Limited –Alternative Format. As the key difference between the illustrative financial statements herein and in the alternative formatillustrative financial statements is the structuring of the notes, Good Group (International) Limited – Alternative Format is a usefultool for entities exploring ways to enhance the effectiveness of their financial statements’ disclosures.NotesDetailed information on statement offinancial position itemsDiscontinued operationsAdditional Australian disclosuresDetailed information on statement ofprofit or loss and other comprehensiveincome itemsContentsIntroduction (continued)Good Group (Australia) Limitedv
IFRS Practice Statement 2 Making Materiality Judgements provides practical guidance and examples that companies may findhelpful in deciding whether information is material. Entities are encouraged to consider it when making materiality judgements.As explained above, the primary purpose of these financial statements is to illustrate how the most commonly applicabledisclosure requirements can be met. Therefore, they include disclosures that may, in practice, be deemed not material toGood Group. It is essential that entities consider their own specific circumstances when determining which disclosures toinclude. These financial statements are not intended to act as guidance for making the materiality assessments; they mustalways be tailored to ensure that an entity’s financial statements reflect and portray its specific circumstances and its ownmateriality considerations. Only then will the financial statements provide decision-useful financial information.For more guidance on how to improve disclosure effectiveness, please refer to our publication, Applying IFRS: Enhancingcommunication effectiveness (February 2017).Alternative performance measuresThe use of alternative performance measures (APMs or “non-GAAP measures”) is gaining popularity in communicating financialinformation to investors. APMs are financial measures that are not defined in the applicable reporting framework. The number ofAPMs in use is large and varied depending on the message the entities are trying to convey.Entities that are considering to present APMs in their financial statements should refer to our publications, Applying IFRS:Alternative Performance Measures (https://www.ey.com/en ive-performancemeasures) (October 2018) and Applying IFRS: Impact of coronavirus on alternative performance measures and disclosures(https://www.ey.com/en f-coronavirus-on-apms-and-disclosures) (May 2020).IntroductionDirectors’ reportApplying the concept of materiality requires judgement, in particular, in relation to matters of presentation and disclosure, andinappropriate application of the concept may be another cause of the perceived disclosure problem. IFRS sets out a set of minimumdisclosure requirements which, in practice, too often is complied with without consideration of the information’s relevance for thespecific entity. That is, if the transaction or item is immaterial to the entity, then it is not relevant to users of financial statements,in which case, IFRS does not require the item to be disclosed (IAS 1.31). If immaterial information is included in the financialstatements, the amount of information may potentially reduce the transparency and usefulness of the financial statements as thematerial and, thus, relevant information, loses prominence.Consolidated financial statementsEntities may find that other structures are better for enhancing disclosure effectiveness, and the approach summarisedabove and illustrated in Good Group (International) Limited –Alternative Format is only intended to illustrate that IFRS allowsfor alternative notes structures. Entities should carefully assess their specific circumstances and the preferences of theprimary users before deciding on notes’ structure. Engagement of key stakeholders will be a critical part of any process tomake significant changes to the financial statements.ContentsIntroduction (continued)We provide a number of industry-specific illustrative financial statements and illustrative financial statements addressing specificcircumstances that you may consider. The entire series of illustrative financial statements comprises: Good Group (International) Limited Good Group (International) Limited –Alternative FormatNotesIllustrative financial statementsGood Group (International) Limited — Illustrative interim condensed consolidated financial statementsAdditional Australian disclosuresGood First-time Adopter (Internation
Good Group (Australia) Limited i s on t ts s s 2 s Foreword Welcome to the 2020 edition of Good Group (Australia) Limited. As the dust settles on a dynamic period of accounting change, Australia now faces an unprecedented economic challenge.
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