Value Accounts Holdings 8mar11

pwc.com.
au/assurance/ifrs
VALUE ACCOUNTS
Holdings 2011
Fresh insights for

financial reporting
in 2011
Annual and interim
financial reporting
2011
What would you like to grow?

This publication presents the sample annual and interim financial reports of a fictitious public company, VALUE ACCOUNTS
Holdings Limited. It illustrates the financial reporting disclosure requirements that apply under Australian Accounting Standards
on issue at 15 January 2011. Supporting commentary is also provided. VALUE ACCOUNTS Holdings Limited is listed on the
Australian Securities Exchange and is the parent entity in a consolidated entity.
Reporting requirements include:

•Australian Accounting Standards
• Interpretations issued by the Australian Accounting Standards Board (AASB) and the Urgent Issues Group (UIG)
• Corporations Act 2001
• Australian Securities & Investments Commission releases
• Listing Rules of the Australian Securities Exchange
This publication should be used in conjunction with the relevant legislation, standards and other reporting pronouncements.
ISSN: 1832-4908
© 2011 PricewaterhouseCoopers Australia. All rights reserved. In this document, ‘PwC’ refers to PricewaterhouseCoopers Australia
which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
This publication is available for non-clients of PwC from:
The Co-op Bookshop

For mail order phone (02) 9212 3078, or to find your nearest branch phone (02) 9325 9600.
Visit www.coop-bookshop.com.au for further information and to place an order online.
The Institute of Chartered Accountants

Chartered Accountants can borrow this publication by contacting the Institute’s Knowledge
Centre on 1800 809 828.
Disclaimer
This publication has been prepared by PricewaterhouseCoopers Australia. The information in this publication is for general reference only
and is neither advice nor a substitute for professional advice. It is not intended to be and is not comprehensive in relation to its subject
matter. This publication is not intended to cover all aspects of Australian Accounting Standards, or to be used as a substitute for reading
any relevant accounting standard, professional pronouncement or guidance, the Corporations Act 2001 (Cth) or any other relevant materi-
al. Specific company structure, facts and circumstances will have a material impact on the preparation and content of financial reports. No
entity should undertake or refrain from any action based on the information in this publication; advice which is specific to your circum-
stances should always be sought from a professional adviser. No representation or warranty (express of implied) is given as to accuracy or
completeness of the information contained in this publication, and to the extent permitted by law, PricewaterhouseCoopers Australia, its
members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone
else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
Foreword
Welcome to the 2011 edition in our VALUE ACCOUNTS Holdings series.
The VALUE ACCOUNTS series is the premier reference on financial reporting. We are
proud of its reputation for excellence and are pleased to continue that tradition with our
latest edition, VALUE ACCOUNTS Holdings 2011.
The publication is designed to help you prepare your financial statements in line with
Australian Accounting Standards. It illustrates the major elements of the financial
statements and provides expert commentary on all important items and required
disclosures. The fictitious circumstances of our example company, VALUE ACCOUNTS
Holdings Limited, have been chosen to illustrate the most common and significant
accounting issues and associated disclosures under Australian Accounting Standards.
The latest edition:

 removes the separate columns and disclosures for the parent entity
 includes a reference to IFRS compliance in the directors’ declaration
 illustrates the impacts of applying AASB 9 Financial Instruments in Appendix H
 provides new disclosures in the interim report that illustrate the new requirements
about: changes in economic circumstances that affect the fair value of the entity’s
financial assets, and transfers between levels of the fair value hierarchy
 updates the disclosures in the corporate governance statement to reflect recent
changes to the Corporate Governance Principles and Recommendations made by
the ASX Corporate Governance Council in 2010 (eg, by including a diversity policy),
and
 illustrates the impacts of a retrospective adjustment of an error.
I trust that you will continue to find our VALUE ACCOUNTS Holdings publication a useful
and insightful tool as you embark on preparing your next set of accounts.
Jan McCahey
Partner
Accounting Consulting Services
PwC
February 2011
PwC
PwC
VALUE ACCOUNTS Holdings
Annual and interim financial reporting 2011
Contents Page
Introduction 1
Annual report 5
Annual concise report 291
Interim report 315
Appendices
A Preparation of annual financial reports in Australia 350
B Preparation and audit of annual statutory financial reports 363
(flowchart)
C Annual reporting deadlines 365
D Accounting and reporting pronouncements 369
E Indemnification and insurance of officers and auditors 378
F Rounding of amounts 380
G Changes in accounting policy 382
H AASB 9 Financial Instruments 386
I Abbreviations 404
PwC offices and contact details 406
PwC
PwC
Introduction
This publication presents illustrative general purpose financial statements of a fictitious listed
company, VALUE ACCOUNTS Holdings Limited. It comprises an annual full financial report, a
concise report and an interim report. The financial reports comply with the Australian Corporations Act
2001 and authoritative pronouncements on issue at 15 January 2011 that are operative for 30 June
2011 reports and 31 December 2011 interim reports.
The purpose of the illustrative financial reports is to highlight disclosure requirements and provide
sample disclosures. The disclosures should be adapted to particular situations as required. Alternative
disclosures, wording and forms of presentation may be adopted as long as they include the
specific disclosures prescribed in the accounting and reporting pronouncements.
The source for each disclosure requirement is provided in the reference column on each page of the
sample reports.
Abbreviations used in this publication are set out in Appendix I. Other appendices provide further
information on Australia’s financial reporting regime, including a list of accounting and reporting
pronouncements on issue at 15 January 2011.
Elements updated
The 2011 edition of VALUE ACCOUNTS Holdings reflects financial reporting developments that have
occurred since 15 January 2010. The most significant changes resulted from amendments made to
the Corporations Act 2001 in June 2010. These amendments enable consolidated entities to remove
from their reports the separate financial statements for the parent entity and replace them with a
separate note that discloses key financial information about the parent entity. These new disclosures
are illustrated in note 51. Consequential amendments to other notes were also required, including a
new accounting policy 1(af), which explains how the financial information of the parent entity is
determined.
A new Appendix H illustrates the impact of early adopting AASB 9 Financial Instruments. The sample
disclosures assume the entity has applied the standard as issued in December 2009 (ie without the
subsequent amendments relating to the recognition and measurement of financial liabilities or the
derecognition of financial instruments). We have assumed that VALUE ACCOUNTS Holdings Limited
has elected to apply the limited exemption from retrospective adoption and has therefore not restated
comparative periods in the year of initial application.
We have updated our corporate governance statement to reflect changes made to the Corporate
Governance Principles and Recommendations by the ASX Corporate Governance Council (CGC) in
June 2010. While the revised principles are mandatory for entities with a financial year commencing
on or after 1 January 2011, the CGC has encouraged early adoption for 30 June 2011 year-ends. The
main change is a requirement for entities to establish a diversity policy and report their measurable
objectives (and progress to date) for achieving gender diversity in their annual report.
We have also:
 added new disclosures to the interim report to illustrate the impact of the most recent
changes to AASB 134 Interim Financial Reporting issued via the 2010 annual
improvements project
 updated various accounting policies (eg, impairment of financial assets, borrowings,

retirement benefit obligations, share-based payments and contributed equity), and
 illustrated the impact of a retrospective restatement through an error.

Any developments in financial reporting that are relevant to VALUE ACCOUNTS Holdings that must
be considered at 30 June 2011 are reflected in the example disclosures or commentary notes to the
illustrative financial reports. All significant changes arising from new or revised requirements, and
improvements made to existing disclosures, are identified in the illustrative financial reports. These
are marked by the inclusion of 'New' or 'Revised' in the reference column on each page.
PwC 1
Changes in accounting policies
None of the new standards that apply for the first time in annual June 2011 or half-year 31 December
2011 financial statements require a retrospective change in accounting policy in the consolidated
financial statements. As a consequence, we have moved the previous illustrative disclosures into a
new Appendix G.
However, users of this publication should be mindful of the following standards that are mandatory for
the first time for financial years beginning 1 July 2010. Depending on the entity’s existing accounting
policies, some of these standards may result in a change in policy that will need to be explained:
 2009 annual improvements project (AASB 2009-5 – early adopted by VALUE ACCOUNTS
Holdings Limited in the 2010 publication).
 Group cash-settled share-based payment transactions (AASB 2009-8 – affects only the
individual entity financial statements; assumed no impact on VALUE ACCOUNTS Holdings
Limited).
 Classification of rights issues (AASB 2009-10 – assumed no impact on VALUE ACCOUNTS

Holdings Limited).
 Extinguishing financial liabilities with equity instruments (Interpretation 19 – assumed no

impact on VALUE ACCOUNTS Holdings Limited).
Early adoption of standards

We have elected to early adopt the changes made by the AASB in response to the IASB's third annual
improvements project (AASB 2010-4 Further Amendments to Australian Accounting Standards arising
from the Annual Improvements Project). The amendments affect some of the credit risk disclosures for
financial instruments but otherwise mainly clarify certain issues. We have explained these clarifications in
the commentary.
As required under Australian Accounting Standards, the impact of standards and interpretations that have
not been early adopted are disclosed in the accounting policy note. A summary of all pronouncements
relevant for annual reporting periods ending on or after 30 June 2011 is available at
www.pwc.com.au/assurance/ifrs.
Specialised companies and industry-specific requirements

VALUE ACCOUNTS Holdings Limited does not illustrate the disclosures specifically relevant to
specialised industries such as construction, insurance, mining, agriculture, investment funds, finance or
banking. The reporting obligations of entities operating in investment funds, life insurance and general
insurance industries are contained in other publications in the VALUE ACCOUNTS series. Illustrative
disclosures for construction and mining activities are included in our global publications Illustrative IFRS
corporate consolidated financial statements and Financial reporting in the mining industry, both of which
are available from your usual PwC contact. The global series also includes illustrative financial
statements for banks, entities in the investment property industry and private equity companies.
The disclosure requirements included in VALUE ACCOUNTS Holdings Limited are relevant to corporate
reporting entities, non-corporate reporting entities in the private sector, and business undertakings in the
public sector. Exceptions relating to certain non-corporate reporting entities and not-for-profit entities are
set out in relevant commentary sections.
Finally, this publication does not discuss the impact of the new reduced disclosure regime on the financial
report of eligible entities. This is illustrated and explained in our new VALUE ACCOUNTS Reduced
Disclosure publication, which is available from www.pwc.com.au/assurance/ifrs.
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Other changes that may be relevant to 30 June 2011 reporters
In July 2010, the AASB proposed a number of changes to the Australian Accounting Standards which
were the result of a trans-Tasman convergence project aimed at harmonising financial reporting
standards in Australia and New Zealand. The project focused on modifications made to IFRSs in each
jurisdiction that apply either to all entities or for-profit entities only. These modifications introduced
additional disclosures in each country, but not necessarily the same disclosures. The aim of the
convergence project is to align these disclosures and remove those that are required only in one of the
two jurisdictions. Modifications to IFRSs that apply only to not-for-profit and public sector entities will be
considered at a later date.
In particular, the July 2010 exposure draft proposed to:
 simplify the audit fee disclosures
 remove the requirement to disclose the amount of dividends that have been or will be franked
(the requirement to disclose imputation credits available for use in subsequent reporting periods
remains)
 remove the requirement to disclose individual, and classes of, capital and other expenditure
commitments, including disclosure by expected settlement date (requirements to disclose
specific types of commitments remain, such as those relating to property, plant and equipment),
and
 remove the remaining additional disclosures from all IFRS equivalent standards and move them
into a separate disclosure standard.
At the time of writing, the proposals had not yet been finalised. However, the new disclosure standard
and any associated amendments are expected to be issued in early 2011. The new standard is likely to
be available for early adoption in annual June 2011 and December 2011 financial statements. We will
issue separate guidance about these changes when more details are known.
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PwC 4
VALUE ACCOUNTS Holdings Limited ABN XY XYZ XYZ XYZ 1,2
Annual report - 30 June 2011
Contents
Page
Corporate directory 6
3
Review of operations and activities (not included)
Directors' report 8
Corporate governance statement 50
Financial report 61
Independent auditor's report to the members 286
Shareholder information 288
Commentary - Annual report
Quotation of Australian Business Number or Australian Company Number

CA153(1),(2) 1. Under the Corporations Act 2001, a company is required to show its Australian Company
Number (ACN) or its Australian Business Number (ABN) on all public documents. It may only
show the ABN if the last nine digits of its ABN are identical to the last nine digits of its ACN.
ASIC RG 13 2. Guidance on issues relating to the use of ACNs is set out in ASIC Regulatory Guide 13.
Review of operations and activities
3. See pages 46-49 for requirements governing the review of operations and activities of an
entity.
PwC 5 VALUE ACCOUNTS Holdings Limited

Corporate directory 1,2
Directors M K Hollingworth BEc, FAIM, FAus IMM

Chair
N T Toddington CEng, FAIM
Managing director
J C Campbell BEng
A L Cunningham
R J Hunter BSc, FTS
C A Maxwell BCom, FCA, MBA
H G Wells BS, FCPA
B C Bristol LLB
ASX(4.10.10) Secretary S M Barker BA, LLB
Listed entities only
Divisional general managers Furniture - manufacturing

P M Elliott
IT Consulting
S J McInnes
Furniture - retail
D M Green
Electronic equipment
B D Faraday
Land development and resale
J F Travewski
Notice of annual general meeting The annual general meeting of VALUE ACCOUNTS
Holdings Limited
will be held at 350 Harbour Street
Sydney
time 11am
date Thursday 10 October 2011
A formal notice of meeting is enclosed.
AASB101(138)(a) Principal registered office in Australia 350 Harbour Street
ASX(4.10.11)
Sydney NSW 2000
(02) 9285 XYXY
ASX(4.10.12) Share and debenture register Independent Registry Firm
250 Western Terrace
Park Orchards VIC 3114
1300 XYZ XYZ
Auditor PwC
Darling Park Tower 2
201 Sussex Street
Sydney NSW 1171
Solicitors Bristol & Partners
2 Patrick Place
Lysterfield VIC 3156

Corporate directory
(continued)
Bankers Finance Corporation Limited

Tower Square
Strathfield NSW 2135
Trustee for debenture holders The Australian Trustee Company Limited
50 Waterside Road
Sydney NSW 2000
ASX(4.10.13) Stock exchange listings VALUE ACCOUNTS Holdings Limited shares are listed
on the Australian Securities Exchange (ASX) and the
New Zealand Stock Market (NZSX). The debentures
are listed on the ASX.
Website address www.valueaccounts.com.au
Commentary - Corporate directory
Entities listed under ASX Listing Rule 1.3.2(b)

ASX(1.3.2)(b) 1. An entity may be admitted to the ASX under Listing Rule 1.3.2(b) where half or more of its
total tangible assets (after raising any funds) are cash or in a form readily convertible to cash
and the entity has commitments consistent with its business objectives to spend at least half
of its cash and assets readily convertible to cash.
ASX(4.10.19) 2. An entity admitted to the ASX under Listing Rule 1.3.2(b) or required to comply with Listing
Rule 1.3.2(b) because of the application of Listing Rule 11.1.3 must state in its first two
annual reports after admission (or reinstatement) whether the entity used the cash and
assets readily convertible to cash that it had at the time of admission in a way consistent with
its business objectives. If the use of the cash and other assets was inconsistent with the
business objectives, an explanation of how they were used is required.

VALUE ACCOUNTS Holdings Limited
Directors' report
30 June 2011
Directors' report 1-4,34,35

CA299(2)(b) Your directors present their report on the consolidated entity (referred to hereafter as the group)
consisting of VALUE ACCOUNTS Holdings Limited and the entities it controlled at the end of, or
during, the year ended 30 June 2011.
Directors
CA300(1)(c) The following persons were directors of VALUE ACCOUNTS Holdings Limited during the whole of the
financial year and up to the date of this report:
J C Campbell
A L Cunningham
M K Hollingworth
R J Hunter
C A Maxwell
N T Toddington
CA300(1)(c) H G Wells and B C Bristol were appointed as directors on 31 January 2011 and 1 March 2011
respectively and continue in office at the date of this report.
CA300(1)(c) R T Brown was a director from the beginning of the financial year until his resignation on 31 January
2011.
CA300(1)(c) B A Wilson was a director from the beginning of the financial year until his resignation on 29 July
2011.
Principal activities
CA299(1)(c) During the year the principal continuing activities of the group consisted of:
(a) manufacture and sale of high quality household and commercial office furniture, and
(b) IT consulting including IT management, design, implementation and support.
In addition, the group is also involved in the development and resale of land and the management of
investment properties.
CA299(1)(c) The following significant changes in the nature of the activities of the group occurred during the year:
(a) new activity resulting from acquisition of a subsidiary:
manufacture and sale of electronic equipment
(b) other new activity:
operation of a chain of retail furniture stores
(c) activity ceased through sale of division:
machinery hire.
Dividends - VALUE ACCOUNTS Holdings Limited

CA300(1)(a) Dividends paid to members during the financial year were as follows: 5
Comparatives not
mandatory 2011 2010
$'000 $'000
Final ordinary dividend for the year ended 30 June 2010 of 5 cents
(2009 - 4 cents) per fully paid share paid on 10 October 2010 586 455
Interim ordinary dividend for the year ended 30 June 2011 of 5
cents (2010 - 4 cents) per fully paid share paid on 10 March 2011 603 467
Preference dividend of 7 cents (2010 - 7 cents) per share paid on
20 February 2011 35 35
1,224 957
CA300(1)(b) In addition to the above dividends, since the end of the financial year the directors have
recommended the payment of a final ordinary dividend of $989,000 (7 cents per fully paid share) to be
paid on 9 October 2011 out of retained earnings at 30 June 2011.
CA300(1)(a) Preference dividends in respect of both 2011 and 2010 exclude $60,000 paid on redeemable
preference shares classified as debt and charged to profit or loss as interest and finance charges.

Directors' report
30 June 2011
(continued)
Review of operations 6-8

CA299(1)(a),CA299A Information on the operations and financial position of the group and its business strategies and
ASIC 98/2395
prospects is set out in the review of operations and activities on pages [x] - [y] of this annual report.
Significant changes in the state of affairs

CA299(1)(b) Significant changes in the state of affairs of the group during the financial year were as follows:
Contributed equity increased by $5,330,000 (from $13,870,000 to $19,200,000) as the result of a
rights issue, the final call on partly paid ordinary shares, the issue of shares under the dividend
reinvestment plan and on the exercise of options granted under the VALUE ACCOUNTS Employee
Option Plan. Details of the changes in contributed equity are disclosed in note 32 to the financial
statements.
The company further issued 2,000 7% convertible notes for $2 million during the year which are
convertible into ordinary shares at the option of the holder or repayable on 23 January 2016, see note
28.
The net cash received from the increase in contributed equity and the issue of the convertible notes
was used principally to repay borrowings that were undertaken to finance the establishment of the
furniture retail division, reconstruct and expand the Maitland manufacturing facilities, and acquire
shares in VALUE ACCOUNTS Electronics Pty Ltd.
VALUE ACCOUNTS Holdings Limited also decided to buy back all 500,000 7% non-redeemable
participating preference shares on-market to simplify the company’s capital structure. The total cost of
the buy-back amounted to $460,000, including after-tax transaction cost of $10,000, see note 32(l).
The sale of the machinery hire division that was announced in April 2010 was completed on 31
August 2010. For details of the sale see note 10 to the financial statements. In addition, VALUE
ACCOUNTS Manufacturing Limited closed its Queensland factory and transferred the manufacturing
of all furniture to the Maitland factory. Ongoing economic advantages are expected to flow from this
rationalisation. A parcel of land that has become vacant as result of the move is currently in the
process of being sold, see note 10.
Matters subsequent to the end of the financial year

CA299(1)(d) Since 30 June 2011 VALUE ACCOUNTS Holdings Limited has acquired 93.8% of the issued shares
in Better Office Furnishings Limited, a manufacturer of office furniture and equipment, for cash
consideration of $3,750,000 and contingent consideration of $50,000.
The fair value of the net identifiable assets of the company at the date of acquisition has been
provisionally determined to be $3,690,000 and the purchased goodwill is estimated at $360,000.
Except for the new acquisition discussed above, no other matter or circumstance has arisen since 30
June 2011 that has significantly affected, or may significantly affect:
(a) the group's operations in future financial years, or
(b) the results of those operations in future financial years, or
(c) the group's state of affairs in future financial years.
Likely developments and expected results of operations 9

CA299(1)(e) Likely developments in the operations of the group constituted by VALUE ACCOUNTS Holdings
Limited and the entities it controls from time to time that were not finalised at the date of this report
included:
(a) the proposed formation of a company to be equally owned by VALUE ACCOUNTS
Holdings Limited and Bold Eagle Enterprises Inc. of the USA. This company will be called
Bold VALUE ACCOUNTS Pty Ltd and will utilise the skills of Bold Eagle in network
management to expand the group's involvement in IT consulting activities, and
(b) the proposed acquisition of the 65% of the issued share capital of Cuddly Bear Pty Ltd
which is not already beneficially owned by the group. If successfully completed, this
acquisition should generate a significant increase in sales of the land development and
resale division in future years with consequent increases in profitability.
Additional comments on expected results of certain operations of the group are included in this annual
report under the review of operations and activities on pages [x] - [y].
CA299(3) Further information on likely developments in the operations of the group and the expected results of
operations have not been included in this annual financial report because the directors believe it
would be likely to result in unreasonable prejudice to the group.

Directors' report
30 June 2011
(continued)
Environmental regulation 2,10-13

CA299(1)(f) The group is subject to significant environmental regulation in respect of its land development and
manufacturing activities as set out below.
Land development approvals
Planning approvals are required for the clearing of land for development under the New South Wales
Environmental Planning and Assessment Act 1979 and the Queensland Urban Land Development
Authority Act 2007. The relevant authorities are provided with regular updates, and to the best of the
directors' knowledge, all activities have been undertaken in compliance with the requirements of the
planning approvals.
Manufacturing
The group holds environmental licences for its manufacturing sites in New South Wales. The licences
require discharges to air and water to be below specified levels of contaminants, and solid wastes to
be removed to an appropriate disposal facility. These requirements arise under the Protection of the
Environment Operations Act 1997, the Environmentally Hazardous Chemicals Act 1985 and the
Waste Avoidance and Resource Recovery Act 2001.
During the year there were inadvertent breaches of the requirements relating to discharges to water at
the Maitland site, resulting in the issue of minor infringement notices. Management has been working
with the New South Wales Environment Protection Authority to alter the processes at the site to
minimise discharges and ensure compliance with the regulatory requirements. It is anticipated the
issue will be resolved during the current financial year.
During the year the Queensland manufacturing facility was closed. As part of the closure process
environmental clean-up responsibilities were examined and tests carried out showed no evidence of
any contamination having occurred.
(Revised) Greenhouse gas and energy data reporting requirements
The group is subject to the reporting requirements of both the Energy Efficiency Opportunities Act
2006 and the National Greenhouse and Energy Reporting Act 2007.
The Energy Efficiency Opportunities Act 2006 requires the group to assess its energy usage,
including the identification, investigation and evaluation of energy saving opportunities, and to report
publicly on the assessments undertaken, including what action the group intends to take as a result.
The group continues to meet its obligations under this Act.
The National Greenhouse and Energy Reporting Act 2007 requires the group to report its annual
greenhouse gas emissions and energy use. The group has implemented systems and processes for
the collection and calculation of the data required and submitted its 2009/10 report to the Greenhouse
and Energy Data Officer on 24 October 2010.
Information on directors 14-17

CA300(10)(a) M K Hollingworth BEc, FAIM, FAus IMM. Chair - non-executive. Age 65.
Experience and expertise
CA300(10)(a) Independent non-executive director for eight years and Chair for six years. Extensive experience in
property development including five years as CEO of Property Holdings Limited.
Other current directorships
CA300(11)(e) Non-executive director of three other public companies: BAX Limited (director since 2007), DEF
Limited (director since 2008) and GHI Limited (director since 2005). Also a member of the Property
and Construction Institute Advisory Council since 2008.
Former directorships in last 3 years
CA300(11)(e) Non-executive director of JKL Limited from 2004 to 2010.
Special responsibilities
CA300(10)(a) Chair of the board.
Chair of nomination committee.
Member of remuneration committee.
Interests in shares and options
CA300(11)(a) 22,000 ordinary shares in VALUE ACCOUNTS Holdings Limited.
5,000 ordinary shares in Lion plc (the parent company of VALUE ACCOUNTS Holdings Limited).

Directors' report
30 June 2011
(continued)
Information on directors (continued) 14-17

CA300(10)(a) N T Toddington CEng, FAIM. Managing director. Age 55.
CA300(10)(a) Managing director for four years. Former managing director of public companies involved in furniture
manufacturing and the finance industry. Member of BCA Strategy Council.
CA300(11)(e) None.
CA300(11)(e) None.
CA300(10)(a) Managing director.
CA300(11)(a),(c) 36,721 ordinary shares in VALUE ACCOUNTS Holdings Limited.
261,000 options over ordinary shares in VALUE ACCOUNTS Holdings Limited.
CA300(10)(a) H G Wells BA, FCPA. Chief financial officer. Age 49.
CA300(10)(a) With VALUE ACCOUNTS Holdings Limited since January 2011 as chief financial officer and as
financial controller for seven years.
CA300(11)(e) None.
CA300(11)(e) None.
CA300(10)(a) Chief financial officer.
CA300(11)(a),(c) 27,473 ordinary shares in VALUE ACCOUNTS Holdings Limited.
66,000 options over ordinary shares in VALUE ACCOUNTS Holdings Limited.
CA300(10)(a) J C Campbell BEng. Non-executive director. Age 67.

CA300(10)(a) Non-executive director for eleven years. Former managing director of STU Limited, a major consulting
firm.
CA300(11)(e) Non-executive director of two other public companies: MNO Limited (director since 2008), PQR
Limited (director since 2006).
CA300(11)(e) Non-executive director of VWX Limited from 2002 to 2009.
CA300(10)(a) Member of nomination committee.
CA300(10)(a) A L Cunningham. Independent non-executive director. Age 50.
CA300(10)(a) Independent non-executive director for two years. Director of a number of real estate agencies over
the last twenty years.
CA300(11)(e) Non-executive director of Combined Construction Company Pty Ltd (director since 2009).
CA300(11)(e) Managing director of XYZ Real Estate Pty Ltd from 2004 to 2009.
CA300(10)(a) Member of audit committee.
Member of nomination committee.

Directors' report
30 June 2011
(continued)

CA300(10)(a) R J Hunter BSc, FTS. Independent non-executive director. Age 59.
CA300(10)(a) Independent non-executive director for three years. Former CEO of a global search firm.
CA300(11)(e) Non-executive director of two other public companies in related industries: CDE Limited (director
since 2004), FGH Limited (director since 2007).
CA300(11)(e) None.
Member of nomination committee.
CA300(10)(a) C A Maxwell BCom, FCA, MBA. Independent non-executive director. Age 63.
CA300(10)(a) Independent non-executive director for six years. Ex-partner of a major accounting practice. Member
of the Council of The Institute of Chartered Accountants in Australia.
CA300(11)(e) Chair of TSR Limited (director since 2004) and non-executive director of two other public companies:
QPO Limited (director since 2008) and NML Limited (director since 2009).
CA300(11)(e) Non-executive director of PTV Limited from 2003 to 2009.
CA300(10)(a) Chair of audit committee.
CA300(10)(a) B A Wilson MA (Cantab). Independent non-executive director. Age 54.

CA300(10)(a) Independent non-executive director for eight years. Professor in Commercial Law at the University of
Perth. Former CEO of a major land development company. Resigned 29 July 2011.
CA300(11)(e) Non-executive director of two other public companies: KJI Limited (director since 2004), HGF Limited
(director since 2007).
CA300(11)(e) Non-executive director of ACD Limited from 2006 to 2010.
Chair of remuneration committee.

Directors' report
30 June 2011
(continued)

CA300(10)(a) B C Bristol LLB. Independent non-executive director. Age 48.
CA300(10)(a) Independent non-executive director since March 2011. Partner in the firm of Bristol & Partners,
solicitors.
CA300(11)(e) None.
CA300(11)(e) None.
CA300(10)(a) None.
CA300(10)(a) R T Brown MBA, FCA Chief financial officer until 31 January 2011.
CA300(10)(a) Chief financial officer of VALUE ACCOUNTS Holdings Limited for 12 years.
CA300(11)(e) None.
CA300(10)(a) Chief financial officer.
Company secretary 14
CA300(10)(d) The company secretary is Ms S M Barker BA, LLB. Ms Barker was appointed to the position of
company secretary in 2006. Before joining VALUE ACCOUNTS Holdings Limited she held a similar
position with another listed public company for six years and prior to that worked as a solicitor with a
major legal practice.
Meetings of directors 18
CA300(10)(b),(c) The numbers of meetings of the company’s board of directors and of each board committee held
CGC(2.6),(4.4),(8.3)
during the year ended 30 June 2011, and the numbers of meetings attended by each director were:
Full Meetings of
meetings of non- Meetings of committees
directors executive
directors Audit Nomination Remuneration
A B A B A B A B A B
M K Hollingworth 10 10 2 2 ** ** 2 2 3 3
J C Campbell 10 10 2 2 ** ** 1 2 3 3
A L Cunningham 7 10 2 2 3 4 2 2 ** **
R T Brown (retired 31 5 5 * * ** ** ** ** ** **
January 2011)
R J Hunter 9 10 2 2 4 4 2 2 ** **
C A Maxwell 10 10 2 2 4 4 ** ** 3 3
N T Toddington 9 10 * * ** ** ** ** ** **
H G Wells (appointed 5 5 * * ** ** ** ** ** **
31 January 2011)
B A Wilson 10 10 2 2 4 4 ** ** 3 3
B C Bristol (appointed 3 3 - - ** ** ** ** ** **
1 March 2011)
A = Number of meetings attended

B = Number of meetings held during the time the director held office or was a member of the
committee during the year
* = Not a non-executive director
** = Not a member of the relevant committee

Directors' report
30 June 2011
(continued)
Not mandatory Retirement, election and continuation in office of directors 19

Mr R T Brown retired as a director on 31 January 2011 and did not offer himself for re-election.
Ms H G Wells was appointed a director on 31 January 2011 to fill the vacancy caused by the
retirement of Mr R T Brown. In accordance with the Constitution, Ms H G Wells retires as a director at
the annual general meeting and, being eligible, offers herself for re-election.
Mr N T Toddington is the director retiring by rotation who, being eligible, offers himself for re-election.
Companies that are
disclosing entities
only
Remuneration report 42-77,38
2) This remuneration report sets out remuneration information for VALUE ACCOUNT’s non-executive
directors, executive directors, other key management personnel and the five highest remunerated
executives of the group and the company.
CR2M.3.03(1) Directors and executives disclosed in this report
Items 1-3
AASB124(Aus25)
(Revised)
Name Position
Non-executive and executive directors – see pages 10 to 13 above
Other key management personnel 45,46

P M Elliott Manager Furniture – manufacturing
D M Green Manager Furniture – retail
S J McInnes Manager IT consulting
B D Faraday Manager Electronic equipment
W P Shanahan Manager Land development and resale (until 9 June 2011)
R J Jackson Manager Machinery hire (until 30 June 2011)
CA300A(1)(c) Other persons who are among the 5 highest paid remunerated group and/or company
CA300A(1B),(9)
CA 9 executive 43,47,48
S M Barker Company secretary: group and company executive 54
P G Lincoln Manager Corporate planning: company executive
G J Cullen Manager Marketing: company executive
Changes since the end of the reporting period 55

CR2M.3.03(1) Item 4 B A Wilson resigned from the position of non-executive director on 29 July 2011.
AASB124(Aus25.3)
Role of the remuneration committee

The remuneration committee is a committee of the board. It is primarily responsible for making
recommendations to the board on:
 non-executive director fees
 executive remuneration (directors and other executives), and
 the over-arching executive remuneration framework and incentive plan policies.
Their objective is to ensure that remuneration policies and structures are fair and competitive and
aligned with the long-term interests of the company. In doing this, the Remuneration Committee seeks
advice from independent remuneration consultants.
The Corporate Governance Statement provides further information on the role of this committee.

Directors' report
30 June 2011
(continued)
Companies that are
disclosing entities Remuneration report (continued) 42-77,38
only
(Revised) Principles used to determine the nature and amount of remuneration 43
Non-executive directors
CA300A(1)(a),(b) Fees and payments to non-executive directors reflect the demands which are made on, and the
CA300A(1AA),(1AB)
CGC principle 8 responsibilities of, the directors. Non-executive directors’ fees and payments are reviewed annually by
AASB124(Aus25.5) the board. The board has also considered the advice of independent remuneration consultants to
(a),(b)
ensure non-executive directors’ fees and payments are appropriate and in line with the market. The
Chair’s fees are determined independently to the fees of non-executive directors based on
comparative roles in the external market. The Chair is not present at any discussions relating to
determination of his own remuneration.
Non-executive directors do not receive performance-based pay. However, to promote further
alignment with shareholders, the board has resolved to apply a minimum shareholding requirement
for all directors of 3,000 shares. Directors have 3 years in which to establish this shareholding level.
All current directors already comply with this requirement.
Directors’ fees
The current base fees were last reviewed with effect from 1 July 2011. The Chair's remuneration is
inclusive of committee fees while other non-executive directors who chair, or are a member of, a
committee receive additional yearly fees.
Non-executive directors’ fees are determined within an aggregate directors’ fee pool limit, which is
periodically recommended for approval by shareholders. The maximum currently stands at $350,000
per annum and was approved by shareholders at the annual general meeting on 7 October 2010.
The following fees have applied:
From 1 July
2009
From 1 July to 30 June
2011 2011
Base fees
Chair $60,000 $55,000
Other non-executive directors $30,000 $26,000
Additional fees
Audit committee – Chair $7,000 $4,000
Audit committee – member $4,000 $2,000
Nomination committee – Chair $3,000 $3,000
Nomination committee – member $2,000 $2,000
Remuneration committee – Chair $4,000 $3,000
Remuneration committee – member $3,000 $2,000
Retirement allowances for non-executive directors
On 1 January 2004, the board resolved to remove retirement allowances for non-executive directors
appointed after that date, in line with guidance from the ASX Corporate Governance Council on
non-executive directors’ remuneration.78 Superannuation contributions required under the Australian
superannuation guarantee legislation continue to be made and are deducted from the directors’
overall fee entitlements.
Executive pay
CA300A(1)(a),(b) The objective of the group’s executive reward framework is to ensure reward for performance is
CA300A(1AA),(1AB)
CGC principle 8 competitive and appropriate for the results delivered. The framework aligns executive reward with
AASB124(Aus25.5) achievement of strategic objectives and the creation of value for shareholders, and conforms with
(a),(b)
market practice for delivery of reward. The board ensures that executive reward satisfies the following
key criteria for good reward governance practices:
 competitiveness and reasonableness
 acceptability to shareholders
 performance linkage / alignment of executive compensation
 transparency
 capital management.
In consultation with external remuneration consultants, the group has structured an executive
remuneration framework that is market competitive and complementary to the reward strategy of the
organisation.

Directors' report
30 June 2011
(continued)
Companies that are
only
Principles used to determine the nature and amount of remuneration (continued) 43
Alignment to shareholders’ interests:
 has economic profit as a core component of plan design
 focuses on sustained growth in shareholder wealth, consisting of dividends and growth in
share price, and delivering constant return on assets as well as focusing the executive on
key non-financial drivers of value
 attracts and retains high calibre executives.
Alignment to program participants’ interests:
 rewards capability and experience
 reflects competitive reward for contribution to growth in shareholder wealth
 provides a clear structure for earning rewards
 provides recognition for contribution.
The framework provides a mix of fixed and variable pay, and a blend of short- and long-term
incentives. As executives gain seniority with the group, the balance of this mix shifts to a higher
proportion of ‘at risk’ rewards.
The executive pay and reward framework has three components:
 base pay and benefits, including superannuation
 short-term performance incentives, and
 long-term incentives through participation in the VALUE ACCOUNTS Employee Option
Plan.
The combination of these comprises an executive's total remuneration. The group intends to conduct
a review of the incentive plans during the year ending 30 June 2012 to ensure continued alignment
with financial and strategic objectives.
Base pay and benefits
Structured as a total employment cost package which may be delivered as a combination of cash and
prescribed non-financial benefits at the executives’ discretion.
Executives are offered a competitive base pay that comprises the fixed component of pay and
rewards. External remuneration consultants provide analysis and advice to ensure base pay is set to
reflect the market for a comparable role. Base pay for executives is reviewed annually to ensure the
executive’s pay is competitive with the market. An executive’s pay is also reviewed on promotion.
There are no guaranteed base pay increases included in any executives’ contracts.
Executives receive benefits including health insurance, car allowances and tax advisory services.
Superannuation
Retirement benefits are delivered under the VALUE ACCOUNTS Employees’ Superannuation Fund.
This fund provides defined lump sum benefits based on years of service and final average salary.
Other retirement benefits may be provided directly by the group if approved by shareholders.
Short-term incentives
CA300A(1)(ba) If the group achieves a pre-determined profit target set by the remuneration committee, a short-term
AASB124(Aus25.5)(c)
incentive (STI) pool is available to executives and other eligible participants. Cash incentives
(bonuses) are payable on 30 September each year. Using a profit target ensures variable reward is
only available when value has been created for shareholders and when profit is consistent with the
business plan. The incentive pool is leveraged for performance above the threshold to provide an
incentive for executive out-performance.
Each executive has a target STI opportunity depending on the accountabilities of the role and impact
on the organisation or business unit performance. The maximum target bonus opportunity is 60% of
base pay.
Each year, the remuneration committee considers the appropriate targets and key performance
indicators (KPIs) to link the STI plan and the level of payout if targets are met. This includes setting
any maximum payout under the STI plan, and minimum levels of performance to trigger payment of
STI.

Directors' report
30 June 2011
(continued)
Companies that are
only
Principles used to determine the nature and amount of remuneration (continued) 43
For the year ended 30 June 2011, the KPIs linked to STI plans were based on group, divisional
(where applicable) and individual personal objectives. Performance is based on a scorecard of
‘financial’, ‘employee and safety’, ‘customer’ and ‘strategic’ metrics. The scorecard is weighted 65%
towards the financial metrics and 35% towards the non-financial metrics. The key financial metric
used is profit before tax.
The remuneration committee is responsible for assessing whether the KPIs are met. To help make
this assessment, the committee receives detailed reports on performance from management which
are verified by independent remuneration consultants.
The remuneration committee has the discretion to adjust short-term incentives downwards in light of
unexpected or unintended circumstances.
The STI target annual payment is reviewed annually.
Long-term incentives
Long-term incentives are provided to certain employees via the VALUE ACCOUNTS Employee
Option Plan which was approved by shareholders at the 2006 annual general meeting. 69,70
AASB124(Aus25.5) The VALUE ACCOUNTS Employee Option Plan is designed to provide long-term incentives for
(d)(ii),(iii),
(Aus25.7.1)(b)(vi) executives to deliver long-term shareholder returns. Under the plan, participants are granted options
CR2M.3.03(1) which only vest if certain performance standards are met and the employees are still employed by the
Items 12(b),(c),15
CA300A(1)(ba) group at the end of the vesting period. Participation in the plan is at the board’s discretion and no
individual has a contractual right to participate in the plan or to receive any guaranteed benefits.
AASB124(Aus25.5) Vesting of the options is subject to VALUE ACCOUNTS Holdings Limited’s total shareholder return
(d)(iii),(Aus25.7.1)
(b)(iii),(iv),(vi) (TSR), including share price growth, dividends and capital returns, compared to the TSR of 20
CR2M.3.03(1) Items selected peer companies that are listed on the ASX (see list below) over a three-year period. Vesting
12(c), 15(b)(iii)-(vi)
will occur based on the company’s ranking within the peer group, as follows:
TSR rank Proportion of options that vest

Less than 50% percentile 0%
50th percentile 50%
Between 50th and 75th percentile 50% plus 2% for each additional percentile
ranking above 50th percentile
At or above 75th percentile 100%
Once vested, the options remain exercisable for a period of two years. Options are granted under the
plan for no consideration.
CA300A(1)(ba)(iv)(B) For the options granted on 1 May 2011, the peer group includes the following companies:
 North Albany Retail Company Limited  Trundle Limited
 Swan & Co Limited  Laurel Office Furniture Limited
 Melaleuca Limited  Endeavour Limited
 Ambrose Trading Limited  Jabiru Consulting Limited
 XYZ Limited  Clarence Furniture Inc Limited
 Burrows Supply Limited  No-Sense Consulting Limited
 Example Public Company Limited  Incomplete Solutions Limited
 BAX Trading & Co Limited  Toads & Company Limited
 The Wholesale Company Limited  Pink & Purple Limited
 Chairs & More Limited  Kiwi Down Under Limited

Directors' report
30 June 2011
(continued)
Companies that are
only
Performance of VALUE ACCOUNTS Holdings Limited 44
CA300A(1AA),(1AB) The two graphs below illustrate two of the key links between key management personnel
compensation and VALUE ACCOUNTS Holdings Limited’s performance.
CA300A(1AA),(1AB) The first graph illustrates the link between VALUE ACCOUNTS Holdings Limited’s profit before tax
and payments made under the STI plan.
(Revised)
Profit STI as % of
before tax target
12,000 100.0%
90.0%
10,000
80.0%
70.0%
8,000 Profit before tax *
60.0%
STI % of target **
6,000 50.0%
40.0%
4,000
30.0%
20.0%
2,000
10.0%
- 0.0%
2007 2008 2009 2010 2011
* Profit before tax is profit from continuing operations before income tax expense
** STI % of target reflects the percentage of the target STI pool that was paid out to executives.
CA300A(1AA),(1AB) The second graph illustrates the operation of the long-term incentive plan by comparing VALUE
ACCOUNTS Holdings Limited’s TSR performance to the TSR of the 20 ASX listed peer companies
(see page 17 above) over the last five years.
TSR - VALUE ACCOUNTS Limited vs ASX peer group
Total return basis Index 2006 = 100
170
160
150
140
VALUE ACCOUNTS
130 TSR
120 TSR Peer group -
average
110
100
90
80
2006 2007 2008 2009 2010 2011

Directors' report
30 June 2011
(continued)
Companies that are
only
Details of remuneration 43,51-67
Amounts of remuneration
CA300A(1)(c),(1C) Details of the remuneration of the directors, the key management personnel of the group (as defined
CR2M.3.03(1)
Items 6-9,11 in AASB 124 Related Party Disclosures) and the five highest paid executives of VALUE ACCOUNTS
AASB124(9) Holdings Limited and the VALUE ACCOUNTS Holdings group are set out in the following tables.
Key management personnel of the group and other executives of the company and the group
CA300A(1)(c),(1C) 58
2011 Short-term employee benefits Post-em- Long- Share-
ployment term based
benefits benefits payments
CR2M.3.03(1) Cash Non- Long Termi-
Items 6-9,11
AASB124(Aus25.4) salary and Cash monetary Super- service nation
Name fees bonus benefits annuation** leave benefits Options*** Total
$ $ $ $ $ $ $ $
CA300A(1)(c)(i) Non-executive
directors
M K Hollingworth
Chair 50,459 - - 4,541 - - - 55,000
J C Campbell 27,523 - - 2,477 - - - 30,000
A L Cunningham 27,523 - - 2,477 - - - 30,000
R J Hunter 27,523 - - 2,477 - - - 30,000
C A Maxwell 29,358 - - 2,642 - - - 32,000
B A Wilson 28,440 - - 2,560 - - - 31,000
CR2M.3.03(1) Item 3 B C Bristol
AASB124(Aus25.2)
(appointed 1
March 2011) 7,156 - - 644 - - - 7,800
Sub-totals not Sub-total
mandatory
non-executive
directors 197,982 - - 17,818 - - - 215,800
CA300A(1)(c)(i) Executive
directors
N T Toddington 250,000 40,000 52,958 30,500 7,987 - 42,917 424,362
H G Wells* 178,500 25,000 50,664 21,135 6,450 - 10,192 291,941
CR2M.3.03(1) Item 3 R T Brown (From
AASB124(Aus25.2)
1/7/2010 -
31/1/2011) 120,500 - 28,950 13,000 2,453 - (12,992) 151,911
CA300A(1)(c)(i) Other key
management
personnel (group)
#
P M Elliott ^ 175,000 20,000 46,821 21,500 4,567 - 8,461 276,349
#
D M Green ^ 165,500 25,000 44,996 20,500 5,481 - 6,261 267,738
S J McInnes^ 160,000 25,000 44,966 20,000 4,560 - 7,372 261,898
B D Faraday^ 160,000 22,000 43,490 19,500 3,468 - - 248,458
CR2M.3.03(1) Item 3 W P Shanahan
AASB124(Aus25.2)
(From 1/7/2010 -
9/6/2011) ^ 129,000 20,000 29,292 16,000 4,564 115,500 (1,206) 313,150
Not mandatory Total key
management
personnel
compensation
(group) 1,536,482 177,000 342,137 179,953 39,530 115,500 61,005 2,451,607
Other company
and group
executives
CA300A(1)(c)(iii) #
S M Barker ^ 170,000 18,000 40,666 17,500 3,456 - 5,131 254,753
CA300A(1)(c)(iv) #
P G Lincoln 148,500 15,500 42,427 17,000 4,579 - 5,222 233,228
CA300A(1)(c)(iv) #
G J Cullen 145,000 15,000 40,507 17,155 4,378 - 5,211 227,251
CR2M.3.03(1) Item 3 * Ms Wells was appointed a director on 31 January 2011. Before this appointment she was the company’s
AASB124(Aus25.2) Financial Controller. Amounts shown above include all Ms Wells’ remuneration during the reporting period,
whether as a director or as Financial Controller. Amounts received in her position as a director amounted to
$145,250, made up of cash salary and fees of $82,500, cash bonus of $25,000, non-monetary benefits of $26,047,
65
superannuation of $9,625 and options of $2,078.
** Superannuation benefits of Mr Toddington, Ms Wells and Mr Brown are provided through a defined benefit
superannuation plan. The amounts disclosed as remuneration represent each person’s share of the current service
62,63
cost of the plan, measured in accordance with AASB 119 Employee Benefits.
64
*** Remuneration in the form of options includes negative amounts for options forfeited during the year.
^,# denotes one of the 5 highest paid executives of the group (^) and/or company (#), as required to be disclosed
under the Corporations Act 2001.

Directors' report
30 June 2011
(continued)
Companies that are
only
43,51-67
Details of remuneration (continued)
Amounts of remuneration (continued)
Key management personnel of the group and other executives of the company and the group
CR2M.3.03(2) 56
2010 Short-term employee benefits Post- Long- Share-
employment term based
benefits benefits payments
Cash Non- Long
salary and Cash monetary Super- service
Name fees bonus benefits Other*** annuation* leave Options** Total
$ $ $ $ $ $ $ $
Non-executive
directors
M K Hollingworth
Chair 50,459 - - - 4,541 - - 55,000
J C Campbell 27,523 - - - 2,477 - - 30,000
A L Cunningham 27,523 - - - 2,477 - - 30,000
R J Hunter 27,523 - - - 2,477 - - 30,000
C A Maxwell 29,358 - - - 2,642 - - 32,000
B A Wilson 28,440 - - - 2,560 - - 31,000
Sub-totals not Sub-total
mandatory
non-executive
directors 190,826 - - - 17,174 - - 208,000
Executive
directors
N T Toddington 235,000 36,000 50,345 - 28,500 7,345 10,728 367,918
R T Brown 198,148 20,000 41,584 - 23,367 5,678 4,628 293,405
Other key
management
personnel (group)
#
P M Elliott ^ 165,000 20,000 44,435 100,000 20,500 4,897 2,492 357,324
#
D M Green ^ 155,500 22,000 41,824 - 19,500 4,658 1,504 244,986
S J McInnes ^ 150,000 22,000 41,720 - 19,000 3,465 1,912 238,097
R J Jackson ^ 148,000 20,000 39,374 - 18,500 2,798 (2,668) 226,004
W P Shanahan 127,000 18,000 28,708 - 15,000 3,878 1,137 193,723
Not mandatory Total key
management
personnel
compensation
(group) 1,369,474 158,000 287,990 100,000 161,541 32,719 19,733 2,129,457
Other company
and group
executives
#
S M Barker ^ 142,000 15,000 36,789 - 18,500 3,218 2,742 218,249
#
P G Lincoln 140,000 12,000 34,555 - 16,790 3,789 2,367 209,501
#
G J Cullen 135,000 10,000 31,555 - 15,890 3,579 2,283 198,307
* Superannuation benefits of Mr Toddington and Mr Brown are provided through a defined benefit superannuation
plan. The amounts disclosed as remuneration represent each person’s share of the current service cost of the
62,63
plan, measured in accordance with AASB 119 Employee Benefits.
64
** Remuneration in the form of options includes negative amounts for options forfeited during the year.
*** Other short-term employee benefits relate to a sign-on payment received on commencement of employment
with the group.
^,# denotes one of the 5 highest paid executives of the group (^) and/or company (#), as required to be disclosed
under the Corporations Act 2001.

Directors' report
30 June 2011
(continued)
Companies that are
only
Details of remuneration (continued) 43,51-67
Amounts of remuneration (continued)
AASB124(Aus25.5)(g) The relative proportions of remuneration that are linked to performance and those that are fixed are as
CA300A(1)(e)(i),(vi)
Comparatives not follows: 43
mandatory
Name Fixed remuneration At risk – STI At risk – LTI *
2011 2010 2011 2010 2011 2010
Executive directors of VALUE ACCOUNTS Holdings Limited
N T Toddington 80% 83% 10% 9% 10% 8%
H G Wells 87% - 9% - 4% -
R T Brown 100% 91% - 7% (9%) 2%
Other key management personnel of the group
P M Elliott 90% 91% 7% 8% 3% 1%
D M Green 88% 90% 10% 9% 2% 1%
S J McInnes 87% 90% 10% 9% 3% 1%
B D Faraday 91% - 9% - - -
R J Jackson - 91% - 9% - -
W P Shanahan 94% 90% 6% 9% (0.4%) 1%
Other company and group executives
S M Barker 91% 92% 7% 7% 2% 1%
P G Lincoln 92% 93% 7% 6% 2% 1%
G J Cullen 92% 94% 7% 5% 2% 1%
CA300A(1)(e)(vi) * Since the long-term incentives are provided exclusively by way of options, the percentages
disclosed also reflect the value of remuneration consisting of options, based on the value of options
expensed during the year. Negative amounts indicate expenses reversed during the year due to a
failure to satisfy the vesting conditions. 44
Service agreements 68
CA300A(1)(e)(vii) On appointment to the board, all non-executive directors enter into a service agreement with the
AASB124(Aus25.5)
(e),(h) company in the form of a letter of appointment. The letter summarises the board policies and terms,
CR2M.3.03(1) Item 13 including compensation, relevant to the office of director. A copy of the letter can be found on VALUE
ACCOUNTS Holdings Limited’s web site.
CA300A(1)(e)(vii) Remuneration and other terms of employment for the managing director, chief financial officer and the
AASB124(Aus25.5)
(e),(h) other key management personnel are also formalised in service agreements. Each of these
CR2M.3.03(1) Item 13 agreements provide for the provision of performance-related cash bonuses, other benefits including
health insurance, car allowances and tax advisory services, and participation, when eligible, in the
VALUE ACCOUNTS Employee Option Plan. Other major provisions of the agreements relating to
remuneration are set out below.
All contracts with executives may be terminated early by either party with three months notice, subject
to termination payments as detailed below.
Base salary including Termination

Name Term of agreement superannuation * benefit **
5 years commencing 1
N T Toddington, Managing director July 2009 $280,500 **
H G Wells, Chief financial officer (from On-going commencing 6 months
31 January 2011) 31 January 2011 $221,100 (pro rata) base salary
Agreement terminated $133,500 (for the
R T Brown, Chief financial officer (until on retirement on 31 seven months to 31
31 January 2011) January 2011 January 2011) -
P M Elliott, Manager – Furniture – On-going commencing 6 months
manufacturing ^ 1 July 2010 $196,500 base salary
* Base salaries quoted are for the year ended 30 June 2011; they are reviewed annually by the remuneration
committee.
** Termination benefits are payable on early termination by the company, other than for gross misconduct; unless
otherwise indicated, they are equal to the base salary for the remaining term of the agreement. For all new
executive hires, or contracts that are materially varied after 1 November 2009, termination benefits will be
limited to 12 months base salary or subject to shareholder approval.
CR2M.3.03(1) Item 10 ^ Mr P M Elliott further received a sign-on payment of $100,000 as compensation for lapsed incentive payments
from his previous employer; it was paid on 1 July 2009 and included in the remuneration disclosure for the prior
year (see page 20).

Directors' report
30 June 2011
(continued)
Companies that are
only
Service agreements (continued) 68
Base salary including Termination
Name Term of agreement superannuation * benefit **
D M Green, Manager – Furniture – On-going commencing 6 months
retail 1 July 2010 $186,000 base salary
S M Barker, Company secretary July 2009 $187,500 **
P G Lincoln, Manager – Corporate On-going commencing 6 months
Planning 1 July 2010 $162,500 base salary
G J Cullen, Manager – Marketing July 2009 $162,155 **
S J McInnes, Manager – IT consulting July 2009 $180,000 **
B D Faraday, Manager – Electronic On-going commencing 6 months
equipment 1 July 2010 $179,500 base salary
W P Shanahan, Manager – Land 3 years commencing 1
development and resale (from 1 July July 2009 - terminated $145,000 (for period
2009 – 9 June 2011) on 10 June 2011 ended 9 June 2011) **
* Base salaries quoted are for the year ended 30 June 2011; they are reviewed annually by the remuneration
committee.
** Termination benefits are payable on early termination by the company, other than for gross misconduct; unless
otherwise indicated, they are equal to the base salary for the remaining term of the agreement. For all new
executive hires, or contracts that are materially varied after 1 November 2009, termination benefits will be
limited to 12 months base salary or subject to shareholder approval.
Share-based compensation 69-75

AASB124(Aus25.5)(d) The terms and conditions of each grant of options affecting remuneration in the current or a future
CR2M.3.03(1) Item 12
reporting period are as follows:
AASB124(Aus25.5) Grant date Vesting and Expiry date Exercise Value per Performance %
(d)(i)
CR2M.3.03(1) exercise date price option at achieved Vested
Items 12(a) grant date
15(b)(i),(ii),(iv),(v)
AASB124(Aus25.7.1) 1 May 2008 1 May 2011 30 April 2013 $2.28 $0.67 > 75th percentile 100%
(a),(b)(i),(ii),(iv),(v)
1 May 2009 1 May 2012 30 April 2014 $2.51 $0.70 to be determined n/a
Options granted under the plan carry no dividend or voting rights.

When exercisable, each option is convertible into one ordinary share 14 days after the release of the
half-yearly and annual financial results of the group to the market.
The exercise price of options is based on the weighted average price at which the company’s shares
are traded on the Australian Securities Exchange during the week up to and including the date of
grant.
CA300A(1)(da) The plan rules contain a restriction on removing the ‘at risk’ aspect of the instruments granted to
executives. Plan participants may not enter into any transaction designed to remove the ‘at risk’
aspect of an instrument before it vests.

Directors' report
30 June 2011
(continued)
Companies that are
only
Share-based compensation (continued) 69-75
Details of options over ordinary shares in the company provided as remuneration to each director of
VALUE ACCOUNTS Holdings Limited and each of the key management personnel of the parent
entity and the group are set out below. When exercisable, each option is convertible into one ordinary
share of VALUE ACCOUNTS Holdings Limited. Further information on the options is set out in note
50 to the financial statements. 44
AASB124(Aus25.7.1) Number of Number of Number of
(a)(i),(ii)
CR2M.3.03(1) Item options Value of options options Value at
15(a)(i),(ii) granted during options at vested during lapsed during lapse date
CA300A(1)(e)(ii),(iv)
CA300(1)(d) Name the year grant date * the year the year **
Directors of VALUE ACCOUNTS Holdings Limited
N T Toddington 100,000 $80,000 50,000 - -
H G Wells 35,000 $28,000 7,000 - -
R T Brown - - - 53,000 $40,800
P M Elliot 20,000 $16,000 8,000 - -
D M Green 22,000 $17,600 6,000 - -
S J McInnes 20,000 $16,000 6,000 - -
W P Shanahan 15,000 $12,000 6,000 - -
R J Jackson - - - 34,000 $26,180
Other company and group executives
S M Barker 10,000 $8,000 7,000 - -
P G Lincoln 15,000 $12,000 - - -
G J Cullen 19,000 $15,200 - - -
CA300A(1)(e)(ii) * The value at grant date calculated in accordance with AASB 2 Share-based Payment of options
granted during the year as part of remuneration.
CA300A(1)(e)(iv) ** The value at lapse date of options that were granted as part of remuneration and that lapsed
during the year because a vesting condition was not satisfied. The value is determined at the time
of lapsing, but assuming the condition was satisfied.
The assessed fair value at grant date of options granted to the individuals is allocated equally over the
period from grant date to vesting date, and the amount is included in the remuneration tables above.
Fair values at grant date are independently determined using a Black-Scholes option pricing model
that takes into account the exercise price, the term of the option, the impact of dilution, the share price
at grant date and expected price volatility of the underlying share, the expected dividend yield and the
risk-free interest rate for the term of the option.
Shares provided on exercise of remuneration options 75

Details of ordinary shares in the company provided as a result of the exercise of remuneration options
to each director of VALUE ACCOUNTS Holdings Limited and other key management personnel of the
group are set out below. 44
AASB124(Aus25.7.2) Number of ordinary
(a)
CR2M.3.03(1) shares issued on Value at
Item 16(a) Date of exercise of exercise of options exercise
CA300A(1)(e)(iii)
Name options during the year date *
Date of exercise of
options not Directors of VALUE ACCOUNTS Holdings Limited
mandatory N T Toddington 29 May 2011 9,000 $6,750
H G Wells 29 May 2011 6,000 $4,500
P M Elliott 29 May 2011 4,000 $3,000
D M Green 29 May 2011 4,000 $3,000
S J McInnes 29 May 2011 3,000 $2,250
W P Shanahan 29 May 2011 4,000 $3,000
Other group executives
S M Barker 29 May 2011 2,500 $1,875
CA300A(1)(e)(iii) * The value at the exercise date of options that were granted as part of remuneration and were
exercised during the year has been determined as the intrinsic value of the options at that date.

Directors' report
30 June 2011
(continued)
Companies that are
only
AASB124(Aus25.7.2) The amounts paid per ordinary share by each director and other key management personnel on the
(c)
CR2M.3.03(1) exercise of options at the date of exercise were as follows:
Item 16(c)
Exercise date Amount paid per share
29 May 2011 $2.28
AASB124(Aus25.7.2) No amounts are unpaid on any shares issued on the exercise of options.
(d)
CR2M.3.03(1)
Item 16(d)
Employee share scheme
None of the directors of VALUE ACCOUNTS Holdings Limited, other key management personnel of
the group or the group company secretary are eligible to participate in the company’s employee share
scheme.
Details of remuneration: Bonuses and share-based compensation benefits 43

For each cash bonus and grant of options included in the tables on pages 19 - 20 and 22 - 23, the
percentage of the available bonus or grant that was paid, or that vested, in the financial year, and the
percentage that was forfeited because the person did not meet the service and performance criteria is
set out below. No part of the bonus is payable in future years. The options vest after three years,
provided the vesting conditions are met (see page 17 above). No options will vest if the conditions are
not satisfied, hence the minimum value of the option yet to vest is nil. The maximum value of the
options yet to vest has been determined as the amount of the grant date fair value of the options that
is yet to be expensed.
Bonus Share-based compensation benefits (options)

Financial years Maximum
in which total value of
Year options may grant yet to
Name Paid Forfeited granted Vested Forfeited vest vest
% % % % $
NT 35 65 2011 - - 30/6/2014 75,556
Toddington 2010 - - 30/6/2013 32,083
2009 - - 30/6/2012 9,722
2008 100 - - -
H G Wells 40 60 2011 - - 30/6/2014 26,444
2010 - - 30/6/2013 9,167
2009 - - 30/6/2012 1,944
2008 100 - - -
R T Brown - 100 2010 - 100 - -
2009 - 100 - -
2008 - 100 - -
P M Elliott 30 70 2011 - - 30/6/2014 15,111
2010 - - 30/6/2013 6,875
2009 - - 30/6/2012 1,944
2008 100 - - -
D M Green 45 55 2011 - - 30/6/2014 16,622
2010 - - 30/6/2013 5,500
2009 - - 30/6/2012 972
2008 100 - - -
SJ 46 54 2011 - - 30/6/2014 15,111
McInnes 2010 - - 30/6/2013 6,417
2009 - - 30/6/2012 1,556
2008 100 - - -
B D Faraday 33 67 2011 - - - -
WP 28 72 2011 - 100 - -
Shanahan 2010 - 100 - -
2009 - 100 - -
2008 100 - - -
P G Lincoln 27 73 2011 - - 30/6/2014 11,333
2010 - - 30/6/2013 5,500
2009 - - 30/6/2012 1,556
2008 100 - - -

Directors' report
30 June 2011
(continued)
Companies that are
only
Details of remuneration: cash bonuses and options (continued) 43
Bonus Share-based compensation benefits (options)
Financial years Maximum
in which total value of
Year options may grant yet to
Name Paid Forfeited granted Vested Forfeited vest vest
% % % % $
G J Cullen 31 69 2011 - - 30/6/2014 14,356
2010 - - 30/6/2013 4,583
2009 - - 30/6/2012 1,556
2008 100 - - -
S M Barker 30 70 2011 - - 30/6/2014 7,556
2010 - - 30/6/2013 3,208
2009 - - 30/6/2012 1,361
2008 100 - - -
Loans to directors and executives

Information on loans to directors and executives, including amounts, interest rates and repayment
terms are set out in note 36 to the financial statements.
Shares under option 20,39

CA300(1)(e),(3),(6) Unissued ordinary shares of VALUE ACCOUNTS Holdings Limited under option at the date of this
(a),(b)
report are as follows:
Issue price of Number under
CA300(1)(e),(3), Date options granted Expiry date shares option
(6)(b)-(d)
1 May 2008 30 April 2013 $2.28 45,600

1 May 2009 30 April 2014 $2.51 113,000
1 May 2010 30 April 2015 $2.78 182,000
1 May 2011 30 April 2016 $3.18 285,000
625,600
CA300(6)(e) No option holder has any right under the options to participate in any other share issue of the
company or any other entity.
Shares issued on the exercise of options 20,39

CA300(1)(f),(3),(7) The following ordinary shares of VALUE ACCOUNTS Holdings Limited were issued during the year
ended 30 June 2011 on the exercise of options granted under the VALUE ACCOUNTS Employee
Option Plan. No further shares have been issued since that date. No amounts are unpaid on any of
the shares.
Issue price of Number of shares
Date options granted shares issued
1 May 2008 $2.28 53,900

53,900

Directors' report
30 June 2011
(continued)
Insurance of officers 21,23,38

CA300(1)(g),(8)(b), During the financial year, VALUE ACCOUNTS Holdings Limited paid a premium of $65,425 to insure
(9)(a),(f)
the directors and secretaries of the company and its Australian-based controlled entities, and the
general managers of each of the divisions of the group.
CA300(9)(c) The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings
that may be brought against the officers in their capacity as officers of entities in the group, and any
other payments arising from liabilities incurred by the officers in connection with such proceedings.
This does not include such liabilities that arise from conduct involving a wilful breach of duty by the
officers or the improper use by the officers of their position or of information to gain advantage for
themselves or someone else or to cause detriment to the company. It is not possible to apportion the
premium between amounts relating to the insurance against legal costs and those relating to other
21
liabilities.
Indemnity of auditors 21,22

CA300(1)(g), (8)(b), [If the company has agreed to indemnify the auditor under certain circumstances as permitted in the
(9)(a),(f)
Corporations Act 2001 this fact must also be disclosed.]
Proceedings on behalf of the company 24-26

CA300(14) No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
Not mandatory if no
proceedings proceedings on behalf of the company, or to intervene in any proceedings to which the company is a
party, for the purpose of taking responsibility on behalf of the company for all or part of those
proceedings.
CA300(15) No proceedings have been brought or intervened in on behalf of the company with leave of the Court
under section 237 of the Corporations Act 2001.
Non-audit services 27-31

The company may decide to employ the auditor on assignments additional to their statutory audit
duties where the auditor's expertise and experience with the company and/or the group are important.
CA300(11B)(a) Details of the amounts paid or payable to the auditor (PwC) for audit and non-audit services provided
during the year are set out below.
CA300(11B)(b),(c), The board of directors has considered the position and, in accordance with advice received from the
(11D)
audit committee, is satisfied that the provision of the non-audit services is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001. The directors are
satisfied that the provision of non-audit services by the auditor, as set out below, did not compromise
the auditor independence requirements of the Corporations Act 2001 for the following reasons:
 all non-audit services have been reviewed by the audit committee to ensure they do not
impact the impartiality and objectivity of the auditor
APES110(290)
 none of the services undermine the general principles relating to auditor independence as
set out in APES 110 Code of Ethics for Professional Accountants.

Directors' report
30 June 2011
(continued)
Non-audit services (continued) 27-31

CA300(11B)(a),(11C) During the year the following fees were paid or payable for non-audit services provided by the auditor
of the parent entity, its related practices and non-related audit firms:
Consolidated
2011 2010 5
$ $
Other assurance services

PwC Australian firm:
Audit of regulatory returns 24,900 24,500
Due diligence services - 10,300
Related practices of PwC Australian firm 6,300 5,500
Total remuneration for other assurance services 31,200 40,300
Taxation services
Tax compliance services 25,000 23,700
International tax consulting and tax advice on mergers and
acquisitions 20,200 17,500
Total remuneration for taxation services 45,200 41,200
Other services
Benchmarking services 12,300 -
Related practices of PwC Australian firm 5,500 7,200
Non-PwC audit firm (Wallaby and Associates) 7,500 10,900
Total remuneration for other services 25,300 18,100
Total remuneration for non-audit services 101,700 99,600
Auditor's independence declaration 32,33

CA298(1)(c) A copy of the auditor's independence declaration as required under section 307C of the Corporations
ASIC 98/2395
Act 2001 is set out on page 28.
Rounding of amounts 36-39

ASIC 98/100 The company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and
Investments Commission, relating to the ‘rounding off’ of amounts in the directors' report. Amounts in
the directors' report have been rounded off in accordance with that Class Order to the nearest
thousand dollars, or in certain cases, to the nearest dollar.
Not mandatory Auditor

PwC continues in office in accordance with section 327 of the Corporations Act 2001.40
CA298(2)(a) This report is made in accordance with a resolution of directors. 41
CA298(2)(c) M K Hollingworth
Director 41
Sydney
CA298(2)(b) 23 August 2011 41

Directors' report
30 June 2011
(continued)
CA298(1)(c)
CA307C Auditor's Independence Declaration 32,33
As lead auditor for the audit of VALUE ACCOUNTS Holdings Limited for the year ended 30 June
2011, I declare that, to the best of my knowledge and belief, there have been:
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001
in relation to the audit; and
(b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of VALUE ACCOUNTS Holdings Limited and the entities it controlled
during the period.
A B Jones Sydney
Partner 23 August 2011
PricewaterhouseCoopers
PricewaterhouseCoopers, ABN 52 780 433 757

Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171
DX 77 Sydney, Australia
T +61 2 8266 0000, F +61 2 8266 9999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.

Directors' report
30 June 2011
(continued)
Commentary - Directors' report
Contents of directors' reports

CA299(2) 1. The tables on pages 42 - 44 summarise the contents of directors' reports by classes of
entities. The entity to be reported on is:
(a) the company, registered scheme or disclosing entity (if consolidated financial
statements are not required), or
(b) the consolidated entity (if consolidated financial statements are required).
2. Where a directors’ report disclosure requirement is not relevant to an entity (including a
consolidated entity) for a particular financial year, PwC’s view is that it is not necessary to
include a reference to the matter. However, it should be noted that in respect of
environmental reporting (see paragraphs 10 - 13 below), ASIC recommends the inclusion of
a comment that no significant environmental regulations apply. Where items are significant
(eg a decision not to recommend the payment of a dividend) and no comment is made in the
directors’ report, the directors must consider them at the directors’ meeting called to approve
the directors’ report and should consider specifically minuting their decisions to show the
items were addressed.
Disclosures required where additional information is included to give true and fair view
3. If the financial report for a financial year includes additional information under CA 295(3)(c)
(information included to give a true and fair view of financial position and performance), the
directors’ report for the financial year must:
CA298(1A)(a) (a) set out the directors’ reasons for forming the opinion that the inclusion of that
additional information was necessary to give the true and fair view required by CA
297, and
CA298(1A)(b) (b) specify where that additional information can be found in the financial report.
This disclosure is not illustrated in the VALUE ACCOUNTS Holdings Limited directors’ report,
as there is no additional information included under CA 295(3)(c).
Transfer of information from the directors’ report
ASIC RG 68(76)- 4. Entities may transfer certain information otherwise required to be included in the directors’
(77C)
report to other parts of the annual report. For details see page 45.
Comparative figures
5. Comparative figures are not mandatory for directors' reports, but are recommended in the
interests of more meaningful disclosure. See paragraph 57 for the requirements in relation to
comparatives in the remuneration report.
Review of operations, financial position, business strategies and prospects
CA299(1)(a) 6. CA 299(1)(a) requires all entities to present a review of the operations of the entity reported
CA299A(1)
on and the results of those operations. In addition, under CA 299A(1) the directors’ report of
a listed company must contain information that members of the company would reasonably
require to make an informed assessment of:
(a) the operations of the entity reported on
(b) the financial position of the entity
(c) the entity’s business strategies and its prospects for future financial years.
CA 299A(1) was introduced by the Corporate Law Economic Reform Program (Audit Reform
and Corporate Disclosure) Act 2004 (CLERP 9 Act) with effect from financial years beginning
on or after 1 July 2004. No guidance has been provided by ASIC as to the extent of
comments required.
ASIC 98/2395 7. Where the review of operations and activities is presented as a separate section in the
annual report, but covers disclosures that would ordinarily be included in the review of
operations required in the directors’ report by CA 299(1)(a) and/or 299A, Class Order
98/2395 can be applied to avoid having to repeat the information in the directors’ report - see
paragraph 4 above and the table on page 45. For the purposes of this illustrative directors’
report, it has been assumed that the Class Order has been applied and the requirements of
CA 299(1)(a) and 299A have been satisfied by referring to a separate review of operations
and activities section in the annual report.
8. For more detailed comments about format and content of the review of operations, please
refer to pages 46 to 49 of this publication.

Directors' report
30 June 2011
(continued)
Commentary - Directors' report (continued)
Likely developments and expected results of operations

CA299(3) 9. The report may omit material on likely developments and expected results of operations if it
is likely that its disclosure would result in unreasonable prejudice to the company, the
consolidated entity or any entity that is part of the consolidated entity. Where material is
omitted, the report must say so. Suggested wording is set out in the illustrative directors'
report.
See paragraph 12 below for comments on a potential Carbon Pollution Reduction Scheme.
Environmental regulation
CA299(1)(f) 10. If the entity’s operations are subject to any particular and significant environmental regulation
under a Commonwealth, State or Territory law, details of the entity’s performance in relation
to environmental regulation must be disclosed.
ASIC RG 68(74) 11. ASIC has set out general guidelines in relation to the environmental reporting requirements in
Regulatory Guide 68. The guidelines state that:
(a) the requirements would normally apply where an entity is licensed or otherwise
subject to conditions for the purposes of environmental legislation or regulation
(b) as the requirements are not related specifically to financial disclosures (eg
contingent liabilities and capital commitments) but relate to performance in relation
to environmental regulation, accounting concepts of materiality in financial
statements are not applicable
(c) the information provided cannot be reduced or eliminated because information has
been provided to a regulatory authority for the purposes of any environmental
legislation, and
(d) the information provided would normally be more general and less technical than
information provided in any compliance reports to an environmental regulator.
12. Examples of environmental regulations that will affect many entities are:
(a) National Greenhouse and Energy Reporting Act 2007, and
(b) Energy Efficiency Opportunities Act 2006.
Entities that have obligations under any of these laws should comment on their performance
in relation to them in the directors' report, as is done on page 10. Depending on the status of
the Government’s potential initiatives aimed at the reduction of carbon pollution and their
expected impact on the entity, the directors should also consider discussing the potential
impact of the proposals on their future operations and results under the heading of likely
developments.
13. As well as complying with the Corporations Act 2001 requirements for the reporting of
environmental performance, consideration should be given to including comments on the
management of environmental issues in the review of operations section of listed entities.
Qualifications, experience and special responsibilities of directors and company secretaries
CA300(10)(a),(d) 14. A public company, other than a wholly-owned subsidiary of another Australian company,
must disclose each director’s qualifications, experience and special responsibilities, and the
qualifications and experience of each person who is a company secretary of the company as
at the end of the year. Principle 2 of the Corporate Governance Council guidelines (see
paragraphs 2 and 3 of the commentary on the corporate governance statement) also
includes disclosure requirements relating to directors’ experience, qualifications and other
matters.
15. While there is no requirement in the Corporations Act 2001 to disclose the ages of the
directors, PwC considers it to be relevant information where an entity’s constitution provides
that directors over a certain age should retire and not seek re-election.

Directors' report
30 June 2011
(continued)
Directors’ interests in securities, contracts and other directorships

CA300(11) 16. Listed companies must include the following details for each director:
(a) their relevant interests in shares of the company or a related body corporate
(b) their relevant interests in debentures of, or interests in a registered scheme made
available by, the company or a related body corporate
(c) their rights or options over shares in, debentures of, or interests in a registered
scheme made available by, the company or a related body corporate
(d) contracts:
(i) to which the director is a party or under which the director is entitled to
a benefit, and
(ii) that confer a right to call for or deliver shares in, or debentures of or
interests in a registered scheme made available by the company or a
related body corporate
(e) all directorships of other listed companies held by the director at any time in the 3
years immediately before the end of the financial year and the period for which
each directorship has been held.
The meaning of relevant interest for the above purpose is given in Part 6.1 of the
Corporations Act 2001 (sections 608 and 609).
17. The Corporations Act 2001 no longer specifies the date at which the above interests should
be stated. However, the explanatory memorandum to the relevant Bill states that it should be
at the date of the directors’ report.
Meetings of directors
CA300(10) 18. A public company, other than a wholly-owned subsidiary of another Australian company,
must include the following information about meetings of directors:
CA300(10)(b) (a) the number of meetings of the board of directors held during the year and each
director’s attendance at those meetings, and
CA300(10)(c) (b) the number of meetings of each board committee held during the year and each
director’s attendance at those meetings.
Retirement, election and continuation in office of directors
19. The information on the retirement, election and continuation in office of directors is not
mandatory, but is often disclosed.
Information on options
CA300(3) 20. The information to be disclosed under CA 300(1)(d), (e) and (f) covers:
(a) options over unissued shares and interests of the company, registered scheme or
disclosing entity, and
(b) if consolidated financial statements are required - options over unissued shares or
interests of any controlled entity that is a company, registered scheme or
disclosing entity.
For details regarding the disclosure of options issued as remuneration please refer to
paragraph 73 and 74 below.
Indemnities and insurance premiums for officers and auditors
CA300(8) 21. The directors’ report must disclose information about any
(a) indemnity given to a current or former officer or auditor, and
(b) premium paid, or agreed to be paid, for insurance against a current or former
officer’s or auditor’s liability for legal cost
to the extent the indemnities or insurance arrangements are not prohibited under CA 199A
and CA 199B of the Corporations Act.
22. We note that many companies are now agreeing to indemnify their auditor to the extent
permitted under sub-sections 199A(2) and (3) of the Corporations Act 2001. Where the
engagement letter or standard terms of business include such an indemnity, the company will
need to make appropriate disclosures in their directors' report.
23. See Appendix E for detailed commentary on the requirements for the disclosure of
information on indemnities and/or insurance premiums for officers and auditors. The
commentary includes illustrative wording for indemnities and indemnification agreements.

Directors' report
30 June 2011
(continued)
Proceedings on behalf of the company

CA300(14) 24. The directors’ report for a company must include the following details of any application for
leave under CA 237 made in respect of the company:
(a) the applicant’s name, and
(b) a statement whether leave was granted.
CA300(15) 25. The directors’ report for a company must include the following details of any proceedings that
a person has brought or intervened in on behalf of the company with leave under CA 237:
(a) the person’s name
(b) the names of the parties to the proceedings, and
(c) sufficient information to enable members to understand the nature and status of
the proceedings (including the cause of action and any orders made by the Court).
26. If no applications for leave have been made and/or no proceedings have been brought or
intervened in on behalf of the company with leave, PwC’s view is that it is not necessary to
include a reference to these matters in the directors’ report. If the directors wish to make a
comment, the wording used in the illustrative report may be used as a guide.
Non-audit services - listed companies only
CA300(11B) 27. The directors’ report for a listed company must include the following in relation to each
auditor under the heading 'Non-audit services':
CA300(11C) (a) the amounts paid or payable to the auditor (and the auditor’s name) for each
non-audit service provided, during the year, by the auditor (or by another person
or firm on the auditor’s behalf)
(b) a statement whether the directors are satisfied that the provision of non-audit
services, during the year, by the auditor (or by another person or firm on the
auditor’s behalf) is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001
(c) a statement of the directors’ reasons for being satisfied that the provision of those
non-audit services, during the year, by the auditor (or by another person or firm on
the auditor’s behalf) did not compromise the auditor independence requirements
of the Corporations Act 2001.
CA300(11C)(b) 28. The amounts to be included under paragraph 27(a) above are the amounts paid or payable
by the listed company or, if consolidated financial statements are required, by any entity that
is part of the consolidated entity.
CA300(11D) 29. The statements made under paragraphs 27(b) and (c) above must be made in accordance
with:
(a) advice provided by the company’s audit committee if the company has an audit
committee
(b) a resolution of the directors of the company if paragraph (a) does not apply.
CA300(11E) 30. For the purposes of paragraph 29(a) above, a statement is taken to be made in accordance
with advice provided by the company’s audit committee only if:
(a) the statement is consistent with that advice and does not contain any material
omission of material included in that advice
(b) the advice is endorsed by a resolution passed by the members of the audit
committee
(c) the advice is written advice signed by a member of the audit committee on behalf
of the audit committee and given to the directors.
CA300(2A) 31. If the amounts referred to in paragraph 27(a) above are not included in the directors’ report
because of reliance on CA 300(2) (ie they are included in the financial report instead - see
paragraph 4 above), the directors’ report must specify, in the section headed 'Non-audit
services', where those details may be found in the financial report.

Directors' report
30 June 2011
(continued)
Auditor’s independence declaration

CA298(1)(c) 32. The directors’ report must include a copy of the auditor’s independence declaration made
CA307C
ASIC 98/2395 under CA 307C in relation to the audit for the financial year. ASIC Class Order 98/2395
permits the declaration to be transferred to a document included with the directors’ report and
financial report - see table on page 45. Where advantage is taken of this relief, the directors’
report must contain a clear cross reference to the page or pages containing the transferred
information (see note 1 on page 45).
CA307C 33. Under CA 307C(5), the auditor is required to give the declaration to the directors with the
auditor’s report. This would mean the auditor’s report would need to be signed before the
directors’ report. However, auditing standards require the auditor to comment in the auditor's
report on any material inconsistencies between the directors’ report and the financial report,
and to consider the impact of any material misstatements of fact in the directors’ report. This
makes it difficult for the auditor to sign the audit report before the directors’ report is signed.
As a result, CA 307C(5A) provides that the declaration may be given to the directors before
they pass their resolution in relation to the directors’ report and before the audit report is
signed, provided that:
(a) the declaration is given to the directors before the directors resolve to make the
directors’ report
(b) the directors’ report is signed within 7 days after the declaration is given
(c) the auditor’s report is made within 7 days after the directors’ report is signed and
includes a statement that
(i) either the declaration would be in the same terms if it was given to the
directors at the time the auditor’s report is made, or
(ii) circumstances have changed since the declaration was given to the
directors and setting out how the declaration would differ if it was given
to the directors at the time the auditor’s report is made.
Modification of auditor rotation requirements
CA300(11A) 34. If a registered company auditor plays a significant role in the audit of a company for the
financial year in reliance on a declaration made by ASIC under CA 342A (ie modification of
the auditor rotation requirements for listed companies), the directors’ report must include
details of the declaration. This disclosure is not illustrated in the VALUE ACCOUNTS
Holdings Limited directors’ report, as it is assumed it is not applicable.
Officers who are former auditors
CA300(1)(ca) 35. The directors’ report is required to disclose the name of each person who:
(a) is an officer of the entity at any time during the year, and
(b) was a partner in an audit firm, or a director of an audit company, that is an auditor
of the entity for the year, and
(c) was such a partner or director at a time when the audit firm or the audit company
undertook an audit of the entity.
This disclosure is not illustrated in the VALUE ACCOUNTS Holdings Limited directors’ report,
as it is assumed there are no such officers.
Rounding of amounts
ASIC 98/100 36. See Appendix F for detailed commentary on rounding of amounts in the directors’ report and
financial report. The commentary covers the requirements of ASIC Class Order 98/100 which
permits entities to round off as follows, subject to certain conditions and exceptions:
Assets greater than: Round off to nearest:
$10m (but less than $1,000m) $1,000
$1,000m (but less than $10,000m) $100,000
$10,000m $1,000,000

Directors' report
30 June 2011
(continued)
ASIC 98/100 37. Rounding to lower prescribed amounts is also permissible, as explained in paragraphs 3 and
4 of Appendix F.
ASIC 98/100 38. It should be noted that the following directors’ report disclosures must be shown to the
nearest dollar by entities with assets (or consolidated assets) of less than $1,000 million, and
may only be rounded to the nearest $1,000 by entities with assets (or consolidated assets) of
more than $1,000 million:
Section Details
CA 300(1)(d) Options granted to directors and 5 highest paid
officers
CA 300(1)(g),(8),(9) Indemnification/insurance of officers or auditors
CA 300(11),(12) Directors’ interests in securities
CA 300(11B),(11C) Non-audit services
CA 300(13)(a) Fees paid to responsible entity and associates
CA 300A(1)(c),(1)(e) Remuneration of directors and executives
ASIC 98/100 39. The following directors’ report disclosures may only be rounded to the nearest cent:
Section Details
CA 300(6)(c) Issue price of unissued shares or interests under
option
CA 300(7)(d),(e) Amounts unpaid, paid, or agreed to be considered
as paid, on shares or interests issued as a result
of the exercise of an option
Information on auditor
40. The information on the auditor is not mandatory, but is often disclosed.
Dating and signing of report
CA298(2) 41. The directors’ report must be made in accordance with a resolution of the directors, specify
the date on which it was made and be signed by a director.

Directors' report
30 June 2011
(continued)
Commentary - Directors' report: Remuneration report
Remuneration report - disclosing entities that are companies

CA300A(1),(1A) 42. Disclosing entities that are companies must include a remuneration report in their directors’
report in a separate and clearly identified section.
Corporations Act requirements
CA300A(1),(1A) 43. The remuneration report must include the following disclosures:
CA300A(1)(a),(b) (a) a discussion of the remuneration policy for key management personnel
AASB124(Aus25.5)
(a),(b) (separately for the company and the group, where applicable) and the relationship
between such policy and the company’s performance (see paragraphs 49 and 50
below)
CA300A(1)(ba) (b) detailed information about any performance conditions
AASB124(Aus25.5)(c)
CA300A(1)(c) (c) prescribed details (see paragraph 51 below) in relation to the remuneration of the
following persons:
Is a consolidated
financial report required?
Yes No
Key management personnel of the consolidated entity X
Key management personnel of the company X
5 named relevant group executives with the highest X
remuneration for that year
5 named company executives with the highest X X
remuneration for that year
CA300A(1)(d) (d) details about any share-based payments that are not dependent on any
AASB124(Aus25.5)(f)
performance conditions (not applicable to VALUE ACCOUNTS Holdings Limited)
CA300A(1)(da) (e) where any of the persons in (c) above received share-based compensation, a
discussion of board policy in relation to the person limiting his or her exposure to
risk in relation to the securities, and the mechanism to enforce the policy
(f) for each person referred to in paragraph (c) above:
CA300A(1)(e)(i) (i) an explanation of the relative proportions of those elements of the person’s
AASB124(Aus25.5)(g)
remuneration that are related to performance and those elements that are
not
CA300A(1)(e)(ii)-(v) (ii) for options granted to the person as part of their remuneration
 the value of options granted during the period (calculated at grant
date)
 the value of options exercised during the year (calculated at
exercise date)
 the value of options that lapsed during the year due to the failure
to satisfy a vesting condition (calculated at lapse date but
assuming the vesting condition was satisfied)
CA300A(1)(e)(vi) (iii) the percentage of the value of the person’s remuneration for the financial
year that consists of options
CA300A(1)(e)(vii) (iv) if the person is employed by the company under a contract - the duration of
AASB124(Aus25.5)(h)
the contract, the periods of notice required to terminate the contract and
the termination payments provided for under the contract
CA300A(1)(f) (g) such other matters related to the policy or policies referred to in paragraph (a) as
are prescribed by the regulations - no such matters have been prescribed at the
time of writing.
Changes made in 2011 to the structure of the remuneration report
44. Changes made to the remuneration report in the 2011 edition were made to further improve
its structure. There were no new or changed requirements that would have required any
revised or additional disclosures this year.
Key management personnel and executives
CA300A(1AAA) 45. Key management personnel are those persons that have either directly or indirectly authority
AASB124(9)
and responsibility for planning, directing and controlling the activities of the entity. This
includes any director, whether executive or otherwise, of that entity.

Directors' report
30 June 2011
(continued)
Commentary - Directors' report: Remuneration report (continued)
AASB124(Aus 9.1) 46. A director is a person who is a director under the Corporations Act 2001 or, in the case of
entities governed by the bodies not called a board of directors, a person who, regardless of
the name that is given to the position, is appointed to the position of member of the governing
body, council, commission or authority. Individuals who are directors of subsidiaries within an
economic entity but not directors of the parent entity are not directors of the group.
CA300A(1B)(a) 47. A company executive is a secretary or senior manager of the company. The Corporations Act
CA9
2001 considers a person to be a senior manager if he/she makes, or participates in making
decisions that affect the whole or a substantial part of the business of the company, or has
the capacity to affect significantly the company's financial standing.
CA9 48. Group executives include:
(a) directors of the companies or bodies within the consolidated entity
(b) secretaries of the companies or bodies within the consolidated entities
(c) senior managers (see paragraph 47 above) of any corporation within the
consolidated entity
(d) partners and senior managers of any partnership within the consolidated entity
(e) trustees and senior managers of any trusts within the consolidated entity, and
(f) senior managers of any joint venture within the consolidated entity.
CA300A(1B)(b) Directors of the parent company are not group executives.
CA300A(1AA) 49. The discussion of the company's performance under paragraph 43(a) above must specifically
deal with:
(a) the company's earnings, and
(b) the consequences of the company's performance on shareholder wealth
in the financial year to which the report relates and in the previous 4 financial years.
CA300A(1AB) 50. In determining the consequences of the company’s performance on shareholder wealth in a
financial year, companies should have regard to:
(a) dividends paid by the company to its shareholders during that year
(b) changes in the price at which shares in the company are traded between the
beginning and the end of that year
(c) any return of capital by the company to its shareholders during that year that
involves:
(i) The cancellation of shares in the company
(ii) a payment to the holders of those shares that exceeds the price at
which shares in that class are being traded at the time when the shares
are cancelled
(d) any other relevant matter.
CR2M.3.03(1),(2) 51. The details that must be disclosed in relation to a person’s remuneration (see paragraph
43(c) above) are prescribed in the Corporations Regulations 2001. They are:
Personal details
CR2M.3.03(1) (a) the person’s name and position(s) held during the financial year
Items 1+2
AASB124(Aus25.2)
(a),(b)
CR2M.3.03(1)Item 3 (b) if a person has held a position for less than the whole financial year, the period for
AASB124(Aus25.2)(c)
which the position was held
CR2M.3.03 Items 4 -5 (c) changes in the chief executive officer or a director and retirement of any other
AASB124(Aus25.3)
person between the end of the reporting period and the date of completion of the
financial report
CR2M.3.03(1) Item 13 (d) details of service contracts – see paragraph 69 below
AASB124(Aus25.5)(e)
Compensation generally
CR2M.3.03(1) (e) the person’s compensation, broken down into specified components (see
Items 6-9,11
AASB124(Aus25.4) paragraph 58 below)
CR2M.3.03(1) Item 10 (f) details of payments made to the person (if any) before the person took office as
part of the consideration for the person agreeing to hold office, including the
monetary value of the payment and the date of the payment.

Directors' report
30 June 2011
(continued)
Bonuses and share-based compensation

CR2M.3.03(1) Item 12 (g) for each cash bonus, performance-related bonus or share-based payment
AASB124(Aus25.5)(d)
compensation benefit, the following details:
(i) the terms and conditions of each grant, including the grant date, the
nature of the compensation granted and service and performance
criteria used to determine the amount of compensation
(ii) details of alterations of the terms and conditions of the grant
(iii) the percentage of the bonus or grant for the financial year that was paid
to the person, or that vested in the person, in the financial year
(iv) the percentage of the bonus or grant for the financial year that was
forfeited in the financial year
(v) the financial years, after the financial year to which the report relates,
for which the bonus or grant will be payable if the person meets the
service and performance criteria for the bonus or grant
(vi) estimates of the maximum and minimum possible total value of the
bonus or grant for financial years after the financial year to which the
report relates
CR2M.3.03(1) Item 14 (h) details of alterations made to the terms of share-based payment transactions
AASB124(Aus25.6)
granted as compensation to key management personnel – see paragraph 72
below
CR2M.3.03(1) Item 15 (i) details of options and rights over an equity instrument issued or issuable by the
AASB124(Aus25.7.1)
disclosing entity or any of its subsidiaries that have been provided as
compensation to a person – see paragraph 73 below, and
CR2M.3.03(1) Item16 (j) details of equity instruments provided as a result of the exercise of options that
AASB124(Aus25.7.1)
have been granted as compensation to a person – see paragraph 75 below.
AASB124(Aus9.1), Remuneration is referred to as 'compensation' in AASB 124 Related Party Disclosures.
(Aus9.1.1)
References in the Corporations Act 2001 to 'remuneration' should be taken as referring to
'compensation' as defined and explained in AASB 124. Share-based compensation benefits
include options as well as shares or any other equity instruments issued by the entity in
exchange for services rendered by the key management personnel.
Persons that are key management persons and company/group executives at the same time
CA300A(1) 52. If a person is both a key management person of the group (or parent entity, if no
consolidated financial statements are prepared) and also among the five most highly
remunerated company or group executives, details of that person’s remuneration only need
to be provided once.
Group executive of more than one entity
CA300A(4) 53. If consolidated financial statements are required and a person is a group executive of 2 or
more entities within the consolidated entity, the person’s remuneration is taken to include all
of the person’s remuneration from those entities (regardless of the capacity in which the
person received the remuneration).
Company secretary as company or group executive
54. The remuneration of the company or group secretary only needs to be disclosed if he or she
is amongst the five highest remunerated executives in the company and/or group or meets
the definition of a ‘key management person’ in AASB 124 (see paragraph 45 above for
details).
Changes after the end of the reporting period
CR2M.3.03(1) 55. If any of the following changes occur in the period after the end of the reporting period and
Items 4 and 5
AASB 124(Aus 25.3) prior to the date of signing the directors’ declaration, the name, position and date for each
individual involved shall be disclosed for:
(a) each change in the chief executive officer and directors of the entity, and
(b) the retirement of a key management person (other than a director or chief executive
officer).

Directors' report
30 June 2011
(continued)
AASB 124 remuneration disclosures

AASB124 56. Some of the disclosures listed above are also required under paragraphs Aus25.2 to
(Aus1.4.1)
Aus25.6, Aus 25.7.1 and Aus25.7.2 of AASB 124 Related Party Disclosures, as is indicated
by relevant references. However, since 30 June 2008 these paragraphs only apply to
disclosing entities that are not companies (eg listed managed investment schemes). This
means:
(a) Disclosing entities that are companies apply CA 300A and CR 2M.3.03 and provide
the relevant remuneration disclosures in their remuneration report.
(b) Other disclosing entities apply AASB 124 paragraphs Aus25.2 to Aus25.6,
Aus25.7.1 and Aus25.7.2 and provide the relevant disclosures in their financial
report.
The commentary to note 36 in this publication (paragraphs 10 and 11) explains the
disclosures that apply to disclosing entities that are not companies.
Comparatives
CR2M.3.03(2) 57. The remuneration report of listed companies only needs to show comparatives for the
compensation table but not for any of the other information disclosed. However, managed
investment schemes and similar entities that have to make the relevant disclosures in their
financial statements rather than the remuneration report will need to provide full comparative
information under AASB 101 paragraph 38.
Components of compensation
AASB124(Aus25.4) 58. Where Corporations Regulation 2M.3.03 and AASB 124 require disclosure of the
CR2M.3.03(1)
Items 6-9,11 components of key management personnel compensation, at least the following
components, grouped into five categories, shall be disclosed:
(a) short-term employee benefits, divided into at least the following components:
(i) cash salary, fees and short-term compensated absences
(ii) short-term cash profit-sharing and other bonuses
(iii) non-monetary benefits, and
(iv) other short-term employee benefits
(b) post-employment benefits, divided into at least the following components:
(i) pension and superannuation benefits, and
(ii) other post-employment benefits
(c) other long-term employee benefits, separately identifying amounts attributable to
long-term incentive plans
(d) Termination benefits, and
(e) share-based payment, divided into at least the following components:
(i) equity-settled share-based payment transactions:
(A) shares and units
(B) options and rights
(ii) cash-settled share-based payment transactions
(iii) All other forms of share-based payment compensation (including
hybrids).
Not all of the above components are applicable to VALUE ACCOUNTS Holdings Limited (eg
other post-employment benefits and cash-settled share-based payment transactions), but
where they are applicable they should be included in the tables.
Aggregate compensation disclosures in the financial statements
AASB124(16) 59. In addition to the detailed disclosures that must be made for each key management person,
AASB 124 requires disclosure of key management personnel compensation in total and for
each of the five main categories (short-term benefits, post-employment benefits, other
long-term benefits, termination benefits and share-based payments). This disclosure is not
required under CR 2M.3.03 and therefore has to be made in the financial statements (see
note 36).
Measuring compensation
60. Compensation must be measured in accordance with AASB 119 Employee Benefits and
AASB 2 Share-based Payment. As a result, the amount disclosed as compensation should
equal the amount expensed under those standards. This applies also to long service leave;
that is, the amount disclosed in the remuneration table as a person’s long service leave
benefits should reflect the expense (normally the increase in the provision) recognised in
relation to this person during the year.

Directors' report
30 June 2011
(continued)
61. While AASB 124 refers to compensation as ‘amounts paid, payable or provided …’, this does
not mean that amounts provided for in one year and paid in the next have to be included in
compensation in both years. If an amount was paid in the current year but provided for in a
prior year, it would have been included in the prior year compensation disclosure and
therefore should not be included in compensation in the current period.
Defined benefit plan
62. It is not clear what amount should be included as an individual’s compensation in relation to
defined benefit plans. The expense in relation to the membership of a defined benefit plan
includes items such as service costs, interest cost and expected return on plan assets.
Actuarial gains or losses may also be included in profit or loss as an expense or taken
directly to equity.
63. In the absence of further guidance, we would accept the inclusion of only the service cost
component or, alternatively, the full expense measured in accordance with AASB 119. If the
latter approach is taken, the amount must include any actuarial gains or losses that were
recognised either in profit or loss or in other comprehensive income. The approach taken
must be applied consistently from year to year and should be explained in a footnote to the
remuneration tables.
Negative compensation amounts
64. Where the expense in relation to an employee benefit is negative, this should be reflected in
the compensation disclosure. For example, where a share-based payment expense is
reversed due to a performance condition not being met, each key management person to
whom the expense relates would have a negative amount included in their compensation in
that period. In this case, it would be helpful to include an explanatory note.
Key management persons appointed and/or resigned during the period
65. Where a key management person was appointed and/or resigned during the period, only the
compensation related to the services rendered while he/she was a key management person
should be disclosed. Where a person was appointed as director during the period, but was
another type of key management person for some other part of the period, we believe that all
remuneration received by such a director during the period, whether as a director or as
another key management person, should be disclosed as that director’s remuneration.
Compensation paid by overseas parent or responsible entity
AASB124(9) 66. Compensation includes any consideration paid, payable or provided regardless of whether it
was paid by the reporting entity (or group) itself or on behalf of the entity by a third party (eg
a foreign parent entity or responsible entity). It does not matter who pays the key
management person. As long as the payment is in exchange for services rendered to the
entity that is preparing the financial report, it must be included in the disclosures.
Compensation paid by parent to director of several subsidiaries
67. Directors of subsidiaries are often paid by the parent entity. Where a person is a director of
several subsidiaries, his/her total compensation should be allocated to each of the
subsidiaries on a reasonable basis, where possible (eg based on details of the compensation
packages agreed by the remuneration committee or records maintained on the time spent
managing the affairs of each entity). Where this is not possible, the total compensation
should be disclosed in the financial report of each subsidiary, with an explanatory footnote.
Service contracts
AASB124(Aus25.5)(e) 68. In addition to the disclosures mentioned above, an entity must provide for each contract for
CR2M.3.03(1) Item 13
services with its key management personnel such explanations as are necessary to provide
an understanding of how the amount of remuneration in the current reporting period was
determined and how the terms of the contract affect remuneration in future periods. The
details disclosed would ordinarily include items such as:
(a) the length of notice or contract periods
(b) whether or not the contract provides for pre-determined compensation
(c) the basis for determining compensation
(d) the manner of payment of compensation.
The specific details disclosed will depend upon the content of the individual contracts. More
detail than is shown in the illustrated disclosure may be appropriate in particular
circumstances.

Directors' report
30 June 2011
(continued)
Bonuses and share-based payments

AASB124(Aus25.5)(d) 69. For each grant of a cash bonus, performance related bonus or share-based payment
CR2M.3.03(1) Item
12(a)-(c) compensation benefit, whether part of a specific contract for services or not, the terms and
conditions of each grant affecting remuneration in the current or future reporting periods shall
be disclosed, including:
(a) the grant date
(b) the nature of the compensation granted
(c) the service and performance criteria used to determine the amount of
remuneration
(d) if there has been any alteration of the terms or conditions of the grant since the
grant date, the date, details and effect of each alteration.
70. Examples of terms and conditions that may be disclosed in addition to those explicitly
specified in AASB 124(Aus25.5)(d) (see previous paragraph) include:
(a) whether shareholder approval is required (or has been obtained and, if so, when)
(b) whether benefits are payable (or vest) annually during the performance period or
only at the end of the grant (or performance) period
(c) any restrictions on transfer of equity instruments after vesting.
Altering the terms of options or rights
AASB124(Aus25.6) 71. Where the terms of options or rights provided as remuneration to a key management person
CR2M.3.03(1) Item 14
have been altered by the issuing entity during the reporting period, the following details shall
be disclosed for each such person:
(a) the date of each alteration of the terms
(b) the market price of the underlying equity instrument at the date of alteration
(c) the terms of the option or right immediately prior to alteration, including the
number and class of the underlying equity instruments, exercise price, time
remaining until expiry and each other condition in the terms affecting the vesting or
exercise of the option or right
(d) the new terms
(e) the difference between the total of the fair value of the options or rights affected by
the alteration immediately before the alteration and the total of the fair value of
those options or rights immediately after the alteration.
Equity instruments
AASB124(Aus25.7) 72. The disclosures required by CR 2M.3.03 Items 15 and 16 and AASB 124 (Aus25.7.1) -
CR2M.3.03(3)
(Aus25.7.5) refer to equity instruments issued or issuable by the disclosing entity and any of
its subsidiaries and shall be separated into each class of instrument identified by:
(a) the name of the issuing entity
(b) the class of equity instrument
(c) if the instrument is an option or right, the class and number of equity instruments
for which it may be exercised.
Options provided as remuneration
73. Options or rights are not treated as separate classes based on different exercise prices or
expiry dates, but options or rights over different numbers of underlying equity instruments are
treated as separate classes based on the number per option.

Directors' report
30 June 2011
(continued)
AASB124(Aus25.7.1) 74. CR 2M.3.03, AASB 124 and the Corporations Act 2001 all require disclosure of details of
CA300(1)(d)
CR2M.3.03(1) Item 15 options and rights granted as remuneration. However, there are some differences in the
disclosure requirements:
Corporations Act AASB 124/CR 2M.3.03
Types of grants  Only covers options  Covers options and rights

covered
Period covered  Options granted during or  Options and rights granted

since the end of the year during the year only
Persons covered  Directors and five most  Key management personnel

highly remunerated officers (see paragraph 45 above)
(other than the directors)
Parent vs  Parent and consolidated  Consolidated entity only

consolidated entity entity *
* The wording of CA 300(1)(d) suggests that information on options granted to the directors
and the 5 most highly remunerated officers is only required in relation to directors and
officers of the parent entity. However, where the report relates to a consolidated entity, it is
recommended that the information should also be disclosed on a consolidated basis (ie
including the 5 most highly remunerated officers of the consolidated entity who are not
directors of the parent entity), to be consistent with the requirements of CA 300A(1)(c).
Shares provided on exercise of remuneration options
AASB124(Aus25.7.2) 75. CR 2M.3.03 and AASB 124 require disclosure of the number of equity instruments provided
(a)
CR2M.3.03(1) Item 16 as a result of the exercise of options or rights originally granted as remuneration to key
management personnel. This disclosure does:
 not apply to the exercise of options or rights otherwise acquired by the individual
(eg through an issue by a company to all shareholders)
 apply to personnel who are key management personnel for the current reporting
period, whether or not they were key management personnel at the vesting or
grant date
 not apply to a person who is not included as a key management person for the
current reporting period but was included in the reporting period in which the grant
or vesting occurred.
Remuneration disclosures not illustrated: not applicable to VALUE ACCOUNTS Holdings Limited
76. The following disclosure requirements of the Corporations Act 2001, CR 2M.3.03 and
paragraphs Aus25.2 to Aus25.7.2 of AASB 124 are not applicable to VALUE ACCOUNTS
Holdings Limited and are therefore not illustrated in the remuneration report:
CA300(1)(c) (a) details regarding changes in the chief executive officer and any of the directors
CR2M.3.03(1) Items 4
and 5 and the retirement of other key management personnel and specified company or
group executives after the end of the reporting period and before the financial
report is authorised for issue
(b) details of alterations of the terms or conditions of
AASB124(Aus25.5) (i) a grant of a cash bonus, performance related bonus or share-based
(d)(iv)
CR2M.3.03(1) payment compensation benefit relating to a key management person
Item 12(d) (see paragraph 69(d) above)
AASB124(Aus25.6) (ii) options or rights provided as remuneration to a key management
CR2M.3.03(1) Item 14
person (see paragraph 71 above)
AASB124(Aus25.5)(f) (c) share-based remuneration that is not dependent on the satisfaction of a
CA300A(1)(d)
performance condition – an explanation why this is the case
AASB124 (d) the number of options or rights exercised, where different from the number of
(Aus25.7.2)(b)
CR2M.3.03(1) equity instruments provided as a result of the exercise during the reporting period.
Item 16(b)
ASX Corporate Governance Council best practice principles and guidelines on remuneration
CGC(8.3) 77. The ASX Corporate Governance Council best practice principles and recommendations
suggest that the annual reports of listed entities should also include information about the
existence and terms of any schemes for retirement benefits, other than superannuation, for
non-executive directors.

Directors' report
30 June 2011
(continued)
Summary of content of directors' report by classes of entities 6
Non-listed Other Non-listed Listed Companies

Proprietary public Listed disclosing registered registered limited by
1 3 5
Description companies companies companies entities schemes schemes guarantee
CA298(1AA)(c) Copy of the auditor’s
CA298(1AB)(b)
independence
declaration •• • • • •
CA298(1A) Disclosures regarding
additional information
to give a true and fair •• • • •
view
CA299(1)(a) Review of operations
and results
•• • • •
CA299(1)(b) Any significant
change in the state of
affairs •• • • •
CA299(1)(c) Principal activities
and any significant
change in their nature •• • • •
CA299(1)(d) Events after end of
financial year
•• • • •
CA299(1)(e) Future developments
and results
•• • • •
CA299(1)(f) Performance
regarding
environmental •• • • •
regulation
CA299(3) Exclusion of
prejudicial
information on future •• • • •
developments and
results
CA299A(1) Information on the
operations, financial
position and business • •
strategies and
prospects
CA299A(3) Exclusion of
prejudicial
information on • •
business strategies
and prospects
CA300(1)(a) Dividends paid
•• • • •
CA300(1)(b) Dividends
recommended but
not paid •• • • •
CA300(1)(c) Directors’ names and
CA300B(3)(a)
periods for which
they were directors •• • • • •
CA300(1)(ca) Officers who are
former auditors
•• • • •
CA300(1)(d),(3),(5) Options granted
over unissued
shares or interests •• • • • •
to directors and the
5 most highly
remunerated officers

Directors' report
30 June 2011
(continued)
Summary of content of directors' report by classes of entities (continued) 6

1 3 5
CA300(1)(e),(3),(6) Details of unissued
shares or interests
under option at the • • • • • •
date of the report
CA300(1)(f),(3),(7) Details of shares or
interests issued as a
result of the exercise • • • • • •
of an option
CA300(1)(g),(8),(9) Indemnification/
insurance of officers
or auditors • • • •4 •4 •4
CA300(10)(a), Directors’
CA300B(3)(b)
qualifications,
experience and • • •
2
responsibilities
CA300(10)(b),(c) Directors’ meeting
CA300B(3)(c) 2
attendance
• • •
CA300(10)(d) Qualifications and
experience of each
company secretary
2
• •
CA300(11)(a)-(d) Directors’ interests in
securities, including
options •
CA300(12) Directors’ interests in
the scheme, including
options •
CA300(11)(e) Directorships of other
listed companies held
by directors in the •
last 3 years
CA300(11A) Details of any ASIC
declaration under CA
342A (modification of •
auditor rotation
requirements)
CA300(2A),(11B), Details of non-audit
(11C),(11D)
services provided by
the auditor, and •
related statements by
the directors
CA300A Remuneration report
CR2M.3.03
(for details see • •
paragraphs 42-78 of
commentary) (only if they
are
companies)
CA300(13)(a) Fees paid to the
responsible entity
and associates •
CA300(13)(b) Number of interests
in scheme held by
the responsible • •
entity and
associates
CA300(13)(c) Interests in the
scheme issued
during the financial • •
year
CA300(13)(d) Withdrawals from the
scheme during the
financial year • •

Directors' report
30 June 2011
(continued)
Summary of content of directors' report by classes of entities (continued) 6

1 3 5
CA300(13)(e) Value of scheme
assets and basis of
valuation • •
CA300(13)(f) Number of interests
in scheme at the end
of the financial year • •
CA300(14),(15) Proceedings on
behalf of company
• • •
CA300B(1)(a) Description of short-
and long-term
objectives •
CA300B(1)(b) Strategy for achieving
those objectives
•
CA300B(1)(c),(d) Principal activities
during the year and
how they assisted in •
achieving the entity’s
objectives
CA300B(1)(e) Explanation of how
the entity measures
its performance •
CA300B(3)(d) For each class of
membership the
amount which a •
member of that class
has to contribute on
winding up
CA300B(3)(e) Total amount that
members have to
contribute on winding •
up
ASIC 98/0100 Rounding of amounts
in the directors’ and
financial reports • • • • • •
1. Some of the information in the table may be provided in the financial report or a document included with
the directors’ report and financial report. For a summary of the options refer to page 45.
CA300(10) 2. Wholly-owned subsidiaries of Australian companies are exempted from the requirements of CA 300(10).
CA298(3) 3. A small proprietary company does not have to prepare a directors’ report if:
(a) it is preparing financial statements in response to a shareholder direction under CA 293, and
(b) the direction specifies that a directors’ report need not be prepared.
CA300(1)(g) 4. CA 300(1)(g) requires disclosure of indemnities given and insurance premiums paid for an officer or
auditor and includes references to CA 300(8) and (9) which prescribe specific details to be provided in
directors’ reports for companies. These specific details do not appear to apply to registered schemes or
other disclosing entities, although CA 300(1)(g) does apply to these entities. Disclosure of similar details
is recommended where these entities provide indemnities or pay insurance premiums for an officer or
auditor, to comply with CA 300(1)(g).
5. Other than companies limited by guarantee.
6. For an explanation of the different types of entities refer to Appendix B.

Directors' report
30 June 2011
(continued)
ASIC RG 68(76)-(77C) Entities may transfer certain information otherwise required to be included in the directors’ report to
other parts of the annual report. The following table sets out which type of information can be provided
where.
Can be transferred to:
Reference
Section Type of entity Other Financial allowing
of CA Nature of disclosure affected document* report transfer
298(1)(c) Auditor’s Company, Yes No ASIC

independence registered scheme 98/2395
declaration or disclosing entity
(All)
298(1A) Information included to All Yes No ASIC
give a true and fair 98/2395
view
299 General information All Yes No ASIC
about operations and 98/2395
activities
299A Additional information Listed companies Yes No ASIC
on the operations and 98/2395
activities
300(other than Various specific All, except Yes Yes ASIC
300(11B) and information CA 300(10) - (15) 98/2395
(11C)) apply to specific CA 300(2)
classes of entities
300(11B) and Non-audit services and Listed companies No Yes CA 300(2),
(11C) auditor independence (2A)
* The 'other document' must be included with the directors’ report and financial report.
ASIC 98/2395 1. Entities taking advantage of the relief provided by ASIC Class Order 98/2395 must comply
with the following conditions:
(a) the directors’ report must contain a clear cross reference to the page or pages
containing the transferred information
(b) the entity must never distribute or make available the directors’ report and financial
report without the transferred information included, and must take reasonable
steps to ensure that no one else distributes or makes those documents available
without the transferred information included
(c) a document containing the transferred information must be lodged with ASIC as if
it were a part of the report required to be lodged under CA 319
(d) a directors’ report which is identical to the directors’ report, except that the page
references required by (a) above are updated as necessary, must be included in
the concise report (where prepared), and
(e) any of the transferred information otherwise required by CA 298(1)(c), 298(1A),
299 or 299A must be included in any concise report for the purposes of CA 314
and lodged with ASIC pursuant to CA 319.
ASIC 98/2395 2. Any information transferred from the directors’ report to the financial report becomes part of
(Editorial note)
the financial report and must be covered by the auditor’s report.
ASIC 98/2395 3. Comparative information is not required for information transferred from the directors’ report
(Editorial note)
to the financial report unless that information is also required by an accounting standard.

Directors' report
30 June 2011
(continued)
Review of operations – Commentary
The directors’ report for VALUE ACCOUNTS Holdings Limited has been prepared on the assumption
that the review of operations has been presented as a separate section in the annual report. This is
allowed by virtue of ASIC Class Order 98/2395 - see previous page. There are no rules specifying the
information a company must include in its review of operations, allowing companies flexibility to make
this decision on the basis of their own unique business dynamics and those of the industry sectors in
which they operate. As a result, we have not illustrated the review of operations for VALUE
ACCOUNTS Holdings Limited. Instead, we have included the following guidance to assist preparers
of a review of operations.
Requirements governing the review of operations
Source of Where do the Entities
Information to be disclosed requirement disclosures go? affected
Review of operations and the results CA 299(1)(a) Directors’ report or a All entities
1
of those operations document included
with the directors’
report. Cannot be
transferred to the
financial report
Information that members would CA 299A Directors’ report or a Listed entities 4
reasonably require to make an document included
informed assessment of the entity’s: 1 with the directors’
a) operations report. Cannot be
b) financial position transferred to the
c) business strategies and financial report
prospects for future
financial years 2
Review of operations and ASX Listing Rule Anywhere in the Listed entities
activities 3 4.10.17 annual report
1
Not required for the parent entity if consolidated financial statements are prepared (CA 299(2) and CA
299A(2)).
2
The required disclosures may omit information in relation to the entity’s business strategies and prospects for
future financial years if it is likely to unreasonably prejudice the entity. If material is omitted, the report must
say so (CA 299A(3)).
3
Listing rule 4.10.17 is based on CA 299. ASX does not require the review of operations and activities to
follow any particular format. Nor does ASX specify its contents. However, ASX supports the group of 100
publication Guide to the Review of Operations and Financial Condition.
4
For reporting periods ending on or after 30 June 2011, this requirement applies to all listed entities, including
listed registered schemes. Previously, section 299A only applied to listed public companies.
CA 299A(1) was introduced by the CLERP 9 legislation with effect from financial years beginning on
or after 1 July 2004. No guidance has been provided by ASIC as to the extent of comments required.
The Group of 100 Incorporated published a Guide to the Review of Operations and Financial
Condition (G100 Guide) to assist listed entities in the preparation of the review of operations and
activities an entity must provide to the ASX. Australian companies can also refer to the G100 Guide
for key principles which should be considered during preparation of a review of operations in order to
comply with provisions of the Corporations Act 2001.
The key objective of the review of operations, as stated in the G100 Guide, is to complement and
supplement the financial statements by providing “a critical and objective analysis and explanation of
a company’s past and likely future performance and financial condition” including:
 the opportunities and risks associated with the past operations of the company
 the opportunities and risks likely to impact on the future activities of the company
 short and long-term analyses of the business as seen through the eyes of the directors,
and
 analysis of industry-wide and company-specific financial and non-financial information
that is relevant to an assessment of the company’s performance and prospects.
To assist companies, the G100 Guide provides a framework for preparing a review of operations (see
following table) and recognises that different companies will have specific disclosure needs depending
on their size, industry group and other factors. Not all of the items will be relevant to all companies,
nor should the guidance be regarded as a comprehensive list of the matters that should be
considered by directors to be relevant to a thorough assessment of the business.

Directors' report
30 June 2011
(continued)
Review of operations – Commentary (continued)
G100 disclosure framework
Company overview Review of operations Investments for future Review of financial

and strategy performance condition
Description of Operating results for the Capital expenditure Discussion of the
business and external period program capital structure and
environment treasury policy
Corporate objectives Shareholder returns in Other activities and Cash from

to enhance terms of dividends and expenditures designed operations and other
shareholder wealth increases in shareholder to enhance future profits sources of cash
funds
Strategies for Dividend distribution Discussion of

achieving key policy liquidity and funding
business objectives
Dynamics of the Resources of the

business company
Key financial and Impact of legislation

non-financial and other external
performance requirements
indicators
Underpinned by risk management and corporate governance frameworks
IFRS Practice Statement Management Commentary

In December 2010, the IASB released a practice statement setting out a framework for the
preparation and presentation of management commentary (i.e. review of operations) to accompany
financial statements prepared in accordance with IFRS. The statement sets out the principles,
qualitative characteristics and content elements necessary to provide current and potential future
capital and debt providers with decision-useful information. Management commentary should provide
users with integrated information that provides context for the related financial statements, including
management’s view on what has happened (positive and negative), why it happened and what the
implications are for the company’s future. Compliance with the practice statement is not mandatory.
Unless the ASX revises its guidance note, Australian listed entities can continue referring to the G100
guide, or they could elect to apply the new practice statement if they wished to. The two documents
are not dissimilar, but the requirements of the practice statement are broader in the following areas:
 The practice statement requires disclosure of critical financial and non-financial resources
available to the entity, whereas the G100 guide only requires disclosure of capital
structure, liquidity and funding.
 The practice statement requires disclosure of an analysis of the prospects of the entity,
eg targets for financial and non-financial measures; the G100 guide requires only
disclosure of investments for future performance.
Finsia and AICD profit reporting principles

When discussing company performance, directors are also encouraged to apply Underlying Profit:
Principles for Reporting of Non-Statutory Information (the Principles) which were released by the
Financial Services Institute of Australasia (Finsia) and the Australian Institute of Company Directors
(AICD) in March 2009. The document sets out seven principles which are aimed at achieving greater
consistency and transparency in non-statutory profit reporting and discourage poor reporting practices
such as inappropriate adjustments to statutory profits or window dressing. It can be obtained via the
Finsia or AICD web site (www.finsia.com or www.companydirectors.com.au).

Directors' report
30 June 2011
(continued)
Collaborative activities and available guidance

PwC have worked collaboratively with a number of leading organisations to develop more effective
principles based corporate reporting, and have jointly or individually developed a number of illustrative
guides to demonstrate the provision of clear and relevant information on corporate performance. The
various initiatives and pro-forma reports show how corporate information can be organised and
aligned in a manner which facilitates effective internal management and reporting, and which can be
consistently applied to external communications to shareholders and other stakeholders.
Connected Reporting
PwC’s decade long ValueReporting™ research results, PwC Corporate Reporting framework and
other related research information have been further developed by the Prince’s Trust Accounting for
Sustainability (A4S) based on the findings of over 100 interviews and working groups, resulting in
A4S’s Connected Reporting framework.
A Connected Report focuses on the needs of long-term investors and executive management.
Reported information identifies and explains the connection between the organisation's strategic
objectives, the industry, market and social context within which the business operates, the associated
risks and opportunities it faces, the key resources and relationships on which it depends, and the
governance, reward and remuneration structures in place. It also explains the connection between
delivery of the business's strategy and its financial and non-financial performance. More details on the
framework and the experiences of a number of recent corporate pilots are available at
http://www.connectedreporting.accountingforsustainability.org/home.
ICAA Broad Based Business Reporting (2008-2009)
PwC has worked with the Institute of Chartered Accountants in Australia (ICAA) on its Broad Based
Business Reporting (BBBR) initiative. The first report BBBR – The complete reporting tool provides an
overview of BBBR, including the importance of financial and non-financial KPIs into existing reporting.
The second BBBR supplementary paper expands on the original paper by placing BBBR in the
context of the global economic downturn and tightening of capital, and also provides sector specific
KPIs for resources, banking and services organisations. Further information is available at
www.charteredaccountants.com.au topics – Reporting – Resources and toolkits – Leadership
papers).
The Shareholder Friendly Report (2005)
The Shareholder Friendly Report was jointly developed by PwC and the Australian Institute of
Company Directors (AICD) and launched in September 2005. The report is an illustrative guide
demonstrating how to provide clear information on board and management performance, by focusing
on relevant not just more information. The format of this report enables companies to focus on their
performance against key strategies, as well as outlining their future prospects in key financial and
non-financial areas of the business.
Although not designed to replace the Annual Report nor the Concise Report, the Shareholder Friendly
Report is an alternative framework that companies should consider as a medium for clearer
communication with their shareholders. The Shareholder Friendly Report meets the requirements of
the G100 Guide Review of Operations & Financial Condition and is still a useful reference for
preparers of a review of operations when planning the structure and content of their report.
An electronic copy of the Shareholder Friendly Report can be downloaded from
www.pwc.com.au/assurance/financial/publications.
Report Leadership Today (2006)
The Report Leadership group was established in 2006 by four organisations, including PwC, to
challenge the current corporate reporting framework and debate the contents and structure of a new
model. In a similar vein to the Shareholder Friendly Report, Report Leadership published an
illustrative annual report for Generico to stimulate further debate on the relevance and quality of
current corporate reporting, and to develop simple practical ways to improve narrative and financial
reporting. An electronic copy of Report Leadership Today can be downloaded from
www.reportleadership.com.

Directors' report
30 June 2011
(continued)
Best Practice Environmental, Social and Governance (ESG) Reporting (2007)

Best Practice Environmental, Social and Governance (ESG) Reporting (2007) enhances the Generico
model by integrating and reporting on the company’s performance and future prospects in key ESG
areas of business aligned to corporate strategy. In order to assist investors quantify the potential
financial impact of certain ESG activities, we also calculated potential costs and savings from planned
ESG activities.
With the global focus on climate change and increasing focus on a company’s broader governance
framework and socially responsible practices, many of these ESG disclosures are now truly
mainstream, and will be central to any integrated report. An electronic copy of Best Practice
Environmental, Social and Governance (ESG) Reporting can be downloaded from
www.pwc.com.au/assurance/financial/publications.
Typico Plc Greenhouse Emissions Report (2009)

Typico Plc is a pro-forma for a typical Greenhouse Gas (GHG) emissions report. The pro-forma
provides not only a robust framework for reporting the company’s GHG inventory and underlying
policies, but also for articulating the risks and opportunities posed by climate change on the business.
PwC Australia has based its own GHG Reports since 2009 using the Typico framework. The report,
which should be tailored, can be downloaded from www.pwc.com.au/assurance/financial/publications.
Best practice examples and latest PwC insights
We also encourage preparers of the review of operations to visit our website at
www.corporatereporting.com to view our library of best practice reporting examples and the results of
PwC’s ongoing research program.
Recent developments
There is a considerable amount of global and local activity underway to simplify corporate reporting so
that it is principles-based and covers broad based strategically relevant and material financial
(historic) and non-financial (forward-looking) performance information. Some of the more significant
developments are:
 The report Less is more prepared by the G100 with help from PwC. This report argues for
a principles-based approach to determining disclosures in financial reports with the aim of
reducing the volume and complexity of financial reports and focusing on quality rather
than quantity of disclosures. See www.group100.com.au for further information.
 The formation of the International Integrated Reporting Committee (IIRC) by the Global
Reporting Initiative and the Prince’s Trust Accounting for Sustainability. The IIRC’s remit
is to create a globally accepted framework for accounting for sustainability: a framework
which brings together financial, environmental, social and governance (ESG) information
in a clear, concise, consistent and comparable format – ie an ‘integrated’ format. For
more details go to www.integratedreporting.org.
 The establishment of a Business Reporting Leaders Form (BRLF) by the Society for
Knowledge Economics to bring Australian stakeholders (ie corporate, investors,
professional bodies, regulators, non-government organisations and academics) together
to collaborate and contribute to the global efforts of the IIRC. Members of the BBBR
initiative (see above) have now joined the BRLF.
 South African companies will be required to prepare integrated reports from 2011
onwards, providing a holistic and integrated presentation of the company’s finances and
sustainability across all strategic areas of performance. This is the result of the King Code
of Governance four South Africa 2009 (King III). Other countries are considering adoption
of similar requirements (eg Italy) or already have compulsory sustainability reporting (eg
Denmark).

Corporate governance statement
30 June 2011
Corporate governance statement 2-8
Mandatory for listed VALUE ACCOUNTS Holdings Limited (the company) and the board are committed to achieving and
entities only
demonstrating the highest standards of corporate governance. The board continues to review the
framework and practices to ensure they meet the interests of shareholders. The company and its
controlled entities together are referred to as the group in this statement.
ASX(4.10.3) A description of the group's main corporate governance practices is set out below. All these practices,
(Revised)
unless otherwise stated, were in place for the entire year. They comply with the ASX Corporate
1,5
Governance Principles and Recommendations (including 2010 Amendments).
Principle 1: Lay solid foundations for management and oversight
The relationship between the board and senior management is critical to the group’s long-term
success. The directors are responsible to the shareholders for the performance of the group in both
the short and the longer term and seek to balance sometimes competing objectives in the best
interests of the group as a whole. Their focus is to enhance the interests of shareholders and other
key stakeholders and to ensure the group is properly managed.
CGC(1.1) The responsibilities of the board include:
 providing strategic guidance to the group including contributing to the development of and
approving the corporate strategy
 reviewing and approving business plans, the annual budget and financial plans including
available resources and major capital expenditure initiatives
 overseeing and monitoring:
 organisational performance and the achievement of the group’s strategic goals
and objectives
 compliance with the company’s Code of conduct (see page 54)
 progress of major capital expenditures and other significant corporate projects
including any acquisitions or divestments
 monitoring financial performance including approval of the annual and half-year financial
reports and liaison with the company’s auditors
 appointment, performance assessment and, if necessary, removal of the managing director
 ratifying the appointment and/or removal and contributing to the performance assessment
for the members of the senior management team including the CFO and the company
secretary
 ensuring there are effective management processes in place and approving major
corporate initiatives
 enhancing and protecting the reputation of the organisation
 overseeing the operation of the group’s system for compliance and risk management
reporting to shareholders
 ensuring appropriate resources are available to senior management.
CGC(1.1) Day to day management of the group’s affairs and the implementation of the corporate strategy and
policy initiatives are formally delegated by the board to the managing director and senior executives
as set out in the group’s delegations policy. These delegations are reviewed on an annual basis.
CGC(1.3) A performance assessment for senior executives last took place in July 2011. The process for these
assessments is described on the company's website.
Principle 2: Structure the board to add value
The board operates in accordance with the broad principles set out in its charter which is available
from the corporate governance information section of the company website at
www.valueaccounts.com.au. The charter details the board’s composition and responsibilities.

30 June 2011
(continued)
Principle 2: Structure the board to add value (continued)

(Revised) Board composition
The charter states:
 the board is to be comprised of both executive and non-executive directors with a majority
of non-executive directors. Non-executive directors bring a fresh perspective to the board’s
consideration of strategic, risk and performance matters
 in recognition of the importance of independent views and the board’s role in supervising
the activities of management, the Chair must be an independent non-executive director, the
majority of the board must be independent of management and all directors are required to
exercise independent judgement and review and constructively challenge the performance
of management
 the Chair is elected by the full board and is required to meet regularly with the managing
director
 the company is to maintain a mix of directors on the board from different genders, age
groups, ethnicity and cultural and professional backgrounds who have complementary
skills and experience
 the board is to establish measurable board gender diversity objectives and assess annually
the objectives and progress in achieving them
 the board is required to undertake an annual board performance review and consider the
appropriate mix of skills required by the board to maximise its effectiveness and its
contribution to the group.
The board seeks to ensure that:
 at any point in time, its membership represents an appropriate balance between directors
with experience and knowledge of the group and directors with an external or fresh
perspective
 the size of the board is conducive to effective discussion and efficient decision-making.
CGC(2.1) Directors’ independence
The board has adopted specific principles in relation to directors’ independence. These state that
when determining independence, a director must be a non-executive and the board should consider
whether the director:
 is a substantial shareholder of the company or an officer of, or otherwise associated
directly with, a substantial shareholder of the company
 is or has been employed in an executive capacity by the company or any other group
member within three years before commencing to serve on the board
 within the last three years has been a principal of a material professional adviser or a
material consultant to the company or any other group member, or an employee materially
associated with the service provided
 is a material supplier or customer of the company or any other group member, or an officer
of or otherwise associated directly or indirectly with a material supplier or customer
 has a material contractual relationship with the company or a controlled entity other than as
a director of the group
 is free from any business or other relationship which could, or could reasonably be
perceived to, materially interfere with the director’s independent exercise of their
judgement.
Materiality for these purposes is determined on both quantitative and qualitative bases. An amount of
over 5% of annual turnover of the company or group or 5% of the individual directors’ net worth is
considered material for these purposes. In addition, a transaction of any amount or a relationship is
deemed material if knowledge of it may impact the shareholders’ understanding of the director’s
performance.
Recent thinking on corporate governance has introduced the view that a director’s independence may
be perceived to be impacted by lengthy service on the board. To avoid any potential concerns, the
board has determined that a director will not be deemed independent if he or she has served on the
board of the company for more than ten years. The board will continue to monitor developments on
this issue.
The board assesses independence each year. To enable this process, the directors must provide all
information that may be relevant to the assessment.

30 June 2011
(continued)

CGC(2.6) Board members
Details of the members of the board, their experience, expertise, qualifications, term of office,
relationships affecting their independence and their independent status are set out in the directors’
report under the heading 'Information on directors'.8 At the date of signing the directors’ report, there
are two executive directors and six non-executive directors, five of whom have no relationships
adversely affecting independence and so are deemed independent under the principles set out above:
 Mr Cunningham and Mr Bristol both have business dealings with the group as disclosed in
note 36 to the financial statements. However, these are not of a value or significance that
adversely affect the directors’ independence.
 Mr Campbell has served on the board of the company for more than ten years. For this
reason, Mr Campbell, although meeting other criteria, and bringing independent judgement
to bear in his role, is not defined as an independent director.
Non-executive directors
The six non-executive directors met twice during the year, in scheduled sessions without the presence
of management, to discuss the operation of the board and a range of other matters. Relevant matters
arising from these meetings were shared with the full board.
Term of office
The company’s constitution specifies that all non-executive directors must retire from office no later
than the third annual general meeting (AGM) following their last election. Where eligible, a director
may stand for re-election, subject to the following limitations:
 no non-executive director may serve more than four terms (twelve years), and
 on attaining the age of 70 years a director will retire, by agreement, at the next AGM and
will not seek re-election.
Chair and chief executive officer (CEO)
CGC(2.2) The Chair is responsible for leading the board, ensuring directors are properly briefed in all matters
relevant to their role and responsibilities, facilitating board discussions and managing the board’s
relationship with the company’s senior executives. In accepting the position, the Chair has
acknowledged that it will require a significant time commitment and has confirmed that other positions
will not hinder his effective performance in the role of Chair.
CGC(2.3) The CEO is responsible for implementing group strategies and policies. The board charter specifies
that these are separate roles to be undertaken by separate people.
CGC(2.5) Induction
(Revised) The induction provided to new directors and senior managers enables them to actively participate in
board decision-making as soon as possible. It ensures that they have a full understanding of the
company’s financial position, strategies, operations, culture, values and risk management policies. It
also explains the respective rights, duties, responsibilities, interaction and roles of the board and
senior executives and the company’s meeting arrangements.
Commitment
The board held ten board meetings and an additional corporate strategy workshop during the year.
Two of those meetings were held at operational sites of the company and a full tour of the facilities
was included as part of the visit.
Non-executive directors are expected to spend at least 40 days a year preparing for and attending
board and committee meetings and associated activities.
The number of meetings of the company’s board of directors and of each board committee held
during the year ended 30 June 2011, and the number of meetings attended by each director is
disclosed on page 13.
It is the company’s practice to allow its executive directors to accept appointments outside the
company with prior written approval of the board. No appointments of this nature were accepted
during the year ended 30 June 2011.
CGC(2.4) The commitments of non-executive directors are considered by the nomination committee prior to the
directors’ appointment to the board of the company and are reviewed each year as part of the annual
performance assessment.
Prior to appointment or being submitted for re-election, each non-executive director is required to
specifically acknowledge that they have and will continue to have the time available to discharge their
responsibilities to the company.

30 June 2011
(continued)

Conflict of interests
Entities connected with Mr A L Cunningham and Mr B C Bristol had business dealings with the group
during the year, as described in note 36 to the financial statements. In accordance with the board
charter, the directors concerned declared their interests in those dealings to the company and took no
part in decisions relating to them or the preceding discussions. In addition, those directors did not
receive any papers from the group pertaining to those dealings.
Independent professional advice
CGC(2.1) Directors and board committees have the right, in connection with their duties and responsibilities, to
seek independent professional advice at the company's expense. Prior written approval of the Chair is
required, but this will not be unreasonably withheld.
Performance assessment
CGC(2.5) The board undertakes an annual self assessment of its collective performance, the performance of
the Chair and of its committees. The assessment also considers the adequacy of induction and
continuing education, access to information and the support provided by the company secretary.
Management are invited to contribute to this appraisal process which is facilitated by an independent
third party. The results and any action plans are documented together with specific performance goals
which are agreed for the coming year. An assessment carried out in accordance with this process was
undertaken during September 2010.
The Chair undertakes an annual assessment of the performance of individual directors and meets
privately with each director to discuss this assessment. Descriptions of the process for performance
assessment for the board and senior executives are available on the company website.
Board committees
The board has established a number of committees to assist in the execution of its duties and to allow
detailed consideration of complex issues. Current committees of the board are the nomination,
remuneration and audit committees. Each is comprised entirely of non-executive directors. The
committee structure and membership is reviewed on an annual basis. A policy of rotation of
committee members applies.
Each committee has its own written charter setting out its role and responsibilities, composition,
structure, membership requirements and the manner in which the committee is to operate. All of these
charters are reviewed on an annual basis and are available on the company website. All matters
determined by committees are submitted to the full board as recommendations for board decisions.
Minutes of committee meetings are tabled at the subsequent board meeting. Additional requirements
for specific reporting by the committees to the board are addressed in the charter of the individual
committees.
Nomination committee
CGC(2.4) The nomination committee consists of the following non-executive directors (a majority of whom are
independent):
CGC(2.6) M K Hollingworth (Chair)
J C Campbell
A L Cunningham
R J Hunter.
CGC(2.6) Details of these directors’ attendance at nomination committee meetings are set out in the directors’
8
report on page 13.
(Revised) The nomination committee operates in accordance with its charter which is available on the company
website. The main responsibilities of the committee are to:
 conduct an annual review of the membership of the board having regard to present and
future needs of the company and to make recommendations on board composition and
appointments
 conduct an annual review of and conclude on the independence of each director
 propose candidates for board vacancies
 oversee the annual performance assessment program
 oversee board succession, including the succession of the Chair, and reviewing whether
succession plans are in place to maintain an appropriately balanced mix of skills,
experience and diversity on the board
 assess the effectiveness of the induction process.

30 June 2011
(continued)

When a new director is to be appointed the committee prepares a board skills matrix to review the
range of skills, experience and expertise on the board, and to identify its needs. From this the
committee prepares a short-list of candidates with appropriate skills and experience. A number of
channels are used to source candidates to ensure the company benefits from a diverse range of
individuals in the selection process. Where necessary, advice is sought from independent search
consultants.
The full board then appoints the most suitable candidate who must stand for election at the next
annual general meeting of the company. The committee’s nomination of existing directors for
reappointment is not automatic and is contingent on their past performance, contribution to the
company and the current and future needs of the board and company. The board and the committee
are also aware of the advantages of board renewal and succession planning.
CGC(2.6) Details of the nomination, selection and appointment processes are available on the company
website.
Notices of meetings for the election of directors comply with the ASX Corporate Governance Council’s
best practice recommendations.
New directors are provided with a letter of appointment setting out the company’s expectations, their
responsibilities, rights and the terms and conditions of their employment. All new directors participate
in a comprehensive, formal induction program which covers the operation of the board and its
committees and financial, strategic, operations and risk management issues.
Principle 3: Promote ethical and responsible decision making
Code of conduct
CGC(3.1) The company has developed a statement of values and a Code of conduct (the Code) which has
been fully endorsed by the board and applies to all directors and employees. The Code is regularly
reviewed and updated as necessary to ensure it reflects the highest standards of behaviour and
professionalism and the practices necessary to maintain confidence in the group’s integrity and to
take into account legal obligations and reasonable expectations of the company’s stakeholders.
In summary, the Code requires that at all times all company personnel act with the utmost integrity,
objectivity and in compliance with the letter and the spirit of the law and company policies.
CGC(3.2) The purchase and sale of company securities by directors and employees is only permitted during the
thirty day period following the release of the half-yearly and annual financial results to the market. Any
transactions undertaken must be notified to the company secretary in advance.
The Code and the company’s trading policy is discussed with each new employee as part of their
induction training. Further training is periodically provided and all employees are asked to sign an
annual declaration confirming their compliance with the Code and the trading policy.
The Code requires employees who are aware of unethical practices within the group or breaches of
the company’s trading policy to report these using the company’s whistleblower program. This can be
done anonymously.
The internal audit division reviews and reports directly to the board on the compliance with the Code
and the trading policy. Internal audit also has responsibility for the initial investigations of significant
issues raised under the whistleblower program. These matters are reported to the audit committee.
The directors are satisfied that the group has complied with its policies on ethical standards, including
trading in securities.
CGC(3.3) A copy of the Code and the trading policy are available on the company’s website.
(New)
Diversity policy 2
CGC(3.2) The company values diversity and recognises the benefits it can bring to the organisation’s ability to
achieve its goals. Accordingly the company has developed a diversity policy, a copy of which can be
found on the company website. This policy outlines the company’s diversity objectives in relation to
gender, age, cultural background and ethnicity. It includes requirements for the board to establish
measurable objectives for achieving diversity, and for the board to assess annually both the
objectives, and the company’s progress in achieving them.

30 June 2011
(continued)
Principle 3: Promote ethical and responsible decision making (continued)

CGC(3.4) In accordance with this policy and ASX Corporate Governance Principles, the Board has established
the following objectives in relation to gender diversity. The aim is to achieve these objectives over the
coming 2 to 3 years as director and senior executive positions become vacant and appropriately
skilled candidates are available:
Objective Actual
Number % Number %
Number of women 260 40 266 41
employees in the
whole organisation
Number of women in 2 25 1 12.5
senior executive
positions
Number of women 2 25 1 12.5
on the board
Principle 4: Safeguard integrity in financial reporting
Audit committee 9-12

ASX(1.1)(Condition 13) The audit committee consists of the following non-executive directors:
ASX(12.7)
CGC(4.4),(4.1),(4.2)
C A Maxwell (Chair)
A L Cunningham
R J Hunter
B A Wilson (resigned 29 July 2011)
CGC(4.4) Details of these directors’ qualifications and attendance at audit committee meetings are set out in the
8
directors’ report on pages 10 - 13.
CGC(4.2) All members of the audit committee are financially literate and have an appropriate understanding of
the industries in which the group operates. One member, Mr Maxwell, has relevant qualification and
experience by virtue of being a former partner of a major accounting firm.
The audit committee operates in accordance with a charter which is available on the company
website. The main responsibilities of the committee are to:
 review, assess and approve the annual full and concise reports, the half-year financial
report and all other financial information published by the company or released to the
market
 assist the board in reviewing the effectiveness of the organisation's internal control
environment covering:
 effectiveness and efficiency of operations
 reliability of financial reporting
 compliance with applicable laws and regulations
 determine the scope of the internal audit function and ensure that its resources are
adequate and used effectively, and assess its performance, including independence
 ratify the appointment and/or removal and contribute to the performance assessment of the
chief internal auditor
 oversee the effective operation of the risk management framework
 recommend to the board the appointment, removal and remuneration of the external
auditors, and review the terms of their engagement, the scope and quality of the audit and
assess performance
 consider the independence and competence of the external auditor on an ongoing basis
 review and approve the level of non-audit services provided by the external auditors and
ensure it does not adversely impact on auditor independence
 review and monitor related party transactions and assess their propriety
 report to the board on matters relevant to the committee’s role and responsibilities.

30 June 2011
(continued)
Principle 4: Safeguard integrity in financial reporting (continued)

In fulfilling its responsibilities, the audit committee:
 receives regular reports from management and the internal and the external auditors
 meets with the internal and external auditors at least twice a year, or more frequently if
necessary
 reviews the processes the CEO and CFO have in place to support their certifications to the
board
 reviews any significant disagreements between the auditors and management, irrespective
of whether they have been resolved
 meets separately with the external auditors and the chief internal auditor at least twice a
year without the presence of management
 provides the internal and external auditors with a clear line of direct communication at any
time to either the Chair of the audit committee or the Chair of the board.
The audit committee has authority, within the scope of its responsibilities, to seek any information it
requires from any employee or external party.
External auditors
The company and audit committee policy is to appoint external auditors who clearly demonstrate
quality and independence. The performance of the external auditor is reviewed annually and
applications for tender of external audit services are requested as deemed appropriate, taking into
consideration assessment of performance, existing value and tender costs. PwC was appointed as
the external auditor in 1996. It is PwC's policy to rotate audit engagement partners on listed
companies at least every five years, and in accordance with that policy a new audit engagement
13
partner was introduced for the year ended 30 June 2010.
An analysis of fees paid to the external auditors, including a break-down of fees for non-audit
services, is provided in the directors’ report and in note 37 to the financial statements. It is the policy
of the external auditors to provide an annual declaration of their independence to the audit committee.
CA250RA The external auditor will attend the annual general meeting and be available to answer shareholder
questions about the conduct of the audit and the preparation and content of the audit report.
Principles 5 and 6: Make timely and balanced disclosures and respect the rights of
shareholders
(Revised) Continuous disclosure and shareholder communication 14
CGC(5.1),(6.1) The company has written policies and procedures on information disclosure that focus on continuous
disclosure of any information concerning the group that a reasonable person would expect to have a
material effect on the price of the company’s securities. These policies and procedures also include
the arrangements the company has in place to promote communication with shareholders and
encourage effective participation at general meetings. A summary of these policies and procedures is
available on the company’s website.
The company secretary has been nominated as the person responsible for communications with the
Australian Securities Exchange (ASX). This role includes responsibility for ensuring compliance with
the continuous disclosure requirements in the ASX Listing Rules and overseeing and co-ordinating
information disclosure to the ASX, analysts, brokers, shareholders, the media and the public.
CGC(6.1) All information disclosed to the ASX is posted on the company’s website as soon as it is disclosed to
the ASX. When analysts are briefed on aspects of the group’s operations, the material used in the
presentation is released to the ASX and posted on the company’s web site. Procedures have also
been established for reviewing whether any price sensitive information has been inadvertently
disclosed and, if so, this information is also immediately released to the market.
The website also enables users to provide feedback and has an option for shareholders to register
their email address for direct email updates on company matters.
All shareholders receive a copy of the company’s annual (full or concise) and half-yearly reports. In
addition, the company seeks to provide opportunities for shareholders to participate through electronic
means. Recent initiatives to facilitate this include making all company announcements, media
briefings, details of company meetings, press releases for the last three years and financial reports for
the last five years available on the company’s website, including a broadcast of the company’s annual
general meeting. Where possible, the company arranges for advance notification of significant group
briefings (including, but not limited to, results announcements) and makes them widely accessible,
including through the use of webcasting or any other mass communication mechanisms as may be
practical.

30 June 2011
(continued)
(Revised)
Principle 7: Recognise and manage risk 15
CGC(7.1) The board is responsible for satisfying itself annually, or more frequently as required, that
management has developed and implemented a sound system of risk management and internal
control. Detailed work on this task is delegated to the audit committee and reviewed by the full board.
The audit committee is responsible for ensuring there are adequate policies in relation to risk
management, compliance and internal control systems. They monitor the company’s risk
management by overseeing management’s actions in the evaluation, management, monitoring and
reporting of material operational, financial, compliance and strategic risks. In providing this oversight,
the committee:
 reviews the framework and methodology for risk identification, the degree of risk the
company is willing to accept, the management of risk and the processes for auditing and
evaluating the company’s risk management system
 reviews group-wide objectives in the context of the abovementioned categories of
corporate risk
 reviews and, where necessary, approves guidelines and policies governing the
identification, assessment and management of the company’s exposure to risk
 reviews and approves the delegations of financial authorities and addresses any need to
update these authorities on an annual basis, and
 reviews compliance with agreed policies.
The committee recommends any actions it deems appropriate to the board for its consideration.
Management is responsible for designing, implementing and reporting on the adequacy of the
company’s risk management and internal control system and has to report to the audit committee on
the effectiveness of:
 the risk management and internal control system during the year, and
 the company’s management of its material business risks.
Risk management group
CGC(7.2) The company’s risk management policy and the operation of the risk management and compliance
system are managed by the company’s risk management group which consists of senior executives
chaired by the CFO. The board receives quarterly reports from this group as to the effectiveness of
the company's management of material risks that may impede meeting business objectives.
The internal audit division carries out regular systematic monitoring of control activities and reports to
both relevant business unit management and the audit committee. In addition each business unit
reports on the key business risks in their area to the risk management group. The basis for this report
is a half-yearly review of the past performance of their area of responsibility, and the current and
future risks they face. The review is undertaken by business unit management. Results of internal
audit work are incorporated into this review if applicable.
The risk management group consolidates the business unit reports and recommends any actions to
the Board for its consideration.
Corporate reporting
In complying with recommendation 7.3, the managing director and CFO have made the following
certifications to the board:
 that the company’s financial reports are complete and present a true and fair view, in all
material respects, of the financial condition and operational results of the company and
group and are in accordance with relevant accounting standards
CGC(7.3)
 that the above statement is founded on a sound system of risk management and internal
compliance and control which implements the policies adopted by the board and that the
company’s risk management and internal compliance and control is operating efficiently
and effectively in all material respects in relation to financial reporting risks.

30 June 2011
(continued)
Principle 8: Remunerate fairly and responsibly

Remuneration committee
CGC(8.1) The remuneration committee consists of the following non-executive directors (a majority of whom are
independent, including the Chair):
CGC(8.3) B A Wilson (Chair; resigned 29 July 2011)
J C Campbell
M K Hollingworth
C A Maxwell
Details of these directors’ attendance at remuneration committee meetings are set out in the directors’
report on page 13.
CGC(8.3) The remuneration committee operates in accordance with its charter which is available on the
company website. The remuneration committee advises the board on remuneration and incentive
policies and practices generally, and makes specific recommendations on remuneration packages
and other terms of employment for executive directors, other senior executives and non-executive
directors.
Committee members receive regular briefings from an external remuneration expert on recent
developments on remuneration and related matters.
Each member of the senior executive team signs a formal employment contract at the time of their
appointment covering a range of matters including their duties, rights, responsibilities and any
entitlements on termination. The standard contract refers to a specific formal job description. This job
description is reviewed by the remuneration committee on an annual basis and, where necessary, is
revised in consultation with the relevant employee.
CGC(8.3) Further information on directors’ and executives’ remuneration, including principles used to determine
8
remuneration, is set out in the directors’ report under the heading 'Remuneration report'. In
accordance with group policy, participants in equity-based remuneration plans are not permitted to
enter into any transactions that would limit the economic risk of options or other unvested
entitlements. Details of this policy can be found on the company’s website.
The committee also assumes responsibility for overseeing management succession planning,
including the implementation of appropriate executive development programmes and ensuring
adequate arrangements are in place, so that appropriate candidates are recruited for later promotion
to senior positions.
Commentary - Corporate governance statement
ASX Corporate Governance Listing Rule

ASX(4.10.3) 1. Listed entities are required to disclose the extent to which they have followed the
recommendations set by the ASX Corporate Governance Council (the CGC) during the
reporting period. If the entity has not followed all of the recommendations the entity must
identify those recommendations that have not been followed and give reasons for not
following them. If a recommendation has been followed for only part of the period, the entity
must state the period during which it was followed. The corporate governance statement may
be given to the ASX as a separate report but must be given to the ASX at the same time as
the annual report and be clearly identified as the corporate governance report.
CGC best practice recommendations
2. The ASX convened the CGC as a central reference point for companies to understand
stakeholder expectations of corporate governance. The CGC released its latest version of
the Corporate Governance Principles and Recommendations (including 2010 Amendments)
in 2010. ASX Guidance Note 9A contains a condensed version of the CGC’s document. The
main change in 2010 was the introduction of a requirement for a diversity policy and
associated disclosures. While the revised principles are only mandatory for financial years
commencing on or after 1 January 2011, the CGC has encouraged early adoption for 30
June 2011 year-ends.
3. The CGC’s guidelines state that if in a particular circumstance, the company believes a
recommendation is not appropriate for their circumstances, a full explanation of this is
required in the annual report.

30 June 2011
(continued)
Commentary - Corporate governance statement (continued)
4. The VALUE ACCOUNTS Holdings Limited corporate governance statement includes

disclosures relevant to the CGC’s guidelines. However, as corporate governance practices
will vary between entities, the VALUE ACCOUNTS Holdings Limited corporate governance
statement should only be used as a guide to the types of disclosures that may be
appropriate.
5. The revised guidelines encourage companies to improve their disclosures by discussing
compliance with the recommendations consecutively on a
recommendation-by-recommendation basis. The illustrative disclosures in this publication
have been structured accordingly.
Unlisted entities
6. Unlisted entities are not required to disclose their corporate governance practices. However,
unlisted disclosing entities and other economically significant entities may wish to make
relevant disclosures to demonstrate their commitment to a high level of corporate
governance.
Position in the annual report
7. It is recommended that the corporate governance statement is included in the annual report
as a separate statement. The statement should not be included in the financial report upon
which the auditor is required to express an opinion.
8. In some cases the CGC guidelines require relevant disclosures to be set out in a separate
corporate governance section of the annual report. Where the Corporations Act 2001
requires particular information to be included in the directors’ report, the entity has the
discretion to include a cross-reference to the relevant information in the corporate
governance section of the annual report rather than replicating that information.
Audit committees
ASX(1.1)(Condition13), 9. A listed entity which was included in the S&P All Ordinaries Index at the beginning of its
ASX(12.7)
financial year (or a newly listed entity which will be included in the S&P All Ordinaries Index
on admission) must have an audit committee during that year. If the entity was in the top 300
of that index at the beginning of the year, the composition, operation and responsibility of the
audit committee must comply with the best practice recommendations set by the CGC. If the
entity is a trust, its audit committee may also be the responsible entity’s audit committee.
CGC(4.2) 10. Recommendation 4.2 of the CGC guidelines states that the audit committee should be
structured so that it consists of:
(a) only non-executive directors
(b) a majority of independent directors
(c) an independent chairperson, who is not chairperson of the board
(d) at least three members.
ASX(12.7) 11. The S&P All Ordinaries Index is reviewed quarterly. If an entity was included in the index on
the first day of its financial year but is subsequently not included in the index following a
quarterly review, it must comply with listing rule 12.7 for the whole of the financial year. If an
entity was not included in the index on the first day of its financial year, but is subsequently
included in the index following a quarterly review, it need not comply with the rule for that
financial year. The ASX regularly publishes a list of the top 300 of the S&P All Ordinaries
Index.
CGC(4.1) 12. If there is no audit committee (eg in the case of a small listed company outside the S&P All
Ordinaries Index) it is particularly important that the company disclose how its alternative
approach assures the integrity of the financial statements and the independence of the
external auditor, and why an audit committee is not considered appropriate.
Audit partner rotation
CA324DA 13. PwC’s current policy is to rotate audit engagement partners on listed companies at least
APES110(200.13)
every five years. This policy complies with APES 110 Code of Ethics for Professional
Accountants (formerly Professional Statement F1 Professional Independence) and the
requirements of the Corporations Act 2001.

30 June 2011
(continued)
Commentary - Corporate governance statement (continued)
Continuous disclosure
14. The ASX has released Guidance Note 8 Continuous Disclosure: Listing Rule 3.1 to assist
entities in complying with the continuous disclosure requirements of Listing Rule 3.1. ASIC’s
Better disclosure for investors guidance principles are contained in Guidance Note 8. The
ASX endorses these principles and has included commentary on each guidance principle to
give listed entities practical guidance on their continuous disclosure obligations. Annual
reporting of corporate governance practices does not diminish a company’s obligation to
comply with the continuous disclosure requirements of Listing Rule 3.1.
Supplementary guidance to principle 7 Recognise and Manage Risk
15. The ASX CGC has issued supplementary guidance to principle 7 Recognise and Manage
Risk which can be accessed via the ASX’s web site (www.asx.com.au).

VALUE ACCOUNTS Holdings Limited ABN XY XYZ XYZ XYZ
AASB101(49),(51)(a)
Annual financial report – 30 June 2011 1-15,17-24
Contents Page
AASB101(49)
Financial statements
Consolidated income statement 65
Consolidated statement of comprehensive income 66
Consolidated balance sheet 75
Consolidated statement of changes in equity 78
Consolidated statement of cash flows 80
Notes to the consolidated financial statements 84
Directors' declaration 284
AASB101(51)(b),(d) These financial statements are the consolidated financial statements of the consolidated entity
consisting of VALUE ACCOUNTS Holdings Limited and its subsidiaries. The financial statements are
presented in the Australian currency. 19
AASB101(138)(a) VALUE ACCOUNTS Holdings Limited is a company limited by shares, incorporated and domiciled in
Australia. Its registered office and principal place of business is:
350 Harbour Street
Sydney NSW 2000.
AASB101(138)(b) A description of the nature of the consolidated entity's operations and its principal activities is included
in the review of operations and activities on pages [x] to [y] and in the directors' report on pages [x] to
[y], both of which are not part of these financial statements.
AASB110(17) The financial statements were authorised for issue by the directors on 27 August 2011. The directors
25
have the power to amend and reissue the financial statements.
Through the use of the internet, we have ensured that our corporate reporting is timely and complete.
All press releases, financial reports and other information are available at our Shareholders’ Centre on
16
our website: www.valueaccounts.com.au

30 June 2011
Commentary - Financial statements
Accounting standard for financial statements presentation and disclosures

AASB101(Aus1.1) 1. AASB 101 Presentation of Financial Statements applies to each entity which is required to
prepare financial reports in accordance with Part 2M.3 of the Corporations Act 2001, general
purpose financial statements of each reporting entity, and to financial statements that are, or
are held out to be, general purpose financial statements.
AASB101(10) 2. A revised AASB 101 (issued September 2007) became applicable for reporting periods
commencing on or after 1 January 2010. It introduced the notion of a 'complete set of
financial statements' which comprises:
(a) a statement of financial position as at the end of the period
(b) a statement of comprehensive income for the period
(c) a statement of changes in equity for the period
(d) a statement of cash flow for the period
(e) notes, comprising a summary of significant accounting policies and other
explanatory notes, and
(f) if the entity has applied an accounting policy retrospectively, made a retrospective
restatement of items or has reclassified items in its financial statements: a
statement of financial position as at the beginning of the earliest comparative
period.
AASB101(11) The statements must all be presented with equal prominence.
AASB101(10) 3. The titles of the individual statements are not mandatory and an entity can, for example
continue to refer to the statement of financial position as ‘balance sheet’. VALUE
ACCOUNTS Holdings Limited has chosen to do so, as the term ‘balance sheet’ is widely
known and understood.
Financial statements vs financial report
4. While the term ‘financial report’ is no longer used in the accounting standards, it is still a
defined term in the Corporations Act 2001 and covers:
CA295(1) (a) the complete set of financial statements (as per above), and
(b) the directors’ declaration.
General requirements for financial statements
AASB101(49) 5. The financial statements shall be clearly identified and distinguished from other information in
the same published document.
AASB101(Aus50.1) 6. The financial statements shall be presented in the English language.
AASB101(51) 7. Each financial statement and the notes shall be clearly identified. The following information
shall be displayed prominently, and repeated when necessary for a proper understanding of
the information presented:
(a) the name of the reporting entity or other means of identification, and any change
in that information from the end of the preceding reporting period
(b) whether the financial statements cover the individual entity or a group of entities
(c) the date of the end of the reporting period or the period covered by the set of
financial statements or notes
(d) the presentation currency, as defined in AASB 121 The Effects of Changes in
Foreign Exchange Rates (refer also to paragraphs 19-23 below), and
(e) the level of rounding used in presenting amounts in the financial statements (refer
to note 1(ad) to the financial statements).
Consolidated financial statements of intermediate parents
AASB127(10) 8. A parent entity does not need to present consolidated financial statements if (and only if):
(a) the parent is an intermediate parent and the owners do not object to the parent not
preparing consolidated financial statements
(b) the parent’s debt or equity instruments are not publicly traded
(c) the parent has not filed, or is not in the process of filing, its financial statements
with a regulatory body for the purpose of issuing any class of instruments in a
public market, and
(d) the ultimate parent or an intermediate parent produces consolidated financial
statements for public use that comply with IFRS.
AASB127(Aus10.1) The ultimate Australian parent must also present consolidated financial statements if either
the parent and/or the group are reporting entities.

30 June 2011
(continued)
Commentary - Financial statements (continued)
Comparative information
AASB101(38) 9. Except when an Australian Accounting Standard permits or requires otherwise, comparative
information shall be disclosed in respect of the previous period for all amounts reported in the
financial statements. Comparative information shall be included for narrative and descriptive
information when it is relevant to an understanding of the current period’s financial
statements.
AASB101(40) 10. In some cases, narrative information provided in the financial statements for the previous
period(s) continues to be relevant in the current period. For example, details of a legal
dispute, the outcome of which was uncertain at the end of the immediately preceding
reporting period and that is yet to be resolved, are disclosed in the current period. Users
benefit from information that the uncertainty existed at the end of the immediately preceding
reporting period, and about the steps that have been taken during the period to resolve the
uncertainty.
AASB101(41) 11. When the presentation or classification of items in the financial statements is amended,
comparative amounts shall be reclassified unless the reclassification is impracticable. When
comparative amounts are reclassified, an entity shall disclose:
(a) the nature of the reclassification
(b) the amount of each item or class of items that is reclassified
(c) the reason for the reclassification.
AASB101(42) 12. When it is impracticable to reclassify comparative amounts, an entity shall disclose:
(a) the reason for not reclassifying the amounts
(b) the nature of the adjustments that would have been made if the amounts had
been reclassified.
Three balance sheets required in certain circumstances
AASB101(38),(39) 13. If an entity has applied an accounting policy retrospectively, restated items retrospectively or
reclassified items in its financial statements, it must present a third balance sheet (statement
of financial position) as at the beginning of the earliest comparative period presented.
However, where the retrospective change in policy or the restatement has no effect on this
earliest statement of financial position, we believe that it would be sufficient for the entity to
merely disclose that fact. Indeed, it could be argued that, in such circumstances it is
preferable to omit the third balance sheet to avoid unnecessary ‘clutter’ that might otherwise
dilute the important messages of the financial statements.
AASB101(39) 14. The requirement to present comparative information for the beginning of the earliest period
presented also extends to the related notes. However, many of the notes to the balance
sheet will be unaffected by the restatement or reclassification. In our view it is not necessary
to present the additional information for notes that are not affected, provided that the entity
states in its financial statements that the other notes have not been impacted. The omission
of this information in relation to unaffected notes is, in our view, not material and is therefore
permitted.
No financial statements prepared in the previous year
AASB101(38) 15. Comparative information must be provided even if the entity did not prepare financial
statements under the Corporations Act 2001 in the previous financial year. An example
would be a company that was previously a small proprietary company and that became large
or foreign controlled during the reporting period. Specific relief from providing comparative
information in such cases, which was provided by ASIC before transition to Australian
equivalents to IFRS, is no longer available under Australian Accounting Standards.
Electronic presentation of financial reports
CA314(1AE) 16. The Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 enables
companies, registered schemes and disclosing entities to meet, subject to certain conditions,
their statutory reporting obligations to shareholders by distributing annual financial reports
electronically. In doing so, management should ensure their systems and controls address
the risks associated with presenting information using this medium in order to maintain the
security and integrity of the information in those financial reports.

30 June 2011
(continued)
Commentary - Financial statements (continued)
Disclosures not illustrated: not applicable to VALUE ACCOUNTS Holdings Limited

Separate financial statements
AASB127(43) 17. When a parent, venturer with an interest in a jointly controlled entity or an investor in an
associate prepares separate financial statements, those financial statements shall disclose:
AASB127(43)(a) (a) the fact that the statements are separate financial statements
AASB127(43)(a) (b) the reason why they are prepared, if not required by law
AASB127(43)(b) (c) a list of significant investments in subsidiaries, jointly controlled entities and
associates, including their country of incorporation or residence, proportion of
ownership interest and proportion of voting power held (if different), and
AASB127(43)(c) (d) a description of the method used to account for the investments in (c) above.
AASB127(RDR43.1)
Consolidated financial statements not prepared

AASB127(42)(a) 18. Where a parent entity has elected not to prepare consolidated financial statements in
accordance with paragraphs 10 and Aus 10.1 of AASB 127 (see paragraph 11 below) its
separate financial statements shall disclose:
(a) the fact that the financial statements are separate financial statements
(b) that the exemption from consolidation has been used
(c) the name and country of incorporation or residence of the entity whose
consolidated financial statements that comply with IFRS have been produced for
public use, and
(d) the address where those consolidated financial statements can be obtained.
Foreign currencies
AASB121(38), 19. For the purpose of reporting under the Corporations Act 2001, entities are only permitted to
(Aus38.1)
present financial statements which purport to be drawn up in accordance with the
Corporations Act 2001 in one presentation currency.
AASB121(51),(53) 20. When the presentation currency is different to the functional currency of the parent entity,
that fact shall be stated, together with disclosure of the functional currency and the reason for
using a different presentation currency.
AASB121(51),(54) 21. When there is a change in the functional currency of either the reporting entity or a significant
foreign operation, that fact and the reason for the change in functional currency shall be
disclosed.
AASB121(51),(55) 22. When an entity presents its financial statements in a currency that is different from its
functional currency, it shall describe the financial statements as complying with Australian
Accounting Standards only if they comply with all the requirements of each applicable
standard and each applicable UIG Interpretation of those standards including the translation
method set out in paragraphs 39 and 42 of AASB 121.
AASB121(51),(57) 23. When an entity displays its financial statements or other financial information in a currency
that is different from either its functional currency or its presentation currency and the
requirements of paragraph 55 of AASB 121 (refer to paragraph 23 above) are not met, it
shall:
(a) clearly identify the information as supplementary information to distinguish it from
the information that complies with Australian Accounting Standards
(b) disclose the currency in which the supplementary information is displayed, and
(c) disclose the entity’s functional currency and the method of translation used to
determine the supplementary information.
Period of financial statements changed to longer or shorter than one year
AASB101(36) 24. An entity shall present a complete set of financial statements at least annually. When an
entity changes the end of its reporting period and presents financial statements for a period
longer or shorter than one year, it shall disclose, in addition to the period covered by the
financial statements:
(a) the reason for using a longer or shorter period, and
(b) the fact that amounts presented in the financial statements are not entirely
comparable.
Where entity’s owners or others have power to amend financial statements after issue
AASB110(17) 25. If an entity’s owners or others have the power to amend the financial statements after issue,
the entity shall disclose that fact.

CA295(1)(a),(2) VALUE ACCOUNTS Holdings Limited
AASB101(10)(b),
(81)(b),(82)
Consolidated income statement 1-15,17,18,43-47
AASB101(51)(c) For the year ended 30 June 2011
2011 2010
AASB101(51)(c),(e)
AASB101(113) Notes $'000 $'000
AASB101(82)(a) Revenue from continuing operations 5 58,540 42,280
Other income 6 1,608 281

Changes in inventories of finished goods and work in
progress 35-41 1,681 255
Raw materials and consumables used 35-41 (20,055) (12,645)
Employee benefits expense 35-41 (24,452) (22,234)
Depreciation and amortisation expense 35-41 8 (1,375) (980)
AASB101(97)
Impairment of goodwill 28-31 23 (410) -
AASB101(97)
Write off of assets damaged by fire 28-31 8 (1,210) -
Other expenses (2,690) (1,222)
AASB101(82)(b) Finance costs 8 (1,239) (585)
AASB101(82)(c) Share of net profit of associates and joint venture
16
partnership accounted for using the equity method 450 370
Profit before income tax 10,848 5,520
AASB101(82)(d)
AASB112(77) Income tax expense 9 (3,151) (1,465)
Profit from continuing operations 18 7,697 4,055
AASB5(33)(a)
AASB101(82)(e) Profit from discontinued operation 10 715 399
AASB101(82)(f) Profit for the year 8,412 4,454
Profit is attributable to: 5

AASB101(83)(a)(i) Owners of VALUE ACCOUNTS Holdings Limited 7,378 4,067
AASB101(83)(a)(ii) Non-controlling interests 1,034 387
8,412 4,454
Cents Cents
AASB133(66) Earnings per share for profit from continuing
operations attributable to the ordinary equity holders
19-24
of the company:
Basic earnings per share 49 55.6 31.6
Diluted earnings per share 49 53.5 31.0
AASB133(66) Earnings per share for profit attributable to the

ordinary equity holders of the company:
Basic earnings per share 49 61.6 35.0
Diluted earnings per share 49 59.2 34.4
The above consolidated income statement should be read in conjunction with the accompanying
notes.

AASB101(10)(b),
(81)(b),(82)
Consolidated statement of comprehensive income 32-34,42-46
2011 2010
AASB101(51)(a),(e)
AASB101(113) Notes $'000 $'000
AASB101(82)(f) Profit for the year 8,412 4,454
Other comprehensive income 25-27

AASB101(82)(g),(7)(a) Gain on revaluation of land and buildings 33(a) 543 514
AASB101(82)(g),(7)(d) Changes in the fair value of available-for-sale financial
AASB139(55)(b)
assets 33(a) 64 (31)
AASB101(82)(g),(7)(e)
AASB139(95)(a) Changes in the fair value of cash flow hedges 33(a) 27 (21)
AASB101(82)(g),(7)(b)
AASB119(93B) Actuarial (losses)/gains on retirement benefit obligation 31(f) (309) 197
AASB101(82)(g),(7)(c)
AASB121(32) Exchange differences on translation of foreign operations 33(a) (5) 60
AASB101(82)(g),(7)(c)
AASB139(100) Net investment hedge 33(a) (9) -
AASB101(82)(h) Share of other comprehensive income of associates and
joint ventures 33(a) 300 100
AASB101(91)(b) Income tax relating to components of other comprehensive
26
income 9(d) (188) (228)
Other comprehensive income for the year, net of tax 423 591
AASB101(82)(i) Total comprehensive income for the year 8,835 5,045
Total comprehensive income for the year is attributable to: 5

AASB101(83)(b(i) Owners of VALUE ACCOUNTS Holdings Limited 7,801 4,658
AASB101(83)(b(ii) Non-controlling interests 1,034 387
8,835 5,045
The above consolidated statement of comprehensive income should be read in conjunction with the
accompanying notes.

Consolidated income statement and statement of comprehensive income
For the year ended 30 June 2011
(continued)
Commentary - Income statement and statement of comprehensive income
Accounting standard for income statement and statement of comprehensive income

AASB101(Aus1.1) 1. Requirements for the income statement and statement of comprehensive income are set out
in AASB 101 Presentation of Financial Statements. The standard applies to each entity which
is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act
2001, general purpose financial statements of each reporting entity, and to financial
statements that are, or are held out to be, general purpose financial statements.
One or two statements
AASB101(81) 2. Entities have a choice to present all items of income and expense recognised in a period
either:
(a) in a single statement of comprehensive income, or
(b) in two statements (as done by VALUE ACCOUNTS Holdings Limited):
(i) a separate income statement which displays components of profit or
loss, and
(ii) a statement of comprehensive income which begins with profit or loss
and displays components of other comprehensive income.
The main difference between these two options is that profit for the year would be shown as
a sub-total rather than the ‘bottom line’ and the statement would continue down to total
comprehensive income for the year under option (a).
AASB101(12) 3. Where an entity elects to prepare a separate income statement, it must present this income
statement immediately before the statement of comprehensive income.
Minimum line items
AASB101(82) 4. As a minimum, the statement of comprehensive income must include line items that present
the following amounts for the period:
(a) revenue
(b) finance costs
(c) share of the profit or loss of associates and joint ventures accounted for using the
equity method
(d) tax expense
(e) a single amount comprising the total of (i) the post-tax profit or loss of discontinued
operations and (ii) the post-tax gain or loss recognised on the measurement to fair
value less costs to sell or on the disposal of the assets or disposal group(s)
constituting the discontinued operation
(f) profit or loss
(g) each component of other comprehensive income classified by nature
(h) share of the other comprehensive income of associates and joint ventures
accounted for using the equity method, and
(i) total comprehensive income.
Allocation of profit or loss and total comprehensive income
AASB101(83) 5. The following items must be disclosed in the statement of comprehensive income as
allocations for the period:
(a) profit or loss attributable to:
(i) non-controlling interests
(ii) owners
(b) total comprehensive income for the period attributable to:
(i) non-controlling interests
(ii) owners
AASB5(33)(d) 6. Entities must also disclose the amount of income attributable to owners of the parent from:
(a) continuing operations, and
(b) discontinued operations
either in the statement of comprehensive income or in the notes. VALUE ACCOUNTS
Holdings Limited has elected to provide this information in note 10.

(continued)

(continued)
Separate income statement

AASB101(84) 7. If the entity prepares a separate income statement, this shall include:
(a) items (a)-(f) in paragraph 4 above
(b) item (a) in paragraph 5 above.
Additional line items
AASB101(85) 8. Additional line items, headings and subtotals shall be presented in the statement of
comprehensive income and the income statement (where applicable) when such
presentation is relevant to an understanding of the entity’s financial performance. For
example, a sub-total of gross profit (revenue from sales less cost of sales) should be
included where expenses have been classified by function.
Framework(31) 9. However, additional sub-headings should be used with care. The Framework for the
CESR/05 - 178b
Preparation and Presentation of Financial Statements states that to be useful, information
must be reliable; that is, free from material error and bias. The apparent flexibility in AASB
101 can, therefore, only be used to enhance users’ understanding of the company’s financial
performance. It cannot be used to detract from the amounts that must be disclosed under
Australian Accounting Standards (statutory measures). The Committee of European
Securities Regulators (CESR) has issued a recommendation on disclosure of alternative
performance measures which provides useful guidance on the use of sub-total and
alternative performance measures:
(a) additional line items should be given no more prominence than the defined
statutory measures
(b) additional line items, sub-totals and columns may be used, but only if they do not
detract from the defined statutory measures by introducing bias or by
overcrowding the statement of comprehensive income
(c) each additional line item or column must contain all the revenue or expenses that
relates to the particular line item or column inserted
(d) each additional line item or column must contain only revenue or expense that is
revenue or expense of the entity itself
(e) items may be segregated (for example, by use of columns or sub-totals), but only
where they are different in nature or function from other items in the statement of
comprehensive income
(f) it is not permissible to mix natural and functional classifications of expenses where
the natural and functional categories of expenses overlap
(g) terms used for additional line items and sub-totals should be defined if they are not
terms recognised in the Accounting Standards
(h) additional line items, columns and sub-totals should only be presented when they
are used internally to manage the business
(i) various presentations will be acceptable individually, but consideration must be
given to the aggregate effect of these presentations, so that the overall message
of the statement of comprehensive income is not distorted or confused
(j) the presentation method should generally be consistent from year to year.
10. EBIT (earnings before interest and tax) may be an appropriate sub-heading to show on the
face of the statement of comprehensive income. This line item usually distinguishes between
the pre-tax profits arising from operating items and those arising from financing activities.
11. In contrast, a sub-total for EBITDA (earnings before interest, tax, depreciation and
amortisation) can only be included as a sub-total where the entity presents its expenses by
nature (see paragraph 37 below) and provided the sub-total does not detract from the
statutory measures either by implying that EBITDA is the ‘real’ profit or by overcrowding the
statement of comprehensive income so that the reader cannot determine easily the entity’s
statutory measures. Where an entity presents its expenses by function, it will not be possible
to show depreciation and amortisation as separate line items in arriving at operating profit,
because depreciation and amortisation are types of expenses, not functions of the business.
In this case, EBITDA can only be disclosed by way of footnote, in the notes or in the review
of operations.

(continued)

(continued)
Operating profit
IAS1(BC56) 12. An entity may elect to include a sub-total for its result from operating activities. While this is
permitted, care must be taken that the amount disclosed is representative of activities that
would normally be considered to be 'operating'. Items that are clearly of an operating nature,
for example inventory write-downs, restructuring or relocation expenses, must not be
excluded simply because they occur infrequently or are unusual in amount. Similarly,
expenses cannot be excluded on the grounds that they do not involve cash flows (eg
depreciation or amortisation). As a general rule, operating profit would be the subtotal after
'other expenses', ie excluding finance costs and the share of profits of equity-accounted
investments.
Re-ordering of line items
AASB101(86) 13. Entities should re-order the line items and descriptions of those items where this is necessary
to explain the elements of performance. However, entities are again governed by the overall
requirement for a ‘fair presentation’ and should not make any changes unless there is a good
reason to do so. For example, it may be acceptable to present finance cost as the last item
before pre-tax profit, thereby separating financing activities from the activities that are being
financed.
14. Another example is the share of profit of associates. Normally, this would be shown after
finance cost. However, where the group conducts a significant amount of its business
through associates (or joint ventures), it may be more appropriate to show finance costs after
the share of profit of associates. If the business conducted through associates is a
strategically significant component of the group’s business activity, it may even insert a
sub-total ‘profit before finance costs’. An inclusion of the share of profit of associates in
operating profit, however, would only be appropriate if the associates (or joint ventures) are
regarded as a primary vehicle for the conduct of the group’s operations.
15. Finance income should not be netted against finance costs, but should be included in other
revenue/other income or shown separately in the statement of comprehensive income.
Where finance income is just an incidental benefit, it is acceptable to present finance income
immediately before finance costs and include a sub-total of ‘net finance costs’ in the
statement of comprehensive income. However, where earning interest income is one of the
entity’s main line of business it should be presented as ‘revenue’.
Revenue of equity-accounted investments
AASB101(82)(c) 16. The share of the profit or loss of associates and joint ventures accounted for using the equity
Framework(74)
method should be presented as a separate line item, commonly below other expenses and
finance costs. It should not be included as part of the entity’s revenue. The share of an
associate’s or joint venture entity’s profit is in the nature of a net gain. It does not represent a
gross inflow of economic benefits and hence does not satisfy the definition of revenue in
AASB 118 Revenue. Combining the entity’s share of the associate’s revenue with its own
revenue would be inconsistent with the balance sheet treatment where the entity’s
investment is presented as a separate line item. This is different to the proportionate
consolidation method where the entity would combine its share of the joint venture entity’s
revenue with its own. However, the entity must make a decision to use either the equity
method or the proportionate consolidation method for its joint venture entities. It cannot mix
the two treatments by using proportionate consolidation in the statement of comprehensive
income and the equity method in the balance sheet. Where a group conducts a significant
proportion of its business through associates or joint ventures and wishes to highlight that
fact to the reader of the statement of comprehensive income, it may choose to give additional
financial information by way of a footnote and cross-reference to the notes.
Extraordinary items not permitted
AASB101(87) 17. An entity shall not present any items of income and expense as extraordinary items, either in
the statement of comprehensive income or in the notes.

(continued)

(continued)
Discontinued operations
AASB5(33)(a),(b) 18. As stated in paragraph 5(e) above, entities shall disclose a single amount in the statement of
AASB101(82)(e)
comprehensive income (or separate income statement) comprising the total of (i) the post-tax
profit or loss of discontinued operations and (ii) the post-tax gain or loss recognised on the
measurement to fair value less costs to sell or on the disposal of the assets or disposal
group(s) constituting the discontinued operation. An analysis of this single amount is also
required by paragraph 33 of AASB 5 Non-current Assets Held for Sale and Discontinued
Operations. This analysis may be presented in the notes or in the statement of
comprehensive income (separate income statement). In the case of VALUE ACCOUNTS
Holdings Limited it is presented in note 10. If it is presented in the income statement it must
be presented in a section identified as relating to discontinued operations; that is, separately
from continuing operations. The analysis is not required for disposal groups that are newly
acquired subsidiaries that meet the criteria to be classified as held for sale on acquisition
(refer to paragraph 11 of AASB 5).
Earnings per share
AASB133(66) 19. AASB 133 Earnings per Share requires an entity to present in the statement of
comprehensive income basic and diluted earnings per share (EPS) for the period:
(a) for profit or loss from continuing operations attributable to the ordinary equity
holders of the parent entity, and
(b) for profit or loss attributable to the ordinary equity holders of the parent entity
for each class of ordinary shares that has a different right to share in profit for the period.
Basic and diluted EPS must be disclosed with equal prominence for all periods presented.
AASB133(67A) 20. If an entity presents a separate income statement, basic and diluted earnings per share must
be presented in that statement.
AASB133(67) 21. If diluted EPS is reported for at least one period, it must be reported for all periods presented,
even if it equals basic EPS. If basic and diluted EPS are equal, dual presentation can be
accomplished in one line in the statement of comprehensive income.
AASB133(68) 22. An entity that reports a discontinued operation must disclose the basic and diluted amounts
per share for the discontinued operation either in the statement of comprehensive income or
in the notes to the financial statements. VALUE ACCOUNTS Holdings Limited provides this
information in note 49.
AASB133(69),(41),(43) 23. Basic and diluted EPS must be disclosed even if the amounts are negative (ie a loss per
share). However, potential ordinary shares are only dilutive if their conversion would increase
the loss per share. If the loss decreases, the shares are antidilutive.
AASB133(4) 24. When an entity presents both consolidated financial statements and separate financial
statements prepared in accordance with AASB 127 Consolidated and Separate Financial
Statements, the disclosures required by AASB 133 need be presented only on the basis of
the consolidated information. An entity that chooses to disclose EPS based on its separate
financial statements must present such EPS information only in its separate statement of
comprehensive income. An entity must not present such EPS information in the consolidated
financial statements.
Components of other comprehensive income
AASB101(7) 25. Components of other comprehensive income (OCI) are items of income and expense
(including reclassification adjustments, see paragraph 32 below) that are not recognised in
profit or loss as required or permitted by other Australian Accounting Standards. They include
changes in the revaluation surplus relating to property, plant and equipment or intangible
assets, actuarial gains and losses on defined benefit obligations, gains and losses arising
from translating the financial statements of a foreign operation, gains and losses on
remeasuring available-for-sale financial assets and the effective portion of gains and losses
on hedging instruments in a cash flow hedge.

(continued)

(continued)
Gross or net of tax

AASB101(91) 26. Entities may present components of other comprehensive income either net of related tax
effect or before related tax effects. VALUE ACCOUNTS Holdings Limited has chosen to
present the items before tax. In this case:
(a) the income tax relating to the components of other comprehensive income must
be shown as one aggregate amount in the statement of comprehensive income,
and
AASB101(90) (b) the amount of income tax relating to each component of OCI, including
reclassification adjustments, must be disclosed in the notes.
Summary
27. The requirements surrounding components of OCI can be summarised as follows:
Item Reference Requirement in Presentation in

standard VALUE
Each component of OCI recognised AASB 101 Statement of Statement of

during the period, classified by nature (82)(g) comprehensive comprehensive
income income
Reclassification adjustments during AASB 101 Statement of Note 33

the period relating to components of (92) comprehensive
OCI (see paragraph 32 below) income or notes
Tax relating to each component of AASB 101 Statement of Note 9(d)

OCI, including reclassification (90) comprehensive
adjustments income or notes
Reconciliation for each component of AASB 101 Statement of Statement of

equity, showing separately (106)(d) changes in equity changes in
 profit/loss and notes, see equity and note
 each item of OCI related 33
 transactions with owners commentary
See commentary 2 to 4 on page 79.
Information to be presented either in the statement of comprehensive income or in the notes

Material items of income and expense
AASB101(97) 28. When items of income and expense are material, their nature and amount must be disclosed
separately either in the statement of comprehensive income (income statement) or in the
notes. In the case of VALUE ACCOUNTS Holdings Limited these disclosures are made in
the income statement and in note 8.
AASB101(86),(97) 29. AASB 101 does not provide a specific name for the types of items that should be separately
disclosed. Where an entity discloses a separate category of ‘exceptional’, ‘significant’ or
‘unusual’ items either in their statement of comprehensive income or in the notes, the
accounting policy note should include a definition of the chosen term. The presentation and
definition of these items must be applied consistently from year to year. A sub-total of
operating profit before exceptional items should only be included if it does not receive more
prominence than operating profit and does not distort the expense analysis by excluding
amounts that would otherwise be included therein. The sub-total should also not be referred
to as ‘underlying profit’ or similar as this could be read to imply that the exceptional item has
not arisen from the entity’s ordinary activities.
30. Where an entity classifies its expenses by nature (see paragraph 35 below), it must take care
to ensure that each class of expenses includes all items related to that class. Material
restructuring cost may, for example, include redundancy payments (ie employee benefit
cost), inventory write-downs (changes in inventory) and impairments in property, plant and
equipment. It would not be acceptable to show restructuring costs as a separate line item in
an analysis of expenses by nature where there is an overlap with other line items.

(continued)

(continued)
31. Entities that classify their expenses by function will have to include the material items within
the function to which they relate. In this case, material items can be disclosed as footnote or
in the notes to the financial statements.
Reclassification adjustments
AASB101(92),(94) 32. An entity shall also disclose separately any reclassification adjustments relating to
components of other comprehensive income either in the statement of comprehensive
income or in the notes. VALUE ACCOUNTS Holdings Limited provides this information in
note 33.
AASB101(7),(95) 33. Reclassification adjustments are amounts reclassified to profit or loss in the current period
that were recognised in other comprehensive income in the current or previous periods. They
arise, for example, on disposal of a foreign operation, on derecognition or impairment of an
available-for-sale financial asset and when a hedged forecast transaction affects profit or
loss.
Dividends: statement of changes in equity or notes only
AASB101(107) 34. The amount of dividends recognised as distributions to owners during the period, and the
related amount per share must be presented either in the statement of changes in equity or
in the notes. In the case of VALUE ACCOUNTS Holdings Limited these disclosures are
made in note 35. Following the revisions made to AASB 101 in September 2007, dividends
can no longer be displayed in the statement of comprehensive income or income statement.
Classification of expenses
By nature or function
AASB101(99),(100) 35. An analysis of expenses shall be presented using a classification based on either the nature
of expenses or their function within the entity, whichever provides information that is reliable
and more relevant. Entities are encouraged, but not required, to present the analysis of
expenses in the statement of comprehensive income (or income statement, where
applicable).
AASB101(105) 36. The choice of classification between nature and function will depend on historical and
industry factors and the nature of the entity. The entity should choose the classification that
provides the most relevant and reliable information about its financial performance. VALUE
ACCOUNTS Holdings Limited derives a substantial percentage of its revenues from the
provision of services, and therefore classifies its expenses by nature.
37. The classification of expenses may vary with the type of expense. For example, where
expenses are classified by nature, wages and salaries paid to employees involved in
research and development (R&D) activities may be classified as employee benefits expense,
while amounts paid to external organisations for R&D may be classified as external R&D
expense. However, where expenses are classified by function, both the wages and salaries
and external payments may be classified as R&D expense.
Materiality
AASB101(29) 38. Regardless of whether expenses are classified by nature or by function, materiality applies to
AASB1031
the classification of expenses. Each material class should be separately disclosed, and
unclassified expenses (shown as 'other expenses' in VALUE ACCOUNTS Holdings Limited)
should be immaterial both individually and in aggregate. Accordingly, unclassified expenses
should not normally exceed 10% of total expenses classified by nature or function.

(continued)

(continued)
Example of classification by function

AASB101(103) 39. Expenses are classified by nature in VALUE ACCOUNTS Holdings Limited’s income
statement. An example of disclosure by function is set out below.
2010 2009
$'000 $'000
AASB101(82)(a) Revenue from continuing operations

Sale of goods 37,200 20,540
Services 20,450 20,900
Other revenue 890 840
58,540 42,280
Other income 1,608 281
Expenses
Cost of sales of goods (19,096) (12,290)
Cost of providing services (10,233) (9,364)
Other expenses from ordinary activities
Distribution (5,544) (4,585)
Marketing (4,475) (3,510)
Occupancy (3,116) (2,410)
Administration (3,275) (2,610)
Other (2,752) (2,057)
AASB101(82)(b) Finance costs (1,259) (585)
AASB101(82)(c) Share of net profits of associates and joint venture
40. Within a functional statement of comprehensive income (income statement), costs directly
associated with generating revenues should be included in cost of sales. Cost of sales
should include direct material and labour costs but also indirect costs that can be directly
attributed to generating revenue; for example, depreciation of assets used in the production.
Impairment charges should be classified according to how the depreciation or amortisation of
the particular asset is classified. Entities should not mix functional and natural classifications
of expenses by excluding certain expenses such as inventory write-downs, employee
termination benefits and impairment charges from the functional classifications to which they
relate.
AASB101(104),(105) 41. Entities classifying expenses by function shall disclose additional information on the nature of
their expenses in the notes to the financial statements. According to AASB 101 this includes
disclosure of depreciation, amortisation and employee benefits expense. Other classes of
expenses should also be disclosed where they are material, as this information assists users
in predicting future cash flows.
Other presentation issues
Consistency
AASB101(45) 42. The presentation and classification of items in the financial statements shall be retained from
one period to the next unless:
(a) it is apparent, following a significant change in the nature of the entity’s operations
or a review of its financial statements, that another presentation or classification
would be more appropriate having regard to the criteria for the selection and
application of accounting policies in AASB 108 Accounting Policies, Changes in
Accounting Estimates and Errors, or
(b) an Australian Accounting Standard requires a change in presentation.

(continued)

(continued)
Materiality and aggregation

AASB101(29) 43. Each material class of similar items shall be presented separately in the financial statements.
Items of a similar nature or function shall be presented separately unless they are immaterial.
Goods and Services Tax (GST)
UIG1031(6),(7) 44. UIG 1031 Accounting for the Goods and Services Tax (GST) provides that revenues and
expenses must be recognised net of the amount of GST, except that where GST relating to
expense items is not recoverable from the taxation authority it must be recognised as part of
the item of expense. We recommend that entities that are not able to recover GST relating to
particular expense items should include a policy note indicating which expense items
disclosed in the financial statements are inclusive of non-recoverable GST. They could also
amend the wording of specific disclosures (eg auditor’s remuneration - refer to commentary
on remuneration of auditors - note 37) to make it clear that the amounts disclosed are
inclusive of non-recoverable GST.
Offsetting
AASB101(32) 45. Assets and liabilities, and income and expenses, must not be offset unless required or
permitted by an Australian Accounting Standard. Examples of income and expenses that are
required or permitted to be offset are as follows:
AASB101(34)(a) (a) gains and losses on the disposal of non-current assets, including investments and
operating assets, are reported by deducting from the proceeds on disposal the
carrying amount of the asset and related selling expenses
AASB101(34)(b) (b) expenditure related to a provision that is recognised in accordance with AASB 137
Provisions, Contingent Liabilities and Contingent Assets and reimbursed under a
contractual arrangement with a third party (eg a supplier’s warranty agreement)
may be netted against the related reimbursement
AASB101(35) (c) gains and losses arising from a group of similar transactions are reported on a net
basis, for example, foreign exchange gains and losses or gains and losses arising
on financial instruments held for trading. Such gains and losses are, however,
reported separately if they are material.
46. Income which falls under the scope of AASB 118 Revenue cannot be netted off against
related expenses.

AASB101(10)(a),(54) Consolidated balance sheet 1
AASB101(51)(c) As at 30 June 2011
2011 2010 1 July 2009 *11

AASB101(51)(c),(e)
AASB101(113) Notes $'000 $'000 $'000
ASSETS
AASB101(60),(66)
Current assets 2-9
AASB101(54)(i) Cash and cash equivalents 11 8,229 2,812 2,400
AASB101(54)(h)
AASB7(8)(c) Trade and other receivables 12 12,935 7,084 3,243
AASB101(54)(g) Inventories 13 7,153 4,672 3,700
AASB101(54)(d) Financial assets at fair value through profit
AASB7(8)(a)
or loss 14 1,300 915 370
AASB101(54)(d)
AASB7(8)(a) Derivative financial instruments 15 88 40 -
29,705 15,523 9,713
AASB101(54)(j)
AASB5(38) Assets classified as held for sale 10 250 4,955 -
Total current assets 29,955 20,478 9,713
AASB101(60),(66)
Non-current assets 2-9
AASB101(54)(h)
AASB7(8)(c) Receivables 16 1,476 380 5,011
AASB101(54)(e) Investments accounted for using the equity
method 17 3,775 3,275 3,025
AASB101(54)(d)
AASB7(8)(d) Available-for-sale financial assets 18 1,010 828 997
AASB101(54)(d)
AASB7(8)(b) Held-to-maturity investments 19 210 - -
AASB101(54)(d)
AASB7(8)(a) Derivative financial instruments 15 8 12 -
AASB101(54)(a) Property, plant and equipment 20 12,095 8,080 8,145
AASB101(54)(b) Investment properties 21 3,300 3,050 3,205
AASB101(54)(o),(56) Deferred tax assets 22 734 438 552
AASB101(54)(c) Intangible assets 23 895 945 910
Total non-current assets 23,503 17,008 21,845
Total assets 53,458 37,486 31,558
LIABILITIES
AASB101(60),(69)
Current liabilities 2-9
AASB101(54)(k) Trade and other payables 24 1,700 2,477 2,930
AASB101(54)(m),
AASB7(8)(f) Borrowings 25 2,980 3,555 2,869
AASB101(54)(m)
AASB7(8)(e) Derivative financial instruments 15 310 321 289
AASB101(54)(n) Current tax liabilities 2,746 1,077 989
AASB101(54)(l) Provisions 26 360 210 170
Other current liabilities 27 395 370 290
8,491 8,010 7,537
AASB101(54)(p) Liabilities directly associated with assets

AASB5(38)
classified as held for sale 10 - 500 -
Total current liabilities 8,491 8,510 7,537
* See note 7(a) for details regarding the restatement as a result of an error. 11-12

AASB101(10)(a),(54) Consolidated balance sheet
AASB101(51)(c) As at 30 June 2011
(continued)
2011 2010 1 July 2009 * 11

Notes $'000 $'000 $'000
AASB101(60),(69)
Non-current liabilities 2-9
AASB101(54)(m)
AASB7(8)(f) Borrowings 28 9,464 7,525 7,250
AASB101(54)(o),(56)
Deferred tax liabilities 10 29 1,289 704 573
AASB101(54)(l) Provisions 30 443 270 196
AASB101(54)(l) Retirement benefit obligations 31 482 146 254
Total non-current liabilities 11,678 8,645 8,273
Total liabilities 20,169 17,155 15,810
Net assets 33,289 20,331 15,748
EQUITY 2-3
AASB101(54)(r) Contributed equity 32 19,200 13,870 13,241
AASB101(54)(r) Reserves 33(a) 1,205 681 226
Retained earnings 33(b) 10,199 4,184 912
AASB101(54)(r) Capital and reserves attributable to owners
of VALUE ACCOUNTS Holdings Limited 30,604 18,735 14,379
AASB101(54)(q) Non-controlling interests 34 2,685 1,596 1,369
Total equity 33,289 20,331 15,748
* See note 7(a) for details regarding the restatement as a result of an error. 11-12
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
Commentary - Balance sheet
Accounting standard for the balance sheet (statement of financial position)

AASB101(Aus1.1), 1. Requirements for the balance sheet are set out in AASB 101 Presentation of Financial
(10)
Statements. The standard now refers to the balance sheet as ‘statement of financial
position’. However, since this new title is not mandatory, VALUE ACCOUNTS Holdings
Limited has elected to retain the better known name of ‘balance sheet’. AASB 101 applies
to each entity which is required to prepare financial reports in accordance with Part 2M.3 of
the Corporations Act 2001, general purpose financial statements of each reporting entity,
and to financial statements that are, or are held out to be, general purpose financial
statements.
Information to be presented
In the balance sheet
AASB101(54),(55) 2. Paragraph 54 of AASB 101 sets out the line items that shall, as a minimum, be presented
in the balance sheet. Additional line items, headings and subtotals shall be presented in the
balance sheet when such presentation is relevant to an understanding of the entity’s
financial position.
Either in the balance sheet or in the notes
AASB101(77),(78) 3. An entity shall disclose, either in the balance sheet or in the notes, further
sub-classifications of the line items presented, classified in a manner appropriate to the
entity’s operations. The detail provided in sub-classifications depends on the requirements
of Australian Accounting Standards and on the size, nature and function of the amounts
involved.

AASB101(10)(a),(54) Consolidated balance sheet
AASB101(51)(c) As at 30 June 2011
(continued)
Commentary - Balance sheet (continued)
AASB101(60) 4. An entity shall present current and non-current assets, and current and non-current liabilities,
as separate classifications in its balance sheet except when a presentation based on liquidity
provides information that is reliable and is more relevant. When that exception applies, all
assets and liabilities shall be presented broadly in order of liquidity.
AASB101(61) 5. Whichever method of presentation is adopted, for each asset and liability line item that
combines amounts expected to be recovered or settled (a) no more than twelve months after
the reporting period, and (b) more than twelve months after the reporting period, an entity
shall disclose the amount expected to be recovered or settled after more than twelve months.
See notes 23, 28 and 31 for an illustration of this disclosure.
AASB101(70) 6. Current assets include assets (such as inventories and trade receivables) that are sold,
consumed or realised as part of the normal operating cycle even when they are not expected
to be realised within twelve months after the reporting period. Similarly, some current
liabilities, such as trade payables and some accruals for employee and other operating costs,
are part of the working capital used in the entity’s normal operating cycle. Such operating
items are classified as current liabilities even if they are due to be settled more than twelve
months after the reporting period.
Operating cycle
AASB101(68) 7. The operating cycle of an entity is the time between the acquisition of assets for processing
and their realisation in cash or cash equivalents. When the entity’s normal operating cycle is
not clearly identifiable, its duration is assumed to be twelve months.
Consistency
AASB101(45) 8. The presentation and classification of items in the financial statements shall be retained from
one period to the next unless:
(a) it is apparent, following a significant change in the nature of the entity’s operations
or a review of its financial statements, that another presentation or classification
would be more appropriate having regard to the criteria for the selection and
application of accounting policies in AASB 108 Accounting Policies, Changes in
Accounting Estimates and Errors, or
(b) an Australian Accounting Standard requires a change in presentation.
Materiality and aggregation
AASB101(29) 9. Each material class of similar items shall be presented separately in the financial statements.
Items of a similar nature or function shall be presented separately unless they are immaterial.
Current and deferred tax assets and liabilities
AASB101(54),(56) 10. Current and deferred tax assets and liabilities shall be presented separately from each other
and from other assets and liabilities. When a distinction is made between current and
non-current assets and liabilities in the balance sheet, deferred tax assets and liabilities shall
be classified as non-current.
Three balance sheets required in certain circumstances
reclassified items in its financial statements, it must provide a third balance sheet (statement
of financial position) as at the beginning of the earliest comparative period presented. Refer
to the commentary regarding comparatives on page 63 for further information.
12. In this publication, we have illustrated these requirements using the retrospective correction
of an error as an example. The change is explained in note 7(a) on page 149. The impact on
the balance sheet and on the affected notes is illustrated on pages 75 to 76, pages 181 to
182 (note 20), page 189 (note 22), page 199 (note 25), pages 203 to 206 (note 28) and page
248 (note 39) respectively.

CA295(1)(a),(2)(b) VALUE ACCOUNTS Holdings Limited
AASB101(10)(c),(106)
Consolidated statement of changes in equity 1,3,5
Attributable to owners of
Contri- Non-con-
buted Retained trolling Total
equity Reserves earnings Total interests equity
Notes $'000 $'000 $'000 $'000 $'000 $'000
AASB101(106)(d) Balance at 1 July 2009 13,241 226 902 14,369 1,369 15,738
AASB101(106)(b) Adjustment on correction of 7(a)
error (net of tax) 33 - - 10 10 - 10
Restated total equity at the
beginning of the financial year 13,241 226 912 14,379 1,369 15,748
Total comprehensive income for

the year as reported in the 2010
financial statements - 429 4,220 4,649 387 5,036
AASB101(106)(b) Adjustment on correction of
error 7(a) - - 9 9 - 9
AASB101(106)(a) Restated total comprehensive
2,4
income for the year - 429 4,229 4,658 387 5,045
AASB101(106)(d)(iii) Transactions with owners in their

2
capacity as owners:
AASB132(22),(35) Contributions of equity net of
transaction costs 32 629 - - 629 - 629
AASB101(106)(c) Dividends provided for or paid 35 - - (957) (957) (160) (1,117)
AASB101(106)(c) Employee share options – value of
AASB2(2)(50) - 26 - 26 - 26
employee services 33
629 26 (957) (302) (160) (462)
AASB101(106)(d) 13,870 681 4,184 18,735 1,596 20,331

Balance at 30 June 2010
AASB101(106)(a) Total comprehensive income for

2,4
the year - 626 7,175 7,801 1,034 8,835
AASB101(106)(d)(iii) Transactions with owners in their

2
capacity as owners:
AASB101(106),(c) Contributions of equity, net of
AASB132(22),(35)
transaction costs and tax 32 5,714 - - 5,714 - 5,714
AASB101(106) Buy-back of preference shares, net
AASB132(35)
of tax 32 (524) - 64 (460) - (460)
AASB101(106)(c) Value of conversion rights on
convertible notes 32 140 - - 140 - 140
Non-controlling interests on
acquisition of subsidiary 41 - - - - 575 575
AASB127(30) Transactions with non-controlling
interests 42 - (210) - (210) (290) (500)
AASB101(106)(c) Dividends provided for or paid 35 - - (1,224) (1,224) (230) (1,454)
AASB101(106)(c) Employee share options – value of
employee services 33 - 101 - 101 - 101
AASB101(106)(c)
AASB2(50) Employee share scheme 33 - 7 - 7 - 7
5,330 (102) (1,160) 4,068 55 4,123
AASB101(106)(d) 19,200 1,205 10,199 30,604 2,685 33,289

Balance at 30 June 2011
The above consolidated statement of changes in equity should be read in conjunction with the
accompanying notes.

AASB101(10)(c),(106) Consolidated statement of changes in equity
Commentary - Statements of changes in equity
Accounting standard for the statement of changes in equity

AASB101(Aus1.1) 1. Requirements for the statement of changes in equity are set out in AASB 101 Presentation of
Financial Statements. The standard applies to each entity which is required to prepare
financial reports in accordance with Part 2M.3 of the Corporations Act 2001, general purpose
financial statements of each reporting entity, and to financial statements that are, or are held
out to be, general purpose financial statements.
AASB101(106) 2. The statement of changes in equity shall include:
(a) total comprehensive income for the period, showing separately the total amounts
attributable to owners of the parent and to non-controlling interests
(b) for each component of equity, the effects of retrospective application or
retrospective restatement recognised in accordance with AASB 108
AASB101(106)(d) (c) for each component of equity, a reconciliation between the carrying amount at the
beginning and the end of the period, separately disclosing changes resulting from:
(i) profit or loss
(ii) other comprehensive income, and
(iii) transactions with owners in their capacity as owners, showing separately
contributions by and distributions to owners and changes in ownership
interests in subsidiaries that do not result in loss of control.
AASB101(108) 3. Components of equity include each class of contributed equity, the accumulated balance of
each class of other comprehensive income and retained earnings.
AASB101R(106A) 4. The reconciliation of changes in each component of equity shall also show separately each
AASB2010-4(11)
item of comprehensive income. However, this information may be presented either in the
notes or in the statement of changes in equity. VALUE ACCOUNTS Holdings Limited has
elected to provide the detailed information in note 33.
Presentation of dividends
AASB101(107) 5. The amount of dividends recognised as distributions to owners during the period and the
related amount per share must now be disclosed either in the statement of changes in equity
or in the notes. VALUE ACCOUNTS Holdings Limited is presenting this information in note
35.

AASB101(10)(d)
AASB107(1),(10)
Consolidated statement of cash flows 1-3,22-25
2011 2010
AASB101(113) Notes $'000 $'000
AASB107(10),(18)(a)
Cash flows from operating activities 4,5,9
AASB107(14)(a) Receipts from customers (inclusive of goods and services
tax) 11-14 54,502 42,793
AASB107(14)(c),(d) Payments to suppliers and employees (inclusive of goods
and services tax) 11-14 (48,795) (38,074)
5,707 4,719
AASB107(14)(g) Payments for financial assets at fair value through profit or
loss (735) (685)
AASB107(14)(g) Proceeds from disposal of financial assets at fair value
through profit or loss 600 -
AASB107(14)(b) Insurance recovery relating to fire 8 300 -
AASB107(16)
Transaction costs relating to acquisition of subsidiary 6,7 41 (100) -
AASB107(14)(b) Other revenue 290 384
AASB107(31)-(33) 15,16
Interest paid (1,340) (593)
AASB107(14)(f),(35),
(36) Income taxes paid 18-20 (1,813) (1,531)
Net cash inflow from operating activities 47 2,909 2,294
AASB107(10),(21)
Cash flows from investing activities 8
AASB107(39) Payment for acquisition of subsidiary, net of cash acquired 41 (1,500) -
AASB107(16)(a) Payments for property, plant and equipment 20 (6,882) (3,165)
Payments for investment property (200) -
AASB107(16)(c) Payments for available-for-sale financial assets (47) (133)
AASB107(16)(c) Payments for held-to-maturity investments (210) -
AASB107(16)(a) Payment of development costs (100) (20)
AASB107(16)(e) Loans to related parties (1,180) (630)
AASB107(39) Proceeds from sale of machinery hire division 10 3,960 -
AASB107(16)(b) Proceeds from sale of property, plant and equipment 2,785 739
AASB107(16)(d) Proceeds from sale of available-for-sale financial assets 75 272
AASB107(16)(f) Repayment of loans by related parties 469 526
AASB107(38) Joint venture partnership distributions received 200 120
AASB107(31),(33)
Dividends received 15,16 350 400
AASB107(31),(33)
Interest received,15,16 350 300
Net cash (outflow) from investing activities (1,930) (1,591)
AASB107(10),(21)
Cash flows from financing activities 8
AASB107(17)(a) Proceeds from issues of shares and other equity securities 4,178 -
Proceeds from calls on shares and calls in arrears 1,500 -
AASB107(17)(c) Proceeds from borrowings 28 7,983 975
AASB107(17)(b) Payments for shares bought back (450) -
AASB107(17)(b) Payments for shares acquired by the VALUE ACCOUNTS
Employee Share Trust (450) -
Share issue and buy-back transaction costs (65) -
AASB107(17)(d) Repayment of borrowings (6,655) (1,054)
AASB107(17)(e) Finance lease payments (25) -
Transactions with non-controlling interests 10 42 (500) -
AASB107(31),(34)
Dividends paid to company's shareholders 17 35 (940) (698)
AASB107(31),(34)
Dividends paid to non-controlling interests in subsidiaries 17 (230) (160)
Net cash inflow (outflow) from financing activities 4,346 (937)
Net increase (decrease) in cash and cash equivalents 5,325 (234)

Cash and cash equivalents at the beginning of the financial
year 562 780
AASB107(28) Effects of exchange rate changes on cash and cash
equivalents 21 (8) 16
Cash and cash equivalents at end of year 11 5,879 562
AASB107(43)
Non-cash financing and investing activities 25 48
The above consolidated statement of cash flows should be read in conjunction with the
accompanying notes.
AASB101(10)(c),(106) Consolidated statement of cash flows
(continued)
Commentary - Statement of cash flows
Accounting standard for the statement of cash flows

AASB107(Aus1.1) 1. Requirements for statements of cash flows are set out in AASB 107 Statement of Cash
Flows. The standard applies to each entity which is required to prepare financial reports in
accordance with Part 2M.3 of the Corporations Act 2001, general purpose financial
statements of each reporting entity, and to financial statements that are, or are held out to
be, general purpose financial statements.
Reporting cash flows
On a net basis
AASB107(22),(23) 2. Cash flows arising from the following operating, investing or financing activities may be
reported on a net basis:
(a) cash receipts and payments on behalf of customers when the cash flows reflect
the activities of the customer rather than those of the entity (eg rents collected on
behalf of, and paid over to, the owners of properties), and
(b) cash receipts and payments for items in which the turnover is quick, the amounts
are large, and the maturities are short (eg advances made for, and repayment of,
principal amounts relating to credit card customers).
AASB107(24) 3. Cash flows arising from each of the following activities of a financial institution may be
reported on a net basis:
(a) cash receipts and payments for the acceptance and repayment of deposits with a
fixed maturity date
(b) the placement of deposits with, and withdrawal of deposits from, other financial
institutions, and
(c) cash advances and loans made to customers and the repayment of those
advances and loans.
From operating activities
AASB107(18)(a) 4. An entity shall report cash flows from operating activities using either:
(a) the direct method, whereby major classes of gross cash receipts and gross cash
payments are disclosed, or
(b) the indirect method, whereby profit or loss is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments, and items of income or expense associated
with investing or financing cash flows.
AASB107(19) 5. The option to use the indirect method was introduced in April 2007. AASB 107 does,
however, encourage entities to use the direct method, as it provides information which may
be useful in estimating future cash flows and which is not available under the indirect
method. VALUE ACCOUNTS Holdings Limited has therefore continued using the direct
method. For an illustration of a statement of cash flows presented using the indirect method
please refer to our Illustrative IFRS corporate consolidated financial statements which are
available on www.pwc.com/ifrs.
Expenditure on unrecognised assets to be classified as operating cash flows
AASB107(16) 6. Following changes made to AASB 107 in 2009, cash flows can only be classified as arising
from investing activities if they result in the recognition of an asset in the balance sheet. The
amendments apply to annual reporting periods commencing on or after 1 January 2010.
7. Examples of expenditure that has to be classified as operating cash flows are:
(a) expenditures on exploration or evaluation activities, unless the entity has a policy
of capitalising these expenditures as permitted under AASB 6 Exploration for and
Evaluation of Mineral Resources
(b) expenditures on advertising or promotional activities, staff training and research
and development
(c) transaction costs related to a business combination, and
(d) an amount paid in excess of the amount recognised for a contingent consideration
at the acquisition date of a business combination; in contrast, the payment of the
acquisition date fair value of the contingent consideration will be classified as cash
flows from investing activities.
From investing and financing activities
AASB107(21) 8. An entity shall report separately major classes of gross cash receipts and gross cash
payments arising from investing and financing activities, except to the extent that cash flows
described in paragraphs 22 and 24 of AASB 107 are reported on a net basis (refer to
paragraphs 9 and 10 below).

(continued)
Commentary - Statement of cash flows (continued)
Sale of property, plant and equipment held for rental to others

AASB107(14) 9. Cash flows from the sale of property, plant and equipment are normally presented as cash
AASB2008-5(18)
flows from investing activities. However, cash payments to manufacture or acquire assets
which will be held for rental to others and subsequently for sale are cash flows from operating
activities. Consequently, the cash receipts from rents and subsequent sales of such assets
are also cash flows from operating activities.
Changes in ownership interest in a subsidiary without loss of control
AASB107(42A), 10. Cash flows arising from changes in ownership interest in a subsidiary that do not result in a
(42B)
loss of control shall be classified as cash flows from financing activities.
UIG1031(10) 11. Cash flows shall be included in the statement of cash flows on a gross basis, subject to
paragraph 12 below and to AASB 107.
UIG1031(11) 12. The GST component of cash flows arising from investing and financing activities which is
recoverable from, or payable to, the taxation authority shall be classified as operating cash
flows and will be included in receipts from customers or payments to suppliers, as
appropriate.
13. Some entities have experienced difficulty in adjusting net of GST revenue and expense
amounts to GST inclusive amounts for their statements of cash flows. At the UIG meeting in
April 2001, UIG members agreed that it would be inappropriate to allow alternative
approaches to the preparation of statements of cash flows. Accordingly, the requirements of
UIG 1031 Accounting for the Goods and Services Tax (GST) remain in force.
14. At the UIG meeting in September 2000, UIG members noted that although GST amounts are
not required to be disclosed in statements of cash flows, an entity could choose to make
specific GST disclosures in the statement itself or in notes to the statement.
Interest and dividends
AASB107(31) 15. Cash flows from interest and dividends received and paid shall each be disclosed separately.
Each shall be classified in a consistent manner from period to period as either operating,
investing or financing activities.
AASB107(33) 16. Interest paid and interest and dividends received are usually classified as operating cash
flows for a financial institution. However, there is no consensus on the classification of these
cash flows for other entities. Interest paid and interest and dividends received may be
classified as operating cash flows because they enter into the determination of net profit or
loss. Alternatively, interest paid and interest and dividends received may be classified as
financing cash flows and investing cash flows respectively, because they are costs of
obtaining financial resources or returns on investments.
AASB107(34) 17. Dividends paid may be classified as a financing cash flow because they are a cost of
obtaining financial resources. Alternatively, they may be classified as operating cash flows to
assist users to determine the ability of an entity to pay dividends out of operating cash flows.
Income taxes
AASB107(35) 18. Cash flows arising from income taxes shall be separately disclosed and shall be classified as
cash flows from operating activities unless they can be specifically identified with financing
and investing activities.
AASB107(36) 19. Taxes on income arise on transactions that give rise to cash flows that are classified as
operating, investing or financing activities in a statement of cash flows. While tax expense
may be readily identifiable with investing or financing activities, the related tax cash flows are
often impracticable to identify and may arise in a different period from the cash flows of the
underlying transaction. Therefore, taxes paid are usually classified as cash flows from
operating activities. However, when it is practicable to identify the tax cash flow with an
individual transaction that gives rise to cash flows that are classified as investing or financing
activities the tax cash flow is classified as an investing or financing activity as appropriate.
When tax cash flows are allocated over more than one class of activity, the total amount of
taxes paid is disclosed.

(continued)
Commentary - Statement of cash flows (continued)
Tax consolidation
AASB107(35) 20. Income taxes paid by head entities in a tax consolidated group include amounts paid on
behalf of the tax consolidated entities. Amounts received by the head entity under a tax
funding agreement should be separately disclosed. However, in the statement of cash flows
of a tax consolidated entity, these amounts paid to the head entity represent cash flows
arising from taxes on income and should be presented as such, despite the fact that they are
paid to the head entity, not the taxation authorities.
Effects of exchange rate changes
AASB107(28) 21. Unrealised gains and losses arising from changes in foreign currency exchange rates are not
cash flows. However, the effect of exchange rate changes on cash and cash equivalents held
or due in a foreign currency is reported in the statement of cash flows in order to reconcile
cash and cash equivalents at the beginning and the end of the period. This amount is
presented separately from cash flows from operating, investing and financing activities and
includes the differences, if any, had those cash flows been reported at end of period
exchange rates.
Additional recommended disclosures
AASB107(50) 22. Additional information may be relevant to users in understanding the financial position and
liquidity of an entity. Disclosure of this information, together with a commentary by
management, is encouraged and may include:
AASB107(50)(a) (a) the amount of undrawn borrowing facilities that may be available for future
operating activities and to settle capital commitments, indicating any restrictions
on the use of these facilities
AASB107(50)(c) (b) the aggregate amount of cash flows that represent increases in operating capacity
separately from those cash flows that are required to maintain operating capacity
AASB107(50)(d) (c) the amount of the cash flows arising from the operating, investing and financing
activities of each reportable segment (refer to AASB 8 Operating Segments) -
disclosed in the segment information note in these illustrative financial statements
(note 4).
Inter-entity accounts
23. Where an entity uses an inter-entity account in a manner similar to a bank account, it may be
appropriate to treat movements through the account as payments and receipts for the
purposes of the statement of cash flows, with appropriate disclosure of the facts. This may be
appropriate, for instance, where a subsidiary’s payments and receipts are processed through
a bank account controlled by its parent, with the transactions recorded in the inter-entity
account. It would probably not be appropriate where a subsidiary has its own bank account
and only a small number of transactions are recorded in the inter-entity account or if the
inter-entity account is not effectively a 'cash equivalent'. In the latter case consideration
would need to be given to the disclosure of 'receipts' from customers passed on to the other
entity for banking. The circumstances of each case would need to be considered and
disclosure made of the treatment adopted and the existence of non-cash transactions.
Where no cash flows
24. A statement of cash flows must be included in the financial report even if there are no cash
flows (and no cash or cash equivalent balances). Preferably, the statement should include
the minimum line items that are required to be presented under AASB 107 Statement of
Cash Flows, with zero amounts for the current and comparative period. However, it may also
be acceptable to replace the individual line items with an explanation that there were no cash
flows during the current and previous financial years, provided this explanation is given under
the heading of ‘statement of cash flows’ and is presented as part of the financial statements,
before the notes to the financial statements.
25. You will also need to take care to comply with the disclosure requirements of AASB 107
relating to any non-cash financing or investing activities (refer to note 48).

CA295(1)(b),(3) VALUE ACCOUNTS Holdings Limited
AASB101(10(e) Notes to the consolidated financial statements
AASB101(51c) 30 June 2011
Contents of the notes to the consolidated financial statements 1-6

Page
1 Summary of significant accounting policies 86
2 Financial risk management 118
3 Critical accounting estimates and judgements 133
4 Segment information 138
5 Revenue 146
6 Other income 147
7 Correction of error, revision of estimates and variation from preliminary report 149
8 Expenses 152
9 Income tax expense 155
10 Assets and liabilities classified as held for sale and discontinued operation 160
11 Current assets – Cash and cash equivalents 166
12 Current assets – Trade and other receivables 167
13 Current assets – Inventories 170
14 Current assets – Financial assets at fair value through profit or loss 171
15 Derivative financial instruments 173
16 Non-current assets – Receivables 175
17 Non-current assets – Investments accounted for using the equity method 176
18 Non-current assets – Available-for-sale financial assets 177
19 Non-current assets – Held-to-maturity investments 179
20 Non-current assets – Property, plant and equipment 181
21 Non-current assets – Investment properties 185
22 Non-current assets – Deferred tax assets 189
23 Non-current assets – Intangible assets 191
24 Current liabilities – Trade and other payables 198
25 Current liabilities – Borrowings 199
26 Current liabilities – Provisions 200
27 Current liabilities – Other current liabilities 203
28 Non-current liabilities – Borrowings 203
29 Non-current liabilities – Deferred tax liabilities 210
30 Non-current liabilities – Provisions 211
31 Non-current liabilities – Retirement benefit obligations 212
32 Contributed equity 218
33 Reserves and retained earnings 224
34 Non-controlling interests 227
35 Dividends 228
36 Key management personnel disclosures 232
37 Remuneration of auditors 241
38 Contingencies 243
39 Commitments 246
40 Related party transactions 250
41 Business combination 254
42 Subsidiaries and transactions with non-controlling interests 258
43 Deed of cross guarantee 260
44 Investments in associates 263
45 Interests in joint ventures 266
46 Events occurring after the reporting period 269
47 Reconciliation of profit after income tax to net cash inflow from operating activities 272
48 Non-cash investing and financing activities 273
49 Earnings per share 273
50 Share-based payments 277
51 Parent entity financial information 281

AASB101(10(e) Notes to the consolidated financial statements
AASB101(51c) 30 June 2011
Commentary - Contents of the notes to the financial statements
Content
AASB101(112) 1. The notes to the financial statements of an entity shall:
(a) present information about the basis of preparation of the financial statements and
the specific accounting policies used in accordance with paragraphs 117 to 124 of
AASB 101 Presentation of Financial Statements
(b) disclose the information required by Australian Accounting Standards that is not
presented elsewhere in the financial statements, and
(c) provide additional information that is not presented elsewhere in the financial
statements, but is relevant to an understanding of any of them.
Systematic structure
AASB101(113) 2. Notes shall, as far as practicable, be presented in a systematic manner. Each item in the
balance sheet, statement of comprehensive income, statement of changes in equity and
statement of cash flows shall be cross referenced to any related information in the notes.
AASB101(114) 3. Notes are normally presented in the following order, which assists users in understanding the
financial statements and comparing them with financial statements of other entities:
(a) a statement of compliance with Australian Accounting Standards (refer to
paragraph 16 of AASB 101)
(b) a summary of significant accounting policies applied (refer to paragraph 117 of
AASB 101)
(c) supporting information for items presented in the balance sheet, statement of
comprehensive income, statement of changes in equity and statement of cash
flows, in the order in which each statement and each line item is presented, and
(d) other disclosures, including:
(i) contingent liabilities (refer to AASB 137) and unrecognised contractual
commitments, and
(ii) non-financial disclosures; for example, the entity’s financial risk
management objectives and policies (refer to AASB 7).
AASB101(115) 4. In some circumstances, it may be necessary or desirable to vary the ordering of specific
items within the notes. For example, information on changes in fair value recognised in profit
or loss may be combined with information on maturities of financial instruments, although the
former disclosures relate to the statement of comprehensive income (separate income
statement, where applicable) and the latter relate to the balance sheet. Nevertheless, a
systematic structure for the notes is retained as far as practicable.
5. VALUE ACCOUNTS Holdings Limited has presented the information about financial risk
management and critical accounting estimates and judgements immediately following the
accounting policy note, as in our view, this information is necessary for a full understanding
of the following detailed financial information.
AASB101(116) 6. Notes providing information about the basis of preparation of the financial statements and
specific accounting policies may be presented as a separate component of the financial
statements.

AASB101(10)(e) Notes to the consolidated financial statements
AASB101(51)(c) 30 June 2011
AASB101(10)(e),(117)
1 Summary of significant accounting policies 7-14,72-73
AASB101(112)(a),(b) The principal accounting policies adopted in the preparation of these consolidated financial
(Revised)
statements are set out below. These policies have been consistently applied to all the years
presented, unless otherwise stated. The financial statements are for the consolidated entity consisting
of VALUE ACCOUNTS Holdings Limited and its subsidiaries.
AASB101(119) (a) Basis of preparation 1-6,15-21

AASB101(Aus15.2), These general purpose financial statements have been prepared in accordance with Australian
(Aus15.4)
Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards
Board, Urgent Issues Group Interpretations and the Corporations Act 2001.
(i) Compliance with IFRS 2-6

AASB101(16) The consolidated financial statements of the VALUE ACCOUNTS Holdings Limited group also comply
with International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board (IASB).
Not mandatory
(New) (ii) New and amended standards adopted by the group 12,13
The following new standards and amendments to standards are mandatory for the first time for the
financial year beginning 1 July 2010:
 AASB 2009-5 Further Amendments to Australian Accounting Standards arising from the
Annual Improvements Project – adopted early by VALUE ACCOUNTS Holdings Limited in
the 2010 financial report
 AASB 2009-8 Amendments to Australian Accounting Standards – Group Cash-settled
Share-based Payment Transactions
 AASB 2009-10 Amendments to Australian Accounting Standards – Classification of Rights
Issues
 AASB Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments and
AASB 2009-13 Amendments to Australian Accounting Standards arising from
Interpretation 19, and
 AASB 2010-3 Amendments to Australian Accounting Standards arising from the Annual
Improvements Project.
AASB108(28) The adoption of these standards did not have any impact on the current period or any prior period and
is not likely to affect future periods.
(Revised)
(iii) Early adoption of standards 15,16
The group has elected to apply the following pronouncements to the annual reporting period
beginning 1 July 2010:
 AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the
Annual Improvements Project
AASB108(19),(22), This includes applying the revised pronouncement to the comparatives in accordance with AASB 108
(28)
Accounting Policies, Changes in Accounting Estimates and Errors. None of the items in the financial
statements had to be restated as the result of applying this standard.
(iv) Historical cost convention
AASB101(117)(a) These financial statements have been prepared under the historical cost convention, as modified by
the revaluation of available-for-sale financial assets, financial assets and liabilities (including
derivative instruments) at fair value through profit or loss, certain classes of property, plant and
equipment and investment property.
(v) Critical accounting estimates
AASB101(122),(125) The preparation of financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the group's accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are disclosed in note 3.

AASB101(51)(c) 30 June 2011
(continued)
1 Summary of significant accounting policies (continued)
AASB101(119) (b) Principles of consolidation 22

(i) Subsidiaries
AASB127(12),(13) The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of
VALUE ACCOUNTS Holdings Limited ('company' or 'parent entity') as at 30 June 2011 and the
results of all subsidiaries for the year then ended. VALUE ACCOUNTS Holdings Limited and its
subsidiaries together are referred to in this financial report as the group or the consolidated entity.
AASB127(14) Subsidiaries are all entities (including special purpose entities) over which the group has the power to
govern the financial and operating policies, generally accompanying a shareholding of more than
one-half of the voting rights. The existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing whether the group controls another entity.
AASB127(26) Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are
de-consolidated from the date that control ceases.
AASB3(4) The acquisition method of accounting is used to account for business combinations by the group
(refer to note 1(i)).
AASB127(20),(24) Intercompany transactions, balances and unrealised gains on transactions between group companies
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the group.
AASB127(27) Non-controlling interests in the results and equity of subsidiaries are shown separately in the
consolidated income statement, statement of comprehensive income, statement of changes in equity
and balance sheet respectively.
AASB101(119)
(ii) Employee Share Trust 23
UIG112(8) The group has formed a trust to administer the group's employee share scheme. This trust is
consolidated, as the substance of the relationship is that the trust is controlled by the group.
AASB132(33) Shares held by the VALUE ACCOUNTS Employee Share Trust are disclosed as treasury shares and
deducted from contributed equity.
AASB101(119) (iii) Associates
AASB128(11),(13), Associates are all entities over which the group has significant influence but not control or joint
(35)
control, generally accompanying a shareholding of between 20% and 50% of the voting rights.
AASB128(23)
Investments in associates are accounted for using the equity method of accounting, after initially
being recognised at cost. The group's investment in associates includes goodwill (net of any
accumulated impairment loss) identified on acquisition (refer to note 44).
AASB128(11) The group's share of its associates' post-acquisition profits or losses is recognised in profit or loss,
and its share of post-acquisition other comprehensive income is recognised in other comprehensive
income. The cumulative post-acquisition movements are adjusted against the carrying amount of the
investment. Dividends receivable from associates are recognised as reduction in the carrying amount
of the investment.
AASB128(29),(30) When the group's share of losses in an associate equals or exceeds its interest in the associate,
including any other unsecured long-term receivables, the group does not recognise further losses,
unless it has incurred obligations or made payments on behalf of the associate.
AASB128(22) Unrealised gains on transactions between the group and its associates are eliminated to the extent of
AASB128(26)
the group's interest in the associates. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. Accounting policies of associates have
been changed where necessary to ensure consistency with the policies adopted by the group.

AASB101(51)(c) 30 June 2011
(continued)
(b) Principles of consolidation (continued)

AASB101(119) (iv) Joint ventures
Jointly controlled assets
The proportionate interests in the assets, liabilities and expenses of a joint venture activity have been
incorporated in the financial statements under the appropriate headings. Details of the joint venture
are set out in note 45.
Joint venture entities
AASB131(57) The interest in a joint venture partnership is accounted for using the equity method after initially being
recognised at cost. Under the equity method, the share of the profits or losses of the partnership is
recognised in the profit or loss, and the share of post-acquisition movements in reserves is
recognised in other comprehensive income. Details relating to the partnership are set out in note 45.
Profits or losses on transactions establishing the joint venture partnership and transactions with the
joint venture are eliminated to the extent of the group's ownership interest until such time as they are
realised by the joint venture partnership on consumption or sale. However, a loss on the transaction is
recognised immediately if the loss provides evidence of a reduction in the net realisable value of
current assets, or an impairment loss.
(v) Changes in ownership interests
AASB127(30) The group treats transactions with non-controlling interests that do not result in a loss of control as
transactions with equity owners of the group. A change in ownership interest results in an adjustment
between the carrying amounts of the controlling and non-controlling interests to reflect their relative
interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling
interests and any consideration paid or received in recognised in a separate reserve within equity
attributable to owners of VALUE ACCOUNTS Holdings Limited.
AASB127(34),(35) When the group ceases to have control, joint control or significant influence, any retained interest in
AASB128(18)
AASB131(45) the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss.
The fair value is the initial carrying amount for the purposes of subsequently accounting for the
retained interest as an associate, jointly controlled entity or financial asset. In addition, any amounts
previously recognised in other comprehensive income in respect of that entity are accounted for as if
the group had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are reclassified to profit or loss.
AASB128(19A) If the ownership interest in a jointly-controlled entity or an associate is reduced but joint control or
AASB131(45B)
significant influence is retained, only a proportionate share of the amounts previously recognised in
other comprehensive income are reclassified to profit or loss where appropriate.
AASB101(119) (c) Segment reporting

AASB8(5),(7) Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The chief operating decision maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the strategic
steering committee.
AASB101(119),(120) (d) Foreign currency translation

AASB101(119) (i) Functional and presentation currency 24
AASB121(9),(17),(18) Items included in the financial statements of each of the group's entities are measured using the
currency of the primary economic environment in which the entity operates (‘the functional currency').
The consolidated financial statements are presented in Australian dollars, which is VALUE
ACCOUNTS Holdings Limited’s functional and presentation currency.

AASB101(51)(c) 30 June 2011
(continued)
AASB101(119),(120) (d) Foreign currency translation (continued)

AASB101(119) (ii) Transactions and balances
(Revised)
AASB121(21),(28), Foreign currency transactions are translated into the functional currency using the exchange rates
(32)
AASB139(95)(a), prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
(102)(a) settlement of such transactions and from the translation at year end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in profit or loss, except when
they are deferred in equity as qualifying cash flow hedges and qualifying net investment hedges or are
attributable to part of the net investment in a foreign operation.
Foreign exchange gains and losses that relate to borrowings are presented in the income statement,
within finance costs. All other foreign exchange gains and losses are presented in the income
statement on a net basis within other income or other expenses.
AASB121(23)(c) Non-monetary items that are measured at fair value in a foreign currency are translated using the
AASB121(30)
exchange rates at the date when the fair value was determined. Translation differences on assets and
liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation
differences on non-monetary assets and liabilities such as equities held at fair value through profit or
loss are recognised in profit or loss as part of the fair value gain or loss and translation differences on
non-monetary assets such as equities classified as available-for-sale financial assets are recognised
in other comprehensive income.
AASB101(119) (iii) Group companies
AASB121(39) The results and financial position of foreign operations (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
AASB121(39)
 assets and liabilities for each balance sheet presented are translated at the closing rate at
the date of that balance sheet
 income and expenses for each income statement and statement of comprehensive income
are translated at average exchange rates (unless this is not a reasonable approximation of
the cumulative effect of the rates prevailing on the transaction dates, in which case income
and expenses are translated at the dates of the transactions), and
 all resulting exchange differences are recognised in other comprehensive income.
AASB139(102) On consolidation, exchange differences arising from the translation of any net investment in foreign
entities, and of borrowings and other financial instruments designated as hedges of such investments,
are recognised in other comprehensive income. When a foreign operation is sold or any borrowings
forming part of the net investment are repaid, a proportionate share of such exchange difference is
reclassified to profit or loss, as part of the gain or loss on sale where applicable.
AASB121(47) Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as
assets and liabilities of the foreign operation and translated at the closing rate.
AASB101(119) (e) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed
as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third
parties.
The group recognises revenue when the amount of revenue can be reliably measured, it is probable
that future economic benefits will flow to the entity and specific criteria have been met for each of the
group's activities as described below. The group bases its estimates on historical results, taking into
consideration the type of customer, the type of transaction and the specifics of each arrangement.
Revenue is recognised for the major business activities as follows:

AASB101(51)(c) 30 June 2011
(continued)
(e) Revenue recognition (continued)

AASB101(119) (i) Sale of goods – wholesale
AASB118(35)(a) The group manufactures and sells a range of furniture in the wholesale market. Sales of goods are
recognised when a group entity has delivered products to the wholesaler, the wholesaler has full
discretion over the channel and price to sell the products, and there is no unfulfilled obligation that
could affect the wholesaler's acceptance of the products. Delivery does not occur until the products
have been shipped to the specified location, the risks of obsolescence and loss have been transferred
to the wholesaler, and either the wholesaler has accepted the products in accordance with the sales
contract, the acceptance provisions have lapsed, or the group has objective evidence that all criteria
for acceptance have been satisfied.
The furniture is often sold with volume discounts and customers have a right to return faulty products
in the wholesale market. Sales are recorded based on the price specified in the sales contracts, net of
the estimated volume discounts and returns at the time of sale. Accumulated experience is used to
estimate and provide for the discounts and returns. The volume discounts are assessed based on
anticipated annual purchases. No element of financing is deemed present as the sales are made with
a credit term of 30 days, which is consistent with market practice.
AASB101(119) (ii) Sale of goods – retail
AASB118(35)(a) The group operates a chain of retail stores selling household furniture. Revenue from the sale of goods
is recognised when a group entity sells a product to the customer. Retail sales are usually by credit
card or in cash.
It is the group's policy to sell its products to the end customer with a right of return within 28 days.
Accumulated experience is used to estimate and provide for such returns at the time of sale.
Customer loyalty programme
AASB-I13(5)-(7) VALUE ACCOUNTS Holdings Limited operates a loyalty programme where customers accumulate
points for purchases made which entitle them to discounts on future purchases. The award points are
recognised as a separately identifiable component of the initial sale transaction, by allocating the fair
value of the consideration received between the award points and the other components of the sale
such that the award points are recognised at their fair value. Revenue from the award points is
recognised when the points are redeemed. The amount of revenue is based on the number of points
redeemed relative to the total number expected to be redeemed. Award points expire 12 months after
the initial sale.
AASB101(119)
(Revised) (iii) Consulting 25
AASB118(35)(a) Revenue from consulting services is recognised in the accounting period in which the services are
rendered. For fixed-price contracts, revenue is recognised under the percentage of completion
method, based on the actual service provided as a proportion of the total services to be provided.
If circumstances arise that may change the original estimates of revenues, costs or extent of progress
toward completion, estimates are revised. These revisions may result in increases or decreases in
estimated revenues or costs and are reflected in profit or loss in the period in which the circumstances
that give rise to the revision become known by management.
AASB101(119) (iv) Land development and resale
AASB118(35)(a) Revenue is recognised when the risks and rewards have been transferred and the entity retains
neither continuing managerial involvement to the degree usually associated with ownership nor
effective control over the units sold. Due to the nature of the agreements entered into by VALUE
ACCOUNTS Development Limited, this is considered to occur on settlement.
AASB101(119) (v) Interest income
AASB118(35)a) Interest income is recognised using the effective interest method. When a receivable is impaired, the
group reduces the carrying amount to its recoverable amount, being the estimated future cash flow
discounted at the original effective interest rate of the instrument, and continues unwinding the
discount as interest income. Interest income on impaired loans is recognised using the original
effective interest rate.
AASB101(119) (vi) Dividends
AASB118(35)(a) Dividends are recognised as revenue when the right to receive payment is established. This applies
AASB127(38A)
even if they are paid out of pre-acquisition profits. However, the investment may need to be tested for
impairment as a consequence, refer note 1(o).

AASB101(51)(c) 30 June 2011
(continued)
AASB101(119) (f) Government grants

AASB120(7),(39)(a) Grants from the government are recognised at their fair value where there is a reasonable assurance
that the grant will be received and the group will comply with all attached conditions.
AASB120(12) Government grants relating to costs are deferred and recognised in the profit or loss over the period
necessary to match them with the costs that they are intended to compensate.
AASB120(24),(26) Government grants relating to the purchase of property, plant and equipment are included in
non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over
the expected lives of the related assets.
AASB101(119),(120) (g) Income tax

(Revised)
AASB112(46) The income tax expense or revenue for the period is the tax payable on the current period's taxable
income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred
tax assets and liabilities attributable to temporary differences and to unused tax losses.
AASB112(12),(46) The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the end of the reporting period in the countries where the company's subsidiaries and
associates operate and generate taxable income. Management periodically evaluates positions taken
in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
AASB112(15),(24), Deferred income tax is provided in full, using the liability method, on temporary differences arising
(47)
between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial
statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition
of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset
or liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted by the end of the reporting period and are
expected to apply when the related deferred income tax asset is realised or the deferred income tax
liability is settled.
AASB112(24),(34) Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if
it is probable that future taxable amounts will be available to utilise those temporary differences and
losses.
AASB112(39),(44) Deferred tax liabilities and assets are not recognised for temporary differences between the carrying
amount and tax bases of investments in foreign operations where the company is able to control the
timing of the reversal of the temporary differences and it is probable that the differences will not
reverse in the foreseeable future.
AASB112(71),(74) Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset
and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
UIG1052(16)(a) VALUE ACCOUNTS Holdings Limited and its wholly-owned Australian controlled entities have
implemented the tax consolidation legislation. As a consequence, these entities are taxed as a single
entity and the deferred tax assets and liabilities of these entities are set off in the consolidated
AASB112(61A) Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised
in other comprehensive income or directly in equity, respectively.
(i) Investment allowances
Companies within the group may be entitled to claim special tax deductions for investments in
qualifying assets (investment allowances). The group accounts for such allowances as tax credits,
which means that the allowance reduces income tax payable and current tax expense. A deferred tax
asset is recognised for unclaimed tax credits that are carried forward as deferred tax assets.

AASB101(51)(c) 30 June 2011
(continued)
AASB101(119) (h) Leases 29-35

AASB117(20),(25) Leases of property, plant and equipment where the group, as lessee, has substantially all the risks
and rewards of ownership are classified as finance leases (note 20). Finance leases are capitalised at
the lease's inception at the fair value of the leased property or, if lower, the present value of the
minimum lease payments. The corresponding rental obligations, net of finance charges, are included
in other short-term and long-term payables. Each lease payment is allocated between the liability and
finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability for each period. The
property, plant and equipment acquired under finance leases is depreciated over the asset's useful life
or over the shorter of the asset's useful life and the lease term if there is no reasonable certainty that
the group will obtain ownership at the end of the lease term.
AASB117(33) Leases in which a significant portion of the risks and rewards of ownership are not transferred to the
UIG115(5)
group as lessee are classified as operating leases (note 39). Payments made under operating leases
(net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis
over the period of the lease.
AASB117(49),(50) Lease income from operating leases where the group is a lessor is recognised in income on a
straight-line basis over the lease term (note 21). The respective leased assets are included in the
balance sheet based on their nature.
AASB101(119),(120)
(Revised)
(i) Business combinations 36-38
AASB3(5),(37),(39), The acquisition method of accounting is used to account for all business combinations, regardless of
(53),(18),(19)
whether equity instruments or other assets are acquired. The consideration transferred for the
acquisition of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred
and the equity interests issued by the group. The consideration transferred also includes the fair value
of any asset or liability resulting from a contingent consideration arrangement and the fair value of any
pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are, with limited exceptions, measured initially at their fair values at the acquisition date. On an
acquisition-by-acquisition basis, the group recognises any non-controlling interest in the acquiree
either at fair value or at the non-controlling interest's proportionate share of the acquiree’s net
identifiable assets.
AASB3(32),(34) The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree
and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of
the group's share of the net identifiable assets acquired is recorded as goodwill. If those amounts are
less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement
of all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain
purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of exchange. The discount rate used is the entity's
incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a
financial liability are subsequently remeasured to fair value with changes in fair value recognised in
profit or loss.

AASB101(51)(c) 30 June 2011
(continued)
AASB101(119) (j) Impairment of assets

AASB136(9),(10) Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and
are tested annually for impairment, or more frequently if events or changes in circumstances indicate
that they might be impaired. Other assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other
assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that
suffered an impairment are reviewed for possible reversal of the impairment at the end of each
reporting period.
AASB101(119) (k) Cash and cash equivalents

AASB107(6),(8),(46) For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes
cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.
AASB101(119)
(Revised)
(l) Trade receivables 39,40
AASB7(21) Trade receivables are recognised initially at fair value and subsequently measured at amortised cost
AASB139(46)(a)
using the effective interest method, less provision for impairment. Trade receivables are generally due
for settlement within 30 days. They are presented as current assets unless collection is not expected
for more than 12 months after the reporting date.
AASB139(59) Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be
uncollectible are written off by reducing the carrying amount directly. An allowance account (provision
for impairment of trade receivables) is used when there is objective evidence that the group will not be
able to collect all amounts due according to the original terms of the receivables. Significant financial
difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation,
AASB139(AG84) and default or delinquency in payments (more than 30 days overdue) are considered indicators that
the trade receivable is impaired. The amount of the impairment allowance is the difference between
the asset's carrying amount and the present value of estimated future cash flows, discounted at the
original effective interest rate. Cash flows relating to short-term receivables are not discounted if the
effect of discounting is immaterial.
AASB7(21) The amount of the impairment loss is recognised in profit or loss within other expenses. When a trade
(AASB7(B5)(d) receivable for which an impairment allowance had been recognised becomes uncollectible in a
subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts
previously written off are credited against other expenses in profit or loss.
AASB101(119) (m) Inventories

AASB101(119) (i) Raw materials and stores, work in progress and finished goods
AASB102(9),(10),(25), Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net
(36)(a)
realisable value. Cost comprises direct materials, direct labour and an appropriate proportion of
variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating
capacity. Cost includes the reclassification from equity of any gains or losses on qualifying cash flow
hedges relating to purchases of raw material but excludes borrowing costs. Costs are assigned to
individual items of inventory on the basis of weighted average costs. Costs of purchased inventory are
determined after deducting rebates and discounts. Net realisable value is the estimated selling price
in the ordinary course of business less the estimated costs of completion and the estimated costs
necessary to make the sale.

AASB101(51)(c) 30 June 2011
(continued)
AASB101(119) (m) Inventories (continued)

AASB101(119) (ii) Land held for resale/capitalisation of borrowing costs
AASB102(9),(10),(23), Land held for resale is stated at the lower of cost and net realisable value. Cost is assigned by
(36)(a)
AASB123(8),(22) specific identification and includes the cost of acquisition, and development and borrowing costs
during development. When development is completed borrowing costs and other holding charges are
expensed as incurred.
AASB123(8),(10), Borrowing costs included in the cost of land held for resale are those costs that would have been
(20)
avoided if the expenditure on the acquisition and development of the land had not been made.
Borrowing costs incurred while active development is interrupted for extended periods are recognised
as expenses.
AASB101(119) (n) Non-current assets (or disposal groups) held for sale and discontinued operations
AASB5(6),(15) Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than through continuing use and a sale is
considered highly probable. They are measured at the lower of their carrying amount and fair value
less costs to sell, except for assets such as deferred tax assets, assets arising from employee
benefits, financial assets and investment property that are carried at fair value and contractual rights
under insurance contracts, which are specifically exempt from this requirement.
AASB5(20)-(22) An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal
group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value
less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss
previously recognised. A gain or loss not previously recognised by the date of the sale of the
non-current asset (or disposal group) is recognised at the date of derecognition.
AASB5(25) Non-current assets (including those that are part of a disposal group) are not depreciated or
amortised while they are classified as held for sale. Interest and other expenses attributable to the
liabilities of a disposal group classified as held for sale continue to be recognised.
AASB5(38) Non-current assets classified as held for sale and the assets of a disposal group classified as held for
sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal
group classified as held for sale are presented separately from other liabilities in the balance sheet.
AASB5(31),(32), A discontinued operation is a component of the entity that has been disposed of or is classified as
(33)(a)
held for sale and that represents a separate major line of business or geographical area of operations,
is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a
subsidiary acquired exclusively with a view to resale. The results of discontinued operations are
presented separately in the income statement.
AASB101(119)
AASB7(21)
(o) Investments and other financial assets 39-46
Classification
AASB139(45),(60) The group classifies its financial assets in the following categories: financial assets at fair value
through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale
financial assets. The classification depends on the purpose for which the investments were acquired.
Management determines the classification of its investments at initial recognition and, in the case of
assets classified as held-to-maturity, re-evaluates this designation at the end of each reporting date.
AASB101(119)
(Revised)
(i) Financial assets at fair value through profit or loss 42-45
AASB101(66),(68) Financial assets at fair value through profit or loss are financial assets held for trading. A financial
AASB139(9),(45)
asset is classified in this category if acquired principally for the purpose of selling in the short term.
Derivatives are classified as held for trading unless they are designated as hedges. Assets in this
category are classified as current assets if they are expected to be settled within 12 months;
otherwise they are classified as non-current.
(ii) Loans and receivables
AASB139(9) Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. They are included in current assets, except for those with
maturities greater than 12 months after the reporting period which are classified as non-current
assets. Loans and receivables are included in trade and other receivables (note 12) and receivables
(note 16) in the balance sheet.

AASB101(51)(c) 30 June 2011
(continued)
(o) Investments and other financial assets (continued)

(iii) Held-to-maturity investments
AASB139(9) Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments
and fixed maturities that the group's management has the positive intention and ability to hold to
maturity. If the group were to sell other than an insignificant amount of held-to-maturity financial
assets, the whole category would be tainted and reclassified as available-for-sale. Held-to-maturity
financial assets are included in non-current assets, except for those with maturities less than 12
months from the end of the reporting period, which are classified as current assets.
(iv) Available-for-sale financial assets
AASB139(9) Available-for-sale financial assets, comprising principally marketable equity securities, are
AASB7(21),(B5)(b)
non-derivatives that are either designated in this category or not classified in any of the other
categories. They are included in non-current assets unless the investment matures or management
intends to dispose of the investment within 12 months of the end of the reporting period. Investments
are designated as available-for-sale if they do not have fixed maturities and fixed or determinable
payments and management intends to hold them for the medium to long term.
Financial assets – reclassification
AASB139(50)-(50E) The group may choose to reclassify a non-derivative trading financial asset out of the held for trading
category if the financial asset is no longer held for the purpose of selling it in the near term. Financial
assets other than loans and receivables are permitted to be reclassified out of the held for trading
category only in rare circumstances arising from a single event that is unusual and highly unlikely to
recur in the near term. In addition, the group may choose to reclassify financial assets that would
meet the definition of loans and receivables out of the held for trading or available-for-sale categories
if the group has the intention and ability to hold these financial assets for the foreseeable future or
until maturity at the date of reclassification
AASB139(50F) Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new
cost or amortised cost as applicable, and no reversals of fair value gains or losses recorded before
reclassification date are subsequently made. Effective interest rates for financial assets reclassified to
loans and receivables and held-to-maturity categories are determined at the reclassification date.
Further increases in estimates of cash flows adjust effective interest rates prospectively.
(Revised) Recognition and derecognition
AASB139(38) Regular way purchases and sales of financial assets are recognised on trade-date – the date on
AASB7(21),(B5)(c)
which the group commits to purchase or sell the asset. Financial assets are derecognised when the
rights to receive cash flows from the financial assets have expired or have been transferred and the
group has transferred substantially all the risks and rewards of ownership.
When securities classified as available-for-sale are sold, the accumulated fair value adjustments
recognised in other comprehensive income are reclassified to profit or loss as gains and losses from
46
investment securities.
(Revised) Measurement
AASB7(21) At initial recognition, the group measures a financial asset at its fair value plus, in the case of a
AASB139(43)
financial asset not at fair value through profit or loss, transaction costs that are directly attributable to
the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through
profit or loss are expensed in profit or loss.
AASB139(46)(a) Loans and receivables and held-to-maturity investments are subsequently carried at amortised cost
using the effective interest method.
AASB139(46), Available-for-sale financial assets and financial assets at fair value through profit or loss are
(55)(a),(b)
AASB7(21),(B5)(e) subsequently carried at fair value. Gains or losses arising from changes in the fair value of the
'financial assets at fair value through profit or loss' category are presented in profit or loss within other
income or other expenses in the period in which they arise. Dividend income from financial assets at
fair value through profit or loss is recognised in profit or loss as part of revenue from continuing
operations when the group's right to receive payments is established. Interest income from these
46
financial assets is included in the net gains/(losses).

AASB101(51)(c) 30 June 2011
(continued)
(o) Investments and other financial assets (continued)

Changes in the fair value of monetary securities denominated in a foreign currency and classified as
available-for-sale are analysed between translation differences resulting from changes in amortised
cost of the security and other changes in the carrying amount of the security. The translation
differences related to changes in the amortised cost are recognised in profit or loss, and other
changes in carrying amount are recognised in other comprehensive income. Changes in the fair value
of other monetary and non-monetary securities classified as available-for-sale are recognised in other
46
comprehensive income.
AASB7(27) Details on how the fair value of financial instruments is determined are disclosed in note 2.
(Revised) Impairment
AASB139(58),(59) The group assesses at the end of each reporting period whether there is objective evidence that a
financial asset or group of financial assets is impaired. A financial asset or a group of financial assets
is impaired and impairment losses are incurred only if there is objective evidence of impairment as a
result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and
that loss event (or events) has an impact on the estimated future cash flows of the financial asset or
group of financial assets that can be reliably estimated. In the case of equity investments classified as
available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is
considered an indicator that the assets are impaired.
(i) Assets carried at amortised cost
AASB139(63) For loans and receivables, the amount of the loss is measured as the difference between the asset’s
carrying amount and the present value of estimated future cash flows (excluding future credit losses
that have not been incurred) discounted at the financial asset’s original effective interest rate. The
carrying amount of the asset is reduced and the amount of the loss is recognised in the consolidated
income statement. If a loan or held-to-maturity investment has a variable interest rate, the discount
rate for measuring any impairment loss is the current effective interest rate determined under the
contract. As a practical expedient, the group may measure impairment on the basis of an instrument’s
fair value using an observable market price.
AASB139(65) If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised (such as an
improvement in the debtor’s credit rating), the reversal of the previously recognised impairment loss is
recognised in the consolidated income statement.
Impairment testing of trade receivables is described in note 1(l).
(ii) Assets classified as available-for-sale
AASB139(67)-(70) If there is objective evidence of impairment for available-for-sale financial assets, the cumulative loss
– measured as the difference between the acquisition cost and the current fair value, less any
impairment loss on that financial asset previously recognised in profit or loss – is removed from equity
and recognised in profit or loss.
Impairment losses on equity instruments that were recognised in profit or loss are not reversed
through profit or loss in a subsequent period.
If the fair value of a debt instrument classified as available-for-sale increases in a subsequent period
and the increase can be objectively related to an event occurring after the impairment loss was
recognised in profit or loss, the impairment loss is reversed through profit or loss.

AASB101(51)(c) 30 June 2011
(continued)
AASB101(119)
AASB7(21)
(p) Derivatives and hedging activities 39,46
AASB139(88) Derivatives are initially recognised at fair value on the date a derivative contract is entered into and
are subsequently remeasured to their fair value at the end of each reporting period. The accounting
for subsequent changes in fair value depends on whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being hedged. The group designates certain derivatives
as either:
 hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value
hedges)
 hedges of a particular risk associated with the cash flows of recognised assets and
liabilities and highly probable forecast transactions (cash flow hedges), or
 hedges of a net investment in a foreign operation (net investment hedges).
AASB139(88) The group documents at the inception of the hedging transaction the relationship between hedging
instruments and hedged items, as well as its risk management objective and strategy for undertaking
various hedge transactions. The group also documents its assessment, both at hedge inception and
on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and
will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.
The fair values of various derivative financial instruments used for hedging purposes are disclosed in
note 15. Movements in the hedging reserve in shareholders' equity are shown in note 33. The full fair
value of a hedging derivative is classified as a non-current asset or liability when the remaining
maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when
the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as
a current asset or liability.
AASB101(119)
(i) Fair value hedge 47
AASB139(89) Changes in the fair value of derivatives that are designated and qualify as fair value hedges are
recorded in profit or loss, together with any changes in the fair value of the hedged asset or liability
that are attributable to the hedged risk. The gain or loss relating to the effective portion of interest rate
swaps hedging fixed rate borrowings is recognised in profit or loss within finance costs, together with
changes in the fair value of the hedged fixed rate borrowings attributable to interest rate risk. The gain
or loss relating to the ineffective portion is recognised in profit or loss within other income or other
expenses. 46
AASB139(92) If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount
of a hedged item for which the effective interest method is used is amortised to profit or loss over the
period to maturity using a recalculated effective interest rate.
AASB101(119) (ii) Cash flow hedge
AASB139(95),(97), The effective portion of changes in the fair value of derivatives that are designated and qualify as cash
(98)
flow hedges is recognised in other comprehensive income and accumulated in reserves in equity. The
gain or loss relating to the ineffective portion is recognised immediately in profit or loss within other
income or other expense. 46
AASB139(100) Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item
affects profit or loss (for instance when the forecast sale that is hedged takes place). The gain or loss
relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognised
in profit or loss within ‘finance costs'. The gain or loss relating to the effective portion of forward
foreign exchange contracts hedging export sales is recognised in profit or loss within ‘sales'. However,
AASB139(98)(b) when the forecast transaction that is hedged results in the recognition of a non-financial asset (for
example, inventory or fixed assets) the gains and losses previously deferred in equity are reclassified
from equity and included in the initial measurement of the cost of the asset. The deferred amounts are
ultimately recognised in profit or loss as cost of goods sold in the case of inventory, or as depreciation
or impairment in the case of fixed assets.
AASB139(101) When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the
criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in
equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. When
a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in
equity is immediately reclassified to profit or loss.

AASB101(51)(c) 30 June 2011
(continued)
(p) Derivatives and hedging activities (continued)

AASB101(119) (iii) Net investment hedges
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges.
AASB139(102) Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised
in other comprehensive income and accumulated in reserves in equity. The gain or loss relating to the
46
ineffective portion is recognised immediately in profit or loss within other income or other expenses.
Gains and losses accumulated in equity are reclassified to profit or loss when the foreign operation is
partially disposed of or sold.
AASB101(119) (iv) Derivatives that do not qualify for hedge accounting
AASB139(55)(a) Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any
derivative instrument that does not qualify for hedge accounting are recognised immediately in profit
or loss and are included in other income or other expenses. 46
AASB101(119) (q) Financial guarantee contracts

AASB7(21)
AASB139(47)(c) Financial guarantee contracts are recognised as a financial liability at the time the guarantee is
issued. The liability is initially measured at fair value and subsequently at the higher of the amount
determined in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets
and the amount initially recognised less cumulative amortisation, where appropriate.
The fair value of financial guarantees is determined as the present value of the difference in net cash
flows between the contractual payments under the debt instrument and the payments that would be
required without the guarantee, or the estimated amount that would be payable to a third party for
assuming the obligations.
Where guarantees in relation to loans or other payables of associates are provided for no
compensation, the fair values are accounted for as contributions and recognised as part of the cost of
the investment.
AASB101(119) (r) Property, plant and equipment 48-49

AASB116(73)(a) Land and buildings (except for investment properties – refer to note 1(s)) are shown at fair value,
AASB116(35)(b)
AASB116(17) based on periodic, but at least triennial, valuations by external independent valuers, less subsequent
AASB139(98)(b) depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated
against the gross carrying amount of the asset and the net amount is restated to the revalued amount
of the asset. All other property, plant and equipment is stated at historical cost less depreciation.
Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost
may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign
currency purchases of property, plant and equipment.
AASB116(12) Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the group and the cost of the item can be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance
are charged to profit or loss during the reporting period in which they are incurred.
AASB116(39) Increases in the carrying amounts arising on revaluation of land and buildings are recognised, net of
tax, in other comprehensive income and accumulated in reserves in equity. To the extent that the
increase reverses a decrease previously recognised in profit or loss, the increase is first recognised in
profit or loss. Decreases that reverse previous increases of the same asset are first recognised in
other comprehensive income to the extent of the remaining surplus attributable to the asset; all other
decreases are charged to profit or loss. Each year, the difference between depreciation based on the
revalued carrying amount of the asset charged to profit or loss and depreciation based on the asset's
original cost, net of tax, is reclassified from the property, plant and equipment revaluation surplus to
retained earnings.

AASB101(51)(c) 30 June 2011
(continued)
(r) Property, plant and equipment (continued)

AASB116(50),(73)(b) Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to
allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives
or, in the case of leasehold improvements and certain leased plant and equipment, the shorter lease
term as follows:
– Buildings 25-40 years
AASB116(73)(c) – Machinery 10-15 years
– Vehicles 3-5 years
– Furniture, fittings and equipment 3-8 years
– Leased plant and equipment 10-15 years
AASB116(51) The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of
each reporting period.
AASB136(59) An asset's carrying amount is written down immediately to its recoverable amount if the asset's
carrying amount is greater than its estimated recoverable amount (note 1(j)).
AASB116(68),(71) Gains and losses on disposals are determined by comparing proceeds with carrying amount. These
AASB116(41)
are included in profit or loss. When revalued assets are sold, it is group policy to transfer any amounts
included in other reserves in respect of those assets to retained earnings.
AASB101(119) (s) Investment properties

AASB140(75)(a), Investment properties, principally comprising freehold office buildings, are held for long-term rental
(75)(d)
yields and are not occupied by the group. Investment properties are carried at fair value, which is
based on active market prices, adjusted, if necessary, for any difference in the nature, location or
condition of the specific asset. If this information is not available, the group uses alternative valuation
methods such as recent prices in less active markets or discounted cash flow projections. These
valuations are reviewed annually by a member of the Australian Property Institute. Changes in fair
values are recorded in the profit or loss as part of other income.
AASB101(119) (t) Intangible assets 50

AASB101(119) (i) Goodwill
(Revised)
AASB3(32) Goodwill is measured as described in note 1(i). Goodwill on acquisitions of subsidiaries is included in
AASB136(10)
intangible assets. Goodwill on acquisitions of associates is included in investments in associates.
Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or
changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated
impairment losses. Gains and losses on the disposal of an entity include the carrying amount of
goodwill relating to the entity sold.
AASB136(80) Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is
made to those cash-generating units or groups of cash-generating units that are expected to benefit
from the business combination in which the goodwill arose, identified according to operating segments
(note 4).
AASB101(119) (ii) Trademarks and licences
AASB138(74),(97), Trademarks and licences have a finite useful life and are carried at cost less accumulated
(118)(a),(b)
amortisation and impairment losses. Amortisation is calculated using the straight-line method to
allocate the cost of trademarks and licences over their estimated useful lives, which vary from 3 to 5
years.

AASB101(51)(c) 30 June 2011
(continued)
(t) Intangible assets (continued)

AASB101(119) (iii) IT development and software
Costs incurred in developing products or systems and costs incurred in acquiring software and
licenses that will contribute to future period financial benefits through revenue generation and/or cost
reduction are capitalised to software and systems. Costs capitalised include external direct costs of
materials and service and direct payroll and payroll related costs of employees' time spent on the
project. Amortisation is calculated on a straight-line basis over periods generally ranging from 3 to 5
years.
IT development costs include only those costs directly attributable to the development phase and are
only recognised following completion of technical feasibility and where the group has an intention and
ability to use the asset.
AASB101(119) (iv) Customer contracts
Customer contracts acquired as part of a business combination are recognised separately from
goodwill. The customer contracts are carried at their fair value at the date of acquisition less
accumulated amortisation and impairment losses. Amortisation is calculated based on the timing of
projected cash flows of the contracts over their estimated useful lives, which currently vary from 1 to 3
years.
AASB101(119) (v) Research and development
AASB138(8),(54),(57), Research expenditure is recognised as an expense as incurred. Costs incurred on development
(66),(71),(74),(97),
(118)(a),(b) projects (relating to the design and testing of new or improved products) are recognised as intangible
assets when it is probable that the project will, after considering its commercial and technical
feasibility, be completed and generate future economic benefits and its costs can be measured
reliably. The expenditure capitalised comprises all directly attributable costs, including costs of
materials, services, direct labour and an appropriate proportion of overheads. Other development
expenditures that do not meet these criteria are recognised as an expense as incurred. Development
costs previously recognised as an expense are not recognised as an asset in a subsequent period.
Capitalised development costs are recorded as intangible assets and amortised from the point at
which the asset is ready for use on a straight-line basis over its useful life, which varies from 3 to 5
years.
AASB101(119) (u) Trade and other payables

AASB7(21)
(Revised)
AASB139(43) These amounts represent liabilities for goods and services provided to the group prior to the end of
financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition. Trade and other payables are presented as current liabilities unless payment is not due
within 12 months from the reporting date. They are recognised initially at their fair value and
subsequently measured at amortised cost using the effective interest method.
AASB101(119) (v) Borrowings

AASB7(21)
AASB139(43),(47) Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in profit or loss over the period of the borrowings
using the effective interest method. Fees paid on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn
down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence
that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a
prepayment for liquidity services and amortised over the period of the facility to which it relates.
AASB132(18) Preference shares, which are mandatorily redeemable on a specific date, are classified as liabilities.
The dividends on these preference shares are recognised in profit or loss as finance costs.
AASB132(18),(28), The fair value of the liability portion of a convertible bond is determined using a market interest rate for
(AG31)(a)
an equivalent non-convertible bond. This amount is recorded as a liability on an amortised cost basis
until extinguished on conversion or maturity of the bonds. The remainder of the proceeds is allocated
to the conversion option. This is recognised and included in shareholders' equity, net of income tax
effects.

AASB101(51)(c) 30 June 2011
(continued)
(v) Borrowings (continued)

AASB139(39),(41) Borrowings are removed from the balance sheet when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability
that has been extinguished or transferred to another party and the consideration paid, including any
non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or
finance costs.
IFRIC19(9) Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a
(Revised)
creditor to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognised in
profit or loss, which is measured as the difference between the carrying amount of the financial liability
and the fair value of the equity instruments issued.
AASB101(69) Borrowings are classified as current liabilities unless the group has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting period.
AASB101(119) (w) Borrowing costs

AASB123(8)
Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period
of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing
costs are expensed.
AASB101(119) (x) Provisions 51-53

AASB137(14),(24), Provisions for legal claims, service warranties and make good obligations are recognised when the
(63)
group has a present legal or constructive obligation as a result of past events, it is probable that an
outflow of resources will be required to settle the obligation and the amount has been reliably
estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to any one item included in the same class of
obligations may be small.
AASB137(36),(45), Provisions are measured at the present value of management's best estimate of the expenditure
(47),(60)
required to settle the present obligation at the end of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The increase in the provision due to the passage
of time is recognised as interest expense.
AASB101(119) (y) Employee benefits
(i) Short-term obligations 57

AASB119(10),(11) Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating
sick leave expected to be settled within 12 months after the end of the period in which the employees
render the related service are recognised in respect of employees' services up to the end of the
reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
The liability for annual leave and accumulating sick leave is recognised in the provision for employee
benefits. All other short-term employee benefit obligations are presented as payables.
(ii) Other long-term employee benefit obligations 60,61

AASB119(128) The liability for long service leave and annual leave which is not expected to be settled within 12
months after the end of the period in which the employees render the related service is recognised in
the provision for employee benefits and measured as the present value of expected future payments
to be made in respect of services provided by employees up to the end of the reporting period using
the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted
using market yields at the end of the reporting period on national government bonds with terms to
maturity and currency that match, as closely as possible, the estimated future cash outflows.

AASB101(51)(c) 30 June 2011
(continued)
(y) Employee benefits (continued)

AASB101(119)
(Revised) (iii) Retirement benefit obligations 58-61
AASB119(120A)(b), All employees of the group are entitled to benefits from the group's superannuation plan on
(121)
retirement, disability or death. The group has a defined benefit section and a defined contribution
section within its plan. The defined benefit section provides defined lump sum benefits based on years
of service and final average salary. The defined contribution section receives fixed contributions from
group companies and the group's legal or constructive obligation is limited to these contributions.
AASB119(54),(64) The liability or asset recognised in the balance sheet in respect of defined benefit superannuation
plans is the present value of the defined benefit obligation at the end of the reporting period less the
fair value of plan assets, together with adjustments for unrecognised past service costs. The defined
benefit obligation is calculated annually by independent actuaries using the projected unit credit
method.
AASB119(78),(80) The present value of the defined benefit obligation is determined by discounting the estimated future
cash outflows using interest rates of national government bonds that are denominated in the currency
in which the benefits will be paid, and that have terms to maturity approximating to the terms of the
related obligation. In countries where there is a deep market in high-quality corporate bonds, the
60-61
market rates on those bonds are used.
AASB119(120A)(a) Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions
AASB119(93B),(93C)
are recognised in the period in which they occur, directly in other comprehensive income.
AASB119(96) Past service costs are recognised immediately in profit or loss, unless the changes to the
superannuation fund are conditional on the employees remaining in service for a specified period of
time (the vesting period). In this case, the past service costs are amortised on a straight-line basis
over the vesting period.
AASB119(44) Contributions to the defined contribution fund are recognised as an expense as they become payable.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the
future payments is available.
AASB101(119) (iv) Share-based payments
(Revised)
Share-based compensation benefits are provided to employees via the VALUE ACCOUNTS
Employee Option Plan and an employee share scheme. Information relating to these schemes is set
out in note 50.
AASB2(15)(b),(19) The fair value of options granted under the VALUE ACCOUNTS Employee Option Plan is recognised
as an employee benefits expense with a corresponding increase in equity. The total amount to be
expensed is determined by reference to the fair value of the options granted, which includes any
market performance conditions and the impact of any non-vesting conditions but excludes the impact
of any service and non-market performance vesting conditions.
Non-market vesting conditions are included in assumptions about the number of options that are
expected to vest. The total expense is recognised over the vesting period, which is the period over
which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity
revises its estimates of the number of options that are expected to vest based on the non-marketing
vesting conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss,
with a corresponding adjustment to equity.
The Employee Option Plan is administered by the VALUE ACCOUNTS Employee Share Trust; see
note 1(b)(ii). When the options are exercised, the trust transfers the appropriate amount of shares to
the employee. The proceeds received net of any directly attributable transaction costs are credited
directly to equity.
Under the employee share scheme, shares issued by the VALUE ACCOUNTS Employee Share Trust
to employees for no cash consideration vest immediately on grant date. On this date, the market
value of the shares issued is recognised as an employee benefits expense with a corresponding
increase in equity.

AASB101(51)(c) 30 June 2011
(continued)
(y) Employee benefits (continued)

AASB101(119) (v) Profit-sharing and bonus plans
AASB119(17) The group recognises a liability and an expense for bonuses and profit-sharing based on a formula
that takes into consideration the profit attributable to the company's shareholders after certain
adjustments. The group recognises a provision where contractually obliged or where there is a past
practice that has created a constructive obligation.
AASB101(119) (vi) Termination benefits
AASB119(133),(134) Termination benefits are payable when employment is terminated before the normal retirement date,
or when an employee accepts voluntary redundancy in exchange for these benefits. The group
recognises termination benefits when it is demonstrably committed to either terminating the
employment of current employees according to a detailed formal plan without possibility of withdrawal
or to providing termination benefits as a result of an offer made to encourage voluntary redundancy.
Benefits falling due more than 12 months after the end of the reporting period are discounted to
present value.
AASB101(119) (z) Contributed equity

AASB132(18)(a) Ordinary shares are classified as equity. Mandatorily redeemable preference shares are classified as
liabilities (note 28).
AASB132(35),(37) Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
AASB132(33) Where any group company purchases the company’s equity instruments, for example as the result of
(Revised)
a share buy-back or a share-based payment plan, the consideration paid, including any directly
attributable incremental costs (net of income taxes) is deducted from equity attributable to the owners
of VALUE ACCOUNTS Holdings Limited as treasury shares until the shares are cancelled or
reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of
any directly attributable incremental transaction costs and the related income tax effects, is included in
62
equity attributable to the owners of VALUE ACCOUNTS Holdings Limited.
AASB101(119) (aa) Dividends 54-56

AASB110(12),(13) Provision is made for the amount of any dividend declared, being appropriately authorised and no
longer at the discretion of the entity, on or before the end of the reporting period but not distributed at
the end of the reporting period.
AASB101(119) (ab) Earnings per share

(i) Basic earnings per share
AASB133 Basic earnings per share is calculated by dividing:
 the profit attributable to owners of the company, excluding any costs of servicing equity
other than ordinary shares
 by the weighted average number of ordinary shares outstanding during the financial year,
adjusted for bonus elements in ordinary shares issued during the year and excluding
treasury shares (note 32(g)).
(ii) Diluted earnings per share
AASB133 Diluted earnings per share adjusts the figures used in the determination of basic earnings per share
to take into account:
 the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares, and
 the weighted average number of additional ordinary shares that would have been
outstanding assuming the conversion of all dilutive potential ordinary shares.

AASB101(51)(c) 30 June 2011
(continued)
AASB101(119) (ac) Goods and Services Tax (GST)

UIG1031(6),(7) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the
GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the
cost of acquisition of the asset or as part of the expense.
UIG1031(8),(9) Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the taxation authority is included with other
receivables or payables in the balance sheet.
UIG1031(10),(11) Cash flows are presented on a gross basis. The GST components of cash flows arising from investing
or financing activities which are recoverable from, or payable to the taxation authority, are presented
as operating cash flows.
AASB101(119) (ad) Rounding of amounts 63,64

AASB101(51)(e) The company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and
Investments Commission, relating to the 'rounding off' of amounts in the financial statements.
Amounts in the financial statements have been rounded off in accordance with that Class Order to the
nearest thousand dollars, or in certain cases, the nearest dollar.
AASB108(30)
(Revised)
(ae) New accounting standards and interpretations 65-70
Certain new accounting standards and interpretations have been published that are not mandatory for
30 June 2011 reporting periods. The group's assessment of the impact of these new standards and
interpretations is set out below.
(i) AASB 9 Financial Instruments, AASB 2009-11 Amendments to Australian Accounting Standards
arising from AASB 9 and AASB 2010-7 Amendments to Australian Accounting Standards arising from
AASB 9 (December 2010) (effective from 1 January 2013)
AASB 9 Financial Instruments addresses the classification, measurement and derecognition of
financial assets and financial liabilities. The standard is not applicable until 1 January 2013 but is
available for early adoption. When adopted, the standard will affect in particular the group’s
accounting for its available-for-sale financial assets, since AASB 9 only permits the recognition of fair
value gains and losses in other comprehensive income if they relate to equity investments that are not
held for trading. Fair value gains and losses on available-for-sale debt investments, for example, will
therefore have to be recognised directly in profit or loss. In the current reporting period, the group
recognised $15,000 of such gains in other comprehensive income.
There will be no impact on the group’s accounting for financial liabilities, as the new requirements only
affect the accounting for financial liabilities that are designated at fair value through profit or loss and
the group does not have any such liabilities. The derecognition rules have been transferred from
AASB 139 Financial Instruments: Recognition and Measurement and have not been changed. The
group has not yet decided when to adopt AASB 9.
(ii) Revised AASB 124 Related Party Disclosures and AASB 2009-12 Amendments to Australian
Accounting Standards (effective from 1 January 2011)
In December 2009 the AASB issued a revised AASB 124 Related Party Disclosures. It is effective for
accounting periods beginning on or after 1 January 2011 and must be applied retrospectively. The
amendment clarifies and simplifies the definition of a related party and removes the requirement for
government-related entities to disclose details of all transactions with the government and other
government-related entities. The group will apply the amended standard from 1 July 2011. When the
amendments are applied, the group will need to disclose any transactions between its subsidiaries
and its associates. However, there will be no impact on any of the amounts recognised in the financial
statements.

AASB101(51)(c) 30 June 2011
(continued)
(ae) New accounting standards and interpretations (continued)

(iii) AASB 2009-14 Amendments to Australian Interpretation – Prepayments of a Minimum Funding
Requirement (effective from 1 January 2011)
In December 2009, the AASB made an amendment to Interpretation 14 The Limit on a Defined
Benefit Asset, Minimum Funding Requirements and their Interaction. The amendment removes an
unintended consequence of the interpretation related to voluntary prepayments when there is a
minimum funding requirement in regard to the entity's defined benefit scheme. It permits entities to
recognise an asset for a prepayment of contributions made to cover minimum funding requirements.
The group does not make any such prepayments. The amendment is therefore not expected to have
any impact on the group's financial statements. The group intends to apply the amendment from 1
July 2011.
(iv) AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2
Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements
(effective from 1 July 2013)
On 30 June 2010 the AASB officially introduced a revised differential reporting framework in Australia.
Under this framework, a two-tier differential reporting regime applies to all entities that prepare
general purpose financial statements. VALUE ACCOUNTS Holdings Limited is listed on the ASX and
is not eligible to adopt the new Australian Accounting Standards – Reduced Disclosure Requirements.
The two standards will therefore have no impact on the financial statements of the entity.
(v) AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of
Financial Assets (effective for annual reporting periods beginning on or after 1 July 2011)
Amendments made to AASB 7 Financial Instruments: Disclosures in November 2010 introduce
additional disclosures in respect of risk exposures arising from transferred financial assets. The
amendments will affect particularly entities that sell, factor, securitise, lend or otherwise transfer
financial assets to other parties. They are not expected to have any significant impact on the group's
disclosures. The group intends to apply the amendment from 1 July 2011.
(vi) AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of
Underlying Assets (effective from 1 January 2012)
In December 2010, the AASB amended AASB 112 Income Taxes to provide a practical approach for
measuring deferred tax liabilities and deferred tax assets when investment property is measured
using the fair value model. AASB 112 requires the measurement of deferred tax assets or liabilities to
reflect the tax consequences that would follow from the way management expects to recover or settle
the carrying amount of the relevant assets or liabilities, that is through use or through sale. The
amendment introduces a rebuttable presumption that investment property which is measured at fair
value is recovered entirely by sale. The group will apply the amendment from 1 July 2012. It is
currently evaluating the impact of the amendment.

AASB101(51)(c) 30 June 2011
(continued)
AASB101(119)
(New)
(af) Parent entity financial information 71
The financial information for the parent entity, VALUE ACCOUNTS Holdings Limited, disclosed in
note 51 has been prepared on the same basis as the consolidated financial statements, except as set
out below.
(i) Investments in subsidiaries, associates and joint venture entities
AASB127(43)(c) Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the
financial statements of VALUE ACCOUNTS Holdings Limited. Dividends received from associates are
recognised in the parent entity’s profit or loss, rather than being deducted from the carrying amount of
these investments.
AASB101(119),(112)(c)
(ii) Tax consolidation legislation 26-28
UIG1052(16)(a) VALUE ACCOUNTS Holdings Limited and its wholly-owned Australian controlled entities have
implemented the tax consolidation legislation.
UIG1052(7),(9)(a), The head entity, VALUE ACCOUNTS Holdings Limited, and the controlled entities in the tax
(16)(a),(b)
consolidated group account for their own current and deferred tax amounts. These tax amounts are
measured as if each entity in the tax consolidated group continues to be a stand alone taxpayer in its
own right.
UIG1052(12)(a) In addition to its own current and deferred tax amounts, VALUE ACCOUNTS Holdings Limited also
recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax
losses and unused tax credits assumed from controlled entities in the tax consolidated group.
UIG1052(16)(c) The entities have also entered into a tax funding agreement under which the wholly-owned entities
fully compensate VALUE ACCOUNTS Holdings Limited for any current tax payable assumed and are
compensated by VALUE ACCOUNTS Holdings Limited for any current tax receivable and deferred
tax assets relating to unused tax losses or unused tax credits that are transferred to VALUE
ACCOUNTS Holdings Limited under the tax consolidation legislation. The funding amounts are
determined by reference to the amounts recognised in the wholly-owned entities' financial statements.
UIG1052(16)(c) The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding
advice from the head entity, which is issued as soon as practicable after the end of each financial
year. The head entity may also require payment of interim funding amounts to assist with its
obligations to pay tax instalments.
UIG1052(12)(b) Assets or liabilities arising under tax funding agreements with the tax consolidated entities are
recognised as current amounts receivable from or payable to other entities in the group.
UIG1052(12)(c) Any difference between the amounts assumed and amounts receivable or payable under the tax
funding agreement are recognised as a contribution to (or distribution from) wholly-owned tax
consolidated entities.
(iii) Financial guarantees
Where the parent entity has provided financial guarantees in relation to loans and payables of
subsidiaries for no compensation, the fair values of these guarantees are accounted for as
contributions and recognised as part of the cost of the investment.
(iv) Share-based payments
The grant by the company of options over its equity instruments to the employees of subsidiary
undertakings in the group is treated as a capital contribution to that subsidiary undertaking. The fair
value of employee services received, measured by reference to the grant date fair value, is
recognised over the vesting period as an increase to investment in subsidiary undertakings, with a
corresponding credit to equity.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Summary of significant accounting policies
Important disclosures made before the summary of accounting policies

1. The notes to the financial statements must include the following:
AASB101(Aus15.4) (a) a statement that the financial statements are general purpose financial statements
or special purpose financial statements
AASB101(Aus15.2) (b) a statement of compliance with Australian Accounting Standards or Australian
AASB101(114)(a)
Accounting Standards – Reduced Disclosure Requirements
(c) where applicable, a statement of compliance with IFRS (refer to paragraph 16 of
AASB 101 and commentary 2 to 6 below).
While AASB 101 no longer prescribes where in the notes these statements should be
disclosed, we recommend that they are disclosed at the beginning of the accounting policy
note under the heading ‘basis of preparation’.
Statement of compliance with IFRS
The statement
AASB101(16) 2. An entity whose financial statements and notes comply with IFRS shall make an explicit and
unreserved statement of such compliance in the notes. The financial statements and notes
shall not be described as complying with IFRS unless they comply with all the requirements
of IFRS.
AASB101(Aus16.1) 3. Where an entity can make the explicit and unreserved statement of compliance in respect of
only:
AASB101(Aus16.1)(a) (a) the parent financial statements and notes, or
AASB101(Aus16.1)(b) (b) the consolidated financial statements and notes
the entity shall make the explicit and unreserved statement of compliance in accordance with
paragraph 16 of AASB 101 and clearly identify to which financial statements and notes it
relates.
Where compliance with Australian Accounting Standards doesn’t lead to compliance with IFRS
AASB101(Aus16.2) 4. In some circumstances compliance with Australian Accounting Standards by for-profit entities
will not lead to compliance with IFRS. These circumstances include, for example, when the
entity is a for-profit public sector entity to which AASB 1004 Contributions applies and the
entity has applied a requirement in that standard that overrides the requirements in an
Australian equivalent to IFRS. Where the financial statements do not comply with IFRS, the
statement of compliance must be omitted.
5. As of 1 January 2007, cases of non-compliance with IFRS should be limited to public sector
and/or not-for-profit entities. For all other entities compliance with Australian Accounting
Standards should now also ensure full compliance with IFRS, since the AASB has removed
any remaining inconsistencies between the two sets of standards.
Not-for-profit entities
AASB101(Aus16.3) 6. Not-for-profit entities are not required to make a statement of explicit and unreserved
compliance with IFRS.
Statement of compliance with Australian Accounting Standards - Reduced Disclosure
Requirements
AASB101(RDR16.1) 7. Entities whose financial statements comply with Australian Accounting Standards – Reduced
Disclosures Requirements shall make an explicit an unreserved statement of such
compliance in the notes. These entities cannot state compliance with IFRS because of the
omission of disclosures that are required under IFRS.
Summary of accounting policies
Contents
8. A summary of significant accounting policies must include:
AASB101(117)(a) (a) the measurement basis (or bases) used in preparing the financial statements, and
AASB101(117)(b) (b) the other accounting policies used that are relevant to an understanding of the
Separate components of financial statements
AASB101(116) 9. The summary may be presented as a separate component of the financial statements.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Summary of significant accounting policies (continued)
Whether to disclose an accounting policy

AASB101(119) 10. In deciding whether a particular accounting policy should be disclosed, management
considers whether disclosure would assist users in understanding how transactions, other
events and conditions are reflected in the reported financial performance and financial
position. Disclosure of particular accounting policies is especially useful to users when those
policies are selected from alternatives allowed in Australian Accounting Standards. Some
Australian Accounting Standards specifically require disclosure of particular accounting
policies, including choices made by management between different policies they allow. For
example, AASB 116 Property, Plant and Equipment requires disclosure of the measurement
bases used for classes of property, plant and equipment and AASB 131 Interests in Joint
Ventures requires disclosure of the method issued to recognise interests in jointly controlled
entities.
Changes in accounting policies
11. Where an entity has changed any of its accounting policies either as a result of a new or
revised accounting standard or voluntarily it must explain the change in its notes. Additional
disclosures are required where a policy is changed retrospectively. These disclosures are
illustrated in Appendix G.
12. New or revised accounting standards and interpretations only need to be disclosed if they
resulted in a change in accounting policy which had an impact in the current year or could
impact on future periods. There is no need to disclose pronouncements that did not have any
impact on the entity’s accounting policies and amounts recognised in the financial
statements. We have decided to provide this information voluntarily as a reminder to
companies which standards they may need to consider for possible changes in accounting
policies.
13. The following standards and interpretations apply for the first time to financial reporting
periods commencing on or after 1 July 2010:
(a) AASB 2009-5 Further Amendments to Australian Accounting Standards arising
from the Annual Improvements Project – adopted early by VALUE ACCOUNTS
Holdings Limited for the 2010 financial year, with no impact on VALUE
ACCOUNTS Holdings Limited’s accounting policies.
(b) AASB 2009-8 Amendments to Australian Accounting Standards – Group Cash-
Settled Share-based Payment Transactions – no impact on the consolidated
financial statements, but may affect parent entity financial information. No impact
on VALUE ACCOUNTS Holdings Limited as accounting treatment was already
consistent with the amendments.
(c) AASB 2009-10 Amendments to Australian Accounting Standards – Classification
of Rights Issues – no impact on VALUE ACCOUNTS Holdings Limited as it does
not issue rights of the type that are the subject of the amendment.
(d) AASB Interpretation 19 Extinguishing financial liabilities with equity instruments –
no impact on VALUE ACCOUNTS Holdings Limited as it has not extinguished any
liabilities through a debt-for-equity swap.
This list is current as of 15 January 2011. Further information about these new standards and
interpretations, updated if necessary, is available at www.pwc.com.au/assurance/ifrs. If you
are preparing a financial report, you should review these pronouncements to assess whether
they would have any impact on your own accounting policies, as they may differ from VALUE
ACCOUNTS Holdings Limited’s policies.
Impact of change on prior interim financial reports
AASB101(112)(c) 14. There is no longer an explicit requirement to disclose the financial effect of a change in
accounting policy that was made during the final interim period on prior interim financial
reports of the current annual reporting period. However, where the impact on prior interim
reporting periods is significant, an entity should consider explaining this fact and the financial
effect as part of the disclosures made under paragraphs 28 and 29 of AASB 108.
Early adoption of accounting standards
CA334(5) 15. Entities wishing to adopt an accounting standard before its operative date must make a
formal, written election to do so in accordance with CA 334(5) and disclose that fact in the
notes. For a list of standards that were available for early adoption as at 15 January 2011,
refer to paragraph 68 below.

AASB101(51)(c) 30 June 2011
(continued)
16. The accounting policies on pages 86 to 106 have been prepared on the basis that VALUE
ACCOUNTS Holdings Limited has early adopted AASB 2010-4 Further Amendments to
Australian Accounting Standards arising from the Annual Improvements Project but none of
the other Australian Accounting Standards or interpretations that will be available for early
adoption as at 30 June 2011. The impact of standards and interpretations that have not been
early adopted is disclosed in note 1(ae).
Inappropriate accounting policies not rectified by disclosure
AASB101(18) 17. Inappropriate accounting policies are not rectified either by disclosure of the accounting
policies used or by notes or explanatory material.
Where compliance with an Australian Accounting Standard is misleading
AASB101(23) 18. In the extremely rare circumstances in which management concludes that compliance with a
requirement in an Australian Accounting Standard would be so misleading that it would
conflict with the objective of financial statements set out in the Framework, the entity shall, to
the maximum extent possible, reduce the perceived misleading aspects of compliance by
disclosing:
(a) the title of the Australian Accounting Standard in question, the nature of the
requirement, and the reason why management has concluded that complying with
that requirement is so misleading in the circumstances that it conflicts with the
objective of financial statements set out in the Framework, and
(b) for each period presented, the adjustments to each item in the financial
statements that management has concluded would be necessary to achieve a fair
presentation.
Going concern
AASB101(25) 19. When preparing financial statements, management shall make an assessment of an entity’s
ability to continue as a going concern. Financial statements shall be prepared on a going
concern basis unless management either intends to liquidate the entity or to cease trading, or
has no realistic alternative but to do so. When management is aware, in making its
assessment, of material uncertainties related to events or conditions that may cast significant
doubt upon the entity’s ability to continue as a going concern, those uncertainties shall be
disclosed. When the financial statements are not prepared on a going concern basis, that
fact shall be disclosed, together with the basis on which the financial statements are
prepared and the reason why the entity is not regarded as a going concern.
20. A disclosure of material uncertainties about the entity’s ability to continue as a going concern
should:
ASA570(18)(a) (a) adequately describe the principal events and conditions that give rise to the
significant doubt on the entity’s ability to continue as a going concern
ASA570(18)(a) (b) explain management’s plans to deal with these events or conditions, and
ASA570(18)(b) (c) state clearly that:
(i) there is a material uncertainty related to events or conditions which may
cast significant doubt on the entity’s ability to continue as a going
concern, and
(ii) the entity may therefore be unable to realise its assets and discharge its
liabilities in the normal course of business.

AASB101(51)(c) 30 June 2011
(continued)
Accrual basis of accounting

AASB101(27) 21. An entity shall prepare its financial statements, except for cash flow information, using the
accrual basis of accounting.
Consolidated financial statements
AASB127(24),(25) 22. Consistent accounting policies must be employed in the preparation and presentation of
AASB128(26)
consolidated financial statements. Adjustments to achieve consistency must be made where
the accounting policies adopted by entities within the consolidated entity are dissimilar and
are not required by another accounting standard.
Consolidation of employee benefit trust
UIG112(8),(9),(10), 23. UIG Interpretation 112 Consolidation - Special Purpose Entities applies to all share scheme
(15A),(15C)
trusts. If the employee benefit trust comes under the definition of control in UIG 112, it must
be consolidated into the group. To the extent that the trust owns shares in the parent entity,
these must be classified as treasury shares in the consolidated accounts (see paragraph 62
below).
Change in functional currency by a foreign operation
AASB121(54) 24. Where there is a change in the functional currency of either the reporting entity or a
significant foreign operation, that fact and the reason for the change in functional currency
shall be disclosed.
Revenue recognition - multiple element arrangements
25. Entities may enter into transactions with their customers which include different elements
such as the sale of a good and the provision of services. Where this is the case, the
accounting policy note should discuss the accounting for these types of transactions. This
could be along the following lines:
The group offers certain arrangements whereby a customer can purchase a
personal computer together with a two-year servicing arrangement. When such
multiple element arrangements exist, the amount recognised as revenue upon the
sale of the personal computer is the fair value of the computer in relation to the fair
value of the arrangement taken as a whole. The revenue relating to the service
element, which represents the fair value of the servicing arrangement in relation to
the fair value of the arrangement as a whole, is recognised over the service
period. The fair values of each element are determined based on the current
market price of each of the elements when sold separately.
To the extent that there is a discount on the arrangement, such discount is
allocated between the elements of the contract in such a manner as to reflect the
fair value of the elements.
Tax consolidation legislation
26. Accounting for the tax consolidation legislation is only relevant for the individual financial
statements of the parent entity (head entity) in the tax consolidated group, but not for the
consolidated financial statements. Explanations of how the parent entity accounts for the tax
consolidation legislation are therefore now included in note 1(af).

AASB101(51)(c) 30 June 2011
(continued)
UIG1052(7),(8) 27. Each entity in the tax consolidated group must account for the current and future tax
consequences of its own assets and liabilities, transactions and other events as required by
AASB 112. However, UIG 1052 does not prescribe how to allocate the consolidated current
and deferred tax amounts among the individual entities, except to say that the method
adopted shall be systematic, rational and consistent with the broad principles established in
AASB 112. VALUE ACCOUNTS Holdings Limited has adopted the 'stand-alone taxpayer
approach' as per UIG 1052 paragraph 9(a). Other acceptable methods are:
(a) separate-taxpayer within group (UIG 1052 paragraph 9(b)), and
(b) group allocation (UIG 1052 paragraph 9(c)).
28. Further guidance on each of the three methods is in UIG 1052 paragraphs 34-40. Examples
of unacceptable methods can be found in UIG 1052 paragraphs 10 and 39. For further
comments on the tax consolidation system and UIG 1052 refer to paragraphs 9-17 of the
commentary on income tax (note 9).
Arrangements involving the legal form of a lease
UIG127(4),(10) 29. The accounting for an arrangement in the legal form of a lease must reflect the substance of
the arrangement. All aspects and implications of the arrangement must be evaluated to
determine its substance, with weight given to those aspects and implications that have an
economic effect. All aspects of an arrangement that does not, in substance, involve a lease
under AASB 117 Leases must be considered in determining the appropriate disclosures that
are necessary to understand the arrangement and the accounting treatment adopted.
UIG127(10) 30. The following must be disclosed in each period that an arrangement exists:
(a) a description of the arrangement including:
(i) the underlying asset and any restrictions on its use
(ii) the life and other significant terms of the arrangement
(iii) the transactions that are linked together, including any options
(b) the accounting treatment applied to any fee received, the amount recognised as
revenue in the period, and the line item of the statement of comprehensive income
(income statement) in which it is included.
UIG127(11) 31. The disclosures required in accordance with paragraph 29 above must be provided
individually for each arrangement or in aggregate for each class of arrangement. A class is a
grouping of arrangements with underlying assets of a similar nature (eg power plants).
Lease incentives
UIG115(3) 32. All incentives for the agreement of a new or renewed operating lease shall be recognised as
an integral part of the net consideration agreed for the use of the leased asset, irrespective of
the incentive’s nature or form or the timing of payments.
UIG115(4) 33. The lessor shall recognise the aggregate cost of incentives as a reduction in rental income
over the lease term, on a straight-line basis unless another systematic basis is representative
of the time pattern over which the benefit of the leased asset is diminished.
UIG115(5) 34. The lessee shall recognise the aggregate benefit of incentives as a reduction of rental
expense over the lease term, on a straight-line basis unless another systematic basis is
representative of the time pattern of the lessee’s benefit from the use of the leased asset.
UIG115(6) 35. Costs incurred by the lessee, including those in connection with a pre-existing lease (eg
costs for termination, relocation or leasehold improvements), shall be accounted for by the
lessee in accordance with Australian Accounting Standards applicable to those costs,
including costs which are effectively reimbursed through an incentive arrangement.
Business combinations involving entities under common control
36. AASB 3 Business Combinations scopes out business combinations involving entities or a
business under common control. Under the principles established in AASB 108 Accounting
Policies, Changes in Accounting Estimates and Errors, if there is no specific Australian
Accounting Standard, management should develop an accounting policy relevant to the
decision making needs of users to deal with the accounting transaction and that is reliable.
As a result entities may select an accounting policy based on:
 the principles within AASB 3, or
 the principles of predecessor accounting.

AASB101(51)(c) 30 June 2011
(continued)
37. An accounting policy using predecessor accounting would be in line with the accounting used
in the United Kingdom, where FRS 6 Acquisitions and Mergers has permitted merger
accounting to be used for group reconstructions (provided certain conditions are met). Under
this approach assets and liabilities are not restated to their fair values.
38. The accounting policy note 1(i) in this publication does not specify how VALUE ACCOUNTS
Holdings Limited accounts for business combinations involving entities under common
control, as it has not entered into any such transactions. An appropriate policy will need to be
included in note 1 where relevant. The following example policies may be used where
appropriate:
Purchase method
The acquisition method of accounting is used to account for all business
combinations, including business combinations involving entities or businesses
under common control.
Predecessor method
In the case of acquisitions of businesses or entities under common control the
acquired assets and liabilities are initially recognised in the consolidated financial
statements at their predecessor carrying amounts, which are the carrying amounts
from the consolidated financial statements at the highest level of common control
as at the date of acquisition. The difference between the cost of acquisition and
the share of the carrying amounts of the acquired net assets is recognised directly
in equity.
The chosen policy must be consistently applied to all business combinations involving
entities or businesses under common control. An entity can only change its policy if permitted
under AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.
Financial instruments
AASB7(21),(B5) 39. Disclosure of the measurement bases of financial instruments may include:
(a) the criteria for designating financial assets as available-for-sale
(b) whether regular way purchases and sales of financial assets are accounted for at
trade date or at settlement date
(c) how net gains or net losses on each category of financial instruments are
determined (eg whether the net gains or losses on items at fair value through profit
or loss include interest or dividend income)
(d) the criteria the entity uses to determine that there is objective evidence that an
impairment loss has occurred
(e) when the terms of financial assets that would otherwise be past due or impaired
have been renegotiated, the accounting policy for financial assets that are subject
to renegotiated terms.
Allowance account
AASB139(63) 40. Financial assets that are carried at amortised cost, such as loans and receivables, must be
AASB7(B5)(d)
written down for impairment if there is objective evidence that an impairment loss has been
incurred. The standard provides a choice to recognise the loss as a direct reduction from the
carrying amount or through use of an allowance account. Where an allowance account is
used, additional explanations must be included in the accounting policy note, being:
(a) the criteria for determining when the carrying amount of impaired financial assets
is reduced directly and when the allowance account is used, and
(b) the criteria for writing off amounts charged to the allowance account against the
carrying amount of impaired financial assets.
Fair value determined using valuation technique - difference on initial recognition
AASB7(28) 41. If the market for a financial instrument is not active its fair value must be determined using a
valuation technique. In these circumstances, there may be a difference between the fair
value at initial recognition (established based on the transaction price) and the amount that
would be determined at that date using the valuation technique. If there is such a difference
an entity shall disclose (by class of financial instrument) the accounting policy for recognising
that difference in profit or loss (see AASB 139 paragraph AG76A).

AASB101(51)(c) 30 June 2011
(continued)
Financial assets and liabilities at fair value through profit or loss

AASB139(9) 42. A financial asset or financial liability is classified as at fair value through profit or loss if it is
either:
(a) classified as held for trading (acquired or incurred principally for the purpose of
selling or repurchasing it in the near future, part of a portfolio of identified financial
instruments that are managed together and for which there is evidence of recent
actual pattern of short-term profit-taking, or a derivative that is not a designated
hedging instrument), or
(b) upon initial recognition designated as at fair value through profit or loss.
AASB139(9),(11A) 43. Financial instruments can only be designated at fair value through profit or loss if permitted
under paragraph 11A of AASB 139 (relating to contracts that contain embedded derivatives),
or when doing so results in more relevant information because either:
(a) it eliminates or significantly reduces a measurement or recognition inconsistency
(sometimes referred to as ‘an accounting mismatch’) that would otherwise arise
from measuring assets or liabilities or recognising the gains and losses on them
on different bases, or
(b) a group of financial assets, financial liabilities or both is managed and its
performance is evaluated on a fair value basis, in accordance with a documented
risk management or investment strategy, and information about the group is
provided internally on that basis to the entity’s key management personnel (as
defined in AASB 124 Related Party Disclosures); for example, the entity’s board of
directors and chief executive officer.
AASB101(117) 44. VALUE ACCOUNTS Holdings Limited does not have any financial assets or liabilities
AASB7(B5)(a)
designated as fair value through profit or loss. However, an entity which does have such
instruments will need to provide disclosure of the related accounting policy in accordance
with AASB 101. AASB 7 Financial Instruments: Disclosures states that this policy disclosure
may include:
(a) the nature of the financial assets or financial liabilities the entity has designated as
at fair value through profit or loss
(b) the criteria for so designating such financial assets or financial liabilities on initial
recognition
(c) how the entity has satisfied the conditions for such designation, and
(d) a narrative description of:
(i) the circumstances underlying the measurement and recognition
inconsistency that would otherwise arise, or
(ii) how designation as at fair value through profit or loss is consistent with
the entity’s documented risk management or investment strategies.
45. An illustrative accounting policy meeting the above requirements could be as follows:
The policy of management is to designate a financial asset or financial liability as
at fair value through profit or loss if designation significantly reduces a
measurement inconsistency which may arise where a financial asset and a
financial liability are measured using different methods. The group from time to
time will finance fixed rate assets (not being loans or receivables and not classified
as held-to-maturity) with fixed rate debentures. Measurement inconsistency will
arise from measuring the assets as available-for-sale (fair value with changes
reported in equity) and the debentures at amortised cost (no recognition of fair
value changes). When this occurs, management will designate both the financial
assets and financial liabilities as at fair value through profit or loss as this
designation will result in more relevant information through the consistent
recognition of opposing movements in fair value.
Presentation of fair value gains and losses on financial assets and derivatives
46. VALUE ACCOUNTS Holdings Limited's accounting policies for financial assets and
derivatives (notes 1(o) and (p)) specify where in the statement of comprehensive income (or
income statement, as applicable) the relevant fair value gains or losses are presented.
However, AASB 139 does not prescribe the presentation in the statement of comprehensive
income. Other ways of presenting the fair value gains and losses may be equally appropriate.
For example, fair value changes on interest rate hedges or the ineffective portion of an
interest rate hedge may be presented within other expenses.

AASB101(51)(c) 30 June 2011
(continued)
Fair value hedges

47. VALUE ACCOUNTS Holdings Limited has not entered into any fair value hedges. The
accounting policy for fair value hedges has been included for illustrative purposes only.
Property, plant and equipment
AASB116(3) 48. AASB 116 Property, Plant and Equipment prescribes the accounting treatment for property,
plant and equipment. AASB 116 does not apply to:
(a) property, plant and equipment classified as held for sale in accordance with AASB
5 Non-current Assets Held for Sale and Discontinued Operations
(b) biological assets related to agricultural activity (refer to AASB 141 Agriculture)
(c) the recognition and measurement of exploration and evaluation assets (refer to
AASB 6 Exploration for and Evaluation of Mineral Resources), or
(d) mineral rights and mineral reserves such as oil, natural gas and similar
non-regenerative resources.
However, the standard applies to property, plant and equipment used to develop or maintain
the assets described in (b)-(d).
Revaluations
49. Where an entity elected to revert to a cost basis for measuring a class of non-current assets
on first applying AASB 116 and chose to deem the existing carrying amounts to be their cost,
the entity may want to continue to make it clear that cost includes deemed cost for the
relevant non-current assets at the date of the change in accounting policy. Refer to the
commentary on non-current assets - property, plant and equipment (note 20) for further
comments on revaluations of non-current assets.
Intangible assets with indefinite lives
AASB138(122)(a) 50. The intangible assets (other than goodwill) in VALUE ACCOUNTS Holdings Limited have
finite lives. Entities that have intangible assets with indefinite useful lives must disclose the
reasons for supporting their assessment that the assets have an indefinite life, including a
description of the factors that played a significant role in this assessment. An example
accounting policy note for an intangible asset with an indefinite life is set out below.
The trademark used to identify and distinguish (product name) has a remaining
legal life of five years but is renewable every ten years at little cost and is well
established. The group intends to renew the trademark continuously and evidence
supports its ability to do so. An analysis of product life cycle studies and market
and competitive trends provides evidence that the product will generate net cash
inflows for the group for an indefinite period. Therefore, the trademark is carried at
cost without amortisation, but is tested for impairment in accordance with note 1(j).
Provisions
AASB137(47) 51. When a provision is measured by estimating the cash flows required to settle the obligation,
the carrying amount of the provision must be the present value of those cash flows at the end
of the reporting period. The pre-tax discount rate (or rates) shall reflect current market
assessments of the time value of money and the risks specific to the liability. The discount
rate(s) shall not reflect risks for which future cash flow estimates have been adjusted.
Onerous contracts
52. Refer to the commentary on current liabilities - provisions (note 26) for comments on the
requirements of AASB 137 relating to onerous contracts.
Restructuring costs
53. Refer to the commentary on current liabilities - provisions (note 26) for comments on the
requirements of AASB 137 relating to restructuring costs and restructuring provisions.
Dividends
AASB110(12) 54. If an entity declares dividends to holders of equity instruments (as defined in AASB 132
Financial Instruments: Presentation) after the reporting period, the entity shall not recognise
those dividends as a liability at the end of the reporting period.

AASB101(51)(c) 30 June 2011
(continued)
AASB110(13) 55. If dividends are declared (ie the dividends are appropriately authorised and no longer at the
CA254V
discretion of the entity) after the reporting period but before the financial statements are
authorised for issue, the dividends are not recognised as a liability at the end of the reporting
period because no obligation exists at that time. Such dividends are disclosed in the notes to
the financial statements in accordance with AASB 101 Presentation of Financial Statements.
Non-cash dividends
AASB-I17(11), 56. Where an entity distributes non-cash assets to its owners, it should consider including the
(14),(15)
following accounting policy in its note 1:
VALUE ACCOUNTS Holdings Limited, from time to time, may make distributions
to owners in the form of assets other than cash. Such distributions are measured
at the fair value of the assets to be distributed. The difference between the fair
value of the assets and their carrying amounts is recognised in profit or loss as
other income or other expense when the distribution is made.
Annual leave obligations - provisions or payables?
57. VALUE ACCOUNTS Holdings Limited has presented its obligation for accrued annual leave
within current provisions. This assumes that the amount and/or timing of the future payments
in respect of these obligations is uncertain and that they therefore satisfy the definition of
‘provisions’ in AASB 137. However, there may be circumstances where a presentation within
other payables is equally appropriate.
Retirement benefit obligations
AASB119(56) 58. Entities must determine the present value of defined benefit obligations and the fair value of
any plan assets with sufficient regularity that the amounts recognised in the financial
statements do not differ materially from the amounts that would be determined at the end of
the reporting period.
59. Refer to the commentary in note 31 for further information on the policies and disclosures
required for retirement benefit obligations under the revised AASB 119 Employee Benefits.
Discount rate to be used for employee entitlements
AASB119(78), 60. IAS 19 Employee Benefits requires post-employment and other long-term employee benefit
(Aus78.1)
obligations (including long service leave obligations) to be discounted using a rate
determined by reference to the market yields on high quality corporate bonds, unless the
entity operates in a country where there is no deep market for such bonds. When the
equivalent Australian standard, AASB 119, was issued the AASB added guidance stating
that Australia does not have a sufficiently active and liquid market for high quality corporate
bonds and therefore market yields on government bonds had to be used to determine the
appropriate discount rates.
61. While this guidance has since been removed from the standard, the general view is that
there is currently not enough evidence to say that there is a deep market in corporate bonds
in Australia. VALUE ACCOUNTS Holdings Limited is therefore continuing to use government
bond rates. However, entities should confirm closer to the end of their reporting period
whether this assessment is still appropriate.
Treasury shares
CA(259A)-(259D) 62. Entities that comply with the Corporations Act 2001 are restricted in their ability to reacquire
AASB132(34)
AASB101(79)(a)(vi) their own equity instruments and generally have to cancel any shares that were re-acquired,
eg as the result of a buy-back. However, where shares were acquired by an employee share
trust that is consolidated, the shares are not cancelled, but must be separately presented
either in the balance sheet or in the notes as a deduction from equity.

AASB101(51)(c) 30 June 2011
(continued)
Rounding of amounts
ASIC 98/100 63. See Appendix F for detailed commentary on rounding of amounts in financial statements.
The commentary covers the requirements of ASIC Class Order 98/100 which permits entities
to round off as follows, subject to certain conditions and exceptions:
$10m (but less than $1,000m) $1,000
$1,000m (but less than $10,000m) $100,000
$10,000m $1,000,000
ASIC 98/100 64. Rounding to lower prescribed amounts is also permissible, as explained in paragraphs 3 and
4 of Appendix F.
Australian Accounting Standards issued but not yet effective
AASB108(30) 65. When an entity has not applied a new Australian Accounting Standard that has been issued
but is not yet effective, the entity shall disclose:
(a) this fact, and
(b) known or reasonably estimable information relevant to assessing the possible
impact that application of the new Australian Accounting Standard will have on the
entity’s financial statements in the period of initial application.
AASB108(31) 66. In complying with paragraph 64 above, an entity considers disclosing:
(a) the title of the new Australian Accounting Standard
(b) the nature of the impending change or changes in accounting policy
(c) the date by which application of the standard is required
(d) the date as at which it plans to apply the standard initially, and
(e) either:
(i) a discussion of the impact that initial application of the standard is
expected to have on the entity’s financial statements, or
(ii) if that impact is not known or reasonably estimable, a statement to that
effect.
67. The disclosures in paragraph 66 above should be made even if the impact on the entity is not
expected to be material. However, there is no need to mention a standard or interpretation if
it is clearly not applicable to the entity. For example, an entity does not need to mention
AASB 2010-9 Amendments to Australian Accounting Standards – Severe Hyperinflation and
Removal of Fixed Dates for First-time Adopters unless it is a first-time adopter of Australian
Accounting Standards or is reporting in a functional currency that is the currency of a
hyperinflationary economy. Where a pronouncement introduces a new accounting option that
was not previously available, the entity should explain whether and/or how it expects to use
the option in the future.

AASB101(51)(c) 30 June 2011
(continued)
AASB108(31) 68. As at 15 January 2011, the following standards and interpretations had been issued but were
not mandatory for annual reporting periods ending 30 June 2011:
Title and topic Issued Applicable*

(a) AASB 9 Financial Instruments, AASB 2009-11 December 1 January
Amendments to Australian Accounting Standards 2009/ 2013
arising from AASB 9 and AASB 2010-7 December
Amendments to Australian Accounting Standards 2010
arising from AASB 9 (December 2010)
(b) Revised AASB 124 Related Party Disclosures and December 1 January
AASB 2009-12 Amendments to Australian 2009 2011
Accounting Standards
(c) AASB 2009-14 Amendment to Australian December 1 January
Interpretation – Prepayments of a Minimum Funding 2009 2011
Requirement
(d) AASB 1053 Application of Tiers of Australian June 2010 1 July 2013
Accounting Standards and AASB 2010-2
Amendments to Australian Accounting Standards
arising from Reduced Disclosure Requirements
(e) AASB 2010-4 Further Amendments to Australian June 2010 1 January
Accounting Standards arising from the Annual 2011
Improvements Project [AASB 1, AASB 7, AASB 101
& AASB 134 and Interpretation 13]
(f) AASB 2010-5 Amendments to Australian October 2010 1 January
Accounting Standards # 2011 #
(g) AASB 2010-6 Amendments to Australian November 1 July 2011
Accounting Standards – Disclosures on Transfers of 2010
Financial Assets
(h) AASB 2010-8 Amendments to Australian December 1 January
Accounting Standards – Deferred Tax: Recovery of 2010 2012
Underlying Assets
(i) AASB 2010-9 Amendments to Australian December 1 July 2011/
Accounting Standards – Severe Hyperinflation and 2010 1 January
Removal of Fixed Dates for First-time Adopters and 2013
AASB 2010-10 Further Amendments to Australian
Accounting Standards – Removal of Fixed Dates for
First-time Adopters (see paragraph 67 above)
* applicable to reporting periods commencing on or after the given date

^ applicable only to not-for-profit and/or public sector entities
# editorial amendments only
69. The illustrative accounting policy note on pages 104 and 105 only discusses
pronouncements that are relevant for VALUE ACCOUNTS Holdings Limited and that have
not been early adopted. An up-to-date summary of all pronouncements that are relevant for
annual reporting periods ending on or after 30 June 2011 is available at
www.pwc.com.au/assurance/ifrs.
International accounting standards issued but not yet endorsed by the AASB
70. Entities wishing to state compliance with IFRS in their note 1 will also need to consider
whether there are any international standards and interpretations (or amendments thereof)
that have not yet been endorsed by the AASB at the time of the completion of their financial
statements. If there are any such standards or interpretations and they are relevant to the
entity, their impact on the entity’s financial statements should also be discussed in note
1(ae).

AASB101(51)(c) 30 June 2011
(continued)
Parent entity note

71. Following changes made to the Corporations Act 2001 in June 2010, parent entities no
longer need to include separate parent entity financial statements in their annual financial
report unless they are required to do so under other statutory rules (eg AFS licensing
requirements or APRA rules). However, they still need to provide key financial information for
the parent entity in the notes (see note 51). Accounting policy note 1(af) describes how this
information has been determined. This is necessary where the policies applied in preparing
the parent entity information are different to those applied in preparing the consolidated
Financial reporting in hyperinflationary economies
AASB129 72. AASB 129 Financial Reporting in Hyperinflationary Economies establishes specific standards
for entities reporting in the currency of a hyperinflationary economy. The following
disclosures shall be made:
(a) the fact that the financial statements and the corresponding figures for previous
periods have been restated for the changes in the general purchasing power of
the functional currency and, as a result, are stated in terms of the measuring unit
current at the end of the reporting period
(b) whether the financial statements are based on a historical cost approach or a
current cost approach, and
(c) the identity and level of the price index at the end of the reporting period and the
movement in the index during the current and the previous reporting period.
Industry-specific disclosures
AASB4 73. Examples of industry-specific accounting policies and other relevant disclosures can be
found in the following PwC publications:
AASB1023 (a) VALUE ACCOUNTS General Insurance Australia for an illustration and
explanation of the disclosure requirements of AASB 1023 General Insurance
Contracts.
AASB1038 (b) VALUE ACCOUNTS Life Insurance Australia for an illustration and explanation of
the disclosure requirements of AASB 1038 Life Insurance Contracts.
AASB7 (c) International Financial Reporting Standards: Illustrative Consolidated Financial
Statements - Banks for an illustration and explanation of how the disclosure
requirements of AASB 7 Financial Instruments: Disclosures may be satisfied by a
financial institution.
AASB6 (d) Illustrative IFRS corporate consolidated financial statements for 2010 year-ends
AASB111
for an illustration and explanation of the disclosure requirements of AASB 6
Exploration for and Evaluation of Mineral Resources and AASB 111 Construction
Contracts.
2 Financial risk management 1-4,31

AASB7(31),(32) The group's activities expose it to a variety of financial risks: market risk (including currency risk,
interest rate risk and price 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 and interest rate swaps to hedge certain risk exposures.
Derivatives are exclusively used for hedging purposes, ie not as trading or other speculative
instruments. 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, foreign exchange and
other price risks, aging analysis for credit risk and beta analysis in respect of investment portfolios to
determine market risk.
Risk management is carried out by a central treasury department (group treasury) under policies
approved by the board of directors. Group treasury identifies, evaluates and hedges financial risks in
close co-operation with the group's operating units. The board provides written principles for overall
risk management, as well as policies covering specific areas, such as foreign exchange risk, interest
rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments,
and investment of excess liquidity.

AASB101(51)(c) 30 June 2011
(continued)
2 Financial risk management (continued)

Not mandatory
The group holds the following financial instruments: 4,25
2011 2010
$'000 $'000
Financial assets
Cash and cash equivalents 8,229 2,812
Trade and other receivables 14,311 7,389
Financial assets at fair value through profit or loss 1,300 915
Derivative financial instruments 96 52
Available-for-sale financial assets 1,010 828
Held-to-maturity investments 210 -
25,156 11,996
Financial liabilities
Trade and other payables 1,700 2,477
Borrowings 12,444 11,080
14,454 13,878
AASB7(33) (a) Market risk 4-8,18-22
(i) Foreign exchange risk 4,20

AASB7(33) The group operates internationally and is exposed to foreign exchange risk arising from various
currency exposures, primarily with respect to the US dollar.
AASB7(33)(a) Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using
sensitivity analysis and cash flow forecasting.
AASB7(33)(b),(22)(c) Management has set up a policy requiring group companies to manage their foreign exchange risk
against their functional currency. The group companies are required to hedge their foreign exchange
risk exposure arising from future commercial transactions and recognised assets and liabilities using
forward contracts transacted with Group Treasury.
AASB7(22)(c) The Group Treasury's risk management policy is to hedge between 75% and 100% of anticipated cash
flow (mainly purchase of inventory) in US dollars for the subsequent 12 months. Approximately 90%
(2010 – 95%) of projected purchases qualify as 'highly probable' forecast transactions for hedge
accounting purposes.
AASB7(31),(34)(c) The group's exposure to foreign currency risk at the end of the reporting period, expressed in
Australian dollar, was as follows:
30 June 2011 30 June 2010

USD SGD IDR USD SGD IDR
$'000 $'000 $'000 $'000 $'000 $'000
Trade receivables 150 25 - 130 45 -

Bank loans (1,765) - (509) (1,250) - -
Trade payables (250) - - (130) - -
Forward exchange contracts
– buy foreign currency (cash flow
hedges) 11,519 - - 8,613 - -
– sell foreign currency (held for
trading) 2,073 - - 1,422 - -

AASB101(51)(c) 30 June 2011
(continued)
(a) Market risk (continued)

Sensitivity
AASB7(40)(a),(b),(c) Based on the financial instruments held at 30 June 2011, had the Australian dollar weakened/
strengthened by 10% against the US dollar with all other variables held constant, the group's post-tax
profit for the year would have been $327,000 lower/$269,000 higher (2010 – $193,000 lower/$158,000
higher), mainly as a result of foreign exchange gains/losses on translation of US dollar denominated
financial instruments as detailed in the above table. Profit is more sensitive to movements in the
Australian dollar/US dollar exchange rates in 2011 than 2010 because of the increased amount of US
dollar denominated borrowings. Other components of equity would have been $806,000
higher/$660,000 lower (2010 – $603,000 higher/493,000 lower) had the Australian dollar
weakened/strengthened by 10% against the US dollar, arising from foreign forward exchange
contracts designated as cash flow hedges. Equity is more sensitive to movements in the Australian
dollar/US dollar exchange rates in 2011 than 2010 because of the increased amount of forward foreign
exchange contracts. The group's exposure to other foreign exchange movements is not material.
(ii) Price risk 4
AASB7(33)(a) The group is exposed to equity securities price risk. This arises from investments held by the group
and classified in the balance sheet either as available-for-sale or at fair value through profit or loss.
The group is not exposed to commodity price risk.
AASB7(33)(b) To manage its price risk arising from investments in equity securities, the group diversifies its portfolio.
Diversification of the portfolio is done in accordance with the limits set by the group.
AASB7(40)(a),(b) The majority of the group's equity investments are publicly traded and are included either in the ASX
200 Index or the NYSE International 100 Index.
The table below summarises the impact of increases/decreases of these two indexes on the group's
post-tax profit for the year and on equity. The analysis is based on the assumption that the equity
indexes had increased by 9%/decreased by 6% (2010 – increased by 7.5%/decreased by 4%) with all
other variables held constant and all the group's equity instruments moved according to the historical
correlation with the index.
Impact on post-tax profit Impact on other

components of equity
Index 2011 2010 2011 2010
$'000 $'000 $'000 $'000
ASX 200 – increase 9% (7.5%) 75 47 28 23

NYSE International 100 – increase 9% (7.5%) 7 1 - -
ASX 200 – decrease 6% (4%) (50) (25) (18) (12)
NYSE International 100 – decrease 6% (4%) (5) (1) - -
Post-tax profit for the year would increase/decrease as a result of gains/losses on equity securities
classified as at fair value through profit or loss. Other components of equity would increase/decrease
as a result of gains/losses on equity securities classified as available-for-sale. As the fair value of the
available-for-sale financial assets would still be above cost, no impairment loss would be recognised in
profit or loss as a result of the decrease in the index.
The price risk for the unlisted securities is immaterial in terms of the possible impact on profit or loss or
total equity. It has therefore not been included in the sensitivity analysis.
(iii) Cash flow and fair value interest rate risk 4,22
AASB7(33)(a),(b) The group's main interest rate risk arises from long-term borrowings. Borrowings issued at variable
rates expose the group to cash flow interest rate risk. Borrowings issued at fixed rates expose the
group to fair value interest rate risk if the borrowings are carried at fair value. Group policy is to
maintain approximately 60% of its borrowings at fixed rate using interest rate swaps to achieve this
when necessary. During 2011 and 2010, the group's borrowings at variable rate were denominated in
Australian Dollars and US Dollars.

AASB101(51)(c) 30 June 2011
(continued)
(a) Market risk (continued)

As at the end of the reporting period, the group had the following variable rate borrowings and interest
rate swap contracts outstanding:
30 June 2011 30 June 2010

Weighted Weighted
average average
interest rate Balance interest rate Balance
% $'000 % $'000
Bank overdrafts and bank loans 8.9% 6,389 10.4% 6,150

Interest rate swaps (notional
principal amount) 8.1% (1,010) 9.3% (440)
Net exposure to cash flow interest
rate risk 5,379 5,710
An analysis by maturities is provided in (c) below.

The group's fixed rate borrowings and receivables are carried at amortised cost. They are therefore
not subject to interest rate risk as defined in AASB 7.
AASB7(33)(b),(40)(b) The group analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated
taking into consideration refinancing, renewal of existing positions, alternative financing and hedging.
Based on these scenarios, the group calculates the impact on profit or loss of a defined interest rate
shift. For each simulation, the same interest rate shift is used for all currencies. The scenarios are run
only for liabilities that represent the major interest-bearing positions. The simulation is done on a
quarterly basis to verify that the maximum loss potential is within the limit given by management.
Based on the various scenarios, the group manages its cash flow interest rate risk by using
floating-to-fixed interest rate swaps. Such interest rate swaps have the economic effect of converting
borrowings from floating rates to fixed rates. Generally, the group raises long-term borrowings at
floating rates and swaps them into fixed rates that are lower than those available if the group borrowed
at fixed rates directly. Under the interest rate swaps, the group agrees with other parties to exchange,
at specified intervals (mainly quarterly), the difference between fixed contract rates and floating rate
interest amounts calculated by reference to the agreed notional principal amounts.
Sensitivity 22
AASB7(40)(a) At 30 June 2011, if interest rates had increased by 70 or decreased by 100 basis points from the year
end rates with all other variables held constant, post-tax profit for the year would have been $26,000
higher/$23,000 lower (2010 changes of 60 bps/80 bps: $12,000 lower/$16,000 higher), mainly as a
result of higher/lower interest income from cash and cash equivalents. Other components of equity
would have been $10,000 lower/$15,000 higher (2010 – $9,000 lower/$12,000 higher) mainly as a
result of an increase/decrease in the fair value of the cash flow hedges of borrowings.
(b) Credit risk 4-9,23

AASB7(33)(a),(b) Credit risk is managed on a group basis. Credit risk arises from cash and cash equivalents, favourable
derivative financial instruments and deposits with banks and financial institutions, as well as credit
exposures to wholesale and retail customers, including outstanding receivables and committed
transactions. For banks and financial institutions, only independently rated parties with a minimum
rating of 'A' are accepted. If wholesale customers are independently rated, these ratings are used.
Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer,
taking into account its financial position, past experience and other factors. Individual risk limits are set
based on internal or external ratings in accordance with limits set by the board. The compliance with
credit limits by wholesale customers is regularly monitored by line management. Sales to retail
customers are required to be settled in cash or using major credit cards, mitigating credit risk.
For derivative financial instruments, management has established limits such that, at any time, less
than 10% of the fair value of favourable contracts outstanding are with any individual counterparty.

AASB101(51)(c) 30 June 2011
(continued)
(b) Credit risk (continued)

AASB7(15)(b), For wholesale customers without credit rating the group generally retains title over the goods sold until
(36)(a),
AASB7R(36)(b) full payment is received, thus limiting the loss from a possible default to the profit margin made on the
AASB2010-4(10) sale. For some trade receivables the group may also obtain security in the form of guarantees, deeds
(Revised)
of undertaking or letters of credit which can be called upon if the counterparty is in default under the
terms of the agreement. 9
Credit risk further arises in relation to financial guarantees given to certain parties (see notes 43 and
51 for details). Such guarantees are only provided in exceptional circumstances and are subject to
specific board approval.
AASB7(36)(c) The credit quality of financial assets that are neither past due nor impaired can be assessed by
reference to external credit ratings (if available) or to historical information about counterparty default
4
rates:
2011 2010
$'000 $'000
Trade receivables
Counterparties with external credit rating (Moody's)
A 3,700 2,031
BBB 2,100 1,100
BB 970 600
6,770 3,731
Counterparties without external credit rating *

Group 1 750 555
Group 2 2,102 1,081
Group 3 1,400 156
4,252 1,792
Total trade receivables 11,022 5,523
Cash at bank and short-term bank deposits

AAA 5,132 1,380
AA 3,097 1,432
8,229 2,812
Available-for-sale debt securities

AAA 190 190
AA 60 50
BB 35 10
285 250
Held-to-maturity investments
AAA 150 -
AA 60 -
210 -
Derivative financial assets

AA 96 52
* Group 1 – new customers (less than 6 months)

Group 2 – existing customers (more than 6 months) with no defaults in the past
Group 3 – existing customers (more than 6 months) with some defaults in the past. All defaults were
fully recovered.

AASB101(51)(c) 30 June 2011
(continued)
(c) Liquidity risk 10,23

AASB7(33)(a),(b), Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and
(39)(c),(B11E)
the availability of funding through an adequate amount of committed credit facilities to meet obligations
when due and to close out market positions. At the end of the reporting period the group held deposits
at call of $8,479,000 (2010 – $2,612,000) that are expected to readily generate cash inflows for
managing liquidity risk. Due to the dynamic nature of the underlying businesses, group treasury
maintains flexibility in funding by maintaining availability under committed credit lines. 11
AASB7(34)(a) Management monitors rolling forecasts of the group’s liquidity reserve (comprising the undrawn
borrowing facilities below) and cash and cash equivalents (note 11) on the basis of expected cash
flows. This is generally carried out at local level in the operating companies of the group in accordance
with practice and limits set by the group. These limits vary by location to take into account the liquidity
of the market in which the entity operates. In addition, the group’s liquidity management policy involves
projecting cash flows in major currencies and considering the level of liquid assets necessary to meet
these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements
and maintaining debt financing plans.
Financing arrangements 17
AASB7(39)(c), The group had access to the following undrawn borrowing facilities at the end of the reporting period:
AASB107(50)
2011 2010
$'000 $'000
Floating rate
– Expiring within one year (bank overdraft and bill facility) 7,400 5,620
– Expiring beyond one year (bank loans) 4,470 3,100
11,870 8,720
AASB7(7),(39)(c) The bank overdraft facilities may be drawn at any time and may be terminated by the bank without
AASB107(50)(a)
notice. The unsecured bill acceptance facility may be drawn at any time and is subject to annual
review. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn
at any time in either Australian or United States dollars and have an average maturity of 6.5 years
(2010 – 6.9 years).
Maturities of financial liabilities 12-16

AASB7(39)(a),(b), The tables below analyse the group's financial liabilities into relevant maturity groupings based on their
(B11B)
(Revised) contractual maturities for:
(a) all non-derivative financial liabilities, and
(b) net and gross settled derivative financial instruments for which the contractual maturities are
essential for an understanding of the timing of the cash flows.
AASB7(B11D) The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within
12 months equal their carrying balances as the impact of discounting is not significant. For interest rate
swaps the cash flows have been estimated using forward interest rates applicable at the end of the
13
reporting period.

AASB101(51)(c) 30 June 2011
(continued)
(c) Liquidity risk (continued)

AASB7(39)(b),(c), Contractual maturities of
(B11) Less 6 – 12 Between Between Over 5 Total Carrying
financial liabilities than 6 months 1 and 2 2 and 5 years contrac- Amount
months years years tual (assets)/
cash liabilities
flows
At 30 June 2011 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Non-derivatives
Trade payables 1,700 - - - - 1,700 1,700
Borrowings (excluding
finance leases) 1,439 1,439 910 2,595 6,321 12,704 11,869
Finance lease liabilities 61 61 120 355 149 746 575
Total non-derivatives 3,200 1,500 1,030 2,950 6,470 15,150 14,144
Derivatives
Net settled (interest rate
swaps) - - (3) (5) - (8) (8)
Gross settled (forward

foreign exchange contracts –
cash flow hedges)
– (inflow) (7,182) (3,994) - - - (11,176) -
– outflow 7,367 4,152 - - - 11,519 310
185 158 - - - 343 310
At 30 June 2010
Non-derivatives
Trade payables 2,477 - - - - 2,477 2,477
finance leases) 3,763 3,168 1,420 1,876 1,003 11,230 10,430
Derivatives
Net settled (interest rate
swaps) - - (5) (7) - (12) (12)
Gross settled (forward

foreign exchange contracts –
cash flow hedges)
– (inflow) (5,724) (2,560) - - - (8,284) -
– outflow 5,885 2,728 - - - 8,613 321
161 168 - - - 329 321
AASB7(B10A)(a) Of the $2,595,000 disclosed in the 2011 borrowings time band 'between 2 and 5 years', the group
16
intends to repay $500,000 in the first quarter of the 2012 financial year (2010 – nil).

AASB101(51)(c) 30 June 2011
(continued)
(Revised) (d) Fair value measurements 24-28

The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes.
AASB7(27A) AASB 7 Financial Instruments: Disclosures requires disclosure of fair value measurements by level of
29,30
the following fair value measurement hierarchy:
(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
(b) inputs other than quoted prices included within level 1 that are observable for the
asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2),
and
(c) inputs for the asset or liability that are not based on observable market data
(unobservable inputs) (level 3).
AASB7(44G) The following table presents the group’s assets and liabilities measured and recognised at fair value at
30 June 2011 and 30 June 2010:
AASB7(27B)(a) At 30 June 2011 Level 1 Level 2 Level 3 Total

$'000 $'000 $'000 $'000
Assets
Financial assets at fair value through
profit or loss
Trading derivatives - 53 35 88
Trading securities 1,300 - - 1,300
Derivatives used for hedging - 8 - 8
Available-for-sale financial assets
Equity securities 350 - 150 500
Debt securities 300 100 - 400
Other (contingent consideration) - - 110 110
Total assets 1,950 161 295 2,406
Liabilities
Total liabilities - 310 - 310
AASB101(38)
(New) At 30 June 2010 Level 1 Level 2 Level 3 Total
$'000 $'000 $'000 $'000
Assets
profit or loss
Trading derivatives - 40 - 40
Trading securities 915 - - 915
Equity securities 350 - 98 448
Total assets 1,565 132 98 1,795
Liabilities
Total liabilities - 321 - 321

AASB101(51)(c) 30 June 2011
(continued)
(d) Fair value measurements (continued)

AASB7(27) The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and trading and available-for-sale securities) is based on quoted market prices at the end of the
reporting period. The quoted market price used for financial assets held by the group is the current bid
price. These instruments are included in level 1. 26
AASB7(27) The fair value of financial instruments that are not traded in an active market (for example,
over-the-counter derivatives) is determined using valuation techniques. These valuation techniques
maximise the use of observable market data where it is available and rely as little as possible on entity
specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2. 26
If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.
Specific valuation techniques used to value financial instruments include:
 The use of quoted market prices or dealer quotes for similar instruments.
 The fair value of interest rate swaps is calculated as the present value of the estimated
future cash flows based on observable yield curves.
 The fair value of forward foreign exchange contracts is determined using forward exchange
rates at the balance sheet date, with the resulting value discounted back to present value.
 Other techniques, such as discounted cash flow analysis, are used to determine fair value
for the remaining financial instruments.
All of the resulting fair value estimates are included in level 2 except for unlisted equity securities, a
contingent consideration receivable and certain forward exchange contracts explained below.
The following table presents the changes in level 3 instruments for the years ended 30 June 2011 and
29
30 June 2010:
Trading
derivatives at
Unlisted fair value
equity through profit Contingent
AASB7(27B)(c) securities or loss consideration Total
$'000 $'000 $'000 $'000
Opening balance 1 July 2009 140 - -- 140

Transfer into level 3 - - - -
Disposals (19) - - (19)
Losses recognised in other
comprehensive income (23) - - (23)
Closing balance 30 June 2010 98 - - 98
Transfer into level 3 - 20 - 20

Other increases - - 100 100
Gains recognised in other
comprehensive income 52 - (10) 42
Gains recognised in other income - 15 20 35
Closing balance 30 June 2011 150 35 110 295
AASB7(27B)(d) Total gains or losses for the period

included in other income (other
expenses) that relate to assets held at
the end of the reporting period:
2011 - 15 20 35
2010 - - - -

AASB101(51)(c) 30 June 2011
(continued)
AASB7(27), In 2011 the group transferred a held-for-trading forward foreign exchange contract from level 2 into
(27B)(c)(iv)
level 3 as the counterparty for the derivative encountered significant financial difficulties. This resulted
in a significant increase to the discount rate which is not based on observable inputs, as the discount
rate of 15% (2010 – 11%) reflects credit risk specific to the counter party. If the credit default rate
would be shifted +/- 5% the impact on profit or loss would be $3,000.
AASB7(27), The fair value of the unlisted equity securities is determined based on the present value of net cash
(27B)(e)
inflows from expected future dividends and subsequent disposal of the securities. The discount rate
used to determine the present value of the net cash inflows was based on a market interest rate and
the risk premium specific to the unlisted securities. If the estimated earnings growth factors (2011 –
3%; 2010 – 4%) and risk-adjusted discount rates (2011 – 10%; 2010 – 9%) were 10% higher or lower,
their fair value and other components of equity would increase by $7,000/decrease by $8,000 (2010 –
increase by $4,000/decrease by $5,000).
AASB7(27), The fair value of the contingent consideration is calculated as the present value of the expected cash
(27B)(e)
flows using a discount rate that reflects the credit risk specific to the counterparty (14%). If the risk-
adjusted discount rate was 10% higher or lower, the fair value of the contingent liability and other
components of equity would increase by $2,000/decrease by $2,000. If the expected cash flows were
10% higher or lower, the fair value of the contingent liability and profit or loss would increase/decrease
by $10,000.
AASB7(29)(a),(27) The carrying amounts of trade receivables and payables are assumed to approximate their fair values
due to their short-term nature. The fair value of financial liabilities for disclosure purposes is estimated
by discounting the future contractual cash flows at the current market interest rate that is available to
the group for similar financial instruments. The fair value of current borrowings approximates the
carrying amount, as the impact of discounting is not significant.
Commentary - Financial risk management
Accounting standard for presentation and disclosure of financial instruments

AASB7(3) 1. AASB 7 Financial Instruments: Disclosures applies to all reporting entities and to all types of
financial instruments except:
(a) those interests in subsidiaries, associates, and joint ventures that are accounted
for under AASB 127 Consolidated and Separate Financial Statements; AASB 128
Investments in Associates; or AASB 131 Interests in Joint Ventures. However,
entities shall apply AASB 7 to an interest in a subsidiary, associate, or joint
venture that according to AASB 127, AASB 128 or AASB 131 is accounted for
under AASB 139 Financial Instruments: Recognition and Measurement. In these
cases, entities shall apply certain disclosure requirements in AASB 127, AASB
128, and AASB 131 in addition to those in AASB 7. Entities shall also apply AASB
7 to all derivatives on interests in subsidiaries, associates or joint ventures
(b) employers’ rights and obligations under employee benefit plans, to which AASB
119 Employee Benefits applies
(c) insurance contracts as defined in AASB 4 Insurance Contracts. However, AASB 7
applies to derivatives that are embedded in insurance contracts if AASB 139
requires the entity to account for them separately. It also applies to financial
guarantee contracts if the issuer applies AASB 139 in recognising and measuring
the contracts, but not if the issuer elects to apply AASB 1023 General Insurance
Contracts (must provide disclosures under AASB 1023 instead)
(d) financial instruments, contracts and obligations under share-based payment
transactions to which AASB 2 Share-based Payment applies, except for contracts
within the scope of paragraphs 5-7 of AASB 139 which must be disclosed under
AASB 7
AASB7(3)(f) (e) puttable financial instruments that are required to be classified as equity
instruments in accordance with paragraphs 16A and 16B or 16C and 16D of
AASB 132.
Parent entity disclosures
AASB7(Aus2.1) 2. If an entity presents separate financial statements for the parent entity in addition to the
consolidated financial statements, all of the disclosures required under AASB 7 must be
made for both the parent and consolidated entity.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Financial risk management (continued)
Classes of financial instruments

AASB7(6),(B1)-(B3) 3. Where AASB 7 requires disclosures by class of financial instrument, the entity shall group its
financial instruments into classes that are appropriate to the nature of the information
disclosed and that take into account the characteristics of those financial instruments. The
entity shall provide sufficient information to permit reconciliation to the line items presented in
the balance sheet. Guidance on classes of financial instruments and the level of required
disclosures is provided in Appendix B of AASB 7.
Level of detail and selection of assumptions – information through the eyes of management
AASB7(34)(a) 4. The disclosures in relation to the financial risk management of an entity should reflect the
information provided internally to key management personnel. As such, the disclosures that
will be provided by an entity, their level of detail and the underlying assumptions used will
vary greatly from entity to entity. The disclosures in these illustrative financial statements are
only one example of the kind of information that may be disclosed and you should consider
carefully what may be appropriate in your individual circumstances.
Nature and extent of risks arising from financial instruments
AASB7(31),(32) 5. The financial statements shall include qualitative and quantitative disclosures that enable
users to evaluate the nature and extent of risks arising from financial instruments to which the
entity is exposed at the end of the reporting period. These risks typically include, but are not
limited to, credit risk, liquidity risk and market risk.
Qualitative disclosures
AASB7(33) 6. The qualitative disclosures shall discuss for each type of risk:
(a) the exposures to the risk and how they arise
(b) the entity’s objectives, policies and processes for managing the risk and the
methods used to measure the risk
(c) any changes in (a) or (b) from the previous period.
Summarised sensitivity analysis 7

AASB7(40)(a) The following table summarises the sensitivity of the group’s financial assets and financial liabilities to
Table not mandatory
interest rate risk, foreign exchange risk and other price risk. If this table is included in the financial
statements, a comparative table for the prior year must also be provided to satisfy AASB 101
paragraph 38. Separate tables will need to be included for the parent entity.
Interest rate risk Foreign exchange risk Other price risk
-100 bps +70 bps -10% +10% -6% +9%
Carrying Other Other Other Other Other Other
30 June 2011 amount Profit equity Profit equity Profit equity Profit equity Profit equity Profit equity
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Financial assets
Cash and cash
equivalents 8,729 (61) - 43 - - - - - - - - -
Accounts receivable 14,311 - - - - 14 - (11) - - - - -
Financial assets at
FVTPL 1,300 - - - - - - - - (55) - 82 -
AFS investments 1,010 - 36 - (25) - - - - - (18) - 28
Derivatives - FVTPL 88 - - - - (145) - 119 - - - - -
Derivatives - cash
flow hedges 8 - (21) - 15 - - - - - - - -
Financial liabilities
Derivatives - cash
flow hedges (310) - - - - - 806 - (660) - - - -
Trade payables (1,160) - - - - (19) - 16 - - - - -
Borrowings (12,444) 38 - (16) - (177) - 145 - - - - -
Total increase/
(decrease) (23) 15 27 (10) (327) 806 269 (660) (55) (18) 82 28
wC 128 VALUE ACCOUNTS Holdings Limited

AASB101(51)(c) 30 June 2011
(continued)
Quantitative disclosures
AASB7(34)(a),(c) 7. An entity shall provide for each type of risk, summary quantitative data on risk exposure at
the end of the reporting period, based on information provided internally to key management
personnel and any concentrations of risk. This information can be presented in narrative form
as is done on pages 119 to 124 of this publication. Alternatively, entities could provide the
data in a table which sets out the impact of each major risk on each type of financial
instruments. An example of such a table is provided at the bottom of the previous page. This
table can also be a useful tool for compiling the necessary information that must be disclosed
under paragraph 34 of AASB 7.
AASB7R(34)(b) 8. If not already provided as part of the summary quantitative data, the entity shall also provide
AASB2010-4(10)
the information in paragraphs 9-22 below.
Credit risk
AASB7R(36),(37) 9. For each class of financial instrument, the entity shall disclose:
AASB2010-4(10)
(a) the maximum exposure to credit risk (not required for instruments whose carrying
amount best represents the maximum exposure to credit risk)
(b) a description of collateral held as security and of other credit enhancements, and
their financial effect, in respect of the amount that best represents the maximum
exposure to credit risk (eg a quantification of the extent to which collateral and
other credit enhancements mitigate credit risk)
(c) information about the credit quality of financial assets that are neither past due nor
impaired
(d) an analysis of the age of financial assets that are past due but not impaired
(e) an analysis of financial assets that are individually determined to be impaired.
If the entity has not adopted the changes made to AASB 7 by the 2010 Improvements
Project (AASB 2010-4 Further Amendments to Australian Accounting Standards arising from
the Annual Improvements Project), it will also need to disclose:
(f) the carrying amount of financial assets that would otherwise be past due or
impaired whose terms have been renegotiated, and
(g) for the amounts disclosed in (d) and (e) an estimate of the fair value of any
collateral held, unless impracticable.
Liquidity risk
AASB7(34),(a),(39) 10. Information about liquidity risk shall be provided by way of:
(a) a maturity analysis for non-derivative financial liabilities (including issued financial
guarantee contracts) that shows the remaining contractual maturities
(b) a maturity analysis for derivative financial liabilities (see paragraph 12 below for
details), and
(c) a description of how the entity manages the liquidity risk inherent in (a) and (b).
AASB7(B11F) 11. In describing how liquidity risk is being managed, an entity should consider discussing
whether it:
(a) has committed borrowing facilities or other lines of credit that it can access to meet
liquidity needs
(b) holds deposits at central banks to meet liquidity needs
(c) has very diverse funding sources
(d) has significant concentrations of liquidity risk in either its assets or its funding sources
(e) has internal control processes and contingency plans for managing liquidity risk
(f) has instruments that include accelerated repayment terms (eg on the downgrade of
the entity’s credit rating)
(g) has instruments that could require the posting of collateral (eg margin calls for
derivatives)
(h) has instruments that allow the entity to choose whether it settles its financial liabilities
by delivering cash (or another financial asset) or by delivering its own shares, or
(i) has instruments that are subject to master netting agreements.

AASB101(51)(c) 30 June 2011
(continued)
Maturity analysis
AASB7(B11B) 12. All financial liabilities must be included in the maturity analysis. The analysis should generally
be based on contractual maturities. However, for derivative financial liabilities the standard
provides entities with a choice to base the maturity grouping on expected rather than
contractual maturities, provided the contractual maturities are not essential for an
understanding of the timing of the cash flows. This could be the case for derivative contracts
that are held for trading. For contracts such as interest rate swaps in a cash flow hedge of a
variable rate financial asset or liability and for all loan commitments, the remaining
contractual maturities will be essential for an understanding of the timing of the cash flows.
These contracts must therefore be grouped based on their contractual maturities.
AASB7(3),(B11D) 13. The amounts disclosed should be the amounts expected to be paid in future periods,
determined by reference to the conditions existing at the end of the reporting period.
However, AASB 7 does not specify whether current or forward rates should be used. PwC
recommends the use of forward rates as they are a better approximation of future cash flows.
AASB7(B11C)(c) 14. The specific time buckets presented are not mandated by the standard but are based on
what is reported internally to the key management personnel. For financial guarantee
contracts, the maximum amount of the guarantee must be allocated to the earliest period in
which the guarantee could be called.
15. As the amounts included in the maturity tables are the contractual undiscounted cash flows,
these amounts will not reconcile to the amounts disclosed in the balance sheet, in particular
as far as borrowings or derivative financial instruments are concerned. Entities can choose to
add a column with the carrying amounts which ties into the balance sheet and a reconciling
column if they so wish, but this is not mandatory.
AASB7(B10A) 16. If an outflow of cash could occur either significantly earlier than indicated or be for
significantly different amounts from those indicated in the entity’s disclosures about its
exposure to liquidity risk, the entity shall state that fact and provide quantitative information
that enables users of its financial statements to evaluate the extent of this risk. This
disclosure is not necessary if that information is included in the contractual maturity analysis.
Financing arrangements
AASB107(50)(a) 17. Committed borrowing facilities are a major element of liquidity management. Entities should
AASB7(39)(b)
therefore consider providing information about their undrawn facilities. AASB 107 Statement
of Cash Flows also recommends disclosure of undrawn borrowing facilities that may be
available for future operating activities and to settle capital commitments, indicating any
restrictions on the use of these facilities.
Market risk
AASB7(40)(a),(b) 18. Entities shall disclose a sensitivity analysis for each type of market risk (currency, interest
rate and other price risk) to which an entity is exposed at the end of the reporting period,
showing how profit or loss and equity would have been affected by ‘reasonably possible’
changes in the relevant risk variable, as well as the methods and assumptions used in
preparing such an analysis.
AASB7(40)(c) 19. If there have been any changes in methods and assumptions from the previous period, this
must be disclosed together with the reasons for such a change.
AASB7(40)(c) Foreign currency risk
AASB7(B23) 20. Foreign currency risk can only arise on financial instruments that are denominated in a
currency other than the functional currency in which they are measured. Translation related
risks are therefore not included in the assessment of the entity’s exposure to currency risks.
Translation exposures arise from financial and non-financial items held by an entity (for
example, a subsidiary) with a functional currency different from the group’s presentation
currency. However, foreign currency denominated inter-company receivables and payables
which do not form part of a net investment in a foreign operation would be included in the
sensitivity analysis for foreign currency risks, because even though the balances eliminate in
the consolidated balance sheet, the effect on profit or loss of their revaluation under AASB
121 is not fully eliminated.
AASB7(B23) 21. For the purpose of AASB 7, currency risk does also not arise from financial instruments that
are non-monetary items. VALUE ACCOUNTS Holdings Limited has therefore excluded its
US dollar denominated equity securities from the analysis of foreign exchange risk. The
foreign currency exposure arising from investing in non-monetary financial instruments is
reflected in the other price risk disclosures as part of the fair value gains and losses.

AASB101(51)(c) 30 June 2011
(continued)
Interest rate risk

22. Sensitivity to changes in interest rates is normally only relevant to financial assets or financial
liabilities bearing floating interest rates. However, sensitivity will also be relevant to fixed rate
financial assets and financial liabilities which are remeasured to fair value.
Terms and conditions of financial instruments
AASB7(7),(31) 23. Entities shall disclose sufficient information that enables users of its financial statements to
evaluate the significance of financial instruments for its financial position and performance
and the nature and extent of risks arising from these financial instruments. However, the
intention of AASB 7 was to decrease the potentially voluminous disclosures that were
required by AASB 132 and replace them with shorter but more meaningful information.
Under normal circumstances entities will therefore no longer need to disclose the significant
terms and conditions for each of their major borrowings. Nevertheless, if an entity has a
borrowing (or other financial instrument) with unusual terms and conditions, then some
information should be provided to enable users to assess the nature and extent of risks
associated with these instruments.
Fair value disclosures
Financial instruments carried at other than fair value
AASB7(25),(29) 24. An entity shall disclose the fair value for each class of financial assets and financial liabilities
(see paragraph 3 above) in a way that permits it to be compared with its carrying amount.
Fair values do not need to be disclosed for the following:
(a) where the carrying amount is a reasonable approximation of fair value
(b) investments in equity instruments (and derivatives linked to such equity
instruments) that do not have a quoted market price and that are measured at cost
in accordance with AASB 139 because their fair value cannot be measured
reliably
(c) a contract containing a discretionary participation feature (as described in AASB 4
Insurance Contracts) where the fair value of that feature cannot be measured
reliably.
25. The information about the fair values can be provided either in a combined financial
instruments note (such as note 2 in VALUE ACCOUNTS Holdings Limited) or in the
individual notes. For example, the table on page 119 could be expanded to also disclose the
fair value for each financial instrument. However, fair values must be separately disclosed for
each class of financial instrument (see paragraph 3 above) which means that each line item
in the table would have to be broken down into individual classes. For that reason, VALUE
ACCOUNTS Holdings Limited has chosen to provide the information in the relevant notes.
Methods and assumptions in determining fair value
AASB7(27) 26. An entity shall disclose for each class of financial instruments (see paragraph 3 above) the
methods and, when a valuation technique is used, the assumptions applied in determining
fair values. Examples of assumptions that should be disclosed are assumptions relating to
prepayment rates, rates of estimated credit losses, interest rates or discount rates. If the
entity has changed a valuation technique, that fact and the reason for the change shall also
be disclosed.
Financial instruments measured at cost where fair value cannot be determined reliably
AASB7(30) 27. If the fair value of investments in unquoted equity instruments, derivatives linked to such
equity instruments or a contract containing a discretionary participation feature (as described
in AASB 4 Insurance Contracts) cannot be measured reliably the entity must disclose:
(a) the fact that fair value information has not been disclosed because it cannot be
measured reliably
(b) a description of the financial instruments, their carrying amount and an
explanation of why fair value cannot be measured reliably
(c) information about the market for the instruments
(d) information about whether and how the entity intends to dispose of the financial
instruments
(e) if the instruments are subsequently derecognised, that fact, their carrying amounts
at the time of derecognition and the amount of gain or loss recognised.

AASB101(51)(c) 30 June 2011
(continued)
Carrying amounts are a reasonable approximation of fair value

28. A statement that the carrying amount of financial assets or financial liabilities is a reasonable
approximation of their fair value should only be made if it can be substantiated. That is,
entities must have made a formal assessment of the carrying amounts of their financial
assets and liabilities in comparison to their fair values and documented this assessment. If
the fair values are not a reasonable approximation of the carrying amounts, the fair values
must be disclosed. In the current market, we would expect this to be the case more often
than not.
Fair value measurements recognised in the balance sheet
AASB7(27B) 29. For fair value measurements recognised in the balance sheet, the entity shall also disclose
for each class of financial instruments:
(a) the level in the fair value hierarchy into which the fair value measurements are
categorised (see paragraph 30 below)
(b) any significant transfers between level 1 and level 2 of the fair value hierarchy and
the reasons for those transfers
(c) for fair value measurements in level 3 of the hierarchy, a reconciliation from the
beginning balances to the ending balances, showing separately changes during
the period attributable to the following:
(i) total gains or losses for the period recognised in profit or loss, together
with a description of where they are presented in the statement of
comprehensive income or the income statement (as applicable)
(ii) total gains or losses recognised in other comprehensive income
(iii) purchases, sales, issues and settlements (each type disclosed
separately)
(iv) transfers into or out of level 3 and the reasons for those transfers.
(d) the amount of total gains or losses for the period included in profit or loss that are
attributable to gains or losses relating to assets and liabilities held at the end of
the reporting period, together with a description of where the gains and losses are
presented in the statement of comprehensive income or the income statement (as
applicable)
(e) for fair value measurements in level 3, if changing one or more of the inputs to
reasonably possible alternative assumptions would change fair value significantly,
that fact, the effect of those changes and how the effect was calculated.
AASB7(27A) 30. Entities shall classify fair value measurements using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. The fair value hierarchy shall
have the following levels:
(a) level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities
(b) level 2: inputs other than quoted prices that are observable for the asset or
liability, either directly (eg as prices) or indirectly (eg derived from prices), and
(c) level 3: inputs for the asset or liability that are not based on observable market
data (unobservable inputs).
The appropriate level is determined on the basis of the lowest level input that is significant to
the fair value measurement.
Additional information where quantitative data about risk exposure is unrepresentative
AASB7(35),(42) 31. If the quantitative data disclosed under paragraphs 7, 9, 10 and 18 above is unrepresentative
of the entity’s exposure to risk during the period, the entity shall provide further information
that is representative. If the sensitivity analyses are unrepresentative of a risk inherent in a
financial instrument (eg where the year-end exposure does not reflect the exposure during
the year), the entity shall disclose that fact and the reason why the sensitivity analyses are
unrepresentative.

AASB101(51)(c) 30 June 2011
(continued)
3 Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the entity and that
are believed to be reasonable under the circumstances.
AASB101(125) (a) Critical accounting estimates and assumptions 5-15

The group makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
(i) Estimated impairment of goodwill
The group tests annually whether goodwill has suffered any impairment, in accordance with the
accounting policy stated in note 1(t). The recoverable amounts of cash-generating units have been
determined based on value-in-use calculations. These calculations require the use of assumptions.
Refer to note 23 for details of these assumptions and the potential impact of changes to the
assumptions.
(ii) Income taxes
The group is subject to income taxes in Australia and jurisdictions where it has foreign operations.
Significant judgement is required in determining the worldwide provision for income taxes. There are
certain transactions and calculations undertaken during the ordinary course of business for which the
ultimate tax determination is uncertain. The group estimates its tax liabilities based on the group's
understanding of the tax law. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the current and deferred income tax
assets and liabilities in the period in which such determination is made.
Were the actual final outcome (on the judgement areas) to differ by 10% from management's
estimates, the group would need to:
– increase the income tax liability by $120,000 and the deferred tax liability by $230,000, if
unfavourable, or
– decrease the income tax liability by $120,000 and the deferred tax liability by $230,000, if
favourable.
AASB101(38) For the year ended 2010, had the final outcome differed by 10%, the increase/decrease was
estimated to be $90,000 and $150,000 respectively.
In addition, the group has recognised deferred tax assets relating to carried forward tax losses to the
extent there are sufficient taxable temporary differences (deferred tax liabilities) relating to the same
taxation authority and the same subsidiary against which the unused tax losses can be utilised.
However, utilisation of the tax losses also depends on the ability of the entity, which is not part of the
tax consolidated group, to satisfy certain tests at the time the losses are recouped. Due to the recent
capital raising of the parent entity, there are some concerns that the entity may fail to satisfy the
continuity of ownership test and therefore has to rely on the same business test. If the entity fails to
satisfy the test, carried forward losses of $178,000 that are currently recognised as deferred tax asset
would have to be written off to income tax expense.
(iii) Estimated fair values of investment properties
The group carries its investment properties at fair value with changes in the fair values recognised in
profit or loss. It obtains independent valuations at least annually. At the end of each reporting period,
the directors update their assessment of the fair value of each property, taking into account the most
recent independent valuations. The key assumptions used in this determination are set out in note 21.

AASB101(51)(c) 30 June 2011
(continued)
3 Critical accounting estimates and judgements (continued) 1
AASB101(122) (b) Critical judgements in applying the entity's accounting policies 1-4
(i) Revenue recognition
The group has recognised revenue amounting to $950,000 for sale of furniture to a wholesale
customer during 2011. The buyer has the right to rescind the sale if there is 5% dissatisfaction with
the quality of the first 100 pieces of furniture sold. This is a new product line specifically designed for
this customer and for this reason the warranty given is a departure from the normal warranty.
However, the group is confident that the quality of the product is such that the dissatisfaction rate will
be well below 5% and within the normal warranty provisions. Accordingly, rescission of the contract is
not expected. It is therefore appropriate to recognise revenue on this transaction during 2011. The
profit recognised for this sale was $625,000. The group would suffer an estimated pre-tax loss of
$660,000 in its 2012 financial statements if the sale is cancelled, $625,000 being the reversal of 2011
profits and $35,000 of costs connected with returning the stock to the warehouse.
(ii) Impairment of available-for-sale financial assets
AASB101(38) In the 2010 financial statements, the group made a significant judgement about the impairment of a
number of its available-for-sale financial assets.
The group follows the guidance of AASB 139 Financial Instruments: Recognition and Measurement to
determine when an available-for-sale financial asset is impaired. This determination requires
significant judgement. In making this judgement, the group evaluates, among other factors, the
duration and extent to which the fair value of an investment is less than its cost and the financial
health of and short-term business outlook for the investee, including factors such as industry and
sector performance, changes in technology and operational and financing cash flows.
If all of the declines in fair value below cost were considered significant or prolonged, the group would
have suffered an additional loss of $100,000 in its 2010 financial statements, being the reclassification
of the accumulated fair value adjustments recognised in equity on the impaired available-for-sale
financial assets to profit or loss. In the 2011 financial year, the fair value of the relevant assets has
increased again and is now above cost.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Critical accounting estimates and judgements
Significant judgements
AASB101(122) 1. An entity shall disclose, in the summary of significant accounting policies or other notes, the
judgements, apart from those involving estimations (refer to paragraph 5 below), that
management has made in the process of applying the entity’s accounting policies and that
have the most significant effect on the amounts recognised in the financial statements.
AASB101(123) 2. In the process of applying the entity’s accounting policies, management makes various
judgements, apart from those involving estimations, that can significantly affect the amounts
recognised in the financial statements. For example, management makes judgements in
determining:
(a) whether financial assets are held-to-maturity investments
(b) when substantially all the significant risks and rewards of ownership of financial
assets and lease assets are transferred to other entities
(c) whether, in substance, particular sales of goods are financing arrangements and
therefore do not give rise to revenue, and
(d) whether the substance of the relationship between the entity and a special purpose
entity indicates that the special purpose entity is controlled by the entity.
3. Another example disclosure of a judgement that may significantly affect the amounts
recognised in the financial statements, but that is not disclosed by VALUE ACCOUNTS
Holdings Limited due to materiality, is:
Held-to-maturity investments
The group follows the AASB 139 guidance on classifying non-derivative financial
assets with fixed or determinable payments and fixed maturity as held-to-maturity.
This classification requires significant judgement. In making this judgement, the
group evaluates its intention and ability to hold such investments to maturity.
If the group fails to keep these investments to maturity other than for specific
circumstances explained in AASB 139, it will be required to reclassify the whole
class as available-for-sale. The investments would therefore be measured at fair
value not amortised cost.
If the class of held-to-maturity investments is tainted, the fair value would increase
by $2,300,000 with a corresponding entry in the fair value reserve in shareholders’
equity. Furthermore, the entity would not be able to classify any financial assets as
held-to-maturity for the following two annual reporting periods.
AASB101(124) 4. Some of the disclosures made in accordance with paragraph 1 are required by other
Australian Accounting Standards. For example:
(a) AASB 127 Consolidated and Separate Financial Statements requires an entity to
disclose:
AASB127(41)(a) (i) the nature of the relationship between the parent and a subsidiary when
the parent does not own, directly or indirectly through subsidiaries, more
than half of the voting power, and
AASB127(41)(b) (ii) the reasons why the ownership, directly or indirectly through subsidiaries,
of more than half of the voting or potential voting power of an investee
does not constitute control (refer to note 18 for illustrative disclosure of
this requirement).
AASB140(75)(c) (d) AASB 140 Investment Property requires disclosure of the criteria developed by the
entity to distinguish investment property from owner-occupied property and from
property held for sale in the ordinary course of business, when classification of the
property is difficult.
Sources of estimation uncertainty
AASB101(125) 5. An entity shall disclose in the notes information about the assumptions concerning the future,
and other sources of estimation uncertainty at the end of the reporting period, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next annual reporting period. In respect of those assets and liabilities, the
notes shall include details of:
(a) their nature, and
(b) their carrying amount as at the end of the reporting period.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Critical accounting estimates and judgements (continued)
AASB101(126) 6. Determining the carrying amounts of some assets and liabilities requires estimation of the
effects of uncertain future events on those assets and liabilities at the end of the reporting
period. For example, in the absence of recently observed market prices used to measure the
following assets and liabilities, future-oriented estimates are necessary to measure the
recoverable amount of classes of property, plant and equipment, the effect of technological
obsolescence on inventories, provisions subject to the future outcome of litigation in progress,
and long-term employee benefit liabilities such as pension obligations. These estimates
involve assumptions about such items as the risk adjustment to cash flows or discount rates
used, future changes in salaries and future changes in prices affecting other costs.
AASB101(127) 7. The assumptions and other sources of estimation uncertainty disclosed in accordance with
paragraph 5 relate to the estimates that require management’s most difficult, subjective or
complex judgements. As the number of variables and assumptions affecting the possible
future resolution of the uncertainties increases, those judgements become more subjective
and complex, and the potential for a consequential material adjustment to the carrying
amounts of assets and liabilities normally increases accordingly.
AASB101(128) 8. The disclosures in paragraph 5 are not required for assets and liabilities with a significant risk
that their carrying amounts might change materially within the next annual reporting period if,
at the end of the reporting period, they are measured at fair value based on recently observed
market prices (their fair values might change materially within the next annual reporting period
but these changes would not arise from assumptions or other sources of estimation
uncertainty at the end of the reporting period).
AASB101(129) 9. The disclosures in paragraph 5 are presented in a manner that helps users of financial
statements to understand the judgements management makes about the future and about
other sources of estimation uncertainty. The nature and extent of the information provided
varies according to the nature of the assumption and other circumstances. Examples of the
types of disclosures made are:
(a) the nature of the assumption or other estimation uncertainty
(b) the sensitivity of carrying amounts to the methods, assumptions and estimates
underlying their calculation, including the reasons for the sensitivity
(c) the expected resolution of an uncertainty and the range of reasonably possible
outcomes within the next annual reporting period in respect of the carrying amounts
of the assets and liabilities affected, and
(d) an explanation of changes made to past assumptions concerning those assets and
liabilities, if the uncertainty remains unresolved.
AASB101(130) 10. It is not necessary to disclose budget information or forecasts in making the disclosures in
paragraph 5.
AASB101(131) 11. When it is impracticable to disclose the extent of the possible effects of an assumption or
another source of estimation uncertainty at the end of the reporting period, the entity
discloses that it is reasonably possible, based on existing knowledge, that outcomes within
the next annual reporting period that are different from assumptions could require a material
adjustment to the carrying amount of the asset or liability affected. In all cases, the entity
discloses the nature and carrying amount of the specific asset or liability (or class of assets
or liabilities) affected by the assumption.
AASB101(132) 12. The disclosures in paragraph 1 of particular judgements management made in the process of
applying the entity’s accounting policies do not relate to the disclosures of sources of
estimation uncertainty in paragraph 5.
AASB101(133) 13. The disclosure of some of the assumptions that would otherwise be required in accordance
with paragraph 5 is required by other Australian Accounting Standards. For example, AASB
137 Provisions, Contingent Liabilities and Contingent Assets requires disclosure, in specified
circumstances, of major assumptions concerning future events affecting classes of
provisions. AASB 7 Financial Instruments: Disclosures requires disclosure of significant
assumptions applied in estimating fair values of financial assets and financial liabilities that
are carried at fair value. AASB 116 Property, Plant and Equipment requires disclosure of
significant assumptions applied in estimating fair values of revalued items of property, plant
and equipment.

AASB101(51)(c) 30 June 2011
(continued)
14. Example disclosures of critical accounting estimates that may have a significant risk of
causing material adjustments to the carrying amounts of assets and liabilities, but that are
not relevant to VALUE ACCOUNTS Holdings Limited, or are not expected to have a
significant impact in this instance, are:
Pension benefits
This applies where the group’s accounting policy is to recognise any actuarial
gains or losses immediately either in profit or loss or in other comprehensive
income.
The present value of the pension obligations depends on a number of factors that
are determined on an actuarial basis using a number of assumptions. The
assumptions used in determining the net cost (income) for pensions include the
discount rate. Any changes in these assumptions will impact the carrying amount
of pension obligations.
The group determines the appropriate discount rate at the end of each year. This
is the interest rate that should be used to determine the present value of estimated
future cash outflows expected to be required to settle the pension obligations. In
determining the appropriate discount rate, the group considers the interest rates of
high quality corporate bonds that are denominated in the currency in which the
benefits will be paid, and that have terms to maturity approximating the terms of
the related pension liability. Market yields on government bonds are used in
countries where there is no deep market in corporate bonds.
Other key assumptions for pension obligations are based in part on current market
conditions. Additional information is disclosed in note 31.
If the discount rate used was 100 basis points higher or lower than management’s
estimates, the carrying amount of pension obligations would be an estimated
$425,000 lower or $450,000 higher.
Warranty claims
The group generally offers three-year warranties for its personal computer
products. Management estimates the related provision for future warranty claims
based on historical warranty claim information, as well as recent trends that might
suggest that past cost information may differ from future claims.
Factors that could impact the estimated claim information include the success of
the group’s productivity and quality initiatives, as well as parts and labour costs.
Were claims costs to differ by 10% from management’s estimates, the warranty
provisions would be an estimated $2,000,000 higher or lower.
Useful lives of technology division’s plant and equipment
The group's management determines the estimated useful lives and related
depreciation charges for its plant and equipment. This estimate is based on
projected product lifecycles for its high-tech segment. It could change significantly
as a result of technical innovations and competitor actions in response to severe
industry cycles. Management will increase the depreciation charge where useful
lives are less than previously estimated lives, or it will write-off or write-down
technically obsolete or non-strategic assets that have been abandoned or sold.
Were the actual useful lives of the technology division plant and equipment to
differ by 10% from management’s estimates, the carrying amount of the plant and
equipment would be an estimated $1,000,000 higher or $970,000 lower.
Fair value of available-for-sale financial assets
The fair value of financial instruments that are not traded in an active market is
determined by using valuation techniques. The group uses its judgement to select
a variety of methods and make assumptions that are mainly based on market
conditions existing at the end of each reporting period. The group has used
discounted cash flow analysis for various available-for-sale financial assets that
were not traded in active markets.

AASB101(51)(c) 30 June 2011
(continued)
The carrying amount of available-for-sale financial assets would be an estimated

$425,000 lower/higher if the discount rate used in the discounted cash flow
analysis would be 100 basis points higher or lower than management’s estimates.
Revenue recognition
The group uses the percentage-of-completion method in accounting for its
fixed-price contracts to deliver design services. Use of the
percentage-of-completion method requires the group to estimate the services
performed to date as a proportion of the total services to be performed. Were the
proportion of services performed to total services to be performed to differ by 10%
from management’s estimates, the amount of revenue recognised in the year
would be increased by $175,000 if the proportion performed was increased, or
would be decreased by $160,000 if the proportion performed was decreased.
AASB-I 14(10) 15. The recognition of a net defined benefit asset may also warrant additional disclosures. For
example, the entity should explain any restrictions on the current realisability of the surplus
and the basis used to determine the amount of the economic benefits available.
4 Segment information 1-9,16-21
(a) Description of segments 10

AASB8(22)(a) Management has determined the operating segments based on the reports reviewed by the strategic
steering committee that are used to make strategic decisions.
AASB8(22) The committee considers the business from both a product and a geographic perspective and has
identified six reportable segments. Furniture manufacturing consists of commercial office furniture,
hardwood side boards, chairs and tables which are manufactured and sold both in Australia and in
Indonesia. The committee monitors the performance in those two regions separately. Since July 2010,
the manufacturing business has been supplemented by a chain of retail stores in Australia. Business
IT management, design, implementation and support services are provided both in Australia and in a
number of South-East Asian countries and performance is also monitored separately for those two
regions.
AASB8(22) Although the electronic equipment segment does not meet the quantitative thresholds required by
AASB 8, management has concluded that this segment should be reported, as it is closely monitored
by the strategic steering committee as a potential growth segment and is expected to materially
contribute to group revenue in the future. This segment was established following the acquisition of
VALUE ACCOUNTS Electronics Pty Ltd in October 2010.
AASB8(16),(22) The development of residential land, currently in the Koolabah Estate in Queensland and the Eureka
Estate in New South Wales, the purchase and resale of commercial properties, principally in Brisbane
and Sydney and the management of investment properties are not reportable operating segments, as
they are not separately included in the reports provided to the strategic steering committee. The
results of these operations are included in the 'all other segments' column.
The machinery hire division was sold effective from 1 September 2010. Information about this
discontinued segment is provided in note 10.

AASB101(51)(c) 30 June 2011
(continued)
4 Segment information (continued)
AASB8(23) (b) Segment information provided to the strategic steering committee 11-12
The segment information provided to the strategic steering committee for the reportable segments for
the year ended 30 June 2011 is as follows:
Furniture - Furniture - Electronic
manufacture retail IT consulting equipment
South- All other
2011 Australia Indonesia Australia Australia East Asia Australia segments Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Total segment
revenue 15,100 5,100 11,600 13,300 4,100 3,850 6,600 59,650
AASB8(23)(b) Inter-segment
revenue (100) (100) (600) (300) (100) (500) (300) (2,000)
AASB8(23)(a),(33)(a) Revenue from
external customers 15,000 5,000 11,000 13,000 4,000 3,350 6,300 57,650
AASB8(23) Adjusted EBITDA 3,390 1,400 1,900 4,000 700 900 1,897 14,187
AASB8(23)(e) Depreciation and
amortisation 250 161 274 200 130 75 240 1,330
AASB8(23)(f),(i) Goodwill impairment - 410 - - - - - 410
AASB8(23)(f),(i) Impairment of
AASB136(129)(a)
assets by fire (note
8) 1,210 - - - - - - 1,210
AASB8(23)(h) Income tax expense 1,017 350 665 1,092 250 300 556 4,230
AASB8(23)(g) Share of profit from
associates and joint
venture partnership 70 - - 50 - - 330 450
AASB8(23) Total segment
assets 11,830 5,500 11,600 9,640 3,510 2,590 5,738 50,408
Total assets
includes:
AASB8(24)(a) Investments in
venture partnership 375 - - 600 - - 2,800 3,775
AASB8(24)(b) Additions to
non-current assets
(other than financial
assets and deferred
tax) 947 685 3,725 600 350 1,300 580 8,187
liabilities 805 600 750 700 400 100 200 3,555

AASB101(51)(c) 30 June 2011
(continued)
(b) Segment information provided to the strategic steering committee (continued)

the year ended 30 June 2010 is as follows:
South- All other
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Total segment
revenue 12,150 6,660 - 12,100 4,540 1,350 5,200 42,000
AASB8(23)(b) Inter-segment
revenue (150) (100) - (100) (100) (10) (100) (560)
AASB8(23)(a),(33)(a) Revenue from
external
customers 12,000 6,560 - 12,000 4,440 1,340 5,100 41,440
AASB8(23) Adjusted EBITDA 2,850 990 - 2,580 350 230 759 7,759
AASB8(23)(e) Depreciation and
amortisation 190 45 - 243 47 23 170 718
AASB8(23)(f) Litigation settlement
relating to claim
against the land
development
division - - - - - - 370 370
AASB8(23)(h) Income tax expense 805 120 - 724 42 50 260 2,001
AASB8((23)(g) Share of profit from
venture partnership 50 - - 25 - - 295 370
assets 9,400 4,500 - 7,023 3,025 1,500 5,120 30,568
Total assets
includes:
AASB8(24)(a) Investments in
venture partnership 345 - - 540 - - 2,390 3,275
AASB8(24)(b) Additions to
non-current assets
(other than financial
assets and deferred
tax) 870 270 - 807 695 280 115 3,037
liabilities 990 750 - 993 270 100 490 3,593
There was no impairment charge or other significant non-cash item recognised in 2010.
(c) Other segment information
(i) Segment revenue
AASB8(27)(a) Sales between segments are carried out at arm's length and are eliminated on consolidation. The
revenue from external parties reported to the strategic steering committee is measured in a manner
consistent with that in the income statement.
AASB8(32) Revenues from external customers are derived from the sale of furniture on a wholesale and retail
basis, from the provision of IT consulting services and from the sale of electronic equipment. The
wholesale of furniture relates only to the group’s own brand, Pina Colada Furniture. The retail sales
comprise not only the group’s own brand, but other major retail brands. A breakdown of revenue and
14
results is provided in the tables above.

AASB101(51)(c) 30 June 2011
(continued)
(c) Other segment information (continued)

AASB7(28)(a)
Segment revenue reconciles to total revenue from continuing operations as follows: 13
2011 2010
$'000 $'000
Total segment revenue 59,650 42,000

Intersegment eliminations (2,000) (560)
Interest revenue 350 300
Total revenue from continuing operations (note 5) 58,540 42,280
AASB8(33)(a) The entity is domiciled in Australia. The amount of its revenue from external customers in Australia is
$46,350,000 (2010 – $31,040,000), and the total revenue from external customers in other countries
is $11,300,000 (2010 –$10,400,000). Segment revenues are allocated based on the country in which
14
the customer is located.
AASB8(34) Revenues of approximately $6,320,000 (2010 – $6,280,000) are derived from a single external
customer. These revenues are attributable to the Australian furniture manufacturing segment. 14
(ii) Adjusted EBITDA
AASB8(27)(b),(28) The strategic steering committee assesses the performance of the operating segments based on a
measure of adjusted EBITDA. This measurement basis excludes the effects of non-recurring
expenditure from the operating segments such as restructuring costs, legal expenses and goodwill
impairments when the impairment is the result of an isolated, non-recurring event. Furthermore, the
measure excludes the effects of equity-settled share-based payments and unrealised gains/(losses)
on financial instruments. Interest income and expenditure are not allocated to segments, as this type
of activity is driven by the central treasury function, which manages the cash position of the group.
AASB8(28)(b)
A reconciliation of adjusted EBITDA to operating profit before income tax is provided as follows: 13
2011 2010
$'000 $'000
Adjusted EBITDA 14,187 7,759

Intersegment eliminations (90) (60)
Finance costs (1,239) (585)
Depreciation (1,240) (950)
Amortisation (135) (30)
Legal expenses - (370)
Goodwill impairment (410) -
Unrealised financial instrument gains/(losses) 261 (148)
Share options granted to directors and employees (546) (396)
Impairment of other assets (1,210) -
Other 920 -
Profit before income tax from continuing operations 10,848 5,520

AASB101(51)(c) 30 June 2011
(continued)

(iii) Segment assets
AASB8(27)(c) The amounts provided to the strategic steering committee with respect to total assets are measured in
a manner consistent with that of the financial statements. These assets are allocated based on the
operations of the segment and the physical location of the asset.
AASB8(27)(c) Investment in shares (classified as available-for-sale financial assets, held-to-maturity investments or
financial assets at fair value through profit or loss) held by the group are not considered to be
segment assets but rather managed by the treasury function.
AASB8(28)(c)
Reportable segments’ assets are reconciled to total assets as follows: 13
2011 2010
$'000 $'000
Segment assets 50,408 30,568

Discontinued operation (machinery hire – see note 10) - 4,955
Unallocated:
Deferred tax assets 734 438
Available-for-sale financial assets 1,010 828
Financial assets at fair value through profit or loss 1,300 915
Total assets as per the balance sheet 53,458 37,486
AASB8(33)(b) The total of non-current assets other than financial instruments and deferred tax assets (there are no
employment benefit assets and rights arising under insurance contracts) located in Australia is
$39,660,000 (2010 – $21,923,000), and the total of these non-current assets located in other
countries is $11,218,000 (2010 – $8,600,000). Segment assets are allocated to countries based on
where the assets are located. 14
(iv) Segment liabilities
AASB8(27)(d) The amounts provided to the strategic steering committee with respect to total liabilities are measured
in a manner consistent with that of the financial statements. These liabilities are allocated based on
the operations of the segment.
AASB8(27)(d) The group's borrowings and derivative financial instruments are not considered to be segment
liabilities but rather managed by the treasury function.
AASB8(28)(d)
Reportable segments’ liabilities are reconciled to total liabilities as follows: 13
2011 2010
$'000 $'000
Segment liabilities 3,555 3,593

Discontinued operation (machinery hire – see note 10) - 500
Unallocated:
Deferred tax liabilities 1,289 704
Current tax liabilities 2,746 1,077
Current borrowings 2,980 3,555
Non-current borrowings 9,464 7,525
Total liabilities as per the balance sheet 20,169 17,155

AASB101(51)(c) 30 June 2011
(continued)
(v) Error in the accounting for a leasing contract in the Australian Furniture manufacture
15
segment
Due to a misinterpretation of the terms and conditions of a major leasing contract, segment assets
and segment liabilities of the Australian Furniture manufacture segment for the year ended 30 June
2010 were overstated by $300,000 and $289,000 respectively. The error also had the effect of
overstating adjusted EBITDA for the year ended 30 June 2010 for that segment by $75,000.
The error has been corrected by restating each of the affected segment information line items for the
prior year, as described above.
Further information on the error is set out in note 7.
Commentary - Segment information
Revised accounting standard for segment reporting

AASB8(Aus2.1)(d),(e) 1. AASB 8 Operating Segments is applicable to annual reporting periods beginning on or after 1
(Aus2.2)
January 2009. It applies to entities, including groups with parents:
(a) whose debts or equity instruments are traded in a public market (a domestic or
foreign stock exchange or an over-the-counter market, including local and regional
markets), or
(b) that file, or are in the process of filing, their financial statements with a securities
commission or other regulatory organisation for the purpose of issuing any class of
instruments in a public market.
AASB114(Aus1.1) This is a change from AASB 114 Segment Reporting which applied to all reporting entities.
Purpose of segment note
AASB8(1) 2. The segment disclosures shall enable users of financial statements to evaluate the nature
and financial effects of the business activities in which the entity engages and the economic
environments in which it operates.
Parent entity disclosures
AASB8(4) 3. Where financial statements include both the consolidated financial statements and the
separate financial statements of the parent entity, segment information only needs to be
disclosed for the consolidated financial statements.
Operating segments
AASB8(5) 4. The standard defines an operating segment as a component of the entity:
(a) that engages in business activities from which it may earn revenues and incur
expenses
(b) whose operating results are regularly reviewed by the entity’s chief operating
decision maker to make decisions about resources to be allocated to the segment
and assess its performance
(c) for which discrete financial information is available.
AASB8(7) 5. A chief operating decision maker is a person or a group of persons that allocate resources to,
and assess the performance of, the operating segments of an entity. In many cases, this will
be the chief executive officer or the chief operating officer but it could also be a group of
executive directors or others.
Reportable segments, aggregation and materiality thresholds
AASB8(11),(12),(13) 6. Not all operating segments need to be separately reported. Two or more operating segments
may be aggregated if they have similar economic characteristics and the other criteria in
paragraph 12 of AASB 8 are satisfied. Furthermore, an operating segment only needs to be
separately reported if it exceeds any of the following quantitative thresholds:
(a) reported revenue (external and intersegment sales/transfers) is 10% or more of
the combined revenue of all segments
(b) the absolute amount of its reported profit or loss is 10% or more of the greater, in
absolute amount, of (i) the combined reported profit of all operating segments that
did not report a loss and (ii) the combined reported loss of all operating segments
that reported a loss, or
(c) its assets are 10% or more of the combined assets of all operating segments.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Segment information (continued)
AASB8(16) 7. Operating segments that are not reportable are combined and disclosed in an ‘all other
segments’ category separately from other reconciling items. The source of the revenue
included in the all other segments category shall be described.
AASB8(15) 8. However, if total external revenue disclosed for reportable segments constitutes less than
75% of the entity’s total revenue, additional operating segments shall be identified as
reportable segments – even if they do not exceed the thresholds in paragraph 6 above.
AASB8(18) 9. Where an operating segment is identified as a reportable segment for the first time in the
current reporting period as a result of applying the quantitative thresholds, segment data for
prior periods presented must be restated to reflect the newly reportable segment as a
separate segment, even if that segment did not satisfy the criteria for reportability in the
previous period.
Description of segments
AASB8(22) 10. Entities shall disclose factors used to identify its reportable segments, including the basis of
organisation, and types of products and services from which each reportable segment
derives its revenues.
Information about profit or loss, assets and liabilities
AASB8(23) 11. Entities shall report:
(a) a measure of profit or loss for each reportable segment
(b) a measure of total assets and liabilities if they are regularly provided to the chief
operating decision maker
(c) the following amounts if they are included in the measure of segment profit or loss
reviewed by the chief operating decision maker, or are otherwise regularly
provided to the chief operating decision maker:
(i) revenues from external customers
(ii) revenues from transactions with other operating segments of the same
entity
(iii) interest revenue
(iv) interest expense
(v) depreciation and amortisation
(vi) material items of income and expense disclosed in accordance with
AASB 101 paragraph 97
(vii) the entity’s interest in the profit or loss of associates and joint ventures
accounted for by the equity method
(viii) income tax expense or income, and
(ix) material non-cash items other than depreciation and amortisation.
AASB8(24) 12. The following amounts must be provided for each reportable segment if they are included in
the measure of segment assets reviewed by the chief operating decision maker, or are
otherwise regularly provided to the chief operating decision maker:
(a) investments in associates and joint ventures accounted for by the equity method,
and
(b) additions to non-current assets other than financial instruments, deferred tax
assets, post-employment benefit assets and rights arising under insurance
contracts.
Reconciliation
AASB8(28) 13. Entities shall provide reconciliations of the following if the relevant amounts are disclosed in
the segment note:
(a) total of reportable segments’ revenues to the entity’s revenue
(b) total of the reportable segments’ measures of profit or loss to the entity’s profit or
loss before tax expense and discontinued operations (after tax is also acceptable
if the reportable segments measure of profit includes tax expense)
(c) total of reportable segments’ assets to the entity’s assets
(d) total of reportable segments’ liabilities to the entity’s liabilities, and
(e) total of the reportable segments’ amounts for every other material item of
information disclosed to the corresponding amount for the entity.
All material reconciling items shall be separately identified and described.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Segment information (continued)
Entity-wide disclosures – all entities

AASB8(31) 14. All entities, even those with only one reportable segment, must provide the following
information:
AASB8(32) (a) revenues from external customers for each product and service, or each group of
similar products and services (where an operating segment covers more than one
type of product or service, the breakdown will need to be more detailed than that
provided by VALUE ACCOUNTS Holdings Limited)
AASB8(33)(a) (b) revenues from external customers attributed to:
(i) the entity’s country of domicile
(ii) all foreign countries in total from which the entity derives revenues, and
(iii) individual countries (where material)
AASB8(33)(b) (c) non-current assets other than financial instruments, deferred tax assets, post-
employment benefit assets and rights arising under insurance contracts located in:
(i) the entity’s country of domicile
(ii) all foreign countries in total in which the entity holds assets, and
(iii) individual countries (where material)
AASB8(34) (d) the extent of its reliance on major customers, where revenue from a single
customer (or a group of entities known to be under common control) amounts to
10% or more of the entity’s total revenue.
Errors
15. There are no specific requirements relating to disclosure of the impact of errors on segment
information. However, the impact of a material error on segment information is likely to be
relevant to the understanding of segment information, and disclosure along the lines of that
shown in the illustrative note may be necessary to adequately explain the information
presented.
Information about profit or loss, assets and liabilities
AASB8(23)(c),(d) 16. In addition to disclosing a measure of profit or loss, total assets and liabilities for each
reportable segment, entities shall also disclose the amount of interest revenue and interest
expense for each reportable segment if such information is provided to the chief operating
decision maker. VALUE ACCOUNTS Holdings Limited does not allocate interest income and
interest expense to individual segments nor is this information separately provided to, or
reviewed by, the strategic steering committee, hence the information has not been disclosed
in the segment tables.
Measurement methods – changes from prior periods
AASB8(27)(e) 17. If the entity has made changes to the measurement methods used to determine reported
segment profit or loss, it shall explain the nature of these changes and the effect, if any, of
those changes on the measure of segment profit or loss.
Asymmetrical allocations
AASB8(27)(f) 18. Entities shall also disclose the nature and effect of any asymmetrical allocations to reportable
segments. These may arise, for example, where an entity has allocated depreciation
expense to a segment without allocating the related depreciable asset to that segment.
Restatement of previously reported information
AASB8(29),(30) 19. If an entity has changed the structure of its internal organisation in a manner that causes the
composition of its reportable segments to change, the corresponding information for prior
periods shall be restated unless the information is not available and the cost to develop it
would be excessive. If the information is not restated to reflect the change, the entity shall
disclose the segment information for the current period on both the old basis and the new
basis of segmentation, unless this information is also not available and the cost to develop it
would be equally excessive.
Reversal of impairment losses
AASB136(129)(b) 20. Entities that report segment information must further disclose for each reportable segment
the amount of reversals of impairment losses recognised in profit or loss and in other
comprehensive income during the period.
Cash flows by reportable segment
AASB107(50)(d) 21. AASB 107 Statement of Cash Flows encourages the disclosure of cash flows arising from
operating, investing and financing activities of each reportable segment, but does not
mandate it.

AASB101(51)(c) 30 June 2011
(continued)
5 Revenue 1-4,6
2011 2010
$'000 $'000
From continuing operations

Sales revenue
AASB118(35)(b)(i) Sale of goods 37,200 20,540
AASB118(35)(b)(ii) 20,450 20,900
Services
57,650 41,440
Other revenue
Rents and sub-lease rentals 240 240
AASB118(35)(b)(iii) Interest from financial assets not at fair value through profit or
AASB7(20)(b) 5
loss 350 300
AASB118(35)(b)(v) 300 300
Dividends
890 840
58,540 42,280
From discontinued operation (note 10)

AASB118(35)(b)(ii) 1,200 6,460
Services
Commentary - Revenue
General requirement
AASB118(35)(b) 1. Disclosure is required of the amount of each significant category of revenue recognised
during the period, including revenue arising from:
AASB118(35)(b)(i) (a) the sale of goods
AASB118(35)(b)(ii) (b) the rendering of services
AASB118(35)(b)(iii) (c) interest
AASB118(35)(b)(iv) (d) royalties (not applicable to VALUE ACCOUNTS Holdings Limited), and
AASB118(35)(b)(v) (e) dividends.
Exchange of goods and services
AASB118(35)(c) 2. Disclosure is required of the amount of revenue arising from exchanges of goods or services
included in each significant category of revenue.
Revenue from the construction of real estate
AASB-I 15(20) 3. If the entity has applied AASB Interpretation 15 Agreements for the Construction of Real
Estate and recognises revenue using the percentage of completion method for agreements
that are agreements for the sale of goods, it shall disclose:
(a) how it determines which agreements meet the criteria for the sale of goods
continuously as construction progresses
(b) the amount of revenue arising from such agreements in the period
(c) the methods used to determine the stage of completion of agreements in
progress.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Revenue (continued)
AASB-I 15(21) 4. For agreements referred to in the previous paragraph that are in progress at the end of the
reporting period, the entity shall also disclose:
(a) the aggregate amount of costs incurred and recognised profits (less recognised
losses) to date, and
(b) the amount of advances received.
Interest income on impaired financial assets
AASB7(20)(d) 5. Entities that have accrued interest income on impaired financial assets in accordance with
AG93 of AASB 139 Financial Instruments: Recognition and Measurement must disclose this
interest income separately.
Fee income
AASB7(20)(c) 6. Separate disclosure is also required for fee income (other than amounts included in
determining the effective interest rate) arising from financial assets that are not at fair value
through profit or loss, and trust and other fiduciary activities that result in the holding or
investing of assets on behalf of individuals, trusts, retirement benefit plans and other
institutions.
6 Other income 3-10

2011 2010
Notes $'000 $'000
Net gain on disposal of property, plant and equipment

(excluding property, plant and equipment sold as part of 10 and
the machinery hire division) 6(a) 620 -
AASB7(20)(a)(i) Fair value gains on financial assets at fair value through
profit or loss 14 235 -
AASB7(20)(a)(i) Net gain on foreign currency derivatives not qualifying
as hedges 15 48 40
AASB7(20)(a)(ii) Net gain on sale of available-for-sale financial assets 18 46 -
Fair value adjustment to investment property 21 50 97
AASB101(97) Insurance recovery relating to fire 8 300 -
Foreign exchange gains (net) 8(b) 64 -
AASB120(39)(b) Government grants 6(b) 50 144
AASB3(B67B) Gain from derecognition of contingent consideration 41 100 -
AASB101(97) 95 -
Gain on debt defeasance 28
1,608 281
(a) Net gain on disposal of property, plant and equipment

AASB101(97),(98)(c) The net gain on disposal of property, plant and equipment in 2011 includes a gain of $670,000 on sale
of freehold land.
(b) Government grants

AASB120(39)(b),(c) Export market development grants of $50,000 (2010 – $144,000) were recognised as other income
during the financial year. There are no unfulfilled conditions or other contingencies attaching to these
grants. The group did not benefit directly from any other forms of government assistance.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Other income
Government grants and other assistance

1. The following disclosures are required by AASB 120 Accounting for Government Grants and
Disclosure of Government Assistance:
AASB120(39)(b) (a) the nature and extent of government grants recognised in the financial statements
and an indication of other forms of government assistance from which the entity
has directly benefited
AASB120(39)(c) (b) unfulfilled conditions and other contingencies attaching to government assistance
that has been recognised.
Exchange differences included in finance cost
AASB123(6)(e) 2. Exchange differences arising from foreign currency borrowings can only be included in
finance cost to the extent that they are regarded as an adjustment to interest cost.
Disposal or loss of control of a subsidiary
AASB127(41)(f) 3. Any gain or loss arising as a result of the loss of control (including disposal) of a subsidiary
must be disclosed separately under paragraph 41 of AASB 127 Consolidated and Separate
Financial Statements. In addition, entities must also disclose the following:
(a) the portion of that gain or loss attributable to recognising any investment retained
in the former subsidiary at its fair value at the date when control is lost, and
(b) the line item(s) in the statement of comprehensive income in which the gain or
loss is recognised (if not presented separately in the statement of comprehensive
income).
4. AASB 127 paragraph 34 provides specific guidance on the accounting for the loss of control
of a subsidiary. The guidance requires derecognition of the net assets and any non-
controlling interest and recognition at fair value of any retained investment along with the
consideration received.
AASB127(35) 5. In addition, paragraph 35 requires any components of other comprehensive income that are
attributable to the subsidiary to be reclassified from equity to profit or loss similar to the
requirement if the parent had directly disposed of the related assets and liabilities. The
balances of certain reserves must be reclassified to profit or loss and therefore be included in
the gain or loss on disposal, but others are transferred directly to retained earnings. The
treatment of the most common reserves is as follows:
AASB127(35) (a) reclassification to profit or loss and inclusion in gain or loss on disposal:
AASB139(26),(55)
 available-for-sale financial assets
AASB139(97),(102)
 cash flow hedges
AASB121(48)
 foreign-currency translation
AASB127(35) (b) transfer directly to retained earnings:
AASB116(41),(71)
 property, plant and equipment revaluation surplus
6. However, this does not extend to equity adjustments that were previously recognised in
relation to transactions with the non-controlling interest. These adjustments resulted from
transactions among shareholders and are not directly attributable to the non-controlling
interest. Further, the equity adjustments are not components of other comprehensive income
and therefore do not fall under the requirements of paragraph 35.
AASB101(106)(d) 7. All amounts transferred from equity reserves on the loss of control of a subsidiary will need to
be reflected in the reconciliation of reserves as reclassification adjustments (refer to note 35).
As AASB 101 requires separate disclosure of each change in reserves, the disclosure should
distinguish between amounts included in profit or loss and amounts transferred to retained
earnings on the loss of control of a subsidiary.
AASB101(97) 8. Where the amounts reclassified to profit or loss and included in the gain or loss of control are
material and the reserve movement disclosures do not adequately highlight this impact,
consideration should be given to disclosing details of the components of the gain or loss.
Such details may be necessary to explain the nature of the gain or loss, as required under
paragraph 97 of AASB 101.
Financial assets or financial liabilities designated as at fair value through profit or loss
AASB7(20)(a)(i) 9. Entities that have designated financial assets or financial liabilities as at fair value through
profit or loss on initial recognition must disclose separately all net gains or net losses on
these assets and liabilities.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Other income (continued)
Net gains on other financial instruments

10. Where applicable, entities must also disclose separately net gains on:
AASB7(20)(a)(iii) (a) held-to-maturity investments
AASB7(20)(a)(iv) (b) loans and receivables, and
AASB7(20)(a)(v) (c) financial liabilities measured at amortised cost.
7 Correction of error, revision of estimates and variation from preliminary

report
(Revised) (a) Correction of error in accounting for leasing contract 1-5

AASB108(49)(a) In March 2011, a subsidiary undertook a detailed review of its leasing contracts and discovered that
the terms and conditions of a contract for the lease of equipment had been misinterpreted. As a
consequence, the equipment had been incorrectly accounted for as a finance lease rather than as an
operating lease.
AASB108(49)(b)(i), The error has been corrected by restating each of the affected financial statement line items for the
(c)
prior periods as follows:
30 June
30 June Increase/ 2010 30 June Increase/ 1 July 2009
2010 (Decrease) (Restated) 2009 (Decrease) (Restated)
$'000 $'000 $'000 $'000 $'000 $'000
Balance sheet (extract)

Property, plant and
equipment 8,380 (300) 8,080 8,495 (350) 8,145
Deferred tax asset 446 (8) 438 557 (5) 552
Current borrowings (3,593) 38 (3,555) (2,904) 35 (2,869)
Non-current borrowings (7,814) 289 (7,525) (7,580) 330 (7,250)
Net assets 20,267 19 20,286 15,738 10 15,748
Retained earnings (4,165) (19) (4,184) (902) (10) (912)

Total equity (20,267) (19) (20,286) (15,738) (10) (15,748)
Profit
Increase/ 2010
2010 (Decrease) (Restated)
$’000 $’000 $’000
Income statement (extract)
Depreciation and amortisation expense (1,030) 50 (980)
Other expenses (1,147) (75) (1,222)
Finance costs (622) 37 (585)
Profit before income tax 5,508 12 5,520
Income tax expense (1,462) (3) (1,465)

Profit from discontinued operation 399 - 399
Profit for the year 4,445 9 4,454
Profit is attributable to:

Owners of VALUE ACCOUNTS Holdings Limited 4,058 9 4,067
Non-controlling interests 387 - 387
4,445 9 4,454
AASB108(49)(b)(ii) Basic and diluted earnings per share for the prior year have also been restated. The amount of the
correction for both basic and diluted earnings per share was an increase of $0.1 cents per share.

AASB101(51)(c) 30 June 2011
(continued)
7 Correction of error, revision of estimates and variation from preliminary

report (continued)
(b) Revision of useful lives of plant and equipment 6-11

AASB108(39) During the year the estimated total useful lives to a subsidiary of certain items of plant and equipment
AASB116(76)
used in the manufacture of furniture were revised. The net effect of the changes in the current
financial year was an increase in depreciation expense of $180,000.
Assuming the assets are held until the end of their estimated useful lives, depreciation in future years
in relation to these assets will be increased by the following amounts:
Year ending 30 June $'000
2012 140
2013 110
2014 60
2015 30
(c) Variation from preliminary final report 12

Listed entities only Subsequent to the release of the company’s preliminary report to the ASX, a subsidiary made
Not mandatory
settlements with various customers in regard to product warranty claims made during the year. The
cost of settling these claims was considerably less than had been anticipated when the preliminary
results were announced. This saving has been reflected in the final results which show a consolidated
profit of $229,000 greater than previously announced.
Commentary - Correction of error, revision of estimates and variation from

preliminary report
Prior period errors

Correction
AASB108(42) 1. Subject to paragraph 43 of AASB 108 Accounting Policies, Changes in Accounting Estimates
and Errors (refer to paragraph 2 below), an entity shall correct material prior period errors
retrospectively in the first financial statements authorised for issue after their discovery by:
(a) restating the comparative amounts for the prior period(s) presented in which the
error occurred, or
(b) if the error occurred before the earliest prior period presented, restating the opening
balances of assets, liabilities and equity for the earliest prior period presented.
AASB108(43) 2. A prior period error shall be corrected by retrospective restatement except to the extent that it
is impracticable to determine either the period-specific effects or the cumulative effect of the
error. Retrospective restatement is correcting the recognition, measurement and disclosure
of amounts of elements of financial statements as if a prior period error had never occurred.
AASB108(44) 3. When it is impracticable to determine the period-specific effects of an error on comparative
information for one or more prior periods presented, the entity shall restate the opening
balances of assets, liabilities and equity for the earliest period for which retrospective
restatement is practicable (which may be the current period).
AASB108(45) 4. When it is impracticable to determine the cumulative effect, at the beginning of the current
period, of an error on all prior periods, the entity shall restate the comparative information to
correct the error prospectively from the earliest date practicable.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Correction of error, revision of estimates and variation from

preliminary report (continued)
Disclosure
AASB108(49) 5. In applying paragraph 1 above, an entity shall disclose the following:
(a) the nature of the prior period error
(b) for each prior period presented, to the extent practicable, the amount of the
correction:
(i) for each financial statement line item affected, and
(ii) if AASB 133 Earnings per Share applies to the entity, for basic and diluted
earnings per share
(c) the amount of the correction at the beginning of the earliest prior period presented,
and
(d) if retrospective restatement is impracticable for a particular prior period, the
circumstances that led to the existence of that condition and a description of how
and from when the error has been corrected.
Financial statements of subsequent periods need not repeat these disclosures.
Changes in accounting estimates
Recognition
AASB108(36) 6. The effect of a change in an accounting estimate, other than a change to which paragraph 37
of AASB 108 applies (refer to paragraph 7 below), shall be recognised prospectively by
including it in profit or loss in:
(a) the period of the change, if the change affects that period only, or
(b) the period of the change and future periods, if the change affects both.
AASB108(37) 7. To the extent that a change in an accounting estimate gives rise to changes in assets and
liabilities, or relates to an item of equity, it shall be recognised by adjusting the carrying
amount of the related asset, liability or equity item in the period of the change.
Disclosure
AASB108(39) 8. Disclosure is required of the nature and amount of a change in an accounting estimate that
has an effect in the current period or is expected to have an effect in future periods, except
for the disclosure of the effect on future periods when it is impracticable to estimate that
effect.
AASB108(40) 9. If the amount of the effect in future periods is not disclosed because estimating it is
impracticable, that fact shall be disclosed.
AASB116(76) 10. For property, plant and equipment, disclosure of a change in an accounting estimate may
arise from changes in estimates with respect to:
(a) residual values
(b) the estimated costs of dismantling, removing or restoring items of property, plant and
equipment
(c) useful lives, and
(d) depreciation methods.
Change of estimate in final interim period
AASB134(26) 11. If an estimate of an amount reported in an interim period is changed significantly during the
final interim period of the annual reporting period but separate financial statements are not
published for that final interim period, the nature and amount of that change in estimate shall
be disclosed in a note to the annual financial statements for that annual reporting period.
Circumstances affecting preliminary final report
ASX(4.3D),(4.5A) 12. Once a listed entity is or becomes aware of any circumstances which are likely to affect the
results or other information contained in the preliminary final report given to the ASX under
Listing Rules 4.3 or 4.3A, the entity shall immediately give the ASX an explanation of the
circumstances and the effects they are expected to have on the entity’s current or future
financial performance or financial position. There is no requirement to also include
information about the circumstances in the financial report, but some entities may wish to
disclose this as a policy of good disclosure.

AASB101(51)(c) 30 June 2011
(continued)
8 Expenses 1,2,7-9
2011 2010
$'000 $'000
Profit before income tax includes the following specific

expenses:
Not mandatory
Depreciation 6
Buildings 50 50
Plant and equipment 1,100 850
Leasehold improvements 50 50
Plant and equipment under finance leases 40 -
Total depreciation 1,240 950
Not mandatory
Amortisation 6
Patents and trademarks 25 25
Customer contracts 90 -
Software 20 5
Total amortisation 135 30
Finance costs 3-5

AASB7(20)(b) Interest and finance charges paid/payable for financial liabilities
not at fair value through profit or loss 1,221 604
AASB137(60) Provisions: unwinding of discount 18 -
Fair value gains on interest swaps cash flow hedges – transfer
from equity 3 (4)
Exchange losses on foreign currency borrowings (b) 22 10
1,264 610
AASB123(26)(a) (25) (25)
Amount capitalised (a)
Finance costs expensed 1,239 585
AASB7(20)(a)(ii) Net loss on sale of available-for-sale financial assets (note 18) - 48
AASB7(20)(a)(i) Net loss on revaluation of financial assets at fair value through profit
or loss (note 14) - 140
AASB7(24)(b) Hedge ineffectiveness on cash flow hedges (note 15) 20 -
AASB117(31)(c) Finance lease contingent rentals 10 -
AASB101(97),(98)(c) Net loss on disposal of property, plant and equipment - 30
Rental expense relating to operating leases

AASB117(35)(c) Minimum lease payments 620 580
AASB117(35)(c) Contingent rentals 140 130
AASB117(35)(c) 90 90
Sub-leases
Total rental expense relating to operating leases 850 800

AASB101(51)(c) 30 June 2011
(continued)
8 Expenses (continued)
2011 2010
$'000 $'000
AASB119(46) Defined contribution superannuation expense 1,425 1,075
AASB138(126) Research and development 15 10
AASB101(97),(98)(f) Litigation settlement relating to claim against the land development

division - 370
AASB7(20)(e) Impairment losses – financial assets

Trade receivables 80 40
AASB101(97)
AASB136(130)(b),
(126)(a) Impairment of other assets (c)
Office and warehouse building 465 -
Plant and equipment 210 -
Inventories 535 -
Total impairment losses – other assets 1,210 -
(a) Capitalised borrowing costs

AASB123(26)(b) The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the
weighted average interest rate applicable to the entity's outstanding borrowings during the year, in this
case 7.02% (2010 – 7.45%).
(Revised) (b) Net foreign exchange gains and losses

2011 2010
$'000 $'000
Net foreign exchange (gains)/losses included in other income

(note 6)/other expenses for the year (64) 90
AASB123(6)(e) Exchange losses on foreign currency borrowings included in
finance costs 3,4 22 10
AASB121(52)(a) Net foreign exchange (gains)/losses recognised in profit before
income tax for the year (as either other income or expense) 3,4 (42) 100
(c) Impairment
AASB136(129)(a), A fire in Maitland in September 2010 damaged a major office and warehouse building owned by a
(130)(a),(c)
AASB116(74)(d) subsidiary that is part of the furniture manufacturing segment. The fire also destroyed equipment and
inventories stored in the warehouse. An insurance recovery of $300,000 has been received and
recognised as other income (refer to note 6).

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Expenses
Material items
AASB101(97),(98) 1. When items of income and expense are material, their nature and amount shall be disclosed
separately either in the statement of comprehensive income, the income statement where
applicable, or in the notes. Circumstances that would give rise to the separate disclosure of
items of income and expense include:
(a) write-downs of inventories to net realisable value or of property, plant and
equipment to recoverable amount, as well as reversals of such write-downs
(b) restructurings of the activities of an entity and reversals of any provisions for the
costs of restructuring
(c) disposals of items of property, plant and equipment
(d) disposals of investments
(e) discontinued operations (refer to note 10)
(f) litigation settlements
(g) other reversals of provisions, and
(h) gains or losses recognised in relation to a business combination.
AASB119(131),(142) 2. Although AASB 119 Employee Benefits does not require specific disclosures about long-term
employee benefits (other than post-employment benefits), other standards may require
disclosures, for example, where the expense resulting from such benefits is material and so
would require disclosure under paragraph 97 of AASB 101 Presentation of Financial
Statements. Similarly, termination benefits may result in an expense needing disclosure in
order to comply with paragraph 97 of AASB 101.
Finance costs
3. Finance costs include:
AASB123(5),(6) (a) costs that are borrowing costs for the purposes of AASB 123 Borrowing Costs:
(i) interest expense calculated using the effective interest rate method as
described in AASB 139 Financial Instruments: Recognition and
Measurement
(ii) finance charges in respect of finance leases (refer to note 1(h)), and
(iii) exchange differences arising from foreign currency borrowings to the
extent that they are regarded as an adjustment to interest costs
AASB137(60) (b) the unwinding of the effect of discounting provisions
AASB132(35),(40) (c) dividends on preference shares that are classified as debt.
AASB121(52)(a) 4. Amounts disclosed under paragraph 3(a)(iii) above shall also be included in the net foreign
exchange gain or loss disclosed under AASB 121(52)(a).
5. Costs which may also be classified as finance cost include other costs associated with the
entity’s management of cash, cash equivalents and debt; for example, fair value changes on
interest rate hedges, the ineffective portion of cash flow interest rate hedges or a loss on the
extinguishment of a liability.
Disclosure of expenses by nature where otherwise classified by function
AASB101(104) 6. Disclosure of depreciation and amortisation expense, employee benefits expenses and other
material classes of expenses (classified by nature) is mandatory where an entity has
otherwise classified its expenses by function.
Financial assets or financial liabilities designated as at fair value through profit or loss
AASB7(20)(i) 7. Entities that have designated financial assets or financial liabilities as at fair value through
profit or loss on initial recognition must disclose separately all net gains or net losses on
these assets and liabilities.
Net losses on other financial instruments
8. Where applicable, entities must also disclose separately net losses on:
AASB7(20)(a)(iii) (a) held-to-maturity investments
AASB7(20)(a)(iv) (b) loans and receivables, and
AASB7(20)(a)(v) (c) financial liabilities measured at amortised cost.
Fee expense
AASB7(20)(c) 9. Separate disclosure is also required for fee expense (other than amounts included in
determining the effective interest rate) arising from financial liabilities that are not at fair value
through profit or loss.

AASB101(51)(c) 30 June 2011
(continued)
9 Income tax expense 1,4-5,9-22

2011 2010
$'000 $'000
AASB112(79),
(81)(g)(ii) (a) Income tax expense 1
AASB112(80)(a) Current tax 3,470 1,626
AASB112(80)(c) Deferred tax (24) 17
AASB112(80)(b) 11 (7)
Adjustments for current tax of prior periods
3,457 1,636
Income tax expense is attributable to:

Profit from continuing operations 3,151 1,465
Profit from discontinued operation 306 171
Aggregate income tax expense 3,457 1,636
AASB112(80)(c) Deferred income tax (revenue) expense included in income tax

expense comprises:
Decrease (increase) in deferred tax assets (note 22) (186) (180)
(Decrease) increase in deferred tax liabilities (note 29) 162 197
(24) 17
AASB112(81)(c)(i),
(84),(85) (b) Numerical reconciliation of income tax expense to prima
facie tax payable
Profit from continuing operations before income tax expense 10,848 5,520
Profit from discontinuing operation before income tax expense 1,021 570
11,869 6,090
AASB112(81)(d) Tax at the Australian tax rate of 30% (2010 – 30%) 3,561 1,827
Tax effect of amounts which are not deductible (taxable) in
calculating taxable income:
Goodwill impairment 123 -
Amortisation of intangibles 2 2 2
Entertainment 12 9
Share-based payments 3 32 8
Tax offset for franked dividends (9) (21)
Dividends paid to preference shareholders 18 18
Sundry items (28) 8
3,711 1,851
Difference in overseas tax rates (248) (127)

AASB112(80)(b) Adjustments for current tax of prior periods 11 (7)
AASB112(80)(f) Previously unrecognised tax losses used to reduce deferred tax
expense - (45)
AASB112(80)(e) Previously unrecognised tax losses now recouped to reduce current
tax expense (17) (36)
Income tax expense 3,457 1,636

AASB101(51)(c) 30 June 2011
(continued)
9 Income tax expense (continued)

2011 2010
Notes $'000 $'000
(c) Amounts recognised directly in equity 6,7

AASB112(81)(a), Aggregate current and deferred tax arising in the reporting
(62A)
period and not recognised in net profit or loss or other
comprehensive income but directly debited or credited to
equity:
Current tax – credited directly to equity 32(d) (5) -
Net deferred tax – debited (credited) directly to equity 7(a),
22, 29 45 5
40 5
AASB101(90) (d) Tax expense (income) relating to items of other

AASB112(81)(ab) 6
Gains on revaluation of land and buildings 33(a) 163 154
Available-for-sale financial assets 33(a) 19 (9)
Cash flow hedges 33(a) 8 (6)
Actuarial gains/(losses) on retirement benefit obligation 31(f) (92) 59
Share of other comprehensive income of associates and
joint venture entities 33(a) 90 30
188 228
(e) Tax losses

AASB112(81)(e) Unused tax losses for which no deferred tax asset has been
recognised 740 796
Potential tax benefit @ 30% 222 239
All unused tax losses were incurred by Australian entities that are not
part of the tax consolidated group.
(f) Unrecognised temporary differences

AASB112(81)(f) Temporary difference relating to investments in subsidiaries for which
deferred tax liabilities have not been recognised:
Foreign currency translation 190 180
Undistributed earnings 350 -
540 180
AASB112(87) Unrecognised deferred tax liabilities relating to the above temporary

Not mandatory
differences 162 54
A deferred tax liability has not been recognised in respect of temporary differences of $190,000 (2010
– $180,000) arising as a result of the translation of the financial statements of the consolidated entity's
subsidiary in Indonesia. The deferred tax liability will only arise in the event of disposal of the
subsidiary, and no such disposal is expected in the foreseeable future. 5
VALUE ACCOUNTS Retail Pty Ltd has undistributed earnings of $350,000 (2010 – nil) which, if paid
out as dividends, would be unfranked and therefore subject to tax in the hands of the recipient. An
assessable temporary difference exists, however no deferred tax liability has been recognised as the
parent entity is able to control the timing of distributions from this subsidiary and is not expected to
distribute these profits in the foreseeable future.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Income tax expense
General requirement
AASB112(80) 1. AASB 112 Income Taxes requires separate disclosure of the major components of tax
expense (income). These may include:
(a) current tax expense (income)
(b) any adjustments recognised in the period for current tax of prior periods
(c) the amount of deferred tax expense (income) relating to the origination and
reversal of temporary differences
(d) the amount of deferred tax expense (income) relating to changes in tax rates or
the imposition of new taxes
(e) the amount of the benefit arising from a previously unrecognised tax loss, tax
credit or temporary difference of a prior period that is used to reduce current tax
expense
(f) the amount of the benefit from a previously unrecognised tax loss, tax credit or
temporary difference of a prior period that is used to reduce deferred tax expense
(g) deferred tax expense arising from the write-down, or reversal of a previous
write-down, of a deferred tax asset in accordance with AASB 112(56), and
(h) the amount of tax expense (income) relating to those changes in accounting
policies and errors that are included in profit or loss accounted for retrospectively.
Initial recognition exemption – subsequent amortisation
2. The amount shown in the reconciliation of income tax expense to prima facie income tax
payable as ‘amortisation of intangibles’ represents the amortisation of a temporary difference
that arose on the initial recognition of the asset and for which no deferred tax liability has
been recognised in accordance with paragraph 15(b) of AASB 112. The initial recognition
exemption only applies to transactions that are not a business combination and do not affect
either accounting profit or taxable profit.
Taxation of share-based payments
3. For the purpose of these illustrative financial statements, we have assumed that no tax
deductions can be claimed in relation to the employee option plan (see note 50(a)). However,
this will not apply in all circumstances to all entities. The taxation of share-based payments is
a complex area and specific advice should be obtained for each individual circumstance.
Taxation of Financial Arrangements (TOFA) legislation
4. VALUE ACCOUNTS Holdings Limited’s turnover, financial assets and total assets are below
the thresholds for the mandatory application of the TOFA rules. We have further assumed
that it would not make an election to apply the TOFA rules voluntarily.
AASB112(61A) 5. Application of the TOFA rules would result in changes to the tax bases of affected financial
assets and liabilities and therefore in adjustments to the deferred tax assets and liabilities.
The changes would be recognised at the time the irrevocable election is made to apply the
rules, or on 1 July 2010 if the rules apply mandatorily. Adjustments would be recognised in
deferred tax expense or other comprehensive income, depending on whether the deferred
tax balances relate to items that are recognised in other comprehensive income.
Income tax recognised outside profit or loss
AASB101(90) 6. Under certain circumstances, current and deferred tax is recognised outside profit or loss
AASB112(81)(a),(ab)
AASB112(62A) either in other comprehensive income or directly in equity, depending on the item the tax
relates to. Entities must disclose separately:
(a) the amount of income tax relating to each component of other comprehensive
income, including reclassification adjustments (either in the statement of
comprehensive income or in the notes), and
(b) the aggregate current and deferred tax relating to items that are charged directly
to equity (without being recognised in other comprehensive income).
AASB112(62A) 7. Examples of items that are charged directly to equity are:
(a) the equity component on compound financial instruments
(b) share issue costs
(c) adjustments to retained earnings, eg as a result of a change in accounting policy.
Unrecognised temporary differences
8. The disclosure of unrecognised temporary differences in relation to the overseas subsidiary
has been made for illustrative purposes only. The taxation of overseas subsidiaries will vary
from case to case and tax advice should be obtained to assess whether there are any
potential tax consequences and temporary differences that should be disclosed.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Income tax expense (continued)

UIG1052(16) 9. Where the tax consolidation legislation has been implemented or will be implemented in the
current reporting period, the following disclosures are required by the head entity and
wholly-owned entities in the tax consolidated group:
(a) the relevance of the tax consolidation system to the entity, including the part of the
reporting period for which it applies to the entity where it is not applicable for the
whole of the reporting period, and the name of the head entity
(b) the method adopted for measuring the current and deferred tax amounts (see note
1(g))
(c) information about the nature of any tax funding arrangement and any tax sharing
agreement, including significant terms and conditions that may affect the amount,
timing and uncertainty of future cash flows, and
(d) the net amount recognised for the period as tax-consolidation contributions by (or
distributions to) equity participants, its major components and the accounts
affected.
10. As tax consolidation is only relevant to the separate financial statements of the parent entity
and the wholly-owned subsidiaries that are part of the tax consolidated group, VALUE
ACCOUNTS Holdings Limited has moved the tax consolidation disclosures to notes 1(af) and
51.
Tax funding arrangements
11. The terms and conditions of tax funding agreements may vary widely between entities. For
example, the funding amounts may be determined on a completely different basis to that
assumed for VALUE ACCOUNTS Holdings Limited. The illustrative wording provided in this
publication must be adapted to the individual circumstances. Some groups may also permit
payment to occur via debit or credit to a general intercompany account. In this case, the tax
note should state this fact and refer to the relevant note for the terms and conditions of these
accounts.
12. If there is no tax funding agreement, the entity may disclose a note along the following lines:
As the tax consolidated group has not entered into a tax funding agreement, no
compensation has been received or paid for any current tax payable or deferred
tax assets relating to tax losses assumed by the parent entity since
implementation of the tax consolidation regime.
UIG1052(16)(d) In this case, the entity must disclose the net amount recognised for the period as tax
consolidation contributions by (or distributions to) equity participants, its major components
and the accounts affected.
Equity contributions and distributions
13. Tax consolidated groups that do not have any tax funding agreements, or where the amounts
payable or receivable under the tax funding agreement are not the same as the amounts
assumed by the head entity in relation to the entity’s current tax payable and tax losses
and/or tax credits, will have to recognise equity transactions for any differences between the
tax amounts assumed by the head entity and amounts receivable or payable under the
funding agreement.
UIG1052(16)(d) 14. Head entities will recognise equity contributions to, or distributions from, the tax consolidated
entities by debiting the relevant investment account or recognising investment income
received from controlled entities, as appropriate. They must disclose the net amount
recognised for the period as tax consolidation contributions to (or distributions from) tax
consolidated entities, its major components and the accounts affected.
AASB101(106) 15. Tax consolidated entities may recognise the equity transactions as other contributed equity,
UIG1052(16)(d)
in reserves or retained earnings, depending on the circumstances. Any amounts recognised
in equity as a result of applying UIG 1052 (including amounts recognised in reserves or
retained earnings) must be separately identified in the statement of changes in equity or a
related note. The components of the net amount recognised for the period as tax
consolidation contribution or distribution must also be disclosed.
16. Where the tax consolidated entities are indirect subsidiaries of the head entity, the equity
contributions or distributions are recognised via the interposed parent entities. A similar
principle applies in the case of multiple entry consolidated (MEC) groups. See UIG 1052
paragraphs 46-48 for further information.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Income tax expense (continued)
Intragroup transfer of assets

17. Equity contributions or distributions may arise even where a tax funding agreement is in
place which covers only current tax payable and deferred tax assets for tax losses/tax credits
assumed by the head entity. For example, where a group has decided to use the stand-alone
taxpayer method to allocate the individual tax amounts recognised by each entity in the tax
consolidated group, equity contributions or distributions may arise as a result of the
intragroup sale of assets. This is because the subsidiary transferring the asset will recognise
a tax payable in relation to the prima facie taxable gain realised on the sale of the asset
(assuming the asset is sold at an amount in excess of the carrying amount). However, no
such payable is recognised by the head entity, as the profit is eliminated in determining the
taxable income in the group. The controlled entity or the parent will recognise an equity
contribution or distribution, depending on the terms and conditions of the tax funding
agreement (if any).
General
18. The following disclosures are not illustrated because they are not applicable to VALUE
ACCOUNTS Holdings Limited:
AASB112(81)(d) (a) an explanation of changes in the applicable tax rate(s) compared to the previous
reporting period
AASB112(81)(e) (b) the amount (and expiry date, if any) of deductible temporary differences, unused
tax losses, and unused tax credits for which no deferred tax asset is recognised in
the balance sheet (illustrated for tax losses only)
AASB112(81)(i) (c) the amount of income tax consequences of dividends to shareholders of the entity
that were proposed or declared before the financial statements were authorised
for issue, but are not recognised as a liability in the financial statements
AASB112(82) (d) where utilisation of a deferred tax asset is dependent on future taxable profits in
excess of profits arising from the reversal of existing taxable temporary differences
and the entity has suffered a loss in either the current or preceding period in the
tax jurisdiction to which the deferred tax asset relates, it must disclose the amount
of the deferred tax asset and the nature of evidence supporting its recognition
AASB112(82A), (e) where the amount of income tax payable varies depending on the amount of profit
(87A)-(87C)
or retained earnings that is paid as dividends to shareholders of the entity, an
entity must disclose the nature of the potential income tax consequences that
would result from the payment of dividends to its shareholders. In addition, the
entity must disclose the amounts of the potential income tax consequences
practicably determinable and whether there are potential income tax
consequences not practicably determinable.
Alternative reconciliation of tax expense
AASB112(81)(c)(ii) 19. Entities can also provide a reconciliation between the average effective tax rate and the
applicable tax rate. This would replace the reconciliation of income tax expense to prima
facie tax payable in note 9(b).
Contingent liabilities and contingent assets
AASB112(88) 20. Contingent liabilities and contingent assets may arise, for example, from unresolved disputes
with the taxation authorities. An entity discloses any such tax-related contingent liabilities and
assets in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent
Assets. Similarly, where changes in tax rates or tax laws are enacted or announced after the
reporting period, an entity discloses any significant effect of those changes on its current and
deferred tax assets and liabilities in accordance with AASB 110 Events after the Reporting
Period.
Changes to the entity’s own deferred tax assets as a result of a business combination
AASB112(81)(j) 21. If a business combination, in which the entity is the acquirer, causes a change in the amount
recognised for its pre-acquisition deferred tax asset as per paragraph 67 of AASB 112, the
amount of that change must be disclosed.
Deferred tax assets acquired in a business combination but not initially recognised
AASB112(81)(k) 22. If the deferred tax benefits acquired in a business combination are not recognised at the
acquisition date but are recognised after the acquisition date under paragraph 68 of AASB
112, the entity must disclose a description of the event or change in circumstances that
caused the deferred tax benefits to be recognised.

AASB101(51)(c) 30 June 2011
(continued)
10 Assets and liabilities classified as held for sale and discontinued

operation 1-8,15-22
(a) Assets classified as held for sale 3

2011 2010
$'000 $'000
AASB101(77) Disposal group held for sale (discontinued operation – see (c)
below)
Property, plant and equipment - 1,995
Trade receivables - 1,570
Inventories - 13,900
Total assets of disposal group held for sale - 17,465
Non-current assets held for sale

Land 250 -
250 -
AASB5(41)(a),(b),(d) In May 2011, the directors of VALUE ACCOUNTS Manufacturing Limited decided to sell a parcel of
vacant land which was originally acquired for an expansion of the Queensland factory. There are
several interested parties and the sale is expected to be completed before the end of December 2011.
The asset is presented within total assets of the Australian Furniture – manufacturing segment in
note 4.
(b) Liabilities directly associated with assets classified as held for sale
2011 2010
$'000 $'000
AASB101(77) Disposal group held for sale (discontinued operation – see (c)
below)
Trade creditors - (450)
Provision for employee benefits - (50)
- (500)
(c) Discontinued operation
(i) Description
AASB5(41)(a),(b),(d) On 30 April 2010 a controlled entity announced its intention to sell the machinery hire division and
initiated an active program to locate a buyer and complete the sale. The division was sold on 31
August 2010 with effect from 1 September 2010 and the division disposed of is reported in these
financial statements as a discontinued operation.
AASB5(30) Financial information relating to the discontinued operation for the period to the date of disposal is set
out below.

AASB101(51)(c) 30 June 2011
(continued)
10 Assets and liabilities classified as held for sale and discontinued operation
(continued)
(ii) Financial performance and cash flow information 9-14

The financial performance and cash flow information presented are for the two months ended 31
August 2010 (2011 column) and the year ended 30 June 2010.
2011 2010
$'000 $'000
AASB5(33)(b)(i) Revenue (note 5) 1,200 6,460

AASB5(33)(b)(i) (1,109) (5,890)
Expenses
AASB5(33)(b)(i) Profit before income tax 91 570
AASB5(33)(b)(ii)
AASB112(81)(h)(ii) Income tax expense (27) (171)
Profit after income tax of discontinued operation 64 399
AASB5(33)(b)(iii) Gain on sale of the division before income tax 930 -

AASB5(33)(b)(iv)
AASB112(81)(h)(i) Income tax expense (279) -
Gain on sale of the division after income tax 651 -
AASB5(33)(d) Profit attributable to owners of the parent entity relates to:

7,378 4,067
AASB5(33)(c) Net cash inflow from operating activities 1,166 710

AASB5(33)(c) Net cash inflow (outflow) from investing activities (2011 includes an
inflow of $3,960,000 from the sale of the division) 3,960 (190)
AASB5(33)(c) - (280)
Net cash (outflow) from financing activities
Net increase in cash generated by the division 5,126 240
(iii) Details of the sale of the division 23,24

2011 2010
$'000 $'000
Consideration received or receivable:

AASB107(40)(b) Cash 3,960 -
Fair value of contingent consideration 100 -
Present value of amount due on 31 March 2013 250 -
AASB107(40)(a) Total disposal consideration 4,310 -
Carrying amount of net assets sold (3,380) -

Gain on sale before income tax 930 -
AASB112(81)(h)(i) Income tax expense (279) -

Gain on sale after income tax 651 -

AASB101(51)(c) 30 June 2011
(continued)
(continued)
AASB132(11) In the event the operations of the machinery hire division achieve certain performance criteria during
AASB139(9)
the period 1 September 2010 to 31 March 2012 as specified in an ’earn out’ clause in the sale
agreement, additional cash consideration of up to $400,000 will be receivable. At the time of the sale
the fair value of the consideration was determined to be $100,000. It has been recognised as an
available-for-sale financial asset, see note 18.
AASB139(AG8), At year end, the fair value was re-estimated to be $110,000. Of this change in fair value, $20,000
AASB139(55)(b)
related to the remeasurement of the expected cash flows and was taken to profit or loss, net of related
income tax. The gain is presented in other income (note 6). A fair value loss of $10,000 relating to
changes in market interest rate was recognised in other comprehensive income and included in the
available-for-sale financial assets reserve in equity, also net of related income tax.
AASB107(40)(d)
The carrying amounts of assets and liabilities as at the date of sale (31 August 2010) were: 23,24
31 August 2010
$'000
Property, plant and equipment 1,660

Trade receivables 1,200
Inventories 950
Total assets 3,810
Trade creditors (390)

Provision for employee benefits (40)
Total liabilities (430)
Net assets 3,380
Commentary - Assets and liabilities classified as held for sale and

discontinued operation
Accounting standards for discontinued operations and disposal groups

1. Accounting standards for discontinued operations and disposal groups are contained in
AASB 5 Non-current Assets Held for Sale and Discontinued Operations. The example
disclosures are for a discontinued operation of a controlled entity which is material to the
economic entity and where the operation was made available-for-sale in the previous
reporting period and was sold during the current reporting period. The disclosures will need
to be amended to cover the specific disclosure requirements of AASB 5 relevant to the
circumstances of each discontinued operation.
2. There is no requirement in either AASB 5 or AASB 101 to present assets of a disposal group
separately from individual assets held for sale in the balance sheet. VALUE ACCOUNTS
Holdings Limited has therefore combined the assets of a disposal group with individual
assets held for sale as a single line item. As a consequence, we have also presented all
corresponding explanatory information in one single note.
Classification as held for sale
AASB5(6),(7) 3. An entity shall classify a non-current asset (or disposal group) as held for sale if its carrying
amount will be recovered principally through a sale transaction rather than through continuing
use. For this to be the case the asset (or disposal group) must be available for sale in its
present condition subject only to terms that are usual and customary for sales of such assets
(or disposal groups) and its sale must be highly probable.

AASB101(51)(c) 30 June 2011
(continued)

discontinued operation (continued)
Definitions
Discontinued operation
AASB5(32), 4. A discontinued operation is a component of an entity that either has been disposed of or is
(Appendix A)
classified as held for sale and:
(a) represents a separate major line of business or geographical area of operations
(b) is part of a single co-ordinated plan to dispose of a separate major line of business
or geographical area of operations, or
(c) is a subsidiary acquired exclusively with a view to resale.
AASB5(Appendix A) 5. A component of an entity comprises operations and cash flows that can be clearly
distinguished, operationally and for financial reporting purposes, from the rest of the entity. In
other words, a component of an entity will have been a cash-generating unit or a group of
cash-generating units while being held for use.
Disposal group
AASB5(32), 6. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a
(Appendix A)
group in a single transaction, and liabilities directly associated with those assets that will be
transferred in the transaction. The group includes goodwill acquired in a business
combination if the group is a cash-generating unit to which goodwill has been allocated in
accordance with AASB 136 Impairment of Assets or if it is an operation within such a
cash-generating unit.
General requirement
AASB5(30) 7. An entity shall present and disclose information that enables users of the financial
statements to evaluate the financial effects of discontinued operations and disposals of
non-current assets (or disposal groups).
In the statement of comprehensive income
AASB5(33)(a) 8. An entity shall disclose a single amount comprising the total of:
(a) the post-tax profit or loss of discontinued operations, and
(b) the post-tax gain or loss recognised on the measurement to fair value less costs to
sell or on the disposal of the assets or disposal group(s) constituting the
discontinued operation.
In the statement of comprehensive income or in the notes
Analysis
AASB5(33)(b) 9. An analysis of the single amount described in paragraph 8(a) must be made into:
(a) the revenue, expenses and pre-tax profit of loss of discontinued operations
(b) the related income tax expense as required by paragraph 81(h)(ii) of AASB 112
Income Taxes
(c) the gain or loss recognised on the measurement to fair value less costs to sell or
on the disposal of the assets or disposal group(s) constituting the discontinued
operation, and
(d) the related income tax expense as required by paragraph 81(h)(i) of AASB 112.
This analysis may be presented in the notes or in the statement of comprehensive income. If
it is presented in the statement of comprehensive income it must be presented in a section
identified as relating to discontinued operations; that is, separately from continuing
operations. The analysis is not required for disposal groups that are newly acquired
subsidiaries that meet the criteria to be classified as held for sale on acquisition (refer to
paragraph 11 of AASB 5).
AASB5(33A) 10. If an entity presents the components of profit or loss in a separate income statement, as is
done by VALUE ACCOUNTS Holdings Limited, the separate section referred to in paragraph
9 above is presented in that separate statement.
Net cash flows
AASB5(33)(c) 11. Disclosure is required of the net cash flows attributable to the operating, investing and
financing activities of discontinued operations. These disclosures may be presented either in
the notes or in the financial statements. These disclosures are not required for disposal
groups that are newly acquired subsidiaries that meet the criteria to be classified as held for
sale on acquisition (refer to paragraph 11 of AASB 5).

AASB101(51)(c) 30 June 2011
(continued)

Prior periods
AASB5(34) 12. An entity must re-present the disclosures in paragraphs 8-11 above for prior periods
presented in the financial statements so that the disclosures relate to all operations that have
been discontinued by the end of the reporting period for the latest period presented. The
discontinued operations presented in the statement of comprehensive income and statement
of cash flows in the comparative period should therefore include all operations that have
been discontinued by the end of the most recent reporting period. This means that the
statements of comprehensive income and cash flows for the comparative period should show
as discontinued operations both those reported as discontinued in the previous period
together with those classified as discontinued in the current period. As a consequence, the
restated prior year statements of comprehensive income and cash flows figures will not be
entirely comparable to the current year’s figures.
AASB5(40) 13. In contrast, the balance sheet information for the prior year is neither restated nor
remeasured.
Adjustments to amounts presented for operations discontinued in a prior period
AASB5(35) 14. Adjustments in the current period to amounts previously presented in discontinued operations
that are directly related to the disposal of a discontinued operation in a prior period must be
classified separately in discontinued operations. The nature and amount of such adjustments
must be disclosed. Examples of circumstances in which these adjustments may arise include
the following:
(a) the resolution of uncertainties that arise from the terms of the disposal transaction,
such as the resolution of purchase price adjustments and indemnification issues
with the purchaser
(b) the resolution of uncertainties that arise from and are directly related to the
operations of the component before its disposal, such as environmental and
product warranty obligations retained by the seller, and
(c) the settlement of employee benefit plan obligations, provided that the settlement is
directly related to the disposal transaction.
Classification
Separate
AASB5(38) 15. An entity shall present a non-current asset classified as held for sale and the assets of a
disposal group classified as held for sale separately from other assets in the balance sheet.
The liabilities of a disposal group classified as held for sale shall be presented separately from
other liabilities in the balance sheet. Those assets and liabilities shall not be offset and
presented as a single amount. The major classes of assets and liabilities classified as held for
sale shall be separately disclosed either in the balance sheet or in the notes, except as
permitted by paragraph 39 of AASB 5 (refer to paragraph 16 below). An entity shall present
separately any cumulative income or expense recognised in other comprehensive income
relating to a non-current asset (or disposal group) classified as held for sale.
AASB5(39) 16. If the disposal group is a newly acquired subsidiary that meets the criteria to be classified as
held for sale on acquisition (refer to paragraph 11 of AASB 5), disclosure of the major
classes of assets and liabilities is not required.
Plan to sell controlling interest in a subsidiary
AASB5(8A), 17. If an entity is committed to a sale plan which involves the loss of control of a subsidiary, it
(36A)
shall classify all the assets and liabilities of that subsidiary as held for sale when the criteria
in AASB 5 are met, regardless of whether the entity will retain a non-controlling interest in its
former subsidiary after the sale. If the subsidiary is a disposal group that meets the definition
of a discontinued operation, the relevant disclosures must be made. This was confirmed in
an amendment made to AASB 5 as a result of the IASB’s first annual improvements project.
Criteria for classifying met after end of the reporting period
AASB110(21),(22)(c) 18. If the criteria for classifying a non-current asset or disposal group as held for sale are met
AASB5(12)
after the reporting period, an entity shall not classify the non-current asset or disposal group
as held for sale in the financial statements when issued. However, when those criteria are
met after the reporting period but before the authorisation of the financial statements for
issue, the entity should provide the information specified in paragraphs 41(a), (b) and (d) of
AASB 5 in the notes.

AASB101(51)(c) 30 June 2011
(continued)

Cease to classify
AASB5(12) 19. If an entity ceases to classify a component of an entity as held for sale, the results of
operations of the component previously presented in discontinued operations in accordance
with paragraphs 33-35 of AASB 5 shall be reclassified and included in income from
continuing operations for all periods presented. The amounts for prior periods shall be
described as having been re-presented.
Disclosures required under other accounting standards
AASB5(5B) 20. Disclosures in other standards do not generally apply in respect of non-current assets (or
disposal groups) classified as held for sale or discontinued operations, unless those
standards require:
(a) specific disclosures in respect of non-current assets (or disposal groups) classified
as held for sale or discontinued operations, or
(b) disclosures about measurement of assets and liabilities within a disposal group
that are not within the scope of the measurement requirement of AASB 5 and such
disclosures are not already provided in the other notes to the financial statements.
Entities are further reminded that additional disclosures may be necessary to comply with the
general requirements of AASB 101 Presentation of Financial Statements, in particular
paragraphs 15 (fair presentation) and 125 (estimation uncertainty) of that standard.
21. Required disclosures that are not applicable to VALUE ACCOUNTS Holdings Limited are as
follows:
AASB5(41)(c) (a) in the period in which a non-current asset (or disposal group) has been either
classified as held for sale or sold, an entity must disclose in the notes the gain or
loss recognised in accordance with paragraphs 20-22 of AASB 5 (ie impairment
losses and reversals of impairment losses) and, if not separately presented in the
statement of comprehensive income, the caption in the statement of
comprehensive income that includes that gain or loss
AASB5(42) (b) if either paragraph 26 or paragraph 29 of AASB 5 applies (part or whole group of
assets no longer held for sale), an entity must disclose, in the period of the
decision to change the plan to sell the non-current asset (or disposal group), a
description of the facts and circumstances leading to the decision and the effect of
the decision on the results of operations for the period and any prior periods
presented.
AASB-I17 22. Refer to the commentary to note 37 for disclosures that must be made if the entity has
declared a dividend in form of non-cash assets to be distributed to owners.
Cash flow information
AASB107(40) 23. The information referenced to AASB 107 Statement of Cash Flows is included to comply with
the requirements of that standard relating to disposals of subsidiaries or other business units.
Refer to paragraphs 39-42 of AASB 107 for detailed guidance on required disclosures with
respect to disposals of subsidiaries or other business units, in an entity's statement of cash
flows.
AASB107(40)(c) 24. The amount of cash and cash equivalents in the subsidiary or business unit acquired or
disposed of must also be disclosed. Refer to the commentary on current assets - cash and
cash equivalents (note 11) for the definitions of cash and cash equivalents.

AASB101(51)(c) 30 June 2011
(continued)
11 Current assets – Cash and cash equivalents 1-3

2011 2010
$'000 $'000
AASB107(45) Cash at bank and in hand 250 200

AASB107(45) 7,979 2,612
Deposits at call
8,229 2,812
(a) Reconciliation to cash at the end of the year

AASB107(45) The above figures are reconciled to cash at the end of the financial year as shown in the statement of
cash flows as follows:
2011 2010
$'000 $'000
Balances as above 8,229 2,812

AASB107(8) (2,350) (2,250)
Bank overdrafts (note 25)
Balances per statement of cash flows 5,879 562
(b) Risk exposure

AASB7(36)(a) The group's exposure to interest rate risk is discussed in note 2. The maximum exposure to credit risk
at the end of the reporting period is the carrying amount of each class of cash and cash equivalents
mentioned above.
Commentary - Current assets - Cash and cash equivalents
Definitions of cash and cash equivalents

AASB107(6) 1. Cash is cash on hand and demand deposits. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash and which are subject to
insignificant risk of changes in value.
Fair value
AASB7(29)(a) 2. For financial instruments such as cash and cash equivalents, no disclosure of fair value is
required when the carrying amount is a reasonable approximation of fair value.
Cash not available for use
AASB107(48) 3. An entity shall disclose, together with a commentary by management, the amount of
significant cash and cash equivalent balances held by the entity that are not available for use
by the group.

AASB101(51)(c) 30 June 2011
(continued)
12 Current assets – Trade and other receivables 7-10

2011 2010
$'000 $'000
AASB101(77)
AASB7(6) Trade receivables 12,455 6,867
Provision for impairment of receivables (a) (125) (100)
12,330 6,767
AASB101(77)
AASB7(6) Loans to key management personnel * 66 26
AASB101(77)
AASB7(6) Other receivables (c) 439 216
AASB101(77)
AASB7(6) Prepayments 100 75
12,935 7,084
* Refer to note 16 for the non-current portions of these receivables.

AASB124(17) Further information relating to loans to key management personnel is set out in note 36.
(a) Impaired trade receivables 7,8

AASB7(37)(b) As at 30 June 2011 current trade receivables of the group with a nominal value of $156,000 (2010 –
$137,000) were impaired. The amount of the provision was $125,000 (2010 – $100,000). The
individually impaired receivables mainly relate to wholesalers, which are in unexpectedly difficult
economic situations. It was assessed that a portion of the receivables is expected to be recovered.
The ageing of these receivables is as follows: 3

2011 2010
$'000 $'000
1 to 3 months 10 5
3 to 6 months 65 42
Over 6 months 81 90
156 137
AASB7(16) Movements in the provision for impairment of receivables are as follows:

2011 2010
$'000 $'000
At 1 July 100 100

Provision for impairment recognised during the year 80 40
AASB7(20)(e) Receivables written off during the year as uncollectible (50) (25)
Unused amount reversed (5) (15)
125 100
The creation and release of the provision for impaired receivables has been included in 'other
expenses' in profit or loss. Amounts charged to the allowance account are generally written off when
there is no expectation of recovering additional cash.

AASB101(51)(c) 30 June 2011
(continued)
12 Current assets – Trade and other receivables (continued)
(b) Past due but not impaired 4

AASB7(37)(a),(36)(c) As at 30 June 2011, trade receivables of $1,277,000 (2010 – $1,207,000) were past due but not
impaired. These relate to a number of independent customers for whom there is no recent history of
default. The ageing analysis of these trade receivables is as follows:
2011 2010
$'000 $'000
Up to 3 months 1,177 1,108

3 to 6 months 100 99
1,277 1,207
AASB7(37)(a),(b) The other classes within trade and other receivables do not contain impaired assets and are not past
(Revised)
due. Based on the credit history of these other classes, it is expected that these amounts will be
received when due. The group does not hold any collateral in relation to these receivables, other than
8
a retention of title over goods sold to wholesale customers until cash is received (see note 2(b)).
(c) Other receivables

AASB7(7) These amounts generally arise from transactions outside the usual operating activities of the group.
Interest may be charged at commercial rates where the terms of repayment exceed six months.
Collateral is not normally obtained.
(d) Foreign exchange and interest rate risk

AASB7(31),(34)(c) Information about the group's exposure to foreign currency risk and interest rate risk in relation to
trade and other receivables is provided in note 2.
(e) Fair value and credit risk

AASB7(25),(29)(a) Due to the short-term nature of these receivables, their carrying amount is assumed to approximate
2
their fair value.
AASB7(15)(a),(b), The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each
(36)(a)
class of receivables mentioned above. The fair value of securities held for certain trade receivable is
insignificant as is the fair value of any collateral sold or repledged. 5,6 Refer to note 2 for more
information on the risk management policy of the group and the credit quality of the entity's trade
receivables.
Commentary - Current assets - Trade and other receivables
Prepayments
AASB101(78)(b) 1. VALUE ACCOUNTS Holdings Limited presents prepayments as trade and other receivables
in accordance with paragraph 75(b) of AASB 101 Presentation of Financial Statements.
However, the future economic benefit of these assets is the receipt of goods or services
rather than the right to receive cash or another financial asset. Prepayments are therefore
not financial assets as defined in AASB 132 Financial Instruments: Presentation and are not
included in any of the disclosures that are required under AASB 7 Financial Instruments:
Disclosures.
Fair value
AASB7(29)(a) 2. For financial instruments such as short-term trade receivables and payables, no disclosure of
fair value is required when the carrying amount is a reasonable approximation of fair value.
Impaired trade receivables
AASB7(37)(b) 3. Entities must provide an analysis of financial assets that are individually determined to be
impaired. However, there is no specific requirement to disclose the ageing of those financial
assets. Other forms of analyses will be equally acceptable.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Current assets - Trade and other receivables (continued)
Past due but not impaired

AASB7 Appendix A 4. A financial asset is past due when a counterparty has failed to make a payment when
AASB7(37)(a)
contractually due. AASB 7 requires disclosure of an analysis of the age of financial assets
that are past due but for which there is no evidence at the end of the reporting period that the
assets are impaired.
Collateral accepted
AASB7(15) 5. Where an entity holds collateral (of financial or non-financial assets) that it is permitted to sell
or repledge in the absence of default by the owner of the collateral, it shall disclose:
(a) the fair value of the collateral held
(b) the fair value of any such collateral sold or repledged and whether the entity has
an obligation to return it, and
(c) any terms and conditions associated with its use of this collateral.
AASB7(38) 6. When an entity has obtained financial or non-financial assets during the period by taking
possession of collateral held or by calling on other credit enhancements (eg guarantees) it
shall disclose the nature and carrying amount of the assets obtained and, if the assets are
not readily convertible into cash, its policies for disposing of such assets or for using them in
its operations.
Impairment of financial assets
AASB7(20)(d) 7. In addition to the nature and amount of any impairment loss recognised in profit or loss,
entities shall also disclose the amount of interest income accrued on impaired financial
assets, in accordance with paragraph AG93 of AASB 139, where applicable.
Renegotiated financial assets that would otherwise be past due or impaired
AASB7(B5)(g) 8. If the entity has any financial assets that would otherwise be past due or impaired but that
AASB7R(36)
AASB2010-4(10) have been renegotiated, it should consider disclosing its accounting policy for financial
assets that are the subject of renegotiated terms. Disclosure of the carrying amount of
financial assets that have been renegotiated is no longer required provided the entity has
adopted AASB 2010-4 Further Amendments to Australian Accounting Standards arising from
the Annual Improvements Project early and has stated this in note 1(a).
Fair value determined using valuation technique - difference on initial recognition
AASB7(28)(b) 9. If there is a difference between the fair value at initial recognition (being the transaction price)
and the amount that would be determined at that date using the valuation technique, an
entity shall disclose (by class of financial instrument) the aggregate difference yet to be
recognised in profit or loss at the beginning or the end of the period and a reconciliation of
changes in the balance of this difference.
Derecognition of financial assets
AASB7(13) 10. An entity may have transferred financial assets (refer to paragraphs 15 - 32 of AASB 139
Financial Instruments: Recognition and Measurement) in such a way that part or all of the
financial assets do not qualify for derecognition. The entity shall disclose for each class of
such financial assets:
(a) the nature of the assets
(b) the nature of the risks and rewards of ownership to which the entity remains
exposed
(c) when the entity continues to recognise all of the asset, the carrying amounts of the
asset and of the associated liability
(d) when the entity continues to recognise the assets to the extent of its continuing
involvement, the total amount of the original assets, the amount of the assets that
the entity continues to recognise and the carrying amount of the associated
liabilities.

AASB101(51)(c) 30 June 2011
(continued)
13 Current assets – Inventories 1,2

2011 2010
$'000 $'000
AASB101(77)
(Revised)
AASB102(36)(b) Raw materials and stores 1,200 800
AASB102(36)(b) Work in progress 600 400
AASB102(36)(b) Finished goods 4,953 3,472
AASB102(36)(b) Land held for development and resale 400 -
7,153 4,672
(a) Inventory expense

AASB102(36)(d) Inventories recognised as expense during the year ended 30 June 2011 (including $535,000 of
inventories damaged by a fire – refer to note 8) amounted to $17,096,000 (2010 – $11,290,000).
AASB102(36)(e) Write-downs of inventories to net realisable value recognised as an expense during the year ended
AASB136(126)(a)
30 June 2011 amounted to $150,000 (2010 – $250,000). The expense has been included in 'raw
materials and consumables used' in profit or loss.
Commentary - Current assets – Inventories

1. Disclosure requirements of AASB 102 Inventories that are not applicable to VALUE
ACCOUNTS Holdings Limited are as follows:
AASB102(36)(c) (a) The carrying amount of inventories carried at fair value less costs to sell, as
permitted under paragraph 3 of AASB 102
AASB102(36)(f) (b) the amount of any reversal of any write-down that is recognised as a reduction in
the amount of inventories recognised as expense in the period in accordance with
paragraph 34 of AASB 102
AASB102(36)(g) (c) the circumstances or events that led to the reversal of a write-down of inventories
in accordance with paragraph 34 of AASB 102
AASB102(36)(h) (d) the carrying amount of inventories pledged as security for liabilities.
2. In respect of not-for-profit entities, disclosure is required of the following:
AASB102(Aus36.1)(a) (a) the accounting policies adopted in measuring inventories held for distribution,
including the cost formula used
AASB102(Aus36.1)(b) (b) the total carrying amount of inventories held for distribution and the carrying
amount in classifications appropriate to the entity
AASB102(Aus36.1)(c) (c) the amount of inventories held for distribution recognised as an expense during
the period in accordance with paragraph Aus34.1 of AASB 102
AASB102(Aus36.1)(d) (d) the amount of any write-down of inventories held for distribution recognised as an
expense in the period in accordance with paragraph Aus34.1 of AASB 102
AASB102(Aus36.1)(e) (e) the amount of any reversal of any write-down that is recognised as a reduction in
the amount of inventories held for distribution recognised as expense in the period
in accordance with paragraph Aus34.1 of AASB 102
AASB102(Aus36.1)(f) (f) the circumstances or events that led to the reversal of a write-down of inventories
held for distribution in accordance with paragraph Aus34.1 of AASB 102
AASB102(Aus36.1)(g) (g) the carrying amount of inventories held for distribution pledged as security for
liabilities
AASB102(Aus36.1)(h) (h) the basis on which any loss of service potential of inventories held for distribution
is assessed, or the bases when more than one basis is used.

AASB101(51)(c) 30 June 2011
(continued)
14 Current assets – Financial assets at fair value through profit or loss 1-9
AASB101(77) Financial assets at fair value through profit or loss are all held for trading and include the following:
AASB7(31),(34)(c)
2011 2010
$'000 $'000
US listed equity securities 190 35

Australian listed equity securities 1,110 880
1,300 915
AASB7(8)(a) The group has not designated any financial assets as at fair value through profit or loss.
Changes in fair values of financial assets at fair value through profit or loss are recorded in other
income or other expense in profit or loss (notes 6 and 8 respectively).
(Revised) (a) Risk exposure and fair value measurements

AASB7(31) Information about the group’s exposure to price risk and about the methods and assumptions used in
determining fair value is provided in note 2.
Commentary – Current assets – Financial assets at fair value through profit

or loss
Definition
AASB139(9) 1. A financial asset or financial liability at fair value through profit or loss is a financial asset or
financial liability that meets either of the following conditions:
(a) it is classified as held for trading. A financial asset or financial liability is classified
as held for trading if it is:
(i) acquired or incurred principally for the purpose of selling or
repurchasing it in the near term
(ii) part of a portfolio of identified financial instruments that are managed
together and for which there is evidence of a recent actual pattern of
short-term profit-taking
(iii) a derivative (except for a derivative that is a designated and effective
hedging instrument), or
(b) upon initial recognition it is designated by the entity as at fair value through profit
or loss. Financial assets or financial liabilities can only be designated at fair value
through profit or loss if the conditions in AASB 139 paragraphs 9 or 11A are
satisfied, see paragraph 42 of the commentary to note 1 for further information.
Disclosure not illustrated: not applicable to VALUE ACCOUNTS Holdings Limited
Financial assets designated at fair value through profit or loss
AASB7(8)(a) 2. Entities that have both financial assets that are held for trading and those that were, upon
initial recognition, designated by the entity as financial assets at fair value through profit or
loss shall disclose separately the carrying amounts of both classes of financial assets.
AASB7(9) 3. If an entity has designated a loan or receivable (or group of loans or receivables) as at fair
value through profit or loss, it must provide information about:
(a) the maximum exposure to credit risk of the loan or receivable (or group thereof) at
the end of the reporting period
(b) the amount by which any related credit derivatives or similar instruments mitigate
that exposure
(c) the amount of change, during the period and cumulatively, in the fair value of the
loan or receivable (or group thereof) that is attributable to changes in the credit
risk
(d) the amount of the change in the fair value of any related credit derivatives or
similar instruments that has occurred during the period and cumulatively since the
loan or receivable was designated.

AASB101(51)(c) 30 June 2011
(continued)
Commentary – Current assets – Financial assets at fair value through profit

or loss (continued)
AASB7(11) 4. The entity shall further disclose the methods used to determine the amount disclosed in 3(c)
above. If the entity believes that the disclosure it has provided does not faithfully represent
the change in the fair value of the financial asset or financial liability attributable to changes
in its credit risk, it shall further disclose the reasons for reaching this conclusion and the
factors it believes are relevant.
AASB7(37)(c) 5. Refer to notes 2 and 12 and the related commentaries for further disclosures required in
relation to financial instruments.
Reclassifications
AASB139(50) 6. Financial assets that are classified as held for trading (but not derivatives or financial assets
that are designated at fair value through profit or loss under the fair value option) may be
reclassified out of the fair value through profit or loss category if the asset:
(a) is no longer held for the purpose of selling or repurchasing in the near term, and
AASB139(50D) (b) would have met the definition of a loan or receivable at initial recognition and the
entity now has the intent and ability to hold it for the foreseeable future or to
maturity.
AASB139(50B) 7. If the financial asset would not have met the definition of a loan or receivable it may be
reclassified only in rare circumstances. According to a press release issued by the IASB in
October 2008, the deterioration of the world’s financial markets in the third quarter of 2008
was an example of such a circumstance.
AASB139(103H) 8. Reclassifications can normally only be made prospectively. That is, they take effect on the
day of the reclassification. However, for a brief transitional period, entities were permitted to
reclassify financial assets retrospectively as of 1 July 2008 or a later date, provided the
reclassification was made before 1 November 2008.
AASB7(12A) 9. If an entity has reclassified a financial asset out of the fair value through profit or loss
category in accordance with AASB 139 paragraph 50B or 50D, or the available-for-sale
category as per AASB 139 paragraph 50E, it shall disclose:
(a) the amount reclassified into and out of each category
(b) for each reporting period until derecognition, the carrying amounts and fair values
of all financial assets that have been reclassified in the current and previous
reporting periods
(c) if a financial asset was reclassified in accordance with paragraph 50B of AASB
139 (paragraph 7 above), the rare situation and the facts and circumstances
indicating that the situation was rare
(d) for the reporting period when the financial asset was reclassified, the fair value
gain or loss on the financial asset recognised in profit or loss or other
comprehensive income in that reporting period and in the previous reporting
period
(e) for each reporting period following the reclassification (including the reporting
period in which the financial asset was reclassified) until derecognition of the
asset, the fair value gain or loss that would have been recognised in profit or loss
or other comprehensive income if the asset had not been reclassified, and the
gain, loss, income and expense recognised in profit or loss, and
(f) the effective interest rate and estimated amounts of cash flows the entity expects
to recover, as at the date of reclassification of the financial asset.

AASB101(51)(c) 30 June 2011
(continued)
15 Derivative financial instruments 1-4,6,7

2011 2010
$’000 $’000
Current assets
AASB101(77)
AASB7(22)(a),(b) Forward foreign exchange contracts – held for trading ((a)(iii)) 88 40
Total current derivative financial instrument assets 88 40
Non-current assets
AASB101(77)
AASB7(22)(a),(b) Interest rate swap contracts – cash flow hedges ((a)(i)) 8 12
Total non-current derivative financial instrument assets 8 12
Current liabilities
AASB101(77)
AASB7(22)(a),(b) Forward foreign exchange contracts – cash flow hedges ((a)(ii)) 310 321
Total current derivative financial instrument liabilities 310 321
(214) (269)
(a) Instruments used by the group

AASB7(22) The group is party to derivative financial instruments in the normal course of business in order to
hedge exposure to fluctuations in interest and foreign exchange rates in accordance with the group’s
financial risk management policies (refer to note 2).
(i) Interest rate swap contracts – cash flow hedges
AASB7(22) Bank loans of the group currently bear an average variable interest rate of 8.5%. It is policy to protect
part of the loans from exposure to increasing interest rates. Accordingly, the group has entered into
interest rate swap contracts under which it is obliged to receive interest at variable rates and to pay
interest at fixed rates.
AASB7(23)(a) Swaps currently in place cover approximately 30% (2010 – 10%) of the variable loan principal
outstanding and are timed to expire as each loan repayment falls due. The fixed interest rates range
between 7.8% and 8.3% (2010 – 9.0% and 9.6%) and the variable rates are between 0.5% and 1.0%
above the 90 day bank bill rate which at the end of the reporting period was 8.2% (2010 – 9.4%).
AASB7(23)(a) The contracts require settlement of net interest receivable or payable each 90 days. The settlement
dates coincide with the dates on which interest is payable on the underlying debt. The contracts are
settled on a net basis.
AASB7(23)(d),(24)(b) The gain or loss from remeasuring the hedging instruments at fair value is recognised in other
AASB139(95)
comprehensive income and deferred in equity in the hedging reserve, to the extent that the hedge is
effective. It is reclassified into profit or loss when the hedged interest expense is recognised. In the
year ended 30 June 2011 a loss of $3,000 was reclassified into profit or loss (2010 – gain of $4,000)
5
and included in finance costs. There was no hedge ineffectiveness in the current or prior year.
(ii) Forward exchange contracts – cash flow hedges
AASB7(22) The South East Asian operations use materials purchased from the United States. In order to protect
against exchange rate movements, the group has entered into forward exchange contracts to
purchase US dollars. Because the market for Indonesian rupiah is not well established, VALUE
ACCOUNTS Holdings Limited has entered into the forward contracts on behalf of the Indonesian
operations.
AASB7(23)(a) These contracts are hedging highly probable forecasted purchases for the ensuing financial year. The
contracts are timed to mature when payments for major shipments of component parts are scheduled
to be made.
AASB139(95),(98)(b) The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge
is recognised in other comprehensive income. When the cash flows occur, the group adjusts the initial
measurement of the component recognised in the balance sheet by removing the related amount from
other comprehensive income.

AASB101(51)(c) 30 June 2011
(continued)
15 Derivative financial instruments (continued)

AASB7(23)(d),(e), During the year ended 30 June 2011 a loss of $269,000 (2010 – gain of $134,000) was reclassified
(24)(b)
from other comprehensive income and included in the acquisition cost of components. A loss of
$20,000 was recognised in profit or loss for the ineffective portion of these hedging contracts (2010 –
nil).
(iii) Forward exchange contracts – held for trading
The group has further entered into forward exchange contracts which are economic hedges but do not
satisfy the requirements for hedge accounting. These contracts are subject to the same risk
management policies as all other derivative contracts, see note 2 for details. However, they are
accounted for as held for trading.
(iv) Hedge of net investment in foreign entity
AASB7(22),(24)(c) In 2011, the parent entity has entered into a bank loan amounting to $500,000 which is denominated
in Indonesian rupiah. This loan, which was taken out to provide additional equity to the Indonesian
subsidiary, has been designated as a hedge of the net investment in this subsidiary. The fair value
and carrying amount of the borrowing at 30 June 2011 was $509,000 (30 June 2010 – nil). The
foreign exchange loss of $9,000 (2010 – nil) on translation of the borrowing to Australian dollars at the
end of the reporting period is recognised in other comprehensive income and accumulated in the
foreign currency translation reserve, in shareholders’ equity (note 33). There was no ineffectiveness to
be recorded from net investments in foreign entity hedges.
(Revised) (b) Risk exposures and fair value measurements

AASB7(27),(31) Information about the group's exposure to credit risk, foreign exchange and interest rate risk and
AASB7(36)(a)
about the methods and assumptions used in determining fair values is provided in note 2. The
maximum exposure to credit risk at the end of the reporting period is the carrying amount of each
class of derivative financial assets mentioned above.
Commentary – Derivative financial instruments
Definition
1. A derivative is a financial instrument or other contract within the scope of AASB139 Financial
Instruments: Recognition and Measurement (see paragraphs 2-7 of AASB 139) with all three
of the following characteristics:
(a) its value changes in response to the change in a specified interest rate, financial
instrument price, commodity price, foreign exchange rate, index of prices or rates,
credit rating or credit index, or other variable, provided in the case of a
non-financial variable that the variable is not specific to a party to the contract
(sometimes called the ‘underlying’)
(b) it requires no initial net investment or an initial net investment that is smaller than
would be required for other types of contracts that would be expected to have a
similar response to changes in market factors, and
(c) it is settled at a future date.
2. Refer to notes 2 and 12 and the related commentaries for further disclosures required in
Classification as current or non-current
IAS1(BC38B),(38C) 3. The classification of financial instruments as held for trading under AASB 139 (see note 14
AASB101(66),
(69) commentary paragraph 1) does not mean that they must necessarily be presented as current
in the balance sheet. If a financial liability is primarily held for trading purposes it should be
presented as current. If it is not held for trading purposes, it should be presented as current
or non-current on the basis of its settlement date. Financial assets should only be presented
as current assets if the entity expects to realise them within 12 months.
4. The treatment of hedging derivatives will be similar. Where a portion of a financial asset is
expected to be realised within 12 months of the end of the reporting period, that portion
should be presented as a current asset; the remainder of the financial asset should be shown
as a non-current asset. This suggests that hedging derivatives should be split into current
and non-current portions. However, as an alternative, the full fair value of hedging derivatives
could be classified as current if the hedge relationships are for less than 12 months and as
non-current if those relationships are for more than 12 months.

AASB101(51)(c) 30 June 2011
(continued)
Commentary – Derivative financial instruments
Hedge ineffectiveness
AASB7(24)(b),(c) 5. If hedges are partially or fully ineffective, the entity shall disclose the ineffectiveness
recognised in profit or loss that arises from:
(a) cash flow hedges
(b) hedges of net investments in foreign operations.
Disclosure not illustrated: not applicable to VALUE ACCOUNTS Holdings Limited
Hedge accounting - transaction no longer expected to occur
AASB7(23)(b) 6. For designated cash flow hedges an entity shall include a description of any forecast
transaction for which hedge accounting had previously been used but which is no longer
expected to occur.
Fair value hedges
AASB7(24)(a) 7. For fair value hedges, an entity shall disclose separately gains or losses on the:
(a) hedging instrument
(b) hedged item attributable to the hedged risk.
16 Non-current assets – Receivables 1-4

2011 2010
$'000 $'000
AASB101(78)(b) Loans to related parties 800 200

Loans to key management personnel* 251 180
AASB101(78)(b) 425 -
Other receivables*
1,476 380
* Refer to note 12 for the current portions of these receivables.

Further information relating to loans to related parties and key management personnel is set out in
notes 40 and 36 respectively.
(a) Impaired receivables and receivables past due

AASB7(37)(a),(b) None of the non-current receivables are impaired or past due but not impaired.
(b) Fair values

AASB7(25) The fair values and carrying amounts of non-current receivables are as follows:
2011 2010
Carrying Carrying
amount Fair value amount Fair value
$'000 $'000 $'000 $'000
Loans to related parties 800 800 200 200

Loans to key management personnel 251 271 180 174
Other receivables 425 410 - -
1,476 1,481 380 374
AASB7(27) The fair values are based on cash flows discounted using a current lending rate of 7.5% (2010 –
7.2%) for other receivables and of 8.9% (2010 – 8.2%) for loans to related parties and key
management personnel.
(c) Risk exposure

AASB7(31) Information about the group's exposure to credit risk, foreign exchange and interest rate risk is
AASB7(36)(a)
provided in note 2. The maximum exposure to credit risk at the end of the reporting period is the
carrying amount of each class of receivables mentioned above.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets - Receivables
1. Refer to notes 2 and 12 and the related commentaries for further disclosures required in
Finance leases - disclosure requirements for lessors
AASB117(47) 2. In addition to meeting the requirements in AASB 7 Financial Instruments: Disclosures,
lessors shall disclose the following for finance leases:
AASB117(47)(a) (a) a reconciliation between the gross investment in the lease at the end of the
reporting period, and the present value of minimum lease payments receivable at
the end of the reporting period. In addition, disclosure shall be made of the gross
investment in the lease and the present value of minimum lease payments
receivable at the end of the reporting period, for each of the following periods:
(i) not later than one year
(ii) later than one year and not later than five years
(iii) later than five years
AASB117(47)(b) (b) unearned finance income
AASB117(47)(c) (c) the unguaranteed residual values accruing to the benefit of the lessor
AASB117(47)(d) (d) the accumulated allowance for uncollectible minimum lease payments receivable
AASB117(47)(e) (e) contingent rents recognised as income in the period
AASB117(47)(f) (f) a general description of the lessor’s material leasing arrangements.
AASB117(48) 3. As an indicator of growth it is often useful also to disclose the gross investment less
unearned income in new business added during the period, after deducting the relevant
amounts for cancelled leases.
Operating leases - disclosure requirements for lessors
4. Refer to note 21 for the disclosure requirements for lessors of operating leases under AASB
117 Leases.
17 Non-current assets – Investments accounted for using the equity method

2011 2010
$'000 $'000
AASB128(38) Shares in associates (note 44) 1,525 1,375

AASB101(77) 2,250 1,900
Interest in joint venture partnership (note 45)
3,775 3,275

AASB101(51)(c) 30 June 2011
(continued)
18 Non-current assets – Available-for-sale financial assets 1-9

AASB7(25),(31), Available-for-sale financial assets include the following classes of financial assets:
(34)(c)
AASB101(77)
2011 2010
$'000 $'000
Listed securities
Equity securities 350 350
Debentures 210 210
Preference shares 90 90
650 650
Unlisted securities (a)

Equity securities 150 98
Debentures 75 60
Preference shares 25 20
250 178
Contingent consideration (note 10) 110 -
1,010 828
(Revised) (a) Unlisted securities

AASB7(27) Unlisted securities are traded in inactive markets. Refer to note 2 for further information about the
methods used and assumptions applied in determining fair value. 9
AASB127(41)(b) Included in unlisted securities are shares in VALUE ACCOUNTS Trustee Pty Ltd at fair value of $2
(2010 – $2). The parent entity owns 100% of the issued capital of VALUE ACCOUNTS Trustee Pty
Ltd, which is the trustee of the VALUE ACCOUNTS Employees' Superannuation Fund. VALUE
ACCOUNTS Trustee Pty Ltd is not a controlled entity of VALUE ACCOUNTS Holdings Limited
because it is required to act as a trustee in the interests of the members of the superannuation fund,
rather than those of VALUE ACCOUNTS Holdings Limited.
(b) Investments in related parties

AASB124(17) Refer to note 17 for information on the carrying amount of investments in joint ventures and
associates. In addition, available-for-sale financial assets includes $100,000 (2010 – $80,000) of
equity securities held in entities that are controlled by the ultimate parent entity, Lion Plc.
(c) Non-current assets pledged as security

AASB7(14) Refer to note 28 for information on non-current assets pledged as security by the group.
(d) Impairment and risk exposure

AASB7(36)(a) The maximum exposure to credit risk at the end of the reporting period is the fair value of the
debentures classified as available-for-sale.
AASB7(36)(c) None of the financial assets are either past due or impaired.
AASB7(34) All available-for-sale financial assets are denominated in Australian currency. For an analysis of the
sensitivity of available-for-sale financial assets to price and interest rate risk refer to note 2.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets - Available-for-sale financial assets
Definition
AASB139(9) 1. Available-for-sale financial assets are those non-derivative financial assets that are
designated as available-for-sale or that are not classified as (a) loans and receivables, (b)
held-to-maturity investments or (c) financial assets at fair value through profit or loss.
Corporate trustees
2. Consistent with the requirements of the Superannuation Industry Supervision Act many
companies have become 100% shareholders of the corporate trustees of their
superannuation funds. If the activities of these corporate trustees do not extend beyond the
normal responsibilities of a trustee, it is commonly accepted that they will not normally be
controlled entities.
AASB127(41)(b) 3. AASB 127 Consolidated and Separate Financial Statements requires disclosure of the
reasons why the ownership, directly or indirectly through subsidiaries, of more than half of
the voting or potential voting power of an investee does not constitute control.
Listed investment entities
ASX(4.10.20) 4. If a listed entity is an investment entity (as defined in the ASX Listing Rules) it shall disclose
in its annual report:
(a) a list of all investments held by it and its child entities at the end of the reporting
period
(b) the total number of transactions in securities during the reporting period, together
with the total brokerage paid or accrued during the period, and
(c) the total management fees paid or accrued during the reporting period, together
with a summary of any management agreement.
5. An entity shall disclose:
AASB7(20)(e) (a) the amount of any impairment loss recognised in profit or loss separately for each
significant class of financial asset (see note 8)
AASB7(20)(d) (b) the amount of interest income accrued on impaired financial assets, in accordance
with paragraph AG93 of AASB 139
AASB7(37)(b) (c) an analysis of financial assets that are individually determined to be impaired, and
AASB7(37)(c) (d) a description of collateral held by the entity as security and other credit
enhancements and, unless impracticable, an estimate of their fair value.
Reclassification
AASB139(50) 6. Reclassifications of financial assets out of the available-for-sale category are only permitted
in limited circumstances:
AASB139(54) (a) into the held-to-maturity category if it becomes appropriate to carry the financial
asset at cost or amortised cost as a result of a change in intention or ability, or
when a tainted held-to-maturity portfolio has been 'cleansed' (at the end of the
second financial year after the tainting)
AASB139(50E) (b) into the loans and receivable category if:
(i) the asset is no longer held for the purpose of selling or repurchasing it
in the near future
(ii) the asset would have met the definition of loans and receivables on
initial recognition, and
(iii) the entity has the intention and ability to hold the asset for the
foreseeable future or until maturity.
AASB139(51),(52) 7. Financial assets may need to be reclassified from the held-to-maturity into the
available-for-sale category if, as a result of a change in intention or ability, it is no longer
appropriate to classify an investment as held-to-maturity and/or the remaining
held-to-maturity investments have become ‘tainted’.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets - Available-for-sale financial assets

(continued)
AASB7(12) 8. If an entity has reclassified a financial asset during the current or a previous year, it must
make additional disclosures:
AASB7(12) (a) If the asset was reclassified either into or out of the held-to-maturity category in
the current year (paragraphs 6(a) and 7 above), the entity must disclose the
amount and the reason for that reclassification.
AASB7(12) (b) If the asset was reclassified into the loans and receivable category (paragraph
6(b) above), the entity will need to make a number of additional disclosures both in
the year of the reclassification and in subsequent years. These disclosures are
listed in detail in the commentary to note 14 (paragraph 9).
Fair value disclosures
AASB7(27) 9. Refer to notes 2 and 12 and the related commentaries for further disclosures required in
19 Non-current assets – Held-to-maturity investments 1-4

2011 2010
$'000 $'000
AASB101(77) Debentures 150 -

AASB101(77) 60 -
Zero coupon bonds
210 -
(a) Debentures
AASB7(25),(27) The fair value of the debentures is $165,000 (2010 – nil). Fair value was determined by reference to
published price quotations in an active market.
(b) Zero coupon bonds

AASB7(25),(27) The fair value of the zero coupon bonds is $63,000 (2010 – nil). Fair value was determined by
reference to published price quotations in an active market.
(c) Impairment and risk exposure

AASB7(36)(a) The maximum exposure to credit risk at the end of the reporting period is the carrying amount of the
investments. All investments were issued by entities rated 'AA' or higher.
AASB7(36)(c) None of the held-to-maturity investments are either past due or impaired.
AASB7(34) All held-to-maturity investments are denominated in Australian currency. As a result, there is no
exposure to foreign currency risk. There is also no exposure to price risk as the investments will be
held to maturity.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets - Held-to-maturity investments
Definition
AASB139(9) 1. Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturity that an entity has the positive intention and ability to hold to
maturity (refer to Appendix A, paragraphs AG16-AG25 of AASB139) other than:
(a) those that the entity upon initial recognition designates as at fair value through
profit or loss
(b) those that the entity designates as available-for-sale, and
(c) those that meet the definition of loans and receivables.
Restriction on classification
AASB139(9) 2. An entity shall not classify any financial assets as held-to-maturity if the entity has, during the
current annual reporting period or during the two preceding annual reporting periods, sold or
reclassified more than an insignificant amount of held-to-maturity investments before maturity
(more than insignificant in relation to the total amount of held-to-maturity investments) other
than sales or reclassifications that:
(a) are so close to maturity or the financial asset’s call date (eg less than three
months before maturity) that changes in the market rate of interest would not have
a significant effect on the financial asset’s fair value
(b) occur after the entity has collected substantially all of the financial asset’s original
principal through scheduled payments or prepayments, or
(c) are attributable to an isolated event that is beyond the entity’s control, is
non-recurring and could not have been reasonably anticipated by the entity.
Reclassification
AASB7(12) 3. If the entity has reclassified a financial asset as one measured at cost or amortised cost
rather than fair value or vice versa (refer to paragraphs 51 to 54 of AASB 139) it shall
disclose the amount and reason for that reclassification. The commentary to note 18
(paragraphs 6 and 7) explains under what circumstances reclassifications may be permitted.
AASB7(20)(d),(e), 4. Refer to paragraph 5 of the commentary of note 18 for disclosure requirements for impaired
(37)
financial assets. Other disclosures in relation to financial assets are illustrated and discussed
in notes 2 and 12.

AASB101(51)(c) 30 June 2011
(continued)
20 Non-current assets – Property, plant and equipment 10-13

Furniture, Machinery
Freehold Freehold fittings and and
land buildings equipment vehicles Total
$'000 $'000 $'000 $'000 $'000
At 1 July 2009 5-7

AASB116(73)(d) Cost or fair value 2,350 1,050 1,480 7,860 12,740
AASB116(73)(d) - - (570) (4,025) (4,595)
Accumulated depreciation
Net book amount (see (g)
below) 2,350 1,050 910 3,835 8,145
Year ended 30 June 2010

AASB116(73)(e) Opening net book amount 2,350 1,050 910 3,835 8,145
AASB116(73)(e)(viii) Exchange differences - - (3) (27) (30)
AASB116(73)(e)(iv) Revaluation surplus 374 140 - - 514
AASB116(73)(e)(i),
(74)(b) Additions 200 - 690 2,275 3,165
AASB116(73)(e)(ii) Assets included in a disposal
group classified as held for
sale and other disposals (424) - (125) (2,215) (2,764)
AASB116(73)(e)(vii) - (50) (270) (630) (950)
Depreciation charge
AASB116(73)(e) 2,500 1,140 1,202 3,238 8,080
Closing net book amount
At 30 June 2010
AASB116(73)(d) - - (668) (4,122) (4,790)
AASB101(77) 2,500 1,140 1,202 3,238 8,080
Net book amount
Year ended 30 June 2011

AASB116(73)(e) Opening net book amount 2,500 1,140 1,202 3,238 8,080
AASB116(73)(e)(iii) Acquisition of subsidiary - - 100 720 820
AASB116(73)(e)(i),
(74)(b) Additions 300 1,532 630 4,600 7,062
AASB116(73)(e)(ii) Assets classified as held for
sale and other disposals (550) - (185) (1,680) (2,415)
AASB116(73)(e)(vii) Depreciation charge - (50) (200) (990) (1,240)
AASB116(73)(e)(v) - (465) (30) (180) (675)
Impairment loss (f)
AASB116(73)(e) 2,570 2,380 1,505 5,640 12,095
At 30 June 2011
AASB116(73)(d) - - (615) (4,820) (5,435)
AASB101(77) 2,570 2,380 1,505 5,640 12,095
Net book amount
(a) Assets in the course of construction 4

AASB116(74)(b) The carrying amounts of the assets disclosed above include the following expenditure recognised in
relation to property, plant and equipment which is in the course of construction:
2011 2010
$'000 $'000
Buildings - -
Machinery and vehicles 350 150
Furniture, fittings and equipment 100 50
Total assets in the course of construction 450 200

AASB101(51)(c) 30 June 2011
(continued)
20 Non-current assets – Property, plant and equipment (continued)
(Revised) (b) Leased assets

AASB117(31)(a) Furniture, fittings and equipment includes the following amounts where the group is a lessee under a
finance lease:
2011 2010 1 July 2009
$'000 $'000 $000 9
Leasehold equipment (g)

Cost 400 400 -
Accumulated depreciation (40) - -
Net book amount 360 400 -
(c) Valuations of land and buildings 2,3

AASB116(77)(a)-(d) The valuation basis of land and buildings is fair value being the amounts for which the assets could be
exchanged between willing parties in an arm's length transaction, based on current prices in an active
market for similar properties in the same location and condition. The 2011 revaluations were made by
the directors as at 30 June 2011 and the 2010 revaluations were based on independent assessments
by a member of the Australian Property Institute as at 30 June 2010. The revaluation surplus net of
applicable deferred income taxes was credited to other reserves in shareholders' equity (note 33).
(d) Non-current assets pledged as security

AASB116(74)(a) Refer to note 28 for information on non-current assets pledged as security by the group.
(e) Carrying amounts that would have been recognised if land and buildings were stated
at cost
AASB116(77)(e) If freehold land and buildings were stated on the historical cost basis, the amounts would be as
follows:
2011 2010
$'000 $'000
Freehold land
Cost 1,950 2,000
Accumulated depreciation - -
Net book amount 1,950 2,000
Buildings
Cost 2,595 1,420
Accumulated depreciation (405) (380)
Net book amount 2,190 1,040
(f) Impairment loss and compensation 8

AASB136(130)(a),(e), The impairment loss relates to assets that were damaged by a fire – refer to note 8. The whole
(f)
AASB136(126)(a),(c) amount was recognised in profit or loss, as there was no amount included in the asset revaluation
surplus relating to the relevant assets. The recoverable amount of the assets was determined by an
independent valuer as their fair values less cost to sell, based on an active market.
AASB116(74)(d) An amount of $200,000 (2010 – nil) was received by the group from an insurance company as
compensation for damage to a building caused by the fire.
(Revised)
(g) Correction of error
AASB101(10)(f),(39) Refer to note 7(a) for explanations of an error made in the accounting for a leasing contract in
previous financial years and retrospective adjustments recognised on 1 July 2009 and 30 June 2010.
The amounts disclosed in this note are after these adjustments.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets - Property, plant and equipment
Revaluations
Depreciation treatments
AASB116(35) 1. Where an entity revalues depreciable assets, any accumulated depreciation at the date of
the revaluation is treated in one of the following ways:
(a) restated proportionately with the change in the gross carrying amount of the asset
so that the carrying amount of the asset after revaluation equals its revalued
amount. This method is often used when an asset is revalued by means of
applying an index to its depreciated replacement cost, or
(b) eliminated against the gross carrying amount of the asset and the net amount
restated to the revalued amount of the asset. This method is often used for
buildings.
Tax on revalued amounts
AASB112(81)(a) 2. AASB 112 Income Taxes requires the separate disclosure of the aggregate current and
deferred tax relating to items that are charged or credited to equity. This would include items
charged or credited to the asset revaluation surplus (note 33).
Valuations as source of estimation uncertainty
AASB101(125) 3. Where the fair values of property, plant and equipment have not been determined by
reference to recently observed market prices they may be a source of estimation uncertainty
which may need to be disclosed under paragraph 125 of AASB 101 Presentation of Financial
Statements (see note 3 and associated commentary for further information). In this case, the
entity should consider providing information similar to that disclosed in note 21 for investment
properties.
Expenditures recognised in assets under construction
AASB116(74)(b) 4. Disclosure is required of the amount of expenditures recognised in the carrying amount of an
item of property, plant and equipment in the course of its construction. This can be done as
separate disclosure (as in note 20(a) above) or by adding another class of assets called
'Construction in progress' (or similar) to the reconciliation.
Reconciliation
AASB116(73)(e) 5. The financial statements shall disclose, for each class of property, plant and equipment a
reconciliation of the carrying amount at the beginning and end of the period showing:
(a) additions
(b) assets classified as held for sale or included in a disposal group classified as held
for sale in accordance with AASB 5 Non-current Assets Held for Sale and
Discontinued Operations and other disposals
(c) acquisitions through business combinations
(d) increases or decreases resulting from revaluations under paragraphs 31, 39,
Aus39.1, 40, Aus40.1 and Aus40.2 of AASB 116 Property, Plant and Equipment
and from impairment losses recognised or reversed in other comprehensive
income in accordance with AASB 136 Impairment of Assets
(e) impairment losses recognised in profit or loss in accordance with AASB 136
(f) impairment losses reversed in profit or loss in accordance with AASB 136
(g) depreciation
(h) the net exchange differences arising on the translation of the financial statements
from the functional currency into a different presentation currency, including the
translation of a foreign operation into the presentation currency of the reporting
entity, and
(i) other changes.
Classes of property, plant and equipment
AASB116(37) 6. A class of property, plant and equipment is a grouping of assets similar nature and use in the
entity's operation. Paragraph 37 of AASB 116 provides the following examples:
(a) land
(b) land and buildings
(c) machinery
(d) ships
(e) aircraft
(f) motor vehicles
(g) furniture and fixtures
(h) office equipment

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets - Property, plant and equipment (continued)
7. Each entity will have different classes, depending on their individual operations. The number
of classes that are separately disclosed also depends on materiality. However, the 'plant and
equipment' of an entity will normally include assets of quite different nature and use. It will
therefore not be sufficient to provide the information required in AASB 116 only for two
classes, being 'land and buildings' and 'plant and equipment'. Rather, entities should provide a
further breakdown or, alternatively, use a more specific narrative to illustrate that the entity has
only one major class of plant and equipment.
Compensation for impairment
AASB116(65),(66) 8. Compensation from third parties for items of property, plant and equipment that were
impaired, lost or given up shall be included in profit or loss when the compensation becomes
receivable. Impairments or losses of items of property, plant and equipment and any related
claims for compensation from third parties are separate economic events that must be
accounted for separately.
Additional comparative information
AASB101(10)(f),(39) 9. Where an entity has made a retrospective change in accounting policy, a retrospective
restatement in its financial statements or has reclassified items, it must provide a third balance
sheet as at the beginning of the earliest comparative period (1 July 2009 for VALUE
ACCOUNTS Holdings Limited). This requirement also extends to the related notes. To satisfy
this requirement, additional comparative information has been provided in note 20(b) as these
amounts had been affected by the change in policy. The reconciliation of property, plant and
equipment already provides comparative information as of 1 July 2009, however, a note was
added highlighting the fact that the opening balances have been adjusted.
Encouraged disclosures
AASB116(79) 10. Users of the financial statements may also find the following information relevant to their
needs:
(a) the carrying amount of temporarily idle property, plant and equipment
(b) the gross carrying amount of any fully depreciated property, plant and equipment
that is still in use
(c) the carrying amount of property, plant and equipment retired from active use and
not classified as held for sale in accordance with AASB 5, and
(d) when the cost model is used, the fair value of property, plant and equipment when
this is materially different from the carrying amount.
Idle assets
IFRIC Rejection 11. In May 2010, the IFRS Interpretations Committee discussed the disclosures required in
Statement May 2010
relation to idle assets and assets under construction where additional construction has been
postponed. While the IFRS Interpretations Committee noted that the disclosures in paragraph
79 are merely ‘recommended’ but not mandatory, it reminded entities of the general
requirement in IAS 1 paragraph 112(c) to disclose information that is relevant to an
understanding of the financial statements. Disclosures regarding idle assets may be
particularly relevant in the current economic environment and the IFRS Interpretations
Committee would therefore expect entities to provide such information in their financial
statements if the amounts involved are material.
AASB116(Aus77.1) 12. Notwithstanding paragraph 77(e) of AASB 116, in respect of not-for-profit entities, for each
revalued class of property, plant and equipment, the requirement to disclose the carrying
amount that would have been recognised had the assets been carried under the cost model
does not apply.
Impairment
13. For an illustration of required disclosures in relation to impairment write-downs and associated
commentary please refer to note 24.

AASB101(51)(c) 30 June 2011
(continued)
21 Non-current assets – Investment properties 1,2,5-13

2011 2010
$'000 $'000
At Fair value 3
AASB140(76) Opening balance at 1 July 3,050 3,205
AASB140(76)(a) Acquisitions 200 -
AASB140(76)(a) Capitalised subsequent expenditure - 10
AASB140(76)(c) Classified as held for sale or disposals - (112)
AASB140(76)(d) Net gain/(loss) from fair value adjustment 50 97
AASB140(76)(f) - (150)
Transfer (to)/from inventories and owner-occupied property
AASB140(76) 3,300 3,050
Closing balance at 30 June
AASB140(75)(f) (a) Amounts recognised in profit or loss for investment properties
2011 2010
$'000 $'000
AASB140(75)(f)(i) Rental income 180 165

AASB140(75)(f)(ii) Direct operating expenses from property that generated rental income (7) (6)
AASB140(75)(f)(iii) Direct operating expenses from property that did not generate rental
income (3) (3)
170 156
(b) Valuation basis

AASB140(75)(a), The group obtains independent valuations for its investment properties at least annually. At the end of
(d),(e)
each reporting period, the directors update their assessment of the fair value of each property, taking
into account the most recent independent valuations. The directors determine a property's value within
a range of reasonable fair value estimates.
The best evidence of fair value is current prices in an active market for similar investment properties.
Where such information is not available the directors consider information from a variety of sources
including:
(i) current prices in an active market for properties of different nature or recent prices of similar
properties in less active markets, adjusted to reflect those differences
(ii) discounted cash flow projections based on reliable estimates of future cash flows
(iii) capitalised income projections based upon a property's estimated net market income, and a
capitalisation rate derived from an analysis of market evidence.
At the end of the reporting period the key assumptions used by the directors in determining fair value
were in the following ranges for the group's portfolio of properties:
2011 2010
Discount rate 4% – 5% 6% – 7%
Terminal yield 6% – 7% 5% – 6%
Capitalisation rate 4% – 4.5% 4.5% – 5%
Expected vacancy rate 9% – 10% 5% – 6%
Rental growth rate 3% – 3.6% 4% – 4.5%
All of the above key assumptions have been taken from the last independent valuation report for the
assets in the portfolio.

AASB101(51)(c) 30 June 2011
(continued)
21 Non-current assets – Investment properties (continued)
AASB140(75)(g) (c) Non-current assets pledged as security

Refer to note 28 for information on non-current assets pledged as security by the group.
AASB140(75)(h) (d) Contractual obligations

Refer to note 39 for disclosure of any contractual obligations to purchase, construct or develop
investment property or for repairs, maintenance or enhancements.
AASB117(56)(c) (e) Leasing arrangements 4

Some of the investment properties are leased to tenants under long-term operating leases with rentals
payable monthly. Minimum lease payments receivable on leases of investment properties are as
follows:
2011 2010
$'000 $'000
AASB117(56)(a) Minimum lease payments under non-cancellable operating leases of

investment properties not recognised in the financial statements are
receivable as follows:
Within one year 265 245
Later than one year but not later than 5 years 1,120 1,050
Later than 5 years 370 550
1,755 1,845
Commentary - Non-current assets - Investment properties
Definition
AASB140(5) 1. An investment property is property (land or a building – or part of a building – or both) held (by
the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or
both, rather than for:
(a) use in the production or supply of goods or services or for administrative purposes,
or
(b) sale in the ordinary course of business.
AASB140(6) 2. A property interest that is held by a lessee under an operating lease may be classified and
accounted for as investment property if, and only if, the property would otherwise meet the
definition of an investment property above and the lessee uses the fair value model.
Reconciliation
AASB140(76) 3. An entity that applies the fair value model in AASB 140 Investment Property shall disclose a
reconciliation between the carrying amounts of investment property at the beginning and end
of the period, showing the following:
(a) additions, disclosing separately those additions resulting from acquisitions and
those resulting from subsequent expenditure recognised in the carrying amount of
an asset
(b) additions resulting from acquisitions through business combinations
(c) assets classified as held for sale or included in a disposal group in accordance with
AASB 5 Non-current Assets Held for Sale and Discontinued Operations and other
disposals
(d) net gains or losses from fair value adjustments
(e) the net exchange differences arising on the translation of the financial statements
into a different presentation currency, and on translation of a foreign operation into
the presentation currency of the reporting entity
(f) transfers to and from inventories and owner-occupied property, and
(g) other changes.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets - Investment properties (continued)
Operating lease disclosure for lessors

AASB117(49) 4. Lessors shall present assets subject to operating leases in their balance sheets according to
the nature of the asset.
Impairment
5. Refer to the commentary in note 24 for the disclosure requirements concerning impairment of
an asset.
Where classification is difficult
AASB140(75)(c) 6. When it is difficult to determine whether a property qualifies for classification as an investment
property, disclosure is required of the criteria used to distinguish investment property from
owner-occupied property and property held for sale in the ordinary course of business.
Where valuation adjusted for financial statements
AASB140(77) 7. When a valuation obtained for investment property is adjusted significantly for the purposes of
the financial statements, for example to avoid double-counting of assets or liabilities that are
recognised as separate assets and liabilities as described in paragraph 50 of AASB 140, the
entity shall disclose a reconciliation between the valuation obtained and the adjusted valuation
included in the financial statements, showing separately the aggregate amount of any
recognised lease obligations that have been added back, and any other significant
adjustments.
Sale of investment property between pools of assets measured using different models
AASB140(75)(f)(iv) 8. An entity shall disclose the amounts recognised in profit or loss for the cumulative change in
fair value recognised in profit or loss on a sale of an investment property from a pool of assets
in which the cost model is used into a pool in which the fair value model is used (refer to
paragraph 32C of AASB 140).
Contingent rents received by lessor
AASB117(56)(b) 9. An entity shall disclose total contingent rents recognised as income in the period.
Operating leases classified as investment property
AASB140(75)(b) 10. An entity shall disclose if it applies the fair value model, whether, and in what circumstances,
property interests held under operating leases are classified and accounted for as investment
property.
Where fair value not reliably determinable on a continuing basis
AASB140(78) 11. In exceptional cases, referred to in paragraph 53 of AASB 140, there may be clear evidence
that the fair value of the investment property is not reliably determinable on a continuing basis.
The entity then measures investment property using the cost model in AASB 116 Property,
Plant and Equipment. In these cases, the reconciliation required by paragraph 76 of AASB 140
shall disclose amounts relating to that investment property separately from amounts relating to
other investment property. In addition, an entity shall disclose:
(a) a description of the investment property
(b) an explanation of why fair value cannot be determined reliably
(c) if possible, the range of estimates within which fair value is highly likely to lie, and
(d) on disposal of investment property not carried at fair value:
(i) the fact that the entity has disposed of investment property not carried at
fair value
(ii) the carrying amount of that investment property at the time of sale, and
(iii) the amount of gain or loss recognised.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets - Investment properties (continued)
Use of cost model

AASB140(79)(a)-(e) 12. An entity that applies the cost model in paragraph 56 of AASB 140 shall not apply the
disclosure requirements of paragraphs 76 to 78 of AASB 140. Instead it shall disclose:
(a) the depreciation methods used
(b) the useful lives or the depreciation rates used
(c) the gross carrying amount and the accumulated depreciation (aggregated with
accumulated impairment losses) at the beginning and end of the period
(d) a reconciliation of the carrying amount of investment property at the beginning and
end of the period, showing the following:
(i) additions, disclosing separately those additions resulting from
acquisitions and those resulting from subsequent expenditure recognised
as an asset
(ii) additions resulting from acquisitions through business combinations
(iii) assets classified as held for sale or included in a disposal group in
accordance with AASB 5 and other disposals
(iv) depreciation
(v) the amount of impairment losses recognised, and the amount of
impairment losses reversed, during the period in accordance with AASB
136 Impairment of Assets
(vi) the net exchange differences arising on the translation of the financial
statements into a different presentation currency, and on translation of a
foreign operation into the presentation currency of the reporting entity
(vii) transfers to and from inventories and owner-occupied property, and
(viii) other changes, and
(e) the fair value of the investment property (refer to paragraph 14 below for the
requirements in circumstances where this cannot be determined reliably).
AASB140(79)(e) 13. In the exceptional cases described in paragraph 53 of AASB 140, where an entity cannot
determine the fair value of the investment property reliably, it shall disclose:
(a) a description of the investment property
(b) an explanation of why fair value cannot be determined reliably, and
(c) if possible, the range of estimates within which fair value is highly likely to lie.

AASB101(51)(c) 30 June 2011
(continued)
22 Non-current assets – Deferred tax assets 4

2011 2010
$'000 $'000
Notes
AASB112(81)(g)(i) The balance comprises temporary differences
attributable to:
Tax losses 178 165
Employee benefits 153 132
Retirement benefit obligations 31 145 44
Building write-down 20 140 -
616 341
Other
Deferred revenue 27 119 111
Doubtful debts 38 30
Make good provision 30 67 -
Provision for warranties and legal costs 26 22 12
Lease incentives 39 60 75
Finance leases 39 5 -
Interest in partnership 45 15 18
Share issue expenses 32(c) 12 -
Cash flow hedges 33(a) 93 96
Sub-total other 431 342
Total deferred tax assets 1,047 683
AASB112(74)
Set-off of deferred tax liabilities pursuant to set-off provisions 1 29 (313) (245)
Net deferred tax assets 734 438
AASB101(61) Deferred tax assets expected to be recovered within 12 months 382 323
AASB101(61)
Deferred tax assets expected to be recovered after more than 12
months 2 665 360
1,047 683
AASB112(81)(g)(ii) Retirement
Employee benefit Building
Movements Tax losses benefits obligation impairment Other Total
$'000 $'000 $'000 $'000 $'000 $'000
At 1 July 2009 * 120 138 76 - 218 552

(Charged)/credited
AASB112(81)(g)(ii) - to profit or loss 45 (6) 27 - 114 180
AASB112(81)(ab) - to other
comprehensive income - - (59) - 10 (49)
At 30 June 2010 * 165 132 44 - 342 683
(Charged)/credited
AASB112(81)(g)(ii) - to profit or loss (60) 21 2 140 83 186
comprehensive income - - 92 - (9) 83
AASB112(81)(a) - directly to equity - - - - 15 15
Acquisition of subsidiary 73 - 7 - - 80
At 30 June 2011 178 153 145 140 431 1,047
AASB101(10)(f),(39) * Refer to note 7(a) for explanations of an error made in the accounting for a leasing contract in prior
(Revised)
financial years and retrospective adjustments recognised on 1 July 2009 and 30 June 2010. The
amounts disclosed are after these adjustments.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets - Deferred tax assets
Setting off of deferred tax assets and liabilities

AASB112(74) 1. Deferred tax assets and liabilities shall be set off if, and only if:
(a) there is a legally recognised right to set off current tax assets and liabilities, and
(b) the deferred tax assets and liabilities relate to income taxes levied by the same
taxation authority on either:
(i) the same taxable entity, or
(ii) different taxable entities which intend to settle current tax liabilities and
assets on a net basis, or to realise the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of
deferred tax liabilities or assets are expected to be settled or recovered.
AASB112(76) The circumstances giving rise to a set off between entities in a consolidated entity are likely to
be rare, unless the entities are part of a tax consolidated group.
Deferred tax assets recovered within and after 12 months
AASB101(61) 2. Where an asset or a liability combines amounts that are expected to be recovered or settled
within the next 12 months after the reporting period and more than 12 months after that date,
paragraph 61 of AASB 101 Presentation of Financial Statements requires disclosure of the
amount expected to be recovered or settled after more than 12 months. VALUE ACCOUNTS
Holdings Limited has determined this amount as the aggregate deferred tax assets relating to
temporary differences associated with non-current assets or liabilities. Conversely, deferred tax
assets relating to current assets and liabilities are assumed to be recovered within the next 12
months.
Retrospective adjustments for errors or changes in accounting policies
AASB101(10)(f),(39) 3. Where an entity has made a retrospective change in accounting policy, a retrospective
restatement in its financial statements or has reclassified items, it must provide a third balance
sheet as at the beginning of the earliest comparative period (1 July 2009 for VALUE
ACCOUNTS Holdings Limited). This requirement also extends to the related notes. The
reconciliation of deferred tax assets already provides comparative information as of 1 July
2009, however, a footnote was added highlighting the fact that the opening balances have been
adjusted.
AASB112(82) 4. The following disclosures are not illustrated because they are not applicable to VALUE
ACCOUNTS Holdings Limited:
(a) the amount of a deferred tax asset and the nature of the evidence supporting its
recognition if it has been recognised and:
(i) its utilisation depends upon future taxable amounts in excess of profits
arising from the reversal of existing taxable temporary differences, and
(ii) the entity has suffered a loss in the current or preceding reporting period
in the tax jurisdiction to which the deferred tax asset relates.

AASB101(51)(c) 30 June 2011
(continued)
23 Non-current assets – Intangible assets 1-6,10,14,16,17,19,20,21

Patents,
trademarks
and other Customer
Goodwill rights Software * contracts Total
$'000 $'000 $'000 $'000 $'000
AASB3((B67)(d)(i)
AASB138(118)(c) At 1 July 2009
AASB138(RDR118.1) Cost 700 210 55 - 965
Accumulated amortisation and
impairment - (50) (5) - (55)
Net book amount 700 160 50 - 910
AASB138(118)(e) Year ended 30 June 2010

Opening net book amount 700 160 50 - 910
AASB138(118)(e)(i)
AASB3(B67)(d)(ii) Additions – acquisition - - 20 - 20
AASB3(B67)((d)(vi) Exchange differences 45 - - - 45
AASB138(118)(e)(vi) - (25) (5) - (30)
Amortisation charge **
Closing net book amount 745 135 65 - 945
AASB3(B67)(d)(viii)
AASB138(118)(c) At 30 June 2010
Cost 745 210 75 - 1,030
impairment - (75) (10) - (85)
AASB101(77) 745 135 65 - 945
Net book amount
AASB3(B67)(d)(i)
AASB138(118)(e) Year ended 30 June 2011
Opening net book amount 745 135 65 - 945
AASB138(118)(e)(i) Additions – internal
development - - 100 - 100
AASB3(B67)(d)(ii)
AASB138(118)(e)(i) Acquisition of business 210 20 - 180 410
AASB3(B67)((d)(vi) Exchange differences (15) - - - (15)
AASB3(B67)(d)(v)
AASB136(130)(b)
AASB138(118)(e)(iv) Impairment charge *** (410) - - - (410)
AASB138(118)(e)(vi) - (25) (20) (90) (135)
Amortisation charge **
Closing net book amount * 530 130 145 90 895
AASB3(B67)(d)(viii)
AASB138(118)(c) At 30 June 2011
Cost 940 230 175 180 1,525
impairment (410) (100) (30) (90) (630)
AASB101(77) 530 130 145 90 895
Net book amount
AASB138(118)(e)(i) * Software includes capitalised development costs being an internally generated intangible asset.
AASB138(118)(d) ** Amortisation of $135,000 (2010 – $30,000) is included in depreciation and amortisation expense in
profit or loss.
AASB136(126)(a), *** The carrying amount of the furniture manufacturing segment in South East Asia has been reduced
(130)(c)(i),(d)(i)
to its recoverable amount through recognition of an impairment loss against goodwill. This loss has
been disclosed as a separate line item in profit or loss.

AASB101(51)(c) 30 June 2011
(continued)
23 Non-current assets – Intangible assets (continued)
(a) Impairment tests for goodwill 7-9,15,21

AASB136(134) Goodwill is allocated to the group's cash-generating units (CGUs) identified according to operating
segment and country of operation.
AASB136(134)(a) A segment-level summary of the goodwill allocation is presented below.
2011 Australia South East Other Total

Asia countries
$'000 $'000 $'000 $'000
IT consulting 200 60 40 300

Furniture – manufacturing 20 - - 20
Electronic equipment 210 - - 210
430 60 40 530
2010 Australia South East Other countries Total

Asia
$'000 $'000 $'000 $'000
IT consulting 200 75 40 315

Furniture – manufacturing 20 410 - 430
220 485 40 745
AASB136(130)(e), The recoverable amount of a CGU is determined based on value-in-use calculations. These
(134)(c),(d)(iii),(iv)
calculations use cash flow projections based on financial budgets approved by management covering a
five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth
rates stated below. The growth rate does not exceed the long-term average growth rate for the
business in which the CGU operates.
AASB136(134)(d)(i) (b) Key assumptions used for value-in-use calculations 13

AASB136(130)(g), CGU Gross margin * Growth rate ** Discount rate ***
(134)(d)(i),(iv),(v)
2011 2010 2011 2010 2011 2010
% % % % % %
Furniture – manufacturing
Australia 55.0 52.0 2.0 1.9 14.3 14.8
South East Asia 47.0 44.0 3.5 3.2 14.7 14.3
IT consulting
Australia 60.0 60.0 2.2 2.2 14.0 14.4
South East Asia 55.0 54.0 2.0 1.8 14.8 15.1
Other countries 50.0 50.0 1.8 1.8 14.5 15.0
Machinery hire
Australia - 45.0 - 1.8 - 15.5
South East Asia - 48.0 - 2.0 - 14.9
Other countries - 43.0 - 1.9 - 15.2
Other
Australia 42.0 40.0 1.9 1.9 15.0 14.5
South East Asia 40.0 38.0 2.1 2.1 16.0 16.5
Other countries 40.0 40.0 1.9 1.9 15.5 15.8
* Budgeted gross margin

** Weighted average growth rate used to extrapolate cash flows beyond the budget period
*** In performing the value-in-use calculations for each CGU, the group has applied post-tax discount
rates to discount the forecast future attributable post-tax cash flows. The equivalent pre-tax discount
rates are disclosed above. The same post-tax discount rates were applied in 2010 and 2011. The
movements in the equivalent pre-tax discount rates between 2010 and 2011 reflect changes in the
anticipated timing of future cash flows.

AASB101(51)(c) 30 June 2011
(continued)
23 Non-current assets – Intangible assets (continued)
(b) Key assumptions used for value-in-use calculations (continued)

AASB136(134)(d)(ii), These assumptions have been used for the analysis of each CGU within the business segment.
(iv)
AASB136(55) Management determined budgeted gross margin based on past performance and its expectations for
the future. The weighted average growth rates used are consistent with forecasts included in industry
reports. The discount rates used reflect specific risks relating to the relevant segments and the
countries in which they operate.
AASB136(134)(f) (c) Impairment charge 11,12

AASB136(129)(a), The impairment charge of $410,000 arose in a furniture manufacturing CGU in Indonesia (included in
(130)(a),(c)(ii)
the South East Asian segment summary) following a decision to reduce the manufacturing output
allocated to these operations. This was a result of a redefinition of the group's allocation of
manufacturing volumes across all CGUs in order to benefit from advantageous market conditions.
Following this decision, the group reassessed the depreciation policies of its property, plant and
equipment in this country and estimated that their useful lives will not be affected following this decision.
No class of asset other than goodwill was impaired.
AASB136(134)(f) (d) Impact of possible changes in key assumptions 18
Furniture manufacturing CGU – South East Asia

AASB101(129)(b) If the budgeted gross margin used in the value-in-use calculation for the furniture manufacturing CGU in
AASB136(134)(f)(i)-(iii)
Indonesia had been 10% lower than management's estimates at 30 June 2011 (37% instead of 47%),
the group would have recognised a further impairment of goodwill of $100,000 and would need to
reduce the carrying amount of property, plant and equipment by $300,000.
If the estimated cost of capital used in determining the pre-tax discount rate for this CGU had been 1%
higher than management's estimates (15.7% instead of 14.7%), the group would have recognised a
further impairment against goodwill of $100,000. In 2010 there were no reasonably possible changes in
any of the key assumptions that would have caused the carrying amount of the Indonesian furniture
manufacturing CGU to exceed its recoverable amount.
IT Consulting CGU – South East Asia
AASB136(134)(f)(i) The recoverable amount of the IT Consulting CGU in South East Asia is estimated to be $580,000
AASB101(38)
(2010 – $640,000). This exceeds the carrying amount of the CGU at 30 June 2011 by $18,000 (2010 –
$24,000).
AASB136(134)(f)(ii), If the pre-tax discount rate applied to the cash flow projections of the IT Consulting CGU in South East
(iii)
AASB101(38) Asia was 15.5% instead of 14.8% (2010 – 15.9% instead of 15.1%), the recoverable amount of the
CGU would equal its carrying amount. A reasonably possible change in any of the other key
assumptions would not cause the carrying amount of the IT Consulting CGU to exceed its recoverable
amount.
Commentary - Non-current assets - Intangible assets
Accounting standards for intangible assets

AASB138(2)(a),(3)(f) 1. Accounting for intangible assets is set out in AASB 138 Intangible Assets. However, AASB 138
does not apply to intangible assets that are within the scope of another standard, including
goodwill acquired in a business combination which is covered by AASB 3 Business
Combinations.
AASB138(118) 2. Paragraph 118 of AASB 138 requires specific disclosures for each class of intangible assets,
distinguishing between internally generated intangible assets and other intangible assets. Most
of these disclosures are illustrated in the intangible assets note, but the disclosures described
in the following paragraphs are not applicable to VALUE ACCOUNTS Holdings Limited.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets - Intangible assets (continued)
Additional disclosures for reconciliation

3. Where applicable, the reconciliation of the carrying amount at the beginning and end of the
period shall show:
AASB138(118)(e)(ii) (a) assets classified as held for sale or included in a disposal group classified as held
for sale in accordance with AASB 5 Non-current Assets Held for Sale and
Discontinued Operation and other disposals
AASB138(118)(e)(iii) (b) increases or decreases during the period resulting from revaluations under
paragraphs 75, 85 and 86 of AASB 138 and from impairment losses recognised or
reversed in other comprehensive income in accordance with AASB 136
Impairment of Assets (if any)
AASB138(118)(e)(v) (c) impairment losses reversed in profit or loss during the period in accordance with
AASB 136 (if any)
AASB138(118)(e)(vii) (d) net exchange differences arising on the translation of the financial statements into
the presentation currency, and on the translation of a foreign operation into the
presentation currency of the entity
AASB138(118)(e)(viii) (e) other changes in the carrying amount during the period.
Other disclosures
AASB138(122) 4. The financial statements shall also disclose:
(a) for an intangible asset assessed as having an indefinite useful life, the carrying
amount of that asset and the reasons supporting the assessment of an indefinite
useful life, including the factor(s) that played a significant role in determining that
the asset has an indefinite useful life
(b) a description, the carrying amount and remaining amortisation period of any
individual intangible asset that is material to the entity’s financial statements
(c) for intangible assets acquired by way of a government grant and initially
recognised at fair value:
(i) the fair value initially recognised for these assets
(ii) their carrying amount, and
(iii) whether they are measured after recognition under the cost model or
the revaluation model
(d) the existence and carrying amounts of intangible assets whose title is restricted
and the carrying amounts of intangible assets pledged as security for liabilities,
and
(e) the amount of contractual commitments for the acquisition of intangible assets.
Encouraged disclosures
AASB138(128) 5. An entity is encouraged, but not required, to disclose the following information:
(a) a description of any fully amortised intangible asset that is still in use
(b) a brief description of significant intangible assets controlled by the entity but not
recognised as assets because they did not meet the recognition criteria in AASB
138.
Use of revaluation model
AASB138(124) 6. If intangible assets are accounted for at revalued amounts, an entity shall disclose the
following:
(a) by class of intangible assets:
(i) the effective date of the revaluation
(ii) the carrying amount of revalued intangible assets
(iii) the carrying amount that would have been recognised had the revalued
AASB138(Aus124.1) class of intangible assets been measured after recognition using the
cost model in paragraph 74 of AASB 138 - this requirement does not
apply to not-for-profit entities.
(b) the amount of the revaluation surplus that relates to intangible assets at the
beginning and end of the period, indicating the changes during the period and any
restrictions on the distribution of the balance to shareholders, and
(c) the methods and significant assumptions applied in estimating the assets’ fair
values.

AASB101(51)(c) 30 June 2011
(continued)
Goodwill
AASB3(61),(B67)(d) 7. Information shall be disclosed to enable users of the financial statements to evaluate changes
in the carrying amount of goodwill during the period. To give effect to this principle, an entity
shall disclose a reconciliation of the carrying amount of goodwill at the beginning and end of
the period, showing separately:
AASB3(B67)(d)(i) (a) the gross amount and accumulated impairment losses at the beginning of the
period
AASB3(B67)(d)(ii) (b) additional goodwill recognised during the period except goodwill included in a
disposal group that, on acquisition, meets the criteria to be classified as held for
sale in accordance with AASB 5
AASB3(B67)(d)(iii) (c) adjustments resulting from the subsequent recognition of deferred tax assets during
the period in accordance with paragraph 67 of AASB 3
AASB3(B67)(d)(iv) (d) goodwill included in a disposal group classified as held for sale in accordance with
AASB 5 and goodwill derecognised during the period without having previously
been included in a disposal group classified as held for sale
AASB3(B67)(d)(v) (e) impairment losses recognised during the period in accordance with AASB 136
AASB3(B67)(d)(vi) (f) net exchange differences arising during the period in accordance with AASB 121
The Effects of Changes in Foreign Exchange Rates
AASB3(B67)(d)(vii) (g) any other changes in the carrying amount during the period
AASB3(B67)(d)(viii) (h) the gross amount and accumulated impairment losses at the end of the period.
AASB3(63) 8. If the information required to be disclosed by AASB 3 does not satisfy the objective set out in
paragraph 61 of the standard (refer to paragraph 7 above), such additional information as is
necessary to meet that objective shall be disclosed.
Impairment
9. Accounting standards for impairment of assets are set out in AASB 136 Impairment of Assets.
For each class of asset
10. The following disclosures that are not applicable to VALUE ACCOUNTS Holdings Limited are
required for each class of assets:
AASB136(126)(b) (a) the amount of reversals of impairment losses recognised in profit or loss during the
period and the line item(s) of the statement of comprehensive income in which
those impairment losses are reversed
AASB136(126)(c) (b) the amount of impairment losses on revalued assets recognised in other
comprehensive income during the period, and
AASB136(126)(d) (c) the amount of reversals of impairment losses on revalued assets recognised in
other comprehensive income during the period.
For individual asset or CGU
11. The following shall be disclosed for each material impairment loss recognised or reversed
during the period for an individual asset, including goodwill, or a cash-generating unit
(applicable disclosures are included in these financial statements in relation to goodwill, but
not in relation to cash-generating units as there are no such losses or reversals in VALUE
ACCOUNTS Holdings Limited):
AASB136(130)(a) (a) the events and circumstances that led to the recognition or reversal of the
impairment loss
AASB136(130)(b) (b) the amount of the impairment loss recognised or reversed, and
AASB136(130)(c) (c) for an individual asset:
(i) the nature of the asset
(ii) if the entity reports segment information in accordance with AASB 8
Operating Segments, the reportable segment to which the asset belongs
AASB136(130)(d) (d) for each cash-generating unit:
(i) a description of the cash-generating unit (such as whether it is a product
line, a plant, a business operation, a geographical area, or a reportable
segment as defined in AASB 8)
(ii) the amount of the impairment loss recognised or reversed by class of
assets and, if the entity reports segment information in accordance with
AASB 8, by reportable segment, and
(iii) if the aggregation of assets for identifying the cash-generating unit has
changed since the previous estimate of the cash-generating unit’s
recoverable amount (if any), a description of the current and former way
of aggregating assets and the reasons for changing the way the
cash-generating unit is identified, and

AASB101(51)(c) 30 June 2011
(continued)
AASB136(130)(e) (e) whether the recoverable amount of the asset (cash-generating unit) is its fair value
less costs to sell or its value in use
AASB136(130)(f) (f) if recoverable amount is fair value less costs to sell, the basis used to determine
fair value less costs to sell (such as whether fair value was determined by
reference to an active market), and
AASB136(130)(g) (g) if recoverable amount is value in use, the discount rate(s) used in the current
estimate and previous estimate (if any) of value in use.
For aggregate amounts
12. An entity shall disclose the following information for the aggregate impairment losses and the
aggregate reversals of impairment losses recognised during the period for which no
information is disclosed in accordance with paragraph 11 above:
AASB136(131)(a) (a) the main classes of assets affected by impairment losses and the main classes of
assets affected by reversals of impairment losses
AASB136(131)(b) (b) the main events and circumstances that led to the recognition of these impairment
losses and reversals of impairment losses.
Assumptions
AASB136(132) 13. An entity is encouraged to disclose the assumptions used to determine the recoverable
AASB136(134)
amount of all significant assets and cash-generating units during the period, which is what
VALUE ACCOUNTS Holdings Limited has done. However, as a minimum, paragraph 134 of
AASB 136 requires an entity to disclose information about the estimates used to measure the
recoverable amount of a cash-generating unit when goodwill or an intangible asset with an
indefinite useful life is included in the carrying amount of that unit.
Unallocated goodwill
AASB136(133) 14. If, in accordance with paragraph 84 of AASB 136, any portion of the goodwill acquired in a
business combination during the period has not been allocated to a cash-generating unit
(group of units) at the end of the reporting period, the amount of the unallocated goodwill
shall be disclosed together with the reasons why that amount remains unallocated.
Intangible assets with indefinite useful lives
AASB136(134) 15. Paragraph 134 of AASB 136 requires detailed disclosures for each cash-generating unit
AASB136(134)(b)
(group of units) for which the carrying amount of goodwill or intangible assets with indefinite
useful lives allocated to that unit (group of units) is significant in comparison with the entity’s
total carrying amount of goodwill or intangible assets with indefinite useful lives. The
disclosures in the VALUE ACCOUNTS Holdings Limited financial statements relate to
goodwill, but where applicable, the carrying amount of intangible assets with indefinite useful
lives allocated to the unit (group of units) shall also be disclosed.
Recoverable amount based on fair value
AASB136(134)(d) 16. In the case of VALUE ACCOUNTS Holdings Limited, the recoverable amount of
AASB136(134)(e)
cash-generating units is based on value in use. Accordingly, the disclosures required by
paragraph 134(d) of AASB 136 are illustrated in the intangible assets note. If the unit’s
(group of units’) recoverable amount is based on fair value less costs to sell, the
methodology used to determine fair value less costs to sell shall be disclosed. If fair value
less costs to sell is not determined using an observable market price for the unit (group of
units), the following information shall also be disclosed:
AASB136(134)(e)(i) (a) a description of each key assumption on which management has based its
determination of fair value less costs to sell. Key assumptions are those to which
the unit’s (group of units’) recoverable amount is most sensitive, and
AASB136(134)(e)(ii) (b) a description of management’s approach to determining the value(s) assigned to
each key assumption, whether those value(s) reflect past experience or, if
appropriate, are consistent with external sources of information, and, if not, how
and why they differ from past experience or external sources of information.
AASB136(134) 17. If fair value less costs to sell is determined using discounted cash flow projections, the entity
(e)(iii)-(v)
shall also disclose:
(a) the period over which management has projected cash flows
(b) the growth rate used to extrapolate cash flow projections, and
(c) the discount rate applied to the cash flow projections.

AASB101(51)(c) 30 June 2011
(continued)
Changes in key assumptions

AASB136(134)(f) 18. If a reasonably possible change in a key assumption on which management has based its
determination of the unit’s (group of units’) recoverable amount would cause the unit’s (group
of units’) carrying amount to exceed its recoverable amount, disclosure is required of:
(a) the amount by which the unit’s (group of units’) recoverable amount exceeds its
carrying amount
(b) the value assigned to the key assumption, and
(c) the amount by which the value assigned to the key assumption must change, after
incorporating any consequential effects of that change on the other variables used
to measure recoverable amount, in order for the unit’s (group of units’)
recoverable amount to be equal to its carrying amount.
Allocated to multiple CGUs
AASB136(135) 19. If some or all of the carrying amount of goodwill or intangible assets with indefinite useful
lives is allocated across multiple cash-generating units (groups of units), and the amount so
allocated to each unit (group of units) is not significant in comparison with the entity’s total
carrying amount of goodwill or intangible assets with indefinite useful lives, that fact shall be
disclosed, together with the aggregate carrying amount of goodwill or intangible assets with
indefinite useful lives allocated to those units (groups of units). In addition, if the recoverable
amounts of any of those units (groups of units) are based on the same key assumption(s)
and the aggregate carrying amount of goodwill or intangible assets with indefinite useful lives
allocated to them is significant in comparison with the entity’s total carrying amount of
goodwill or intangible assets with indefinite useful lives, an entity shall disclose that fact,
together with:
AASB136(135)(a) (a) the aggregate carrying amount of goodwill allocated to those units (groups of
units)
AASB136(135)(b) (b) the aggregate carrying amount of intangible assets with indefinite useful lives
allocated to those units (groups of units)
AASB136(135)(c) (c) a description of the key assumption(s)
AASB136(135)(d) (d) a description of management’s approach to determining the value(s) assigned to
the key assumption(s), whether those value(s) reflect past experience or, if
appropriate, are consistent with external sources of information, and, if not, how
and why they differ from past experience or external sources of information
AASB136(135)(e) (e) if a reasonably possible change in the key assumption(s) would cause the
aggregate of the units’ (groups of units’) carrying amounts to exceed the
aggregate of their recoverable amounts:
(i) the amount by which the aggregate of the units’ (groups of units’)
recoverable amounts exceeds the aggregate of their carrying amounts
(ii) the value(s) assigned to the key assumption(s), and
(iii) the amount by which the value(s) assigned to the key assumption(s)
must change, after incorporating any consequential effects of the
change on the other variables used to measure recoverable amount, in
order for the aggregate of the units’ (groups of units’) recoverable
amounts to be equal to the aggregate of their carrying amounts.
Prior year recoverable amount calculation
AASB136(136) 20. The most recent detailed calculation made in a preceding period of the recoverable amount
of a cash-generating unit (group of units) may, in accordance with paragraphs 24 or 99 of
AASB 136, be carried forward and used in the impairment test for that unit (group of units) in
the current period provided specified criteria are met. When this is the case, the information
for that unit (group of units) that is incorporated into the disclosures required by paragraphs
134 and 135 of AASB 136 relate to the carried forward calculation of recoverable amount.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current assets – Intangible assets (continued)
Initiatives to reduce carbon pollution

21. At the time of writing the Government’s potential initiatives aimed at the reduction of carbon
pollution were still being debated. Considering the significant uncertainties regarding the
future of carbon reduction schemes in Australia, VALUE ACCOUNTS Holdings Limited has
not adjusted its future cash flows for the possible impact of any scheme. However, entities
will need to make their own assessment of the impact of any future scheme on their
business cash flows closer to the end of their reporting period. If final details are announced
and there is majority support for the passage of legislation for a proposed scheme through
both Houses of Parliament, entities may have an impairment indicator and hence be
required to reassess specifically the recoverable amount of the relevant assets to determine
whether any write-downs are required. Entities that will be significantly affected should
explain the potential impact of any future scheme on their future results and disclose the key
assumptions used in impairment tests, including an explanation of whether the proposal has
been factored into the impairment calculation and, if so, how.
24 Current liabilities – Trade and other payables 1

2011 2010
$'000 $'000
AASB101(77) Trade payables 1,160 1,427

AASB101(77) 540 1,050
Other payables
1,700 2,477
(a) Risk exposure

AASB7(31) Information about the group's exposure to foreign exchange risk is provided in note 2.
Commentary - Current liabilities - Trade and other payables

Fair value disclosure
AASB7(29)(a) 1. For financial instruments such as short-term trade payables, no disclosure of fair value is
required when the carrying amount is a reasonable approximation of fair value. Where the
carrying amount is not a reasonable approximation of fair value, disclosure of the fair value is
required by paragraph 25 of AASB 7 Financial Instruments: Disclosures.

AASB101(51)(c) 30 June 2011
(continued)
25 Current liabilities – Borrowings 1-4

(Revised) 2011 2010 1 July 2009
$'000 $'000 $’000
AASB101(77) Secured
Bank overdrafts 2,350 2,250 1,620
Bank loans 50 50 99
Debentures 200 1,000 1,000
Lease liabilities ((c) and note 39) 80 75 -
Other loans 50 50 50
Total secured current borrowings 2,730 3,425 2,769
AASB101(77) Unsecured
Bills payable 250 130 100
Total unsecured current borrowings 250 130 100
Total current borrowings 2,980 3,555 2,869
(a) Security and fair value disclosures

AASB7(15),(25) Information about the security relating to each of the secured liabilities and the fair value of each of
the borrowings is provided in note 28.
(b) Risk exposures

AASB7(31) Details of the group's exposure to risks arising from current and non-current borrowings are set out in
note 2.
(Revised) (c) Correction of error

previous financial years and retrospective adjustments recognised on 1 July 2009 and 30 June 2010.
The amounts disclosed in this note are after these adjustments.
Commentary - Current liabilities - Borrowings

Defaults and breaches
1. Refer to the commentary on note 28 for the disclosure requirements concerning defaults and
breaches of loan agreements.
Designation at fair value through profit or loss
2. If an entity has designated a financial liability as at fair value through profit or loss on initial
recognition, it shall disclose:
AASB7(8)(e) (a) the carrying amount separately from other financial liabilities at fair value through
profit or loss (held for trading or derivatives)
AASB7(10)(a) (b) the amount of change in its fair value during the period and cumulatively, that is
attributable to changes in the credit risk, and
AASB7(10)(b) (c) the difference between its carrying amount and the amount the entity would be
contractually required to pay at maturity to the holder of the obligation.
AASB7(11) 3. The entity shall further disclose the methods used to determine the amount disclosed in 2(b)
above. If the entity believes that the disclosure it has provided does not faithfully represent
the change in the fair value of the financial liability attributable to changes in its credit risk, it
shall further disclose the reasons for reaching this conclusion and the factors it believes are
relevant.
4. For further comments on financial liabilities designated at fair value through profit or loss,
refer to paragraphs 41 to 44 of the commentary to note 1.

AASB101(51)(c) 30 June 2011
(continued)
26 Current liabilities – Provisions 1-7,10-15

2011 2010
$'000 $'000
AASB101(77) Employee benefits (d) 8,9 290 170

Service warranties (a) 35 20
Legal claim (b) 35 20
360 210
(a) Service warranties 4

AASB137(85)(a),(b) Provision is made for the estimated warranty claims in respect of products sold which are still under
warranty at the end of the reporting period. These claims are expected to be settled in the next
financial year. Management estimates the provision based on historical warranty claim information
and any recent trends that may suggest future claims could differ from historical amounts.
(b) Legal claim 4

AASB137(85)(a),(b) In April 2011, an unfavourable judgement was handed down against the group in respect of a legal
claim made by a customer of the IT consulting segment. The judgement requires a payment of
$35,000 to the claimant. A provision has been recognised for this amount. However, after taking
appropriate legal advice, the directors have decided to appeal against the decision. No payment has
been made to the claimant pending outcome of the appeal.
(c) Movements in provisions 4-6

AASB137(84) Movements in each class of provision during the financial year, other than employee benefits, are set
out below:
Service
warranties Legal claim Total
2011 $'000 $'000 $'000
Current
AASB137(84)(a) Carrying amount at start of year 20 20 40
Charged/(credited) to profit or loss
AASB137(84)(b) - additional provisions recognised 68 15 83
AASB137(84)(d) - unused amounts reversed (30) - (30)
AASB137(84)(c) (23) - (23)
Amounts used during the year
AASB137(84)(a) 35 35 70
Carrying amount at end of year
(d) Amounts not expected to be settled within the next 12 months

AASB101(61) The current provision for employee benefits includes accrued annual leave, vesting sick leave and
long service leave. For long service leave it covers all unconditional entitlements where employees
have completed the required period of service and also those where employees are entitled to
pro-rata payments in certain circumstances. The entire amount of the provision is presented as
current, since the group does not have an unconditional right to defer settlement for any of these
obligations. However, based on past experience, the group does not expect all employees to take the
full amount of accrued leave or require payment within the next 12 months. The following amounts
reflect leave that is not to be expected to be taken or paid within the next 12 months.
2011 2010
$'000 $'000
Leave obligations expected to be settled after 12 months 144 72

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Current liabilities - Provisions
Accounting standard for provisions, contingent liabilities and contingent assets

AASB137(1)-(5) 1. AASB 137 Provisions, Contingent Liabilities and Contingent Assets applies to all provisions,
contingent liabilities and contingent assets except:
(a) those resulting from executory contracts, except where the contract is onerous
(b) those covered by another Australian Accounting Standard. For example:
(i) financial instruments (including guarantees) that are within the scope of
AASB 139 Financial Instruments: Recognition and Measurement
(iii) certain types of provisions addressed in standards on
 construction contracts (refer to AASB 111 Construction Contracts)
 income taxes (refer to AASB 112 Income Taxes)
 leases (refer to AASB 117 Leases). However, as AASB 117
contains no specific requirements to deal with operating leases
that have become onerous, AASB 137 applies to such leases
 employee benefits (refer to AASB 119 Employee Benefits)
 insurance contracts (refer to AASB 4 Insurance Contracts, AASB
1023 General Insurance Contracts, and AASB 1038 Life Insurance
Contracts). However AASB 137 applies to provisions, contingent
liabilities and contingent assets of an insurer, other than those
arising from its contractual obligations and rights under insurance
contracts within the scopes of AASB 4, AASB 1023 or AASB 1038.
Definition
AASB137(10),(11) 2. A provision is a liability of uncertain timing or amount. Provisions can be distinguished from
other liabilities such as trade payables and accruals because there is uncertainty about the
timing or amount of the future expenditure required in settlement. Although it is sometimes
necessary to estimate the amount or timing of accruals, the uncertainty is generally much less
than for provisions.
AASB137(13) 3. AASB 137 distinguishes between:
(a) provisions - which are recognised as liabilities (assuming that a reliable estimate can
be made) because they are present obligations and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligations, and
(b) contingent liabilities (refer to note 40) - which are not recognised as liabilities because
they are either:
(i) possible obligations, as it has yet to be confirmed whether the entity has a
present obligation that could lead to an outflow of resources embodying
economic benefits, or
(ii) present obligations that do not meet the recognition criteria in this standard
(because either it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation, or a sufficiently
reliable estimate of the amount of the obligation cannot be made).
Required disclosures
For each class
AASB137(84),(85) 4. The following disclosures are required for each class of provision, subject to the disclosure
relief referred to in paragraph 7 below:
(a) movements in each class of provision during the period, showing separately:
AASB137(84)(a) (i) the carrying amount at the beginning and end of the period
AASB137(84)(b) (ii) additional provisions made, including increases to existing provisions
AASB137(84)(c) (iii) amounts used (ie incurred and charged against the provision) during the
period
AASB137(84)(d) (iv) unused amounts reversed during the period
AASB137(84)(e) (v) the increase during the period in the discounted amount arising from the
passage of time and the effect of any change in the discount rate
AASB137(85)(a) (b) a brief description of the nature of the obligation and the expected timing of any
resulting outflows of economic benefits
AASB137(85)(b) (c) an indication of the uncertainties about the amount or timing of those outflows. Where
necessary to provide adequate information, an entity must disclose the major
assumptions made concerning future events, as addressed in paragraph 48 of AASB
137
AASB137(85)(c) (d) the amount of any expected reimbursement, stating the amount of any asset
recognised for that expected reimbursement.

AASB101(51)(c) 30 June 2011
(continued)
Comparatives not required

AASB137(84) 5. Comparative information is not required for the disclosures referred to in paragraph 4(a)
above.
Parent entity
AASB137(84)(a)-(e) 6. Where an entity presents separate parent entity financial statements in addition to the
consolidated financial statements, details of movements in provisions for the parent entity
must also be disclosed in accordance with paragraph 4(a) above.
Exemption where prejudicial
AASB137(92) 7. Some or all of the information required under the disclosures summarised in paragraph 4
above may be omitted in the extremely rare cases where the entity is involved in a dispute
with other parties on the matter to which a provision or recoverable receivable relates and
disclosure of the information would be expected to seriously prejudice the entity’s position.
This disclosure exemption does not affect the requirement to recognise provisions that satisfy
the recognition criteria set out in paragraph 14 of AASB 137, regardless of how sensitive
certain information about provisions may be. It should also be noted that if a class of
provisions exists it is unlikely that disclosure of information relating to the class of provisions
as a whole will seriously prejudice the position of an entity in respect of disputed legal claims.
However, in the rare circumstances that the disclosure exemption can be applied, the general
nature of the dispute and the fact that, and reason why, the information has not been
disclosed must be stated. An example of such disclosure is contained in Appendix D of AASB
137.
Employee benefits
AASB137(1)(c),(5)(d) 8. As noted in paragraph 1 above, AASB 137 does not generally apply to employee benefits as
these are dealt with by AASB 119 Employee Benefits. However, if the amounts recognised in
relation to employee entitlements are material, entities should consider providing the
information required by AASB 137 (see paragraph 4 above) also for those types of provisions.
Classification of employee benefits provisions as non-current
AASB101(69) 9. Irrespective of how the amount is measured, an employee benefits provision can only be
classified in the balance sheet as a non-current liability if there is no possibility the entity
could have to pay out the provision within the next 12 months. This means, for example, that
where employees are entitled to take their long service leave or accrued annual leave during
the next 12 months, the provision relating to them must be recorded as a current liability even
though the employees may not be expected to take the leave for an extended period.
Restructuring provisions
AASB137(72) 10. AASB 137 sets out how the general recognition criteria for provisions are satisfied for
restructuring provisions. A constructive obligation to restructure only arises when an entity:
(a) has a detailed formal plan for the restructuring identifying at least:
(i) the business or part of a business concerned
(ii) the principal locations affected
(iii) the location, function and approximate number of employees who will be
compensated for terminating their services
(iv) the expenditures that will be undertaken, and
(v) when the plan will be implemented, and
(b) has raised a valid expectation in those affected that it will carry out the restructuring
by starting to implement that plan or announcing its main features to those affected
by it.
AASB137(78) 11. No obligation arises for the sale of an operation until the entity is committed to the sale; that
is, there is a binding sale agreement.
AASB137(80) 12. A restructuring provision shall include only the direct expenditures arising from the
restructuring, which are those that are both:
(a) necessarily entailed by the restructuring, and
(b) not associated with the ongoing activities of the entity.

AASB101(51)(c) 30 June 2011
(continued)
Onerous contract
AASB137(5)(c) 13. An example of an onerous contract is an operating lease that has become onerous. That
could happen, for example, where the entity is no longer occupying any of the leased space
and has entered into a sub-lease at a lower rate of rent than that payable under the lease
agreement because the cost of exiting the lease is greater than the loss on the sub-lease
arrangement.
AASB137(36) 14. The amount of the liability shall be recognised as the best estimate of the expenditure
required to settle the present obligation at the end of the reporting period. Therefore any
provision that is recognised should reflect the least net cost alternative of exiting the lease. It
should be based on the excess of the cash flows for the unavoidable costs in meeting the
obligations under the lease over the unrecognised estimated future economic benefits from
the lease.
Contingent liabilities recognised in a business combination
AASB3(B67)(c) 15. If the entity has recognised any contingent liabilities in a business combination, it shall
disclose the information required by paragraphs 84 and 85 of AASB 137 (see paragraph 4
above) also for each class of contingent liability.
27 Current liabilities – Other current liabilities

2011 2010
$'000 $'000
AASB101(77) Deferred revenue: customer loyalty programme – see note 1(e)(ii) 395 370
28 Non-current liabilities – Borrowings 1-5,7-12,15-21

(Revised) 2011 2010 1 July 2009
$'000 $'000 $’000
AASB101(77) Secured
Bank loans 3,989 3,850 3,701
Debentures 1,800 2,000 2,500
Lease liabilities ((g), note 39) 495 575 -
Other loans 180 100 49
Total secured non-current borrowings 6,464 6,525 6,250
AASB101(77) Unsecured
Convertible notes (a) 1,815 - -
Redeemable preference shares 1,000 1,000 1,000
Loans from related parties * 185 - -
Total unsecured non-current borrowings 3,000 1,000 1,000
Total non-current borrowings 9,464 7,525 7,250
* Further information relating to loans from related parties is set out in note 40.

AASB101(51)(c) 30 June 2011
(continued)
28 Non-current liabilities – Borrowings (continued)
(a) Convertible notes 12

AASB7(17) The parent entity issued 2,000 7% convertible notes for $2 million on 23 January 2011. The notes are
AASB101(79)(a)(vii)
convertible into ordinary shares of the parent entity, and the option of the holder, or repayable on 23
January 2016. The conversion rate is 323 shares for each note held, which is based on the market
price per share at the date of the issue of the notes ($3.10), but subject to adjustments for
reconstructions of equity. The convertible notes are presented in the balance sheet as follows:
2011 2010
$'000 $'000
Face value of notes issued 2,000 -

Other equity securities – value of conversion rights (note 32(b)) (200) -
1,800 -
Interest expense * 76 -
Interest paid (61) -
Non-current liability 1,815 -
* Interest expense is calculated by applying the effective interest rate of 9.6% to the liability
component.
(b) Secured liabilities and assets pledged as security 14

Not mandatory The total secured liabilities (current and non-current) are as follows:
2011 2010
$'000 $'000
Bank overdrafts and bank loans 6,389 6,150

Debentures 2,000 3,000
Lease liabilities (g) 575 650
Other loans 230 150
Total secured liabilities 9,194 9,950
AASB7(7),(14) The bank loans and overdraft are secured by first mortgages over the group's freehold land and
buildings, including those classified as investment properties.
The debentures are secured by a floating charge over the assets of the parent entity.
Lease liabilities are effectively secured as the rights to the leased assets recognised in the financial
statements revert to the lessor in the event of default.
The other loans are secured by a negative pledge that imposes certain covenants on the subsidiary
that has received those loans. The negative pledge states that (subject to certain exceptions) the
subsidiary will not provide any other security over its assets, and will ensure that the following financial
ratios are met:
(i) debt will not, at any time, exceed 50% of total tangible assets, and
(ii) borrowing costs will not exceed 50% of earnings before borrowing costs and taxation for each
half-year period.

AASB101(51)(c) 30 June 2011
(continued)

The carrying amounts of assets pledged as security for current and non-current borrowings are:
2011 2010
Notes $'000 $'000
Current
Floating charge
AASB7(14)(a) Cash and cash equivalents 11 4,678 1,154
AASB7(14)(a) Receivables 12 5,660 3,542
AASB7(14)(a) Financial assets at fair value through profit or loss 14 1,300 915
AASB7(14)(a) Derivative financial instruments 15 88 40
Total current assets pledged as security 11,726 5,651
Non-current
First mortgage
AASB116(74)(a) Freehold land and buildings 20 4,950 3,640
AASB140(75)(g) 3,300 3,050
Investment properties 21
8,250 6,690
Finance lease
AASB116(74)(a) 360 400
Plant and equipment (i) 20
Floating charge
AASB7(14)(a) Receivables – non-current 16 950 290
AASB7(14)(a) Available-for-sale financial assets 18 1,010 828
AASB7(14)(a) Held-to-maturity investments 19 210 -
AASB7(14)(a) Derivative financial instruments 15 8 12
AASB116(74)(a) Plant and equipment 20 150 100
2,328 1,230
Total non-current assets pledged as security 10,938 8,320
Total assets pledged as security 22,664 13,971
(Revised) (i) Finance leases as at 1 July 2009

After restatement for the error (see (g) below), the carrying amount of plant and equipment leased
under finance lease agreements as at 1 July 2009 was nil.
(c) Debt defeasance 12

AASB7(7) At the end of the reporting period, debentures issued by the parent entity were the subject of an
in-substance defeasance, whereby the parent entity's obligations for principal and interest repayments
were assumed by a State Government Statutory Authority. The parent entity was legally released from
the primary responsibility for the liability but has guaranteed repayment of the principal and interest in
the event of failure by the Authority to meet repayments. Given the virtual risk free status of the
Authority, the likelihood of the parent entity ever being called upon to meet these obligations is
extremely remote and, consequently, the debt has been treated as having been extinguished. The
debentures are repayable in varying instalments due 31 March each year to 2017. Interest is payable
quarterly in arrears at a fixed rate of 9.75% per annum.
AASB139(41) The aggregate carrying amount of debt extinguished by the in-substance defeasance was $1,000,000,
AASB7(20)(a)(v)
satisfied by a payment to the liability assuming entity of $905,000. After allowing for costs of the
defeasance, a net gain of $85,000 was recognised in profit or loss.
(d) Set-off of assets and liabilities 6

AASB101(112) The parent entity has established a legal right of set-off with a financial institution and certain deposits
from subsidiaries with that institution have been set-off against a particular borrowing of $500,000.
The parties intend to realise the deposit and settle the borrowing simultaneously in September 2011.

AASB101(51)(c) 30 June 2011
(continued)
(e) Fair value

AASB7(25) The carrying amounts and fair values of borrowings at the end of reporting period are:
2011 2010
Carrying Carrying
$'000 $'000 $'000 $'000
On-balance sheet (i)

Non-traded financial liabilities
Bank overdrafts 2,350 2,350 2,250 2,250
Bank loans 4,039 4,056 3,900 3,900
Bills payable 250 250 130 130
Convertible notes 1,815 1,775 - -
Redeemable preference shares 1,000 875 1,000 860
Other loans 415 418 150 150
Lease liabilities (iii) 575 575 650 650
Traded financial liabilities
Traded debentures 2,000 2,000 3,000 3,000
12,444 12,299 11,080 10,940
Off-balance sheet (ii)

Debentures defeased (refer to (c)) - 915 - -
- 915 - -
Other than those classes of borrowings denoted as 'traded', none of the classes are readily traded
on organised markets in standardised form.
(i) On-balance sheet
AASB7(27),(29)(a) The fair value of current borrowings equals their carrying amount, as the impact of discounting is not
significant. The fair values of non-current borrowings are based on cash flows discounted using
borrowing rates varying from 7.5% to 8.3%, depending on the type of the borrowing (2010 – 7.2% to
7.9%).
(ii) Off-balance sheet
AASB7(27) The fair value of debentures which were the subject of an in substance defeasance and for which
the parent entity has guaranteed repayment (refer to (c)), has been determined based on cash flows
discounted using a borrowing rate of 8.6%.
(Revised) (ii) Lease liabilities as at 1 July 2009
The carrying amount and fair value of the lease liabilities as at 1 July 2009 after restatement for the
error (see (g) below) was nil.
(f) Risk exposures 13

AASB7(31) Information about the group's exposure to interest rate and foreign currency changes is provided in
note 2.
(Revised) (g) Correction of error

previous financial years and retrospective adjustments recognised on 1 July 2009 and 30 June
2010. The amounts disclosed in this note are after these adjustments.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current liabilities – Borrowings
Disclosures for financial liabilities

AASB132(4) 1. The commentary to note 2 provides a general overview of the types of disclosures that are
required in relation to financial instruments, including the entity's exposure to various risks
such as liquidity risk and market risk.
Scope issues
Employee benefit and dividends payable provisions
2. The IFRS Interpretations Committee and the AASB have confirmed that the exclusion of
employee benefit plans from the scope of AASB 132 Financial Instruments: Presentation
applies to all benefits covered by AASB 119 Employee Benefits, including liabilities for long
service leave (see AASB Rejected Issue - Classification of Long-Service Leave Liabilities,
issued in December 2005). As the scope of AASB 7 is the same as that of AASB 132, this
means that the disclosures required under AASB 7 do not have to be made in relation to
employee benefits liabilities.
3. However, it is still unclear whether dividends payable (where recognised) should be treated
as a financial liability arising under financial instruments. Although dividends payable on
equity instruments seem to literally meet the definition of a financial instrument, none of the
text or supporting guidance in AASB 7 suggests that they are intended to come within the
scope of the standard. VALUE ACCOUNTS Holdings Limited has not recognised any
dividends payable in the balance sheet. Where an entity has recognised and treated
dividends payable on equity instruments as a financial liability, it should consider providing
the relevant AASB 7 disclosures.
Classification issues
Compound financial instruments
AASB132(28) 4. The issuer of a non-derivative financial instrument shall evaluate the terms of the financial
instrument to determine whether it contains both a liability and an equity component. Such
components shall be classified separately as financial liabilities or equity instruments.
AASB132(30) 5. Classification of the liability and equity components of a convertible instrument is not revised
as a result of a change in the likelihood that a conversion option will be exercised, even
when the exercise of the option may appear to have become economically advantageous to
some holders.
Set-off of assets and liabilities
AASB132(42) 6. A financial asset and a financial liability shall be offset and the net amount presented in the
balance sheet when, and only when, an entity:
(a) currently has a legally enforceable right to set off the recognised amounts, and
(b) intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.
AASB101(112)(c) While there is no specific requirement in either AASB 7 or AASB 101 to disclose the amount
of financial assets and liabilities that have been set off under AASB 132, we have retained
this disclosure as we consider this to be information that could be relevant to an
understanding of the financial statements (and hence required under paragraph 112(c) of
AASB 101). This would be the case particularly where the amounts involved are material.
Long-term borrowings
AASB101(72) 7. An entity classifies its financial liabilities as current when they are due to be settled within 12
months after the reporting period, even if:
(a) the original term was for a period longer than twelve months, and
(b) an agreement to refinance, or to reschedule payments, on a long-term basis is
completed after the reporting period and before the financial statements are
authorised for issue.
AASB101(73) 8. If an entity expects, and has the discretion, to refinance or roll over an obligation for at least
12 months after the reporting period under an existing loan facility, it classifies the obligation
as non-current, even if it would otherwise be due within a shorter period. However, when
refinancing or rolling over the obligation is not at the discretion of the entity (eg there is no
agreement to refinance), the potential to refinance is not considered and the obligation is
classified as current.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current liabilities – Borrowings (continued)
Breached undertakings
AASB101(74) 9. When an entity breaches an undertaking under a long-term loan agreement on or before the
end of the reporting period with the effect that the liability becomes payable on demand, the
liability is classified as current, even if the lender has agreed, after the reporting period and
before the authorisation of the financial statements for issue, not to demand payment as a
consequence of the breach. The liability is classified as current because, at the end of the
reporting period, the entity does not have an unconditional right to defer its settlement for at
least twelve months after that date.
AASB101(75) 10. However, if the lender has agreed before the end of the reporting period to provide a period
of grace ending at least twelve months after the reporting period within which the entity can
rectify the breach and during which the lender cannot demand repayment, the liability is
classified as non-current.
AASB101(76) 11. For liabilities classified as current, the following events must be disclosed as non-adjusting
events if they occur between the end of the reporting period and the date the financial
statements are authorised for issue:
(a) refinancing on a long-term basis
(b) rectification of a breach of a long-term loan arrangement, and
(c) the granting by the lender of a period of grace to rectify a breach of a long-term
loan arrangement ending at least twelve months after the reporting period.
Terms and conditions of financial instruments
AASB7(7),(31) 12. Entities shall disclose sufficient information that enables users of its financial statements to
evaluate the significance of financial instruments for its financial position and performance
and the nature and extent of risks arising from these financial instruments. However, the
intention of AASB 7 was to decrease the potentially voluminous disclosures that were
required by AASB 132 and replace them with shorter but more meaningful information.
Under normal circumstances entities will therefore no longer need to disclose the significant
terms and conditions for each of their major borrowings. Having said that, if an entity has a
borrowing (or other financial instrument) with unusual terms and conditions, it should
provide sufficient information to enable users to assess the nature and extent of risks
associated with these instruments.
Risk exposures
13. Disclosures that must be made about the entity’s exposure to interest rate and other risks
arising from its financial liabilities are discussed in the commentary to note 2.
Assets pledged as security
14. The requirement to identify assets that have been pledged as security is included in various
standards, including AASB 7, AASB 116 Property Plant and Equipment, AASB 138
Intangible Assets and AASB 140 Investment Property.
Discretionary participation feature
AASB7(30) 15. If the fair value of a contract containing a discretionary participation feature (as described in
AASB 4 Insurance Contracts) cannot be measured reliably, the following should be
disclosed:
(a) the fact that fair value information has not been disclosed because it cannot be
measured reliably
(b) a description of the financial instruments, their carrying amount and an
explanation of why fair value cannot be measured reliably
(c) information about the market for the instruments
(d) information about whether and how the entity intends to dispose of the financial
instruments
(e) if the instruments are subsequently derecognised, that fact, their carrying amount
at the time of derecognition and the amount of gain or loss recognised.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current liabilities – Borrowings (continued)
Compound financial instruments with multiple embedded derivatives

AASB7(17) 16. If an entity has issued an instrument that contains both a liability and an equity component
(refer to paragraph 28 of AASB 132) and the instrument has multiple embedded derivative
features whose values are interdependent such as a callable convertible debt instrument, it
shall disclose the existence of those features.
Master netting
AASB7(36)(a) 17. An entity may have entered into one or more master netting arrangements that serve to
mitigate its exposure to credit loss but do not meet the criteria for offsetting. When a master
netting arrangement significantly reduces the credit risk associated with financial assets not
offset against financial liabilities with the same counterparty, an entity provides additional
information concerning the effect of the arrangement.
Defaults and breaches
AASB7(18) 18. For loans payable recognised at the end of the reporting period, an entity shall disclose:
(a) details of any defaults during the period of principal, interest, sinking fund, or
redemption terms of those loans payable
(b) the carrying amount of the loans payable in default as at the end of the reporting
period
(c) whether the default has been remedied, or the terms of the loans payable were
renegotiated, before the date the financial statements were authorised for issue.
19. An example of such a disclosure is:
In the third quarter, the group was overdue paying interest on bank borrowings
with a carrying amount of $2,000,000. The group experienced a temporary
shortage of cash because cash outflows in the second and third quarter were
higher than anticipated due to business expansions. As a result, interest of
$75,000 was not paid on the due date of 31 March 2011.
The company has since paid all outstanding amounts (including additional
interest and penalties for late payment) during the fourth quarter.
Management expects that the company will be able to meet all contractual
obligations from borrowings on a timely basis going forward.
AASB7(19) 20. The same information must be disclosed if there were breaches of loan agreement terms
other than those described in paragraph 17 where those breaches permitted the lender to
demand accelerated repayment (unless the breaches were remedied, or the terms of the
loan were renegotiated, on or before the end of the reporting period).
AASB101(74),(75) 21. When a breach occurred during the period, and the breach has not been remedied or the
terms of the loan payable have not been renegotiated by the end of the reporting period, the
effect of the breach on the classification of the liability as current or non-current is
determined under AASB 101 Presentation of Financial Statements (refer to paragraph 9
above).

AASB101(51)(c) 30 June 2011
(continued)
29 Non-current liabilities – Deferred tax liabilities 1,2

2011 2010
$'000 $'000
AASB112(81)(g)(i) The balance comprises temporary differences attributable to:

Property, plant and equipment 769 546
Investments in associates 158 113
Investment property 134 119
Financial assets at fair value through profit or loss 123 47
1,184 825
Other
Available-for-sale financial assets 120 65
Intangible assets 76 20
Prepayments 30 23
Derivatives held for trading 27 12
Inventories 18 -
Convertible notes (note 32(b)) 55 -
Cash flow hedges 2 4
Share of reserves of partnership 90 -
Sub-total other 418 124
Total deferred tax liabilities 1,602 949
AASB112(74) Set-off of deferred tax liabilities pursuant to set-off provisions (note

22) (313) (245)
Net deferred tax liabilities 1,289 704
AASB101(61) Deferred tax liabilities expected to be settled within 12 months 199 86

AASB101(61) Deferred tax liabilities expected to be settled after more than 12
3
months 1,403 863
1,602 949
AASB112(81)(g)(ii) Financial
Property, Invest- assets at fair
plant and ments in Investment value through
Movements equipment associates property * profit/loss Other Total
$'000 $'000 $'000 $'000 $'000 $'000
At 1 July 2009 294 68 90 6 115 573

Charged/(credited)
AASB112(81)(g)(ii) - to profit or loss 98 15 29 41 14 197
comprehensive
income 154 30 - - (5) 179
At 30 June 2010 546 113 119 47 124 949
Charged/(credited)
AASB112(81)(g)(ii) - to profit or loss (22) 45 15 76 48 162
comprehensive
income 163 - - - 108 271
AASB112(81)(a) - directly to equity - - - - 60 60
Acquisition of
subsidiary 82 - - - 78 160
At 30 June 2011 769 158 134 123 418 1,602

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Non-current liabilities - Deferred tax liabilities
Setting off of deferred tax assets and liabilities

AASB112(74) 1. Deferred tax assets and liabilities shall be set off if, and only if:
(a) there is a legally recognised right to set off current tax assets and liabilities, and
(b) the deferred tax assets and liabilities relate to income taxes levied by the same
taxation authority on either:
(i) the same taxable entity, or
(ii) different taxable entities which intend to settle current tax liabilities and
assets on a net basis, or to realise the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of
deferred tax liabilities or assets are expected to be settled or
recovered.
AASB112(76) 2. The circumstances giving rise to a set off between entities in a consolidated entity are likely
to be rare unless the entities are part of a tax consolidated group.
Deferred tax liabilities recovered within and after 12 months
AASB101(61) 3. Where an asset or a liability combines amounts that are expected to be recovered or settled
within the next 12 months after the reporting period and more than 12 months after that
date, paragraph 61 of AASB 101 Presentation of Financial Statements requires disclosure
of the amount expected to be recovered or settled after more than 12 months. VALUE
ACCOUNTS Holdings Limited has determined this amount as the aggregate deferred tax
liabilities relating to temporary differences associated with non-current assets or liabilities.
Conversely, deferred tax liabilities relating to current assets and liabilities are assumed to
be settled within the next 12 months.
30 Non-current liabilities – Provisions 1,2

AASB101(77) 2011 2010
$’000 $’000
Employee benefits – long service leave 220 270

Make good provision 223 -
443 270
(a) Make good provision

AASB137(85)(a),(b) VALUE ACCOUNTS Retail Pty Ltd is required to restore the leased premises of its retail stores to
their original condition at the end of the respective lease terms. A provision has been recognised for
the present value of the estimated expenditure required to remove any leasehold improvements.
These costs have been capitalised as part of the cost of leasehold improvements and are amortised
over the shorter of the term of the lease or the useful life of the assets.
(b) Movements in provisions

AASB137(84) Movements in each class of provision during the financial year, other than employee benefits, are set
out below:
Make good
provision Total
$’000 $’000
AASB137(84)(a) Carrying amount at start of year – 1 July 2010 - -

AASB137(84)(b) Additional provision recognised – charged to plant and equipment 205 205
Charged/(credited) to the profit or loss
AASB137(84)(e) 18 18
– unwinding of discount
AASB137(84)(a) 223 223
Carrying amount at end of year – 30 June 2011

AASB101(51)(c) 30 June 2011
(continued)
Commentary – Non-current liabilities – Provisions

1. Accounting and disclosure standards for provisions are set out in AASB 137 Provisions,
Contingent Liabilities and Contingent Assets. Refer to the commentary on current liabilities
– provisions (note 26) for comments on AASB 137.
Employee benefits
AASB137(1)(c),(5)(d) 2. As noted in paragraph 1 of the commentary on note 28, AASB 137 does not generally apply
to employee benefits as these are dealt with by AASB 119 Employee Benefits.
31 Non-current liabilities – Retirement benefit obligations 1,15-23
(a) Superannuation plan

AASB119(120A)(b), All employees of the group are entitled to benefits from the group’s superannuation plan on retirement,
(121)
AASB101(112)(c) disability or death. The group has one plan with a defined benefit section and a defined contribution
section. The defined benefit section provides lump sum benefits based on years of service and final
average salary. The defined contribution section receives fixed contributions from group companies
and the group’s legal or constructive obligation is limited to these contributions.
AASB119(46) The following sets out details in respect of the defined benefit section only. The expense recognised in
relation to the defined contribution plan is disclosed in note 8.
(b) Balance sheet amounts 5-6

AASB119(120A)(f) The amounts recognised in the balance sheet are determined as follows:
2011 2010
$’000 $’000
AASB119(120)(f) Present value of the defined benefit obligation 3,715 3,097

AASB119(120)(f) (3,159) (2,859)
Fair value of defined benefit plan assets
556 238
AASB119(120A)
(f)(i),(ii) Unrecognised past service costs (74) (92)
Net liability in the balance sheet 482 146
AASB101(112)(c) The group has no legal obligation to settle this liability with an immediate contribution or additional one
off contributions. The group intends to continue to contribute to the defined benefit section of the plan
at a rate of 12% of salaries in line with the actuary’s latest recommendations. 7
(c) Categories of plan assets 8

AASB119(120A)(j) The major categories of plan assets are as follows:
2011 2010
$’000 $’000
Cash 150 120

Equity instruments 729 610
Debt instruments 630 559
Property 1,450 1,530
Other assets 200 40
3,159 2,859
AASB119(120A) The fair value of plan assets includes ordinary shares issued by VALUE ACCOUNTS Holdings Limited
(k)(i),(ii)
with a fair value of $130,000 (2010 – $110,000) and land and buildings occupied by the group with a
fair value of $850,000 (2010 – $880,000).

AASB101(51)(c) 30 June 2011
(continued)
31 Non-current liabilities – Retirement benefit obligations (continued)

(d) Reconciliations 2-4
2011 2010
$’000 $’000
Reconciliation of the present value of the defined benefit obligation,

which is partly funded:
AASB119(120A)(c) Balance at the beginning of the year 3,097 2,963
AASB119(120A)(c),(i) Current service cost 345 325
AASB119(120A)(c),(ii) Interest cost 130 142
AASB119(120A)(c),(iv) Actuarial (gains) and losses 293 (161)
AASB119(120A)(c),(vi) Benefits paid (380) (188)
AASB119(120A)(c),
(vii) Past service cost - 16
AASB119(120A)(c),
(viii) Acquired in business combinations 230 -
AASB119(120A)(c) 3,715 3,097
Balance at the end of the year
AASB119(120A)(e)
Reconciliation of the fair value of plan assets:
AASB119(120A)(e) Balance at the beginning of the year 2,859 2,615
AASB119(120A)(e)(i) Expected return on plan assets 197 184
AASB119(120A)(e)(ii) Actuarial gains and (losses) (16) 36
AASB119(120A)(e)(iv) Contributions by the company 294 212
AASB119(120A)(e)(vi) Benefits paid (380) (188)
AASB119(120A)(e)
(vii) Acquired in business combinations 205 -
AASB119(120A)(e) 3,159 2,859
Balance at the end of the year
(e) Amounts recognised in profit or loss 9-11

The amounts recognised in profit or loss are as follows:
2011 2010
$'000 $'000
AASB119(120A)(g)(i) Current service cost 345 325

AASB119(120A)(g)(ii) Interest cost 130 142
AASB119(120A)(g)(iii) Expected return on plan assets (197) (184)
AASB119(120A)(g)(vi) 18 18
Past service cost
AASB119(120A)(g) 296 301
Total included in employee benefits expense
AASB119(120A)(m) 181 220

Actual return on plan assets
(f) Amounts recognised in other comprehensive income 17

2011 2010
$'000 $'000
AASB119(h) (309) 197

Actuarial (loss)/gain recognised in the year
AASB119(i) Cumulative actuarial (losses)/gains recognised in other

comprehensive income (186) 123

AASB101(51)(c) 30 June 2011
(continued)
31 Non-current liabilities – Retirement benefit obligations (continued)
(g) Principal actuarial assumptions 12,13

The principal actuarial assumptions used (expressed as weighted averages) were as follows:
2011 2010
AASB119(120A)(n)(i) Discount rate 5.0% 4.5%

AASB119(120A)(n)(ii) Expected return on plan assets 7.5% 7.0%
AASB119(120A)(n)(iv) Future salary increases 4.5% 4.5%
AASB119(120A)(l) The expected rate of return on assets has been based on historical and future expectations of returns
for each of the major categories of asset classes as well as the expected and actual allocation of plan
assets to these major categories. This resulted in the selection of an 8% rate of return gross of tax
(and net of expenses) and a 7.5% rate of return net of tax (and expenses).
(h) Employer contributions

Employer contributions to the defined benefit section of the plan are based on recommendations by the
plan's actuary. Actuarial assessments are made at no more than three yearly intervals, and the last
such assessment was made as at 30 June 2010.
AASB119(120A)(q) Total employer contributions expected to be paid by the group for the year ending 30 June 2012 are
$323,000.
(i) Historic summary 14

2011 2010 2009 2008 2007
$'000 $'000 $'000 $'000 $'000
AASB119(120A)(p)(i) Defined benefit plan obligation (3,715) (3,097) (2,963) (2,742) (2,432)
AASB119(120A)(p)(i) Plan assets 3,159 2,859 2,615 2,932 2,543
AASB119(120A)(p)(i) Surplus/(deficit) (556) (238) (348) 190 111
AASB119(120A) Experience adjustments arising on

(p)(ii)(A)
plan liabilities (507) 341 (196) 23 (67)
AASB119(120A) Experience adjustments arising on
(p)(ii)(B)
plan assets (16) 36 54 78 (25)
Commentary - Non-current liabilities - Retirement benefit obligations
General requirement
AASB119(120) 1. An entity shall disclose information that enables users of the financial statements to evaluate
the nature of its defined benefit plans and the financial effects of changes in those plans
during the period. Specific disclosures are required to give effect to this requirement.
Reconciliations
Of the present value of the defined benefit obligation
2. Where applicable, the reconciliation must also disclose separately the effects attributable to:
AASB119(120A)(c)(iii) (a) contributions by plan participants
AASB119(120A)(c)(v) (b) foreign currency exchange rate changes in plans measured in a currency different
from the entity’s presentation currency
AASB119(120A)(c)(ix) (c) curtailments, and
AASB119(120A)(c)(x) (d) settlements.
AASB119(120A)(d) 3. If the entity has defined benefit obligations which are partly or wholly funded and obligations
which are unfunded it must disclose an analysis of the defined benefit obligation into amounts
arising from plans that are wholly unfunded and amounts arising from plans that are wholly or
partly funded.

AASB101(51)(c) 30 June 2011
(continued)

(continued)
Of the fair value of plan assets

4. Where applicable, the reconciliation must also disclose separately the effects attributable to:
AASB119(120A)(e)(iii) (a) foreign currency exchange rate changes on plans measured in a currency different
from the entity’s presentation currency
AASB119(120A)(e)(v) (b) contributions by plan participants
AASB119(120A) (c) settlements.
(e)(viii)
Of defined benefit obligation and plan assets to assets and liabilities recognised in balance sheet
5. Where applicable, the reconciliation shall disclose:
AASB119(120A)(f)(i) (a) the net actuarial gains and losses not recognised in the balance sheet (refer to
paragraph 92 of AASB 119)
AASB119(120A)(f)(iii) (b) any amount not recognised as an asset, because of the limit in paragraph 58(b) of
AASB 119 (the limit is the total of any unrecognised past service cost and the
present value of any benefits available in the form of refunds from the
superannuation plan or reductions in future contributions to the plan)
AASB119(120A)(f)(iv) (c) the fair value at the end of the reporting period of any reimbursement right
recognised as an asset in accordance with paragraph 104A of AASB 119 (with a
brief description of the link between the reimbursement right and the related
obligation)
AASB119(120A)(f)(v) (d) other amounts recognised in the balance sheet.
Current/non-current distinction
AASB119(118) 6. AASB 119 does not specify whether an entity shall distinguish current and non-current
portions of assets and liabilities arising from post-employment benefits, as such a distinction
may sometimes be arbitrary. When the split into current and non-current is not available, the
entire pension asset or liability should be presented as a non-current item.
Details of the defined benefit plans assets or liabilities
AASB101(112)(c) 7. AASB 101 Presentation of Financial Statements requires entities to provide additional
information that is not presented in the financial statements but that is relevant to an
understanding of them. An explanatory comment about the nature of the defined benefit
liability such as disclosed in note 33(b) may be useful for a reader where an entity has a
particularly significant net liability or asset.
Categories of plan assets
AASB119(120A)(j) 8. For each major category of plan assets, which shall include, but is not limited to, equity
instruments, debt instruments, property, and all other assets, disclosure is required of the
percentage or amount that each major category constitutes of the fair value of the total plan
assets.
Financial components of post-employment benefit costs
AASB119(119) 9. AASB 119 does not specify whether an entity should present current service cost, interest
cost and the expected return on plan assets as components of a single item of income or
expense in the statement of comprehensive income.
AASB119(120A)(g) 10. Where applicable, disclosure is required of the total expense recognised in profit or loss for
each of the following, and the line item(s) in which they are included:
AASB119(120A)(g)(iv) (a) expected return on any reimbursement right recognised as an asset in accordance
with paragraph 104A of AASB 119
AASB119(120A)(g)(v) (b) actuarial gains and losses
AASB119(120A)(g)(vii) (c) the effect of any curtailment or settlement, and
AASB119(120A)(g) (d) the effect of the limit in paragraph 58(b) of AASB 119.
(viii)
AASB119(120A)(g) 11. Where the entity has elected to classify its expenses by function, it should disclose the
amounts of the total defined benefit expense included in each line item. This could be done
by adding a paragraph along the following lines below the analysis of expenses:
Of the total expense, $___ (2010 - $____ ) was included in ‘cost of goods sold’
and $___ (2010 - $____) was included in ‘administrative expenses’.

AASB101(51)(c) 30 June 2011
(continued)

(continued)
Actuarial assumptions
AASB119(120A)(n) 12. Each actuarial assumption must be disclosed in absolute terms (eg as an absolute
percentage) and not just as a margin between different percentages and other variables.
13. Where applicable, the following actuarial assumptions used at the end of the reporting period
must also be disclosed:
AASB119(120A)(n)(iii) (a) the expected rates of return for the periods presented in the financial statements
on any reimbursement right recognised as an asset in accordance with paragraph
104A of AASB 119
AASB119(120A)(n)(v) (b) medical cost trend rates
AASB119(120A)(n)(vi) (c) any other material actuarial assumptions used.
Historical information
14. AASB 119 requires disclosure of the following amounts for the current annual reporting
period and the previous four annual reporting periods:
AASB119(120A)(p)(i) (a) the present value of the defined benefit obligation, the fair value of the plan assets
and the surplus or deficit in the plan
AASB119(120A)(p)(ii) (b) the experience adjustments arising on:
(i) the plan liabilities, expressed either as an amount or a percentage of
the plan liabilities as at the end of the reporting period
(ii) the plan assets expressed either as an amount or a percentage of the
plan assets at the end of the reporting period.
Reimbursement rights recognised as an asset
15. If the entity has recognised a right to reimbursement as a separate asset in accordance with
paragraph 104A of AASB 119, it shall make the following additional disclosures:
AASB119(120A)(e) (a) a reconciliation of the opening and closing balances of the fair value of the
reimbursement right
AASB119(120A)(f)(iv) (b) the fair value of the reimbursement right as a separate line item in the
reconciliation of the defined benefit obligation and plan assets to the assets and
liabilities recognised in the balance sheet
AASB119(120A)(g)(iv) (c) the expected return on the reimbursement right as a separate component of the
post-employment benefit costs
AASB119(120A)(m) (d) the actual return on the reimbursement right
AASB119(120A)(n)(iii) (e) the expected rates of return on the reimbursement right for the periods presented
in the financial statements as part of the principal actuarial assumptions.
Corridor approach for recognising actuarial gains and losses
16. If the entity has elected to carry forward unrecognised actuarial gains and losses as
permitted by paragraph 92 of AASB 119, it will need to include the following information in
note 33:
AASB119(120A)(f)(iii) (a) the amount of net actuarial gains and losses not recognised (in the reconciliation
to the net asset or liability recognised in the balance sheet)
AASB119(120A)(g)(v) (b) the amount of actuarial gains and losses recognised for the year (in the disclosure
of the total expense recognised in profit or loss for the period).
Actuarial gains and losses recognised in other comprehensive income
AASB119(120A)(h) 17. Entities that recognise actuarial gains and losses in other comprehensive income in
accordance with paragraph 93A of AASB 119 shall also disclose, where applicable, the total
amount recognised in other comprehensive income for the effect of the limit in paragraph
58(b) of AASB 119.

AASB101(51)(c) 30 June 2011
(continued)

(continued)
Post-employment medical cost

AASB119(120A)(o) 18. Where applicable, entities shall disclose the effect of an increase of one percentage point
and the effect of a decrease of one percentage point in the assumed medical cost trend rates
on:
(a) the aggregate of the current service cost and interest cost components of net
periodic post-employment medical cost, and
(b) the accumulated post-employment benefit obligation for medical cost.
For the purpose of this disclosure, all other assumptions shall be held constant. For plans
operating in a high inflation environment, the disclosure shall be the effect of a percentage
increase or decrease in the assumed medical cost trend rate of a significance similar to one
percentage point in a low inflation environment.
Multiple defined benefit plans
AASB119(122) 19. When an entity has more than one defined benefit plan, disclosures may be made in total,
separately for each plan, or in such groupings as are considered to be the most useful. It may
be useful to distinguish groupings by criteria such as the following:
(a) the geographical location of the plans (eg by distinguishing domestic plans from
foreign plans)
(b) whether plans are subject to materially different risks (eg by distinguishing flat
salary pension plans from final salary pension plans and from post-employment
medical plans).
Multi-employer plans
AASB119(29) 20. Where a multi-employer plan is a defined benefit plan, an entity must:
AASB119(29)(a) (a) account for its proportionate share of the defined benefit obligation, plan assets
and cost associated with the plan in the same way as for any other defined benefit
plan, and
AASB119(29)(b) (b) disclose the information required by paragraph 120A of AASB 119.
AASB119(30) 21. When sufficient information is not available to use defined benefit accounting for a
multi-employer plan that is a defined benefit plan, an entity must:
AASB119(30)(a) (a) account for the plan as if it were a defined contribution plan
AASB119(30)(b),(123) (b) disclose:
(i) the fact that the plan is a defined benefit plan
(ii) the reason why sufficient information is not available to enable the entity
to account for the plan as a defined benefit plan
AASB119(30)(c) (c) to the extent that a surplus or deficit in the plan may affect the amount of future
contributions, disclose in addition:
(i) any available information about that surplus or deficit
(ii) the basis used to determine that surplus or deficit
(iii) the implications, if any, for the entity.
Group plans
AASB119(34A) 22. Defined benefit plans that share risks between various entities under common control are not
multi-employer plans. An entity participating in such a plan shall obtain information about the
plan as a whole. The accounting for the plan depends on whether there is a contractual
agreement or stated policy for charging the net defined benefit cost for the plan as a whole,
measured in accordance with AASB 119, to individual group entities:
(a) If there is such policy or agreement, the entity shall in its separate financial
statements recognise the net defined benefit cost so charged.
(b) If there is no such policy or agreement, the net defined benefit cost shall be
recognised in the separate financial statements of the group entity that is legally
the sponsoring employer for the plan. The other group entities shall, in their
separate financial statements, recognise a cost equal to their contribution payable
for the period.

AASB101(51)(c) 30 June 2011
(continued)

(continued)
AASB119(34B) 23. Participation in a group plan is a related party transaction for each individual group entity. An
entity shall therefore make the following disclosures in its separate financial statements:
(a) the contractual agreement or stated policy for charging the net defined benefit cost
or the fact that there is no such policy
(b) the policy for determining the contribution to be paid by the entity
(c) if the entity accounts for an allocation of the net defined benefit cost in accordance
with paragraph 23(a) above, all the information about the plan as a whole in
accordance with paragraphs 120-121 of AASB 119
(d) if the entity accounts for the contribution payable for the period as per paragraph
23(b) above, the information about the plan as a whole required in accordance
with paragraphs 120A(b)-(e), (j), (n), (o), (q) and 121; the other disclosures
required by paragraph 120A do not apply.
32 Contributed equity 1,2,7-11,13-15

2011 2010 2011 2010
Notes Shares Shares $'000 $'000
(a) Share capital

Ordinary shares (c),(e)
AASB101(79)(a)(ii) Fully paid 13,787,078 11,104,358 19,072 12,346
AASB101(79)(a)(ii) Called to 88 cents (e) - 1,250,000 - 1,100
Calls in arrears (e) - - - (100)
13,787,078 12,354,358 19,072 13,346
AASB101(79)(a)(ii) 7% non-redeemable
participating preference shares
fully paid (d) - 500,000 - 524
13,787,078 12,854,358 19,072 13,870
(Revised) (b) Other equity securities

AASB132(28) Value of conversion rights –
convertible notes (f) 200 -
AASB112(81)(a) Deferred tax liability component (60) -
AASB101(79)(a)(vi)
AASB132(34) Treasury shares (g) (4,098) - (12) -
128 -
Total contributed equity 19,200 13,870

AASB101(51)(c) 30 June 2011
(continued)
32 Contributed equity (continued)
AASB101(106)(d) (c) Movements in ordinary share capital:

Number of Issue
Date Details Notes shares price $'000
AASB101(79)(a)(iv) 1 July 2009 Opening balance 12,111,430 12,717

11 October 2009 Dividend reinvestment plan
issues (h) 62,992 $2.54 160
6 December 2009 Employee share scheme issues (i) 142,857 $2.59 370
14 March 2010 Dividend reinvestment plan
issues (h) 37,079 $2.67 99
AASB101(79)(a)(iv) 30 June 2010 Balance 12,354,358 13,346
10 October 2010 Dividend reinvestment plan

issues (h) 58,983 $2.95 174
12 March 2011 Dividend reinvestment plan
issues (h) 34,921 $3.15 110
3 May 2011 Final call of $1.12 per share on
1,250,000 partly paid shares (e) - 1,400
3 May 2011 Calls in arrears paid (e) - 100
29 May 2011 Exercise of 2007 options
Proceeds received (j) 53,900 $2.28 122
4 June 2011 Rights issue (k) 1,284,916 $3.00 3,855
19,107
AASB132(35),(39) Less: Transaction costs arising

on share issue 4 (50)
AASB112(81)(a) Deferred tax credit recognised
directly in equity 15
AASB101(79)(a)(iv) 30 June 2011 Balance 13,787,078 19,072
Not mandatory The purpose of the rights issue and the call on partly paid shares was to repay borrowings which had
been drawn to finance the establishment of the furniture retail division, expand the Maitland
manufacturing facilities, and acquire shares in VALUE ACCOUNTS Electronics Pty Ltd. Funds raised
3
from the other share issues were used for general working capital purposes.
AASB101(106)(d) (d) Movements in 7% non-redeemable participating preference share capital:

Number of
Date Details Notes shares $'000
AASB101(79)(a)(iv) 1 July 2009 and

30 June 2010 Opening balance 500,000 524
AASB101(79)(a)(iv) April/May 2011 Shares bought back on-market and
cancelled (l) (500,000) (450)
Buy-back transaction costs (l) - (15)
AASB112(81)(a) Current tax credit recognised directly in
equity (l) - 5
Transfer to retained earnings (l) - (64)
AASB101(79)(a)(iv) 30 June 2011 - -
Balance

AASB101(51)(c) 30 June 2011
(continued)
(e) Ordinary shares

AASB101(79)(a)(v) Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the
company in proportion to the number of and amounts paid on the shares held. This is subject to the
prior entitlements of the 6% redeemable preference shares, which are classified as liabilities (refer to
note 28).
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is
entitled to one vote, and upon a poll each share is entitled to one vote.
AASB101(79)(a)(i),(iii) Ordinary shares have no par value and the company does not have a limited amount of authorised
capital.
AASB101(79)(a)(ii) At 30 June 2010 there were 1,250,000 ordinary shares called to 88 cents, on which a further $1.12
was outstanding. The outstanding amount, together with calls in arrears of $100,000, was received on
3 May 2011.
(f) Other equity securities

AASB101(79)(a)(v) The amount shown for other equity securities is the value of the conversion rights relating to the 7%
convertible notes, details of which are shown in note 28.
(g) Treasury shares

AASB101(79)(a)(vi) Treasury shares are shares in VALUE ACCOUNTS Holdings Limited that are held by the VALUE
ACCOUNTS Employee Share Trust for the purpose of issuing shares under the VALUE ACCOUNTS
Employee share scheme (see note 50 for further information).
Number of
Date Details shares $'000
AASB101(79)(a)(iv) 1 July 2009 and 30

June 2010 Opening balance - -
1 November 2010 Acquisition of shares by the Trust (150,000) (450)
5 December 2010 Employee share scheme issue 145,902 438
AASB101(79)(a)(iv) 30 June 2011 (4,098) (12)
Balance
(h) Dividend reinvestment plan

AASB101(79)(a)(vii) The company has established a dividend reinvestment plan under which holders of ordinary shares
may elect to have all or part of their dividend entitlements satisfied by the issue of new ordinary shares
rather than by being paid in cash. Shares are issued under the plan at a 2.5% discount to the market
price.
(i) Employee share scheme

AASB101(79)(a)(vii) Information relating to the employee share scheme, including details of shares issued under the
scheme, is set out in note 50.
(j) Options
AASB101(79)(a)(vii) Information relating to the VALUE ACCOUNTS Employee Option Plan, including details of options
issued, exercised and lapsed during the financial year and options outstanding at the end of the
reporting period, is set out in note 50.

AASB101(51)(c) 30 June 2011
(continued)
(k) Rights issue

AASB101(106)(d)(iii), On 10 April 2011 the company invited its shareholders to subscribe to a rights issue of 1,284,916
(112)(c)
ordinary shares at an issue price of $3.00 per share on the basis of 1 share for every 10 fully or partly
paid ordinary shares held, with such shares to be issued on, and rank for dividends after, 4 June 2011.
The issue was fully subscribed.
(l) Share buy-back 5-6

AASB101(106)(c)(iii) During April/May 2011 the company purchased and cancelled all 500,000 7% non-redeemable
participating preference shares on-market in order to simplify the company's capital structure. The
buy-back and cancellation were approved by shareholders at last year's annual general meeting. The
shares were acquired at an average price of 90 cents per share, with prices ranging from 88 cents to
92 cents. The total cost of $460,000, including $10,000 of after tax transaction costs, was deducted
from preference shareholder equity. As all the shares of that class were bought back and cancelled,
the remaining balance of $64,000 was transferred to retained earnings. The total reduction in paid up
capital was $524,000.
ASX(4.10.18) There is no current on-market buy-back.
AASB7(7) The 7% non-redeemable participating preference shares were entitled to dividends at the rate of 7%
AASB101(79)(a)(v)
per annum when sufficient profits were available, but were non-cumulative. They would have
participated equally with ordinary shares on winding up of the company.
(m) Capital risk management 12

AASB101(134), The group's objectives when managing capital are to safeguard their ability to continue as a going
(135),(136)
concern, so that they can continue to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid
to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistently with others in the industry, the group monitors capital on the basis of the gearing ratio.
This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings
(including 'borrowings' and ‘trade and other payables' as shown in the balance sheet) less cash and
cash equivalents. Total capital is calculated as ‘equity' as shown in the balance sheet (including
non-controlling interests) plus net debt.
During 2011, the group's strategy, which was unchanged from 2010, was to maintain a gearing ratio
within 10% to 40% and a BB credit rating. The gearing ratios at 30 June 2011 and 30 June 2010 were
as follows:
2011 2010
Notes $'000 $'000
Total borrowings 24,25,28 14,144 13,577

Less: cash and cash equivalents 11 (8,229) (2,812)
Net debt 5,915 10,765
Total equity 33,289 20,331
Total capital 39,204 31,096
Gearing ratio 15% 35%
The decrease in the gearing ratio during 2011 resulted primarily from the rights issue during the year.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Contributed equity
Share capital disclosure

AASB101(79)(a) 1. The following shall be disclosed either in the balance sheet, in the statement of changes in
equity or in the notes for each class of share capital:
(a) the number of shares authorised (where relevant)
(b) the number of shares issued and fully paid, and issued but not fully paid
(c) par value per share, or that the shares have no par value
(d) a reconciliation of the number of shares outstanding at the beginning and at the
end of the period
(e) the rights, preferences and restrictions attaching to that class including restrictions
on the distribution of dividends and the repayment of capital
(f) shares in the entity held by the entity or by its subsidiaries or associates, and
(g) shares reserved for issue under options and contracts for the sale of shares,
including the terms and amounts.
Where no share capital
AASB101(80) 2. An entity without share capital, such as a partnership or trust, shall disclose information
equivalent to that required by paragraph 79(a) of AASB 101 Presentation of Financial
Statements, showing changes during the period in each category of equity interest, and the
rights, preferences and restrictions attaching to each category of equity interest.
Purposes of share issues
3. Disclosure of the purposes of share issues is optional.
Transaction costs
AASB132(39) 4. The amount of transaction costs accounted for as a deduction from equity in the period is
AASB101(106)(d)
disclosed separately under AASB 101.
Share buy-backs
AASB101(106)(c)(iii) 5. An entity shall present, either in the statement of changes in equity or in the notes the
amount of transactions with owners acting in their capacity as owners, showing separately
contributions by and distributions to owners.
ASX(4.10.18) 6. Listed entities are required to state in their annual report whether there is a current on-market
buy-back.
Equity instruments issued as purchase consideration
7. Refer to paragraph 11 of the commentary on the business combination (note 41) for
comments on the requirements of AASB 3 where the purchase consideration for an
acquisition includes equity instruments.
Classification of financial instruments as liabilities or equity
8. Refer to paragraphs 4-5 of the commentary on non-current liabilities - borrowings (note 28)
for comments on the requirements of AASB 132 Financial Instruments: Presentation relating
to the classification of financial instruments as liabilities or equity and related matters.
Share premium accounts and capital redemption reserves
CA1408 9. On the abolition of par values of shares on 1 July 1998, share premium accounts and capital
redemption reserves became part of share capital. Transitional provisions in the old
Corporations Law (sections 1446 and 1447) which continue to have application by virtue of
CA 1408 enable pre-existing share premium accounts to be used:
(a) to provide for premiums payable on the redemption of debentures or redeemable
preference shares issued before 1 July 1998, or
(b) to write off preliminary expenses or share issue costs incurred on or before 1 July
1998.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Contributed equity
ASIC RG 68(94) 10. Where opportunity exists to use the share premium account existing immediately prior to 1
July 1998 in the future in accordance with the above transitional provisions it will be
necessary for companies to notionally keep track of that account. In Regulatory Guide 68,
ASIC encourages disclosure of the balance of the former share premium account in the
notes to the financial statements if the information is material. For example, a note could be
included along the following lines where applicable:
Contributed equity includes a former share premium account of $941,000 (2010 -
$941,000) that may be used to provide for the premium of $900,000 payable on
the redemption of (... specify details of relevant redeemable preference shares or
debentures issued prior to 1 July 1998 ...).
ASIC RG 68(95) 11. Any share premium payable on redemption of redeemable preference shares classified as
liabilities in accordance with AASB 132 should be classified in the financial statements as a
liability rather than equity.
Capital management strategy
AASB101(Aus1.7), 12. Reporting entities must disclose information that enables users of the financial statements to
(134),(135)
evaluate the entity’s objectives, policies and processes for managing capital, including:
(a) qualitative information: a description of what the entity manages as capital,
information about any externally imposed capital requirements and how the entity
is meeting its objectives for managing capital
(b) summary quantitative data about what the entity manages as capital
(c) changes in (a) or (b) from the previous period
(d) whether the entity complied with externally imposed capital requirements and, if
not, the consequences of the non-compliance.
Puttable financial instruments
AASB101(136A) 13. If an entity has puttable financial instruments that are classified as equity it shall disclose:
(a) summary quantitative data about the amount classified as equity
(b) its objectives, policies and processes for managing its obligation to repurchase or
redeem the instruments when required to do so by the instrument holders,
including any changes from the previous period
(c) the expected cash outflow on redemption or repurchase of that class of financial
instruments, and
(d) information about how the expected cash outflows on redemption or repurchase
was determined.
AASB101(80A) 14. If an entity has reclassified:
(a) a puttable financial instrument classified as an equity instrument, or
(b) an instrument that imposes on the entity an obligation to deliver to another party a
pro-rata share of the net assets of the entity only on liquidation and is classified as
an equity instrument
between financial liabilities and equity, it shall disclose the amount reclassified into and out of
each category (financial liabilities or equity) and the timing and reason for that
reclassification.
AASB101(138)(d) 15. If the entity is a limited life entity, it shall disclose information regarding the length of its life in
the notes to the financial statements, if not disclosed elsewhere in information published with
the financial statements.

AASB101(51)(c) 30 June 2011
(continued)
33 Reserves and retained earnings

2011 2010
Notes $'000 $'000
(a) Reserves
Revaluation surplus – property, plant and equipment 1,202 626
Cash flow hedges (199) (218)
Share-based payments 170 62
Transactions with non-controlling interests (210) -
Foreign currency translation 46 60
1,205 681
AASB101(106)(d)(ii) Movements: 1
AASB116(77)(f) Revaluation surplus – property, plant and equipment
Balance 1 July 626 220
AASB116(39) Revaluation – gross 20 543 514
AASB112(61),(81)(ab)
AASB101(90) Deferred tax 29 (163) (154)
AASB116(41) Depreciation transfer – gross 33(b) (20) (34)
AASB112(61) Deferred tax 29 6 10
AASB116(39) Revaluation – associate 44 - 100
AASB112(61),(81)(ab)
AASB101(90) Deferred tax 29 - (30)
AASB116(41) Revaluation – joint venture 45 300 -
AASB112(61),(81)(ab)
AASB101(90) Deferred tax 29 (90) -
Balance 30 June 1,202 626

AASB7(20)(a)(ii) Revaluation – gross 18 90 (31)
AASB112(61),(81)(ab)
AASB101(90) Deferred tax 9,29 (27) 9
AASB101(92),(95)
Reclassification adjustments 2,3
AASB7(20)(a)(ii) Transfer to profit or loss – gross (26) -
AASB112(61),(81)(ab)
AASB101(90) Deferred tax 9,29 8 -
Balance 30 June 196 151
Cash flow hedges

Balance 1 July (218) (203)
AASB7(23)(c) Revaluation – gross 15 (245) 117
AASB112(61),(81)(ab)
AASB101(90) Deferred tax 9,22,29 73 (35)
AASB101(92),(95) 2,3
AASB139(100) Reclassification adjustments
AASB7(23)(d) Transfer to profit or loss – gross (3) 11
AASB112(61),(81)(ab)
AASB101(90) Deferred tax 9,22,29 1 (3)
Other transfers 3
AASB7(23)(e) Transfer to inventory and other assets – gross 275 (149)
AASB112(61),(81)(ab)
AASB101(90) Deferred tax 9,22,29 (82) 44
Balance 30 June (199) (218)

AASB101(51)(c) 30 June 2011
(continued)
33 Reserves and retained earnings (continued)

2011 2010
1 Notes $'000 $'000
Movements:
AASB101(106)(d),
(108) Share-based payments 6
Option expense 50 101 26
Employee share plan expense 50 445 -
Issue of shares held by the VALUE ACCOUNTS
Employee Share Trust to employees (438) -
AASB101(106)(d),
(108) Transactions with non-controlling interests
Balance 1 July - -
AASB127(30) Acquisition of additional ownership in VALUE
ACCOUNTS Manufacturing Limited 42 (210) -
Balance 30 June (210) -
AASB121(52)(b)
AASB101(106)(d),
(108) Foreign currency translation
Balance 1 July 60 -
Net investment hedge 15 (9)
Currency translation differences arising during the year (5) 60
(b) Retained earnings

AASB101(106)(d) Movements in retained earnings were as follows:
2011 2010
Notes $'000 $'000
Balance 1 July * 4,184 912

Net profit for the year 7,378 4,067
AASB101(106)(d)(ii) Items of other comprehensive income recognised directly
in retained earnings
Actuarial (losses)/gains on retirement benefit
obligation, net of tax 31(f) (217) 138
Dividends 35 (1,224) (957)
Transfer from share capital on buy-back of preference
shares 32(d) 64 -
Depreciation transfer, net of tax 33(a) 14 24
Balance 30 June 10,199 4,184
* Refer to note 7(a) for explanations of an error made in the accounting for a leasing contract in prior
years and retrospective adjustments recognised on 1 July 2009 and 30 June 2010. The amounts
disclosed in this note are after these adjustments.
AASB101(79)(b) (c) Nature and purpose of reserves 4,5

(i) Revaluation surplus – property, plant and equipment
AASB116(77)(f) The property, plant and equipment revaluation surplus is used to record increments and decrements
on the revaluation of non-current assets, as described in note 1(r). The balance standing to the credit
of the surplus may be used to satisfy the distribution of bonus shares to shareholders and is only
available for the payment of cash dividends in limited circumstances as permitted by law.

AASB101(51)(c) 30 June 2011
(continued)
33 Reserves and retained earnings (continued)

(ii) Available-for-sale financial assets
Changes in the fair value and exchange differences arising on translation of investments, such as
equities, classified as available-for-sale financial assets, are recognised in other comprehensive
income, as described in note 1(o) and accumulated in a separate reserve within equity. Amounts are
reclassified to profit or loss when the associated assets are sold or impaired.
(iii) Cash flow hedges
The hedging reserve is used to record gains or losses on a hedging instrument in a cash flow hedge
that are recognised in other comprehensive income, as described in note 1(p). Amounts are
reclassified to profit or loss when the associated hedged transaction affects profit or loss.
(iv) Share-based payments
The share-based payments reserve is used to recognise:
 the grant date fair value of options issued to employees but not exercised
 the grant date fair value of shares issued to employees
 the issue of shares held by the VALUE ACCOUNTS Employee Share Trust to employees.
(v) Transactions with non-controlling interests
This reserve is used to record the differences described in note 1(b)(v) which may arise as a result of
transactions with non-controlling interests that do not result in a loss of control.
(vi) Foreign currency translation
Exchange differences arising on translation of the foreign controlled entity are recognised in other
comprehensive income as described in note 1(d) and accumulated in a separate reserve within equity.
The cumulative amount is reclassified to profit or loss when the net investment is disposed of.
Commentary - Reserves and retained earnings
Movements
AASB101(106)(d) 1. An entity shall present, either in the statement of changes in equity or in the notes, for each
accumulated balance of each class of other comprehensive income a reconciliation between
the carrying amount at the beginning and the end of the period, separately disclosing each
item of other comprehensive income and transactions with owners. See also commentary
paragraphs 2 and 3 to the statement of changes in equity.
AASB101(92),(94) 2. Reclassification adjustments relating to components of other comprehensive income must
also be disclosed, either in the statement of comprehensive income or in the notes. VALUE
ACCOUNTS Holdings Limited has elected to make both disclosures in the notes.
AASB101(7),(95) 3. Reclassification adjustments are amounts reclassified to profit or loss in the current period
that were recognised in other comprehensive income in the current or previous periods. They
arise, for example, on disposal of a foreign operation, on derecognition or impairment of an
available-for-sale financial asset and when a hedged forecast transaction affects profit or
loss.
Nature and purpose
AASB101(79)(b) 4. A description of the nature and purpose of each reserve within equity must be provided either
in the balance sheet or in the notes. This applies to each reserve, including general reserves,
capital profits reserves and any others in existence.
5. In providing a description of the nature and purpose of the reserves it would be appropriate to
refer to any restrictions on their distribution or any other important characteristics. In the case
of:
AASB116(77)(f) (a) the property, plant and equipment revaluation surplus: there is a specific
requirement to disclose any restrictions on the distribution of the balance to
shareholders
AASB138(124)(b) (b) the amount of the revaluation surplus that relates to intangible assets; there is a
specific requirement to disclose the balance at the beginning and end of the
period, indicating the changes during the period and any restrictions on the
distribution of the balance to shareholders.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Reserves and retained earnings (continued)
Transfer from share-based payments reserve to share capital on exercise of options

6. The accounting standards do not distinguish between different components of equity.
Although AASB 2 Share-based Payment permits the transfer an amount from one component
of equity to another upon the exercise of options, there is no requirement to do so. VALUE
ACCOUNTS Holdings Limited has elected to retain any amounts originally recognised in the
share-based payments reserve, regardless of whether the associated options are exercised
or lapse unexercised. Under Australian income tax law, certain transfers to share capital
accounts (as broadly defined for tax purposes) can result in the 'tainting' of the company's
share capital account which will result in negative tax consequences for the company and its
shareholders. This is an area of tax which is complex and continues to evolve. While this is
not likely to occur in respect of share issues under an employee share scheme, entities
should always obtain tax advice in relation to the accounting for share-based payments in
light of their own circumstances before making any decision.
Not mandatory
34 Non-controlling interests
2011 2010
$'000 $'000
Interest in:
Share capital 491 41
Reserves 476 394
Retained earnings 1,718 1,161
2,685 1,596
Commentary - Non-controlling interests
Non-controlling interests note not mandatory

1. There are no requirements in the Corporations Act 2001 or accounting standards to include a
note along the lines of note 34. Such a note was required under previous AGAAP and may be
useful to users of the financial statements.

AASB101(51)(c) 30 June 2011
(continued)
35 Dividends 1,5,6
2011 2010
$'000 $'000
(a) Ordinary shares 1,2

AASB101(107) Final dividend for the year ended 30 June 2010 of 5 cents (2009 – 4
Dates of payment not
mandatory cents) per fully paid share paid on 10 October 2010 (2009 – 11
October 2009)
AASB101(Aus138.3) Fully franked (2009 – 60% franked) based on tax paid @ 30% – 5
(a)
cents (2009 – 2.4 cents) per share 586 273
AASB101(Aus138.3) Unfranked final dividend for the year ended 30 June 2009 – 1.6
(b)
cents per share - 182
586 455
AASB101(107) Interim dividend for the year ended 30 June 2011 of 5 cents (2010 –
mandatory 4 cents) per fully paid share paid 10 March 2011 (2010 – 11 March
2010)
AASB101(Aus138.3)
(a) Fully franked based on tax paid @ 30% 603 467
1,2
(b) 7% non-redeemable participating preference shares
AASB101(107) Annual dividend of 7 cents (2010 – 7 cents) per share paid 20
mandatory February 2011 (2010 – 21 February 2010)
AASB101(Aus138.3)
(a) Fully franked based on tax paid @ 30% 35 35
AASB101(107)(a) 1,224 957
Total dividends provided for or paid
Dividends paid in cash or satisfied by the issue of shares under the

dividend reinvestment plan during the years ended 30 June 2011
and 2010 were as follows:
Paid in cash 940 698
AASB107(43) 284 259
Satisfied by issue of shares
1,224 957
(c) 6% cumulative redeemable preference shares 3

Not mandatory Dividends on these shares of 6 cents (2010 – 6 cents) per share
totalling $60,000 (2010 – $60,000) paid on 30 June 2011 (2010 – 30
June 2010) have been charged to profit or loss as interest and
finance charges because the shares are classified as liabilities (refer
note 1(v)). The dividends are unfranked.
(d) Dividends not recognised at the end of the reporting

2,4
period
AASB101(137)(a) In addition to the above dividends, since year end the directors have
AASB110(12)
recommended the payment of a final dividend of 7 cents per fully
paid ordinary share (2010 – 5 cents), fully franked based on tax paid
at 30%. The aggregate amount of the proposed dividend expected to
be paid on 9 October 2011 out of retained earnings at 30 June 2011,
but not recognised as a liability at year end, is 989 586

AASB101(51)(c) 30 June 2011
(continued)
35 Dividends (continued)
(e) Franked dividends 8-13

The franked portions of the final dividends recommended after 30 June 2011 will be franked out of
existing franking credits or out of franking credits arising from the payment of income tax in the year
ending 30 June 2012.
Consolidated Consolidated Parent entity
disclosure not
mandatory
2010 2009 2010 2009
$'000 $'000 $'000 $'000
AASB101(Aus138.4) Franking credits available for

subsequent financial years based
on a tax rate of 30% (2009 - 30%) 531 480 510 465
AASB101(Aus138.4) The above amounts represent the balance of the franking account as at the end of the reporting
period, adjusted for:
AASB101(Aus138.4) (a) franking credits that will arise from the payment of the amount of the provision for income tax
(a)
AASB101(Aus138.4) (b) franking debits that will arise from the payment of dividends recognised as a liability at the
(b)
reporting date, and
AASB101(Aus138.4) (c) franking credits that will arise from the receipt of dividends recognised as receivables at the
(c)
reporting date.
The consolidated amounts include franking credits that would be available to the parent entity if
distributable profits of subsidiaries were paid as dividends.
AASB101(Aus138.5) The impact on the franking account of the dividend recommended by the directors since the end of the
reporting period, but not recognised as a liability at the reporting date, will be a reduction in the
franking account of $424,000 (2010 – $251,000).
Commentary - Dividends
Parent vs consolidated information

1. The dividends disclosed in this note are only those paid by the parent entity and do not
include dividends paid by subsidiaries to non-controlling interests. AASB 101 Presentation of
Financial Statements requires disclosure of the dividends recognised as distribution to
owners during the period (paragraph 107). The term ‘owners’ is generally used in AASB 101
in the context of owners of the parent entity (eg paragraphs 83 and 106). The focus of the
financial statements is still on the parent entity shareholders and on that basis a disclosure of
dividends per share is only relevant for the owners of the parent entity. This disclosure also
correlates to the disclosure of the number of shares issued as required under paragraph 79
of AASB 101. Holders of non-controlling interests will receive their dividend information from
the separate financial statements of the relevant subsidiaries.
Dates of payment
AASB1039(30)(b)(i) 2. Disclosure of the actual or expected dates of payment of dividends is not mandatory in the
full financial statements. These disclosures are required in a concise financial report,
however, where such a report is prepared.
Shares not included in equity
AASB101(Aus138.3) 3. Dividend franking disclosures are required in respect of each class of shares included in
equity. Where shares or other instruments are classified as debt for accounting purposes we
recommend the disclosure of relevant franking information. For the purposes of the above
disclosures, it is assumed that the redeemable preference shares are treated as debt for tax
law purposes and therefore the dividends are unfranked.
Cumulative preference dividends not recognised
AASB101(137)(b) 4. The amount of any cumulative preference dividends not recognised shall be disclosed.

AASB101(51)(c) 30 June 2011
(continued)
Dividends in the form of non-cash assets

5. If the entity has distributed assets other than cash as dividends to its owners, it shall:
AASB-I17(15) (a) present the difference between the carrying amount of the assets distributed and
the carrying amount of the dividend payable as a separate line item in profit or
loss
AASB-I17(16) (a) disclose the following information, if applicable:
(i) the carrying amount of the dividend payable at the beginning and end
of the period, and
(ii) the increase or decrease in the carrying amount recognised in the
period as a result of a change in the fair value of the assets to be
distributed.
AASB-I17(17) 6. If the entity has declared a dividend to distribute a non-cash asset after the end of the
reporting period but before the financial statements are authorised for issue, it shall disclose:
(a) the nature of the asset to be distributed
(b) the carrying amount of the asset(s) to be distributed as of the end of the reporting
period, and
(c) the estimated fair value of the asset to be distributed as of the end of the reporting
period, if it is different from its carrying amount, and the information about the
method used to determine that fair value required by AASB 7 paragraph 27(a) and
(b).
Possible changes resulting from the trans-Tasman convergence project
ED200A 7. In July 2010, the AASB issued an exposure draft aimed at harmonising financial reporting
standards in Australia and New Zealand. Should the proposals be adopted, entities will no
longer need to disclose the amounts of dividends provided for or paid that have been or will
be franked. However, the disclosure of franking credits available for subsequent periods
(paragraphs 8 and 9 below) will still be required. While the changes had not been finalised
before this publication was released, they are expected to be available for early adoption for
30 June 2011 reporting periods. We will inform you via IFRS in Brief when they are released
(www.pwc.com.au/assurance/ifrs/publications/ifrs-in-brief).
Franking credits available for subsequent reporting periods
AASB101(Aus138.4) 8. When reporting on a consolidated entity, disclosure of franking credits available for
subsequent reporting periods is only required in relation to the parent entity. Where additional
franking credits would be available to the parent entity if distributable profits of subsidiaries
were paid as dividends, we recommend the disclosure of consolidated amounts as additional
information. Where franking credits could be significantly affected by a possible future refund
of tax following a retrospective change in legislation (as happened in 2010 with the tax
consolidation legislation), entities should consider explaining this fact by way of a footnote.
9. Disclosure is recommended (but is not required) of the tax rates on which franking credits
available for subsequent financial years are based.
Franking account legislation for certain companies
10. Australian resident shareholders of companies which are effectively wholly-owned by
non-residents or tax exempt bodies ('exempting companies') may not obtain rebates and
franking credits, except in limited circumstances.
11. Furthermore, an exempting company which ceases to be effectively wholly-owned by
non-residents or tax exempt bodies at any time after 13 May 1997 (referred to as a 'former
exempting company') is required to maintain a new 'exempting account' in addition to a
franking account. In effect, the exempting account will be the franking account balance at the
date of ownership change adjusted for subsequent tax payments and refunds attributable to
the period before change in ownership. The franking account balance will only reflect
franking credits and debits arising from tax payments, refunds and dividends attributable to
the period after change in ownership.
12. Resident shareholders of such companies are not eligible for rebates or franking credits on
exempting account dividends, except in limited circumstances. Non-resident shareholders
will continue to receive the benefit of 'franked' or ‘exempted’ dividends by way of an
exemption from withholding tax.

AASB101(51)(c) 30 June 2011
(continued)
13. It is suggested that companies affected by the above should include the following additional
disclosures on the availability of franking credits:
Exempting company
Income tax legislation denies Australian resident shareholders of companies which
are effectively wholly-owned by non-residents and/or tax exempt bodies from
obtaining rebates or franking credit benefits, except in limited circumstances.
Non-resident shareholders will continue to receive the benefit of franked dividends
by way of an exemption from withholding tax. The legislation applies to the
company.
Former exempting company
Where at a particular time, the company ceases to be effectively wholly-owned by
non-residents and/or tax exempt bodies, special rules will apply to establish an
'exempting account' in addition to a new franking account. In effect, the 'exempting
account is the franking account balance at the date of ownership change adjusted
for subsequent tax payments and refunds attributable to the period before the
change in ownership. The franking account balance will only reflect franking credits
and debits arising from tax payments, refunds and dividends attributable to the
period after the change in ownership.
Resident shareholders of such companies are not eligible for rebates or franking
credits on 'exempting account' dividends, except in limited circumstances.
Non-resident shareholders will continue to receive the benefit of 'franked' dividends
by way of an exemption from withholding tax. Certain non-resident shareholders
may receive the benefit of exempted dividends by way of exemption from
withholding tax.
The legislation applies to the company and the amount of franking credits and
exempting credits available for the subsequent financial year are as follows:
Franking credits available for the subsequent financial year $_____ $_____
Exempting credits available for the subsequent financial year $_____ $_____

AASB101(51)(c) 30 June 2011
(continued)
36 Key management personnel disclosures 1,5-8,10-11,28-34
AASB124(16) (a) Key management personnel compensation 2-4

2011 2010
$ $
AASB124(16)(a) Short-term employee benefits 2,055,619 1,915,464

AASB124(16)(b) Post-employment benefits 179,953 161,541
AASB124(16)(c) Long-term benefits 39,530 32,719
AASB124(16)(d) Termination benefits 115,500 -
AASB124(16)(e) 61,005 19,733
Share-based payments
2,451,607 2,129,457
Detailed remuneration disclosures are provided in the remuneration report on pages 14 to 25. 9
(b) Equity instrument disclosures relating to key management personnel 12-17

(i) Options provided as remuneration and shares issued on exercise of such options
CR2M.6.04 Details of options provided as remuneration and shares issued on the exercise of such options,
together with terms and conditions of the options, can be found in the remuneration report on pages
17 and 22 to 25. 9
(ii) Option holdings
AASB124(Aus25.7.3) The numbers of options over ordinary shares in the company held during the financial year by each
director of VALUE ACCOUNTS Holdings Limited and other key management personnel of the group,
including their personally related parties, are set out below.
AASB124(Aus25.7.3) 2011 Granted
(a),(g)
Balance at as Balance at
Name start of compen- Other end of the Vested and
the year sation Exercised changes year exercisable Unvested
N T Toddington 170,000 100,000 (9,000) - 261,000 41,000 220,000
H G Wells 37,000 35,000 (6,000) - 66,000 1,000 65,000
R T Brown 53,000 - - (53,000) - - -
P M Elliott 33,000 20,000 (4,000) - 49,000 4,000 45,000
D M Green 23,000 22,000 (4,000) - 41,000 2,000 39,000
S J McInnes 28,000 20,000 (3,000) - 45,000 3,000 42,000
W P Shanahan 23,000 15,000 (4,000) (34,000) - - -
AASB124(Aus25.7.3)
(h)
All vested options are exercisable at the end of the year. 13
AASB101(38) Granted
2010 30 Balance at as Balance at
start of the compen- Other end of the Vested and
Name year sation Exercised changes year exercisable Unvested
N T Toddington 140,000 70,000 - (40,000) 170,000 - 170,000
R T Brown 43,000 20,000 - (10,000) 53,000 - 53,000
P M Elliott 24,000 15,000 - (6,000) 33,000 - 33,000
D M Green 15,000 12,000 - (4,000) 23,000 - 23,000
S J McInnes 19,000 14,000 - (5,000) 28,000 - 28,000
R J Jackson 23,000 10,000 - (33,000) - - -
W P Shanahan 19,000 10,000 - (6,000) 23,000 - 23,000

AASB101(51)(c) 30 June 2011
(continued)
36 Key management personnel disclosures (continued)

(iii) Share holdings
AASB124(Aus25.7.4) The numbers of shares in the company held during the financial year by each director of VALUE
ACCOUNTS Holdings Limited and other key management personnel of the group, including their
personally related parties, are set out below. There were no shares granted during the reporting period
as compensation.
AASB124(Aus25.7.4) Received during Other
(a)-(e)
2011 Balance at the year on the changes Balance at
the start of exercise of during the the end of
Name the year options year the year
Ordinary shares
N T Toddington 23,369 9,000 4,352 36,721
H G Wells 18,214 6,000 3,259 27,473
R T Brown 10,000 - (10,000) -
M K Hollingworth 20,000 - 2,000 22,000
J C Campbell 10,310 - 1,406 11,716
A L Cunningham 10,000 - 1,000 11,000
R J Hunter 12,372 - 1,687 14,059
C A Maxwell 10,000 - 1,000 11,000
B A Wilson 12,000 - 1,200 13,200
B C Bristol - - 11,000 11,000
7% non-redeemable participating preference shares
N T Toddington 3,000 - (3,000) -
Ordinary shares
P M Elliott 22,714 4,000 2,671 29,385
D M Green 17,539 4,000 2,894 24,433
S J McInnes 14,249 3,000 (3,191) 14,058
B D Faraday - - 11,000 11,000
W P Shanahan 13,059 4,000 (17,059) -
AASB101(38) Received during Other

2010 30 Balance at the the year on the changes Balance at
start of the exercise of during the the end of
Name year options year the year
Ordinary shares
N T Toddington 19,010 - 4,359 23,369
R T Brown 7,000 - 3,000 10,000
M K Hollingworth 18,000 - 2,000 20,000
J C Campbell 9,000 - 1,310 10,310
A L Cunningham 9,000 - 1,000 10,000
R J Hunter 10,775 - 1,597 12,372
C A Maxwell 9,500 - 500 10,000
B A Wilson 10,800 - 1,200 12,000
7% non-redeemable participating preference shares
N T Toddington 3,000 - - 3,000
Ordinary shares
P M Elliott 27,075 - (4,361) 22,714
D M Green 14,958 - 2,581 17,539
S J McInnes 12,905 - 1,344 14,249
W P Shanahan 18,660 - (5,601) 13,059

AASB101(51)(c) 30 June 2011
(continued)
(c) Loans to key management personnel 18-20

AASB124(Aus25.8) Details of loans made to directors of VALUE ACCOUNTS Holdings Limited and other key management
personnel of the group, including their personally related parties, are set out below.
AASB124(Aus25.8)(a) (i) Aggregates for key management personnel
AASB124(Aus25.8.1) Number in
(a)-(c),(e),(g)
Balance at Interest paid Balance at group at the
the start of and payable Interest not the end of end of the
the year for the year charged the year year
$ $ $ $
2011 206,300 16,929 6,262 317,450 5
AASB101(38)
2010 30 202,700 11,275 4,128 206,300 5
AASB124(Aus25.8)(b) (ii) Individuals with loans above $100,000 during the financial year
AASB124(Aus25.8.1) 2011 Highest
(a)-(c),(e),(f)
Balance at Interest paid Balance at indebtedness
the start of and payable Interest not the end of during the
Name the year for the year charged the year year
$ $ $ $ $
B D Faraday - 5,750 2,300 110,000 120,000
AASB101(38) 30
In 2010, there were no loans to individuals that exceeded $100,000 at any time.
AASB124(Aus25.8.1) Loans outstanding at the end of the current and prior year include an unsecured loan to a director of
(h)
VALUE ACCOUNTS Holdings Limited of $30,000 which was made for a period of two years and is
repayable in full on 30 September 2011. Interest is payable on this loan at the rate of 8% per annum.
All other loans to key management personnel are for periods of 10 years repayable in quarterly
instalments, at interest rates of 5% per annum, and are secured by first mortgages over the individuals'
residences.
AASB124(Aus25.8.1) The amounts shown for interest not charged in the tables above represent the difference between the
(c)
amount paid and payable for the year and the amount of interest that would have been charged on an
arm's-length basis.
AASB124(Aus25.8.1) No write-downs or allowances for doubtful receivables have been recognised in relation to any loans
(d)
made to key management personnel.
(d) Other transactions with key management personnel 21-27

AASB124(Aus25.9) A director, Mr A L Cunningham, is a director and shareholder of Combined Construction Company Pty
(a),(b),(c)(i)
AASB124(17)(b)(i), Ltd. VALUE ACCOUNTS Holdings Limited entered into a contract with Combined Construction
(18)(f) Company Pty Ltd during the year for the construction of a warehouse building. The contract was based
on normal commercial terms and conditions.
AASB124(Aus25.9) The wife of Mr A L Cunningham, a director, is a director and majority shareholder of Elephant Limited.
(a),(b),(c)(i)
AASB124(17)(b)(i), VALUE ACCOUNTS Holdings Limited has rented an office building from Elephant Limited for the past
(18)(g) three years. The rental agreement is based on normal commercial terms and conditions.
AASB124(Aus25.9) A director, Mr B C Bristol, is a partner in the firm of Bristol & Partners, Solicitors. Bristol & Partners has
(a),(b),(c)(i)
AASB124(17)(b)(i), provided legal services to VALUE ACCOUNTS Holdings Limited and certain of its subsidiaries for
(18)(f) several years on normal commercial terms and conditions.
AASB124(Aus25.9) Mr D M Green, manager of the furniture division, is a director of Llama Pty Ltd and has the capacity to
(a),(b),(c)(i)
AASB124(17)(b)(i), significantly influence decision making of that company. VALUE ACCOUNTS Holdings Limited owns
(18)(g) shares in Llama Pty Ltd on which it receives dividends on the same basis as other shareholders.

AASB101(51)(c) 30 June 2011
(continued)

AASB124(Aus25.9) Aggregate amounts of each of the above types of other transactions with key management personnel
(c)(ii),(Aus25.9.1)
AASB124(17)(a) of VALUE ACCOUNTS Holdings Limited:
2011 2010
$ $
AASB124(Aus25.9.1)
(a) Amounts recognised as revenue
AASB124(Aus25.9.1) 8,100 7,800
(a)(ii) Dividends received
AASB124(Aus25.9.1)
(b) Amounts recognised as expense
Legal fees 38,390 25,720
Rent of office building 570,400 550,300
608,790 576,020
AASB124(Aus25.9.1)
(c) Amounts recognised as property, plant and equipment
Construction of warehouse building 155,475 -
AASB124(17)(b)(i), During the year, the group also sold household furniture for domestic use to key management
(18)(f)
personnel within a normal employee relationship on terms and conditions no more favourable than
those which it is reasonable to expect would have been adopted if dealing with an unrelated individual
at arm's length in the same circumstances. 25,26
AASB124(Aus25.9.2) Aggregate amounts of assets at the end of the reporting period relating to the above types of other
(a)
AASB124(17)(b) transactions with key management personnel of the group:
2011 2010
$ $
AASB124(Aus25.9.2) Non-current assets 155,475 -

(a)
AASB124(Aus25.9.2) Aggregate amounts payable to key management personnel of the group at the end of the reporting
(b)
period relating to the above types of other transactions:
2011 2010
$ $
AASB124(Aus25.9.2) Current liabilities 196,375 91,294

(b)
Commentary - Key management personnel disclosures
Key management personnel disclosures

1. AASB 124 Related Party Disclosures has two parts:
AASB124(Aus1.2) (a) paragraphs 1 to 22 apply to all reporting entities and financial statements that are,
or are held out to be, general purpose financial statements, and
AASB124(Aus1.4) (b) paragraphs Aus25.1 to Aus25.9.3 apply only to disclosing entities required to
prepare financial statements in accordance with Part 2M.3 of the Corporations Act
2001.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Key management personnel disclosures (continued)
Disclosures for all reporting entities

AASB124(16) 2. All reporting entities must disclose key management personnel compensation in total and for
each of the following categories:
AASB124(16)(a) (a) short-term employee benefits
AASB124(16)(b) (b) post-employment benefits
AASB124(16)(c) (c) other long-term benefits
AASB124(16)(d) (d) termination benefits
AASB124(16)(e) (e) share-based payments.
3. The disclosure in paragraph 2 must be made in the notes to the financial statements and
cannot be made in the remuneration report. Guidance on determining compensation is
provided in the commentary to the directors’ report (paragraphs 60 to 67).
4. While the disclosures under AASB 124 paragraph 16 are subject to materiality, this must be
determined based on both quantitative and qualitative factors. In our view, it will not be
appropriate to omit the aggregate compensation disclosures based on materiality.
Key management personnel
AASB124(9) 5. For the purposes of AASB 124, key management personnel is persons having authority and
responsibility for planning, directing and controlling the activities of the entity, directly or
indirectly, including any director (whether executive or otherwise) of that entity.
AASB124(Aus9.1) 6. A director is a person who is a director under the Corporations Act 2001 or, in the case of
entities governed by bodies not called a board of directors, a person who, regardless of the
name that is given to the position, is appointed to the position of member of the governing
body, council, commission or authority. Individuals who are directors of subsidiaries within an
economic entity but not directors of the parent entity are not directors of the group.
Other key management personnel disclosures by disclosing entities
Parent entity disclosures not required
AASB124(1.5) 7. If a disclosing entity is the parent entity in a group and the financial statements of the parent
entity are presented with the consolidated financial statements of the group, the detailed
disclosures in paragraphs Aus25.2 to Aus25.9.3 of AASB 124 only need to be provided in
relation to the consolidated financial statements. When the disclosing entity is not a parent
entity, the requirements of the standard apply to the disclosing entity itself.
Materiality
AASB124(Aus1.10) 8. Because of the nature of the relationship between the reporting entity and its key
management personnel, the items, transactions and balances required to be disclosed by
disclosing entities under paragraphs Aus25.2 to Aus25.9.3 of AASB 124 are deemed
material in all circumstances, irrespective of the amounts involved.
Remuneration disclosures of disclosing entities that are companies
CR2M.3.03 9. Disclosing entities that are companies do not need to comply with paragraphs Aus25.2 to
AASB124
(Aus1.4.1) Aus25.6, Aus25.7.1 and Aus25.7.2 of AASB 124 in the financial statements, as they will have
to provide the same information in the remuneration report under CA300A and CR2M.3.03.
See commentary paragraph 56 to the directors’ report for further information. However, this
relief does not extend to:
AASB124(16) (a) Disclosure of aggregate KMP compensation by category
AASB124(Aus25.7.3) (b) equity holdings
-(Aus25.7.5)
AASB124(Aus25.8) (c) loans and other KMP transactions and balances, and
-(Aus25.9.3)
AASB124(17) (d) related party transactions.

AASB101(51)(c) 30 June 2011
(continued)
Disclosing entities that are not companies

10. Disclosing entities that are not companies, including managed investment schemes (see
paragraph 31 below) will have to add the following disclosures to note 36 in relation to
compensation of their key management personnel:
AASB124(Aus25.2), (a) details of key management personnel (name, position held, period for which
(Aus25.3)
position was held and changes after the reporting period)
AASB124(Aus25.4) (b) for each key management person, specified components of compensation (see
paragraph 59 of the commentary to the directors’ report for details)
AASB124(Aus25.5) (c) information about the principles of compensation (board policy for determining
nature and amount of compensation, the relationship between compensation
policy and the entity’s performance, explanation of performance conditions for
certain elements of compensation, conditions of grants, bonuses etc and other
information as set out in AASB 124)
AASB124(Aus25.6), (d) information about the modification of the terms of equity-settled share-based
payment transactions
AASB124(Aus25.7), (e) information about options and rights provided as compensation and any equity
(Aus25.7.1),
(Aus25.7.2) instruments issued on the exercise of such options or rights.
11. These disclosures are illustrated in the remuneration report on pages 14 to 25. However,
care must be taken not to simply copy the disclosures made in the directors’ report, as there
are certain differences in the disclosure requirements:
Corporations Act 2001 AASB 124

CA300A(1)(c) Scope Disclosures must be made in Detailed compensation
AASB124(Aus1.5)
relation to: disclosures are only required for
 key management personnel the key management personnel
of the group or the company of the consolidated group or the
(if no consolidated financial company (if no consolidated
statements are prepared) financial statements are
 5 company executives, and prepared).
 5 group executives
CA300A(1B),CA9 Persons Key management personnel of All persons that are ‘key
AASB124(9),
(Aus25.4) covered the group (or the company) and management personnel’, being
5 executives of the company persons having authority and
and the group with the highest responsibility for planning,
remuneration directing and controlling the
activities of the entity
Company executives are the
secretary and any senior For a group, the key
managers of the parent entity management personnel
includes:
Group executives include:  directors of the parent entity,
 directors and secretaries of and
the controlled entities  persons who have authority
 senior managers, partners or and responsibilities in relation
trustees of any of the to the consolidated group as
controlled entities a whole.
AASB101(38) Comparatives Required only for compensation Required for all disclosures
CR2M.3.03(2)
table
The remuneration report also includes additional information that is not required under
AASB 124.

AASB101(51)(c) 30 June 2011
(continued)
Equity instruments
AASB124(Aus25.7) 12. The disclosures required by AASB 124 (Aus25.7.1) to (Aus25.7.5) refer to equity instruments
issued or issuable by the disclosing entity and any of its subsidiaries and shall be separated
into each class of instrument identified by:
(a) the name of the issuing entity
(b) the class of equity instrument
(c) if the instrument is an option or right, the class and number of equity instruments
for which it may be exercised.
Vested option holdings
AASB124(Aus25.7.3) 13. Where any vested options or rights are unexercisable at the end of the reporting period, the
(h)
number of such options or rights shall be disclosed.
Equity instruments held nominally at the end of the reporting period
AASB124(Aus25.7.4) 14. If any equity instruments (other than options and rights) are held nominally at the end of the
(f)
reporting period by a key management person, the number so held shall be disclosed. ‘Held
nominally’ refers to the situation where the instruments are in the name of the key
management person but he/she is not the beneficial owner.
15. In our view, disclosure of a key management person’s equity holding is not required
subsequent to them terminating their employment or directorship with the group. Therefore,
in the year in which a key management person leaves the group, we recommend disclosing a
nil balance at the end of the year, with the person’s holding at the date of termination
disclosed as a reduction in their holding. This reduction to nil would be classified as an ‘other
change’.
Transactions involving equity instruments, other than compensation
AASB124(Aus25.7.5) 16. If transactions involving equity instruments, other than equity compensation, have occurred
between a key management person (including their related parties) and the issuing entity
during the reporting period, the nature of each different type of transaction shall be disclosed
where the terms or conditions were more favourable than those which it is reasonable to
expect the entity would have adopted if dealing at arm’s length with an unrelated individual.
For each such transaction, the details of the terms and conditions shall be disclosed. There
were no such transactions between key management personnel and VALUE ACCOUNTS
Holdings Limited or any of its subsidiaries.
AASB124(Aus25.7.4) 17. The details of equity instrument transactions between key management personnel and
(d)
entities other than the disclosing entity (or any of its subsidiaries), whether on-market or
otherwise, are not required to be disclosed. The net effect of any such transactions is
included in the column headed 'Other changes during the year', as required by AASB 124
(Aus25.7.4)(d).
Loans
AASB124(Aus25.8) 18. Separate disclosure is required in respect of each aggregate of loans made, guaranteed or
secured, directly or indirectly, by the disclosing entity and any of its subsidiaries to:
(a) all key management personnel, including their related parties
(b) each key management person by name whose aggregate loan amount (including
their related parties) exceeded $100,000 at any time during the reporting period.
19. The loan of a key management person is included in the aggregate disclosure if any amount
was owing during the period, and is not excluded on the grounds that no amount was owing
at the end of the reporting period or that the amount owed was less than $100,000 at all
times during the reporting period.
AASB124(Aus25.8.2) 20. Loans that must be disclosed in this note do not include loans involved in transactions which
are, in substance options, including non-recourse loans.
Other transactions
21. For the purposes of note 36, 'other transactions' of key management personnel refers to
transactions other than compensation, loans and transactions concerning shares, units,
options or other equity instruments as covered by paragraphs Aus25.4 to Aus25.8.1 of AASB
124.

AASB101(51)(c) 30 June 2011
(continued)
AASB124(Aus25.9) 22. Subject to paragraph 26 below, where there have been other transactions during the year
between the disclosing entity (and any of its subsidiaries) and the key management
personnel (or their related parties), the following disclosures are required:
(a) each type of transaction of different nature
(b) the terms and conditions of each type of transaction or, where there are different
categories of terms and conditions within each type, the terms and conditions of
each category of transaction, and
(c) for each type of transaction or, where there are different categories within each
type, each category of transaction:
(i) the names of the directors involved, and
(ii) the aggregate amount recognised.
AASB124(Aus25.9.1) 23. In respect of each aggregate amount disclosed under paragraph 22(c)(ii) above, the following
details shall be disclosed:
(a) the total of amounts recognised as revenue, separately identifying where
applicable the total amounts recognised as:
(i) interest revenue, and
(ii) dividend revenue
(b) the total of amounts recognised as expense, separately identifying where
applicable the total amounts recognised as:
(i) interest expense, and
(ii) write-downs of receivables and allowances made for doubtful
receivables
(c) any further disclosures necessary to provide an understanding of the effects of the
transactions on the financial statements.
AASB124(Aus25.9.2) 24. In respect of assets and liabilities at the end of the reporting period recognised in relation to
transactions identified in accordance with paragraph 22 above, disclosure shall be made of:
(a) the total of all assets, classified into current and non-current assets and, where
applicable, any allowance for doubtful receivables at the end of the reporting
period, and
(b) the total of all liabilities, classified into current and non-current liabilities.
Trivial or domestic transactions on arm's-length basis
AASB124(Aus25.9.3) 25. Transactions with and amounts receivable from or payable to key management personnel
are excluded from the requirements of AASB 124(Aus25.9) - (Aus25.9.2) when:
(a) they occur within a normal employee, customer or supplier relationship on terms
and conditions no more favourable than those that it is reasonable to expect the
entity would have adopted if dealing at arm’s length with an unrelated individual
(b) information about them does not have the potential to affect adversely decisions
about the allocation of scarce resources made by users of the financial
statements, or the discharge of accountability by the director or executive, and
(c) they are trivial or domestic in nature.
26. For transactions and amounts meeting all three of the above conditions, it is prima facie not
necessary to disclose any details, general description or indication of their existence.
However, there is no such exemption for the general disclosures required under AASB 124
paragraph 17, which would mean that these transactions should be disclosed by all entities
regardless of the exemption in paragraph Aus 25.9.3. Nevertheless, the disclosures required
under paragraph 17 are subject to materiality, which should be assessed from both the
entity’s and the individual’s perspective. Depending on the type of business and the volume
of the transactions, a general description of the nature of the transactions, such as the one
provided by VALUE ACCOUNTS Holdings Limited, without disclosure of the amounts
involved will often be sufficient.
27. Transactions or balances are trivial in nature when they are of little or no interest to users of
the financial statements in making and evaluating decisions about the allocation of scarce
resources. Transactions or balances are domestic in nature when they relate to the personal
household activities of individuals.

AASB101(51)(c) 30 June 2011
(continued)
Related parties of key management personnel

AASB124(9) 28. A number of the disclosures required by AASB 124 include references to related parties of
the key management personnel. These are close family members and entities that are
controlled, jointly controlled or significantly influenced by, or for which significant voting power
in such entities resides with, directly or indirectly, any of the key management personnel.
Close family members are defined as those family members who may be expected to
influence, or be influenced by, the key management person.
AASB124R(9), 29. The definition of a related party will change when the revised AASB 124 (issued December
(Aus29.8),(Aus29.9),
(Aus29.9.3) 2009) becomes applicable from 1 January 2011. However, this will not have a great impact
on the detailed key management personnel disclosures that are required under the Aus
paragraphs in AASB 124, since the previous definition has been incorporated into the
specific requirements to retain the status quo. For example, transactions between the
reporting entity (A) and an entity (B), over which a director of A has significant influence,
would still need to be disclosed in the financial statements of A even though A and B no
longer qualify as related parties under the new definition in paragraph 9 of the revised AASB
124.
AASB101(38) 30. Financial information for the preceding reporting period that corresponds to the disclosures
required by AASB 124 for the reporting period shall be provided in all circumstances.
31. When disclosure is required of the compensation or equity holdings of a key management
person in the reporting period and that person was also a key management person in the
preceding period, then disclosure is required of the comparative compensation of that
person. We do not believe that it is necessary to provide comparative information for
individuals who were not key management persons in the preceding reporting period. This
view is supported by guidance that was included in AASB 1046 but has not been carried over
into AASB 124.
Managed investment schemes
32. In September 2010, the IFRS Interpretations Committee discussed the question of whether
key management personnel can include an entity as well as individuals. It tentatively agreed
that entities cannot be key management personnel and has proposed an improvement to IAS
24 Related Party Disclosures which would clarify this. The improvement would further state
that where key management personnel services are provided by another entity (eg a
responsible entity or management entity), this entity is a related party and the service fees
paid to this entity should be disclosed as a related party transaction. The issue has been
added to the 2009-2011 improvements cycle which is due for completion later in 2011
(exposure draft expected April 2011).
Rounding
ASIC 98/100 33. Any amounts required to be disclosed by AASB 124 in relation to key management
personnel compensation and other key management personnel information shall be shown to
the nearest dollar by entities with assets (or consolidated assets) of less than $1,000 million,
and may only be rounded to the nearest $1,000 by entities with assets (or consolidated
assets) of more than $1,000 million. For further information about the Class Order refer to
Appendix F.
Possible changes resulting from the trans-Tasman convergence project
34. In December 2010, in the context of harmonising Australian and New Zealand financial
reporting standards, the AASB tentatively decided to remove all of the individual key
management personnel disclosure requirements from AASB 124. However, it is not yet
known when the removal would become effective and – more importantly – whether the
Corporations and Markets Advisory Committee (CAMAC) will recommend to the Government
to retain the status quo and incorporate similar requirements either in the Corporations Act
2001 or the Corporations Regulations. The CAMAC is currently reviewing the existing
requirements relating to remuneration reports with the aim to identify how the complexity of
remuneration reports could be reduced such that they meet more effectively the needs of
shareholders and companies and how the requirements could be simplified at the same time.
We will inform you of any developments via IFRS in Brief
(www.pwc.com.au/assurance/ifrs/publications/ifrs-in-brief).

AASB101(51)(c) 30 June 2011
(continued)
37 Remuneration of auditors 1,3-7,8,9

During the year the following fees were paid or payable for services provided by the auditor of the
parent entity, its related practices and non-related audit firms:
2011 2010
$ $
(a) PwC Australia

(i) Audit and other assurance services
AASB101(Aus138.1)
(a),(Aus138.2)(a) Audit and review of financial statements 197,900 186,300
AASB101(Aus138.1)
(b),(Aus138.2)(b) Other assurance services
Due diligence services - 10,300
Total remuneration for audit and other assurance services 222,800 221,100
AASB101(Aus138.1)
(b),(Aus138.2)(b) (ii) Taxation services
Tax compliance services 25,000 23,700
International tax consulting and tax advice on mergers and
acquisitions 20,200 17,500
Total remuneration for taxation services 45,200 41,200
AASB101(Aus138.1)
(b),(Aus138.2)(b) (iii) Other services
Benchmarking services 12,300 -
Total remuneration of PwC Australia 280,300 262,300
(b) Related practices of PwC Australia 2

Audit and review of financial statements 121,000 119,000
AASB101(Aus138.1)
(c),(Aus138.2)(c) Other assurance services
Total remuneration for audit and other assurance services 127,300 124,500
AASB101(Aus138.1)
(c),(Aus138.2)(c) (ii) Other services
Benchmarking services 5,500 7,200
Total remuneration of related practices of PwC Australia 132,800 131,700
(c) Non-PwC audit firms

AASB101(Aus138.2) Audit and review of financial statements 45,000 -
(d)
(ii) Other services

AASB101(Aus138.2) 7,500 10,900
(e) Legal services
Total remuneration of non-PwC audit firms 52,500 10,900
Total auditors' remuneration 465,600 404,900
It is the group's policy to employ PwC on assignments additional to their statutory audit duties where
PwC's expertise and experience with the group are important. These assignments are principally tax
advice and due diligence reporting on acquisitions, or where PwC is awarded assignments on a
competitive basis. It is the group's policy to seek competitive tenders for all major consulting projects.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Remuneration of auditors
Example disclosures exceed the requirements of AASB 101

1. PwC supports enhanced disclosure and transparency of remuneration paid or payable to
auditors for both audit and non-audit services in the financial statements of publicly listed
entities. The sample disclosures in note 37 exceed the requirements in AASB 101
Presentation of Financial Statements in the following respects:
(a) separate disclosure is made of amounts paid or payable to related practices of the
auditor of the parent entity for the audit or review of financial statements - AASB
101 only requires disclosure of amounts paid or payable to such related practices
for other services, but for consistency, we believe the remuneration of overseas
PwC firms for the audit or review of financial statements should also be separately
disclosed
(b) the paragraph at the foot of the note concerning the group's policy for the
employment of the auditors for non-audit services is not required by AASB 101.
Related practice
AASB101(Aus7.1) 2. A related practice of the auditor of the parent entity is defined as:
(a) an entity through which an auditor provides professional services to clients and that
has one or more partners or directors in common with the auditor’s practice, or
(b) an entity that is owned by the relatives of one or more partners of the auditor’s
practice and that shares fees or profits with the auditor’s practice in respect of the
entity that is subject to the financial reporting obligation, or
(c) any other entity that shares fees or profits with the auditor’s practice in respect of
the entity that is subject to the financial reporting obligation.
Joint venture operation
3. The shares of auditor’s remuneration relating to joint venture operations should be included.
Amounts paid or payable by another entity
4. Where an amount is paid or payable by another entity (eg the parent entity) the
recommended approach is to disclose the amount in the individual entity’s financial
statements, regardless of who paid it. In cases where it is not possible to make an allocation,
the individual entity’s financial statements should include a suitable explanation.
UIG1031(6),(7) 5. Amounts disclosed for auditor’s remuneration should be net of goods and services tax (GST)
except where the GST included in fees is not recoverable from the tax authority. GST that is
not recoverable should be included as part of the remuneration. This disclosure is consistent
with UIG 1031 Accounting for the Goods and Services Tax (GST) which requires revenues,
expenses and assets to be recognised net of the amount of GST, except that where the GST
is not recoverable it shall be recognised as part of the cost of acquisition of the asset or as
part of the item of expense to which it relates.
6. We recommend that entities that are not able to recover GST on fees for audit and other
services and other expenses should include a policy note indicating which expense items
disclosed in the financial statements are inclusive of non-recoverable GST. They could also
amend the wording of specific disclosures such as auditor’s remuneration to make it clear that
the amounts disclosed are inclusive of non-recoverable GST, eg by adding the words
''including non-recoverable GST'' to the relevant captions.
Rounding
ASIC 98/100 7. Disclosures required by AASB 101 (Aus138.1) and (Aus138.2) must be shown to the nearest
dollar by entities with assets (or consolidated assets) of less than $1,000 million, and such
remuneration may only be rounded to the nearest $1,000 by entities with assets (or
consolidated assets) of more than $1,000 million. See Appendix F for further information.
Related practice of subsidiary auditors
AASB101(Aus138.2)(f) 8. Where applicable, entities must also disclose separately the nature and amount of any non-
audit services provided by a related practice of the auditors of any of the subsidiaries.
Possible changes – Trans-Tasman convergence project
ED200B(5) 9. In July 2010, the AASB proposed to simplify the requirements for audit fee disclosures as a
result of a project aimed at harmonising financial reporting standards in Australia and New
Zealand. The changes had not yet been finalised at the time this publication was issued.
However, they are expected to be available for early adoption for 30 June 2011 reporting
periods. We will issue separate guidance about these changes when final details are known.

AASB101(51)(c) 30 June 2011
(continued)
38 Contingencies 1,10-17
(a) Contingent liabilities 2,4-7

The group had contingent liabilities at 30 June 2011 in respect of:
(i) Claims
AASB137(86),(91) A claim for unspecified damages was lodged against VALUE ACCOUNTS Electronics Pty Ltd in June
2010 in relation to alleged non-performance under a sales contract. The company has disclaimed
liability and is defending the action. At the time of the acquisition of VALUE ACCOUNTS Electronics
Pty Ltd, the fair value of the obligation could not be measured with sufficient reliability. No amount was
therefore recognised as part of the acquisition accounting. It is still not practical to estimate the
potential effect of this claim but legal advice indicates that any liability that may arise in the unlikely
event the claim is successful will not be significant.
(Revised) (ii) Guarantees
For information about guarantees given by entities within the group, including the parent entity, please
refer to notes 43 and 51.
(iii) Associates and Joint ventures
AASB131(54) For contingent liabilities relating to associates and joint ventures refer to notes 44 and 45 respectively.
AASB128(40(b)
(b) Contingent assets 3-5,8-9

AASB137(89),(91) A subsidiary has lodged a claim against a supplier for damages caused by the supply of faulty
products. The matter has been referred to arbitration and, having received legal advice, the directors
believe that a favourable outcome is probable. However, the contingent asset has not been recognised
as a receivable at 30 June 2011 as receipt of the amount is dependent on the outcome of the
arbitration process.
Commentary - Contingencies

AASB137(1)-(5) 1. AASB 137 Provisions, Contingent Liabilities and Contingent Assets applies to all provisions,
contingent liabilities and contingent assets except:
(a) those resulting from executory contracts, except where the contract is onerous
(b) those covered by another Australian Accounting Standard. For example:
(i) financial instruments (including guarantees) that are within the scope of
AASB 139 Financial Instruments: Recognition and Measurement
(ii) contingent liabilities assumed in a business combination - AASB 3
Business Combinations addresses the treatment by an acquirer of
contingent liabilities assumed in a business combination
(iii) certain types of provisions are also addressed in Standards on:
 construction contracts (refer to AASB 111 Construction Contracts)
 income taxes (refer to AASB 112 Income Taxes)
 leases (refer to AASB 117 Leases). However, as AASB 117
contains no specific requirements to deal with operating leases
that have become onerous, AASB 137 applies to such leases
 employee benefits (refer to AASB 119 Employee Benefits)
 insurance contracts (refer to AASB 4 Insurance Contracts, AASB
1023 General Insurance Contracts, and AASB 1038 Life
Insurance Contracts). However, AASB 137 applies to provisions,
contingent liabilities and contingent assets of an insurer, other
than those arising from its contractual obligations and rights under
insurance contracts within the scopes of AASB 4, AASB 1023 or
AASB 1038.

AASB101(51)(c) 30 June 2011
(continued)
Commentary – Contingencies (continued)
Definitions
Contingent liabilities
AASB137(10) 2. A contingent liability is:
(a) a possible obligation that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the entity, or
(b) a present obligation that arises from past events but is not recognised because:
(i) it is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, or
(ii) the amount of the obligation cannot be measured with sufficient
reliability.
Contingent assets
AASB137(10) 3. A contingent asset is a possible asset that arises from past events and whose existence will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the entity.
Application of definitions
4. Careful consideration will need to be given to each potential contingent liability or asset. For
example, in the case of an entity that has:
(a) incurred liabilities in acting as trustee for a trust: if the liabilities of the trust are
insignificant compared to the assets in the trust and the chances of the trustee
being called to meet those liabilities is remote, no contingent liability and asset
disclosures will need to be made. It is likely that it will be possible to demonstrate
remoteness where the entity is acting as trustee for an equity trust that has no
borrowings and holds investments that can be readily sold to meet any liabilities
that do arise. Remoteness is unlikely to be demonstrated where an entity acts as
trustee for a trust that is carrying on a business and the trustee is incurring liabilities
and undertaking the risks relating to the business
(b) provided a guarantee or indemnity to another party: it will be more difficult to
demonstrate the probability of having to meet the potential liabilities as being
remote because there are likely to be commercial risks which gave rise to the need
for the guarantee or indemnity.
Not to be recognised in the financial statements
AASB137(27),(31) 5. An entity shall not recognise a contingent liability or a contingent asset in the financial
AASB3(22),(23)
statements, except for contingent liabilities that were acquired in a business combination.
Where an entity has recognised a contingent liability as a result of a business combination, it
must make the same disclosures for the contingent liability as are required for provisions, see
commentary to note 28.
Disclosure
Contingent liabilities
AASB137(86) 6. Unless the possibility of any outflow in settlement is remote, an entity shall disclose for each
class of contingent liability at the end of the reporting period a brief description of the nature of
the contingent liability and, where practicable:
(a) an estimate of its financial effect, measured under paragraphs 36-52 of AASB 137
(b) an indication of the uncertainties relating to the amount or timing of any outflow,
and
(c) the possibility of any reimbursement.
AASB137(87) 7. In determining which contingent liabilities may be aggregated to form a class, it is necessary
to consider whether the nature of the items is sufficiently similar for a single statement about
them to fulfil the requirements of paragraphs 85(a) and (b) and 86(a) and (b) of AASB 137.
Contingent assets
AASB137(89) 8. Where an inflow of economic benefits is probable, an entity shall disclose a brief description
of the nature of the contingent assets at the end of the reporting period, and, where
practicable, an estimate of their financial effect, measured using the principles set out for
provisions in paragraphs 36-52 of AASB 137.
AASB137(90) 9. It is important that disclosures for contingent assets avoid giving misleading indications of the
likelihood of income arising.

AASB101(51)(c) 30 June 2011
(continued)

Provision and contingent liability arise from the same set of circumstances
10. Some sets of circumstances may result in the recognition of a provision as well as the
disclosure of a contingent liability. Examples include where an entity:
(a) has sold faulty products and has an obligation to rectify the products under the
sales warranty. The customers have claimed damages but the entity is defending
the claims on the basis of expert legal advice that it is not liable for the damages. A
liability shall be recognised for the obligation to rectify the products under warranty
and the damages claim is a contingent liability resulting from the sale of faulty
products, or
(b) is involved in litigation in relation to a matter with a number of parties making claims
for specified amounts. If the entity has admitted liability to a number of the parties
but is disclaiming liability and, based on expert legal advice, expects to successfully
defend the claims made by the other parties, the entity shall recognise a liability for
the claims it has admitted liability for and has a contingent liability in respect of the
claims it is defending.
AASB137(88) 11. Where a provision and a contingent liability arise from the same set of circumstances, an
entity makes the disclosures required by paragraphs 84-86 of AASB 137 in a way that shows
the link between the provision and the contingent liability.
Not practicable to make required disclosures
AASB137(91) 12. Where any of the information required to be disclosed by paragraphs 86 and 89 of AASB 137
is not disclosed because it is not practicable to do so, that fact shall be stated.
Disclosure that might seriously prejudice the position of the entity
AASB137(92) 13. In extremely rare cases, disclosure of some or all of the information required to be disclosed
by paragraphs 84-89 of AASB 137 can be expected to prejudice seriously the position of the
entity in a dispute with other parties on the subject matter of the provision, contingent liability
or contingent asset. In such cases, an entity need not disclose the information, but shall
disclose the general nature of the dispute, together with the fact that, and reason why, the
information has not been disclosed. An example of such disclosure is contained in Appendix
D of AASB 137.
Liabilities for subsidiary’s debts
CA588V 14. Holding companies can be liable for debts incurred by a subsidiary company where the
holding company, or any of its directors, are, or ought to be, aware that there are reasonable
grounds for suspecting the subsidiary is insolvent. Where a subsidiary is, or may be, insolvent
and the financial statements of the holding company do not include a provision for the
subsidiary’s debts, the contingent liability note should specifically refer to the fact that the
company may be liable under the Corporations Act 2001 for the subsidiary’s debts.
15. Under the tax consolidation legislation, tax consolidated entities are jointly and severally liable
for the income tax liability of the tax consolidated group. However, the joint and several liability
can be avoided if a valid tax sharing agreement has been entered into. Such an agreement
has the effect of limiting the liability of each member of the group in the case of a default to
the amount determined under the agreement. Wholly-owned entities in a tax consolidated
group will need to disclose contingent liabilities if the probability of default by the head entity
or of the wholly-owned entity leaving the tax-consolidated group is more than remote and:
(a) no tax sharing agreement has been entered into, or
(b) a tax sharing agreement has been entered into and the liability arising in the event
of a default exceeds the amount recognised as a liability in the financial
statements, if any.
No contingent liabilities should arise in relation to the head entity or the consolidated entity.
Arrangements involving the legal form of a lease
UIG127(7) 16. Obligations of an arrangement in the legal form of a lease, including any guarantees provided
and obligations incurred upon early termination, shall be accounted for in accordance with
AASB 137, AASB 139 Financial Instruments: Recognition and Measurement or AASB 1023
General Insurance Contracts, depending on the terms.

AASB101(51)(c) 30 June 2011
(continued)
Possible contingent liabilities relating to employee benefits

AASB119(125),(141) 17. Where applicable, an entity may need to disclose information about contingent liabilities
arising from post-employment benefit obligations. Also, where there is uncertainty about the
number of employees who will accept an offer of termination benefits, a contingent liability
exists. As required by AASB 137 an entity discloses information about the contingent liability
unless the possibility of an outflow in settlement is remote.
39 Commitments 1,4-6
(a) Capital commitments 1

AASB101(Aus138.6) Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:
2011 2010
$'000 $'000
AASB116(74)(c) Property, plant and equipment

Payable:
AASB101(Aus138.6)
(a) Within one year 7,8 600 600
AASB101(Aus138.6)
(b) Later than one year but not later than five years 500 200
AASB101(Aus138.6)
(c) Later than five years 100 -
1,200 800
AASB140(75)(h) Investment property

Payable:
AASB101(Aus138.6)
(a) Within one year 7,8 300 100
AASB101(Aus138.6)
AASB101(Aus138.6)
(c) Later than five years 100 50
550 350
AASB138(122)(e) Intangible assets

Payable:
AASB101(Aus138.6)
(a) Within one year 7,8 150 -
AASB101(Aus138.6)
(b) Later than one year but not later than five years - -
AASB101(Aus138.6)
(c) Later than five years - -
150 -
Fernwood venture
AASB131(55)(a) The above commitments include capital expenditure commitments of $500,000 (2010 – nil) relating to
the Fernwood Venture (refer to note 45).
(b) Lease commitments: group as lessee 2

(i) Non-cancellable operating leases
AASB117(35)(d) The group leases various offices, warehouses and retail stores under non-cancellable operating leases
expiring within two to eight years. The leases have varying terms, escalation clauses and renewal
rights. On renewal, the terms of the leases are renegotiated. Excess warehouse space is sub-let to
third parties also under non-cancellable operating leases.

AASB101(51)(c) 30 June 2011
(continued)
39 Commitments (continued)
(b) Lease commitments: group as lessee (continued)

2011 2010
$'000 $'000
AASB117(35)(a) Commitments for minimum lease payments in relation to

non-cancellable operating leases are payable as follows:
AASB117(35)(a)(i) Within one year 50 50
AASB117(35)(a)(ii) Later than one year but not later than five years 300 300
AASB117(35)(a)(iii) 940 770
Later than five years
1,290 1,120
AASB117(35)(d)(i) Not included in the above commitments are contingent rental payments which may arise in the event
that units produced by certain leased assets exceed a pre-determined production capacity. The
contingent rental payable is 1% of sales revenue from the excess production.
Sub-lease payments
2011 2010
$'000 $'000
AASB117(35)(b) Future minimum lease payments expected to be received in relation

to non-cancellable sub-leases of operating leases 150 120
(ii) Cancellable operating leases

The group also leases various plant and machinery under cancellable operating leases. The group is
required to give six months notice for termination of these leases.
2011 2010
$'000 $'000
AASB101(Aus138.6) Commitments in relation to cancellable operating leases contracted

for at the reporting date but not recognised as liabilities, payable:
AASB101(Aus138.6)
(a) Within one year 85 85
AASB101(Aus138.6)
271 310
(iii) Finance leases

AASB117(31)(a),(e) The group leases various plant and equipment with a carrying amount of $360,000 (2010 – $400,000;
1 July 2009 - nil) under finance leases expiring within three to seven years. Under the terms of the
leases, the group has the option to acquire the leased assets for 50% of their agreed fair value on
expiry of the leases. This option lapses in the event the group fails to maintain its credit rating at the
level prevailing at inception of the lease.
AASB117(31)(c),(e)(i) Some leases provide for the payment of incremental contingent rentals based on movements in a
relevant price index. Contingent rentals paid during the year are disclosed in note 8.

AASB101(51)(c) 30 June 2011
(continued)
39 Commitments (continued)
(b) Lease commitments: group as lessee (continued)

1 July
(Revised) 2011 2010 2009 *
$'000 $'000 $’000
AASB117(31)(b) Commitments in relation to finance leases are payable as follows:

AASB117(31)(b)(i) Within one year 82 84 -
AASB117(31)(b)(ii) Later than one year but not later than five years 315 319 -
AASB117(31)(b)(iii) 149 227 -
Minimum lease payments 546 630 -
Future finance charges (171) (230) -

Recognised as a liability 375 400 -
Lease incentives on non-cancellable operating leases included in

lease liabilities 200 250 -
Total lease liabilities 575 650 -
Representing lease liabilities: -

Current (note 25) 80 75 -
Non-current (note 28) 495 575 -
575 650 -
AASB117(31)(b) The present value of finance lease liabilities is as follows:

AASB117(31)(b)(i) Within one year 70 73 -
AASB117(31)(b)(ii) Later than one year but not later than five years 207 186 -
AASB117(31)(b)(iii) 98 141 -
Minimum lease payments 375 400 -
* The amounts disclosed above for commitments in relation to finance leases are after adjustments for
the correction of the error made in the accounting for a leasing contract. See note 7(a) for details.
(c) Repairs and maintenance: investment property 1

2011 2010
$'000 $'000
AASB140(75)(h) Contractual obligation for future repairs and maintenance – not

recognised as a liability 140 89
(d) Remuneration commitments 3,7,8

2011 2010
$'000 $'000
AASB101(Aus138.6) Commitments for the payment of salaries and other remuneration

under long-term employment contracts in existence at the reporting
date but not recognised as liabilities, payable:
AASB101(Aus138.6)(a) Within one year 1,050 880
AASB101(Aus138.6)(b) Later than one year and not later than five years 3,090 2,620
AASB101(Aus138.6)(c) - -
4,140 3,500
Amounts disclosed as remuneration commitments include commitments arising from the service
contracts of key management personnel referred to in the remuneration report on pages 21 to 22 that
are not recognised as liabilities and are not included in the key management personnel compensation.

AASB101(51)(c) 30 June 2011
(continued)
Commentary – Commitments
Requirements of AASB 101

AASB101(Aus138.6) 1. AASB 101 Presentation of Financial Statements requires that an entity disclose the nature
and amount of:
(a) each individual commitment
(b) each class of capital commitments, and
(c) other expenditure commitments
contracted for as at the reporting date, other than commitments for the supply of inventories,
which have not been recognised as liabilities. In accordance with AASB 1031 Materiality,
individual commitments will only need to be disclosed where they are individually material.
Disclosure is not required when individual commitments or classes of commitments are not
material.
Leasing arrangements
AASB117(31)(e), 2. For both finance and operating leases, disclosure is required of a general description of the
(35)(d)
lessee’s significant leasing arrangements including, but not limited to, the following:
(a) the basis on which contingent rent payable is determined
(b) the existence and terms of renewal or purchase options and escalation clauses
(c) restrictions imposed by lease arrangements, such as those concerning dividends,
additional debt, and further leasing.
Remuneration commitments
AASB1031(9) 3. The illustrated disclosure assumes there are long-term employment contracts with
employees which have been negotiated outside a formal or collective bargaining
arrangement applicable to employees generally under which the company is committed to
pay salaries and other remuneration benefits and is further obligated to pay out the residual
of the contracted amount or some other amount, other than accrued employee entitlements,
in the event the employment of an individual is terminated by either party. Whether such
disclosures are required in practice will depend upon the existence and content of such
contracts and whether the contractually imposed payment is significant, and if the
non-disclosure of the information has the potential to affect the discharge of accountability by
the directors or management, or influence the economic decisions of users of the statements.
There are no requirements in AASB 124 Related Party Disclosures for the disclosure of
remuneration commitments, but there are requirements for the disclosure of information on
contracts for services between key management personnel and the disclosing entity (or any
of its subsidiaries) - refer to paragraph 68 of the commentary on the directors’ report. The
amounts disclosed as remuneration commitments in note 39 include commitments arising
from the service contracts of key management personnel referred to in the remuneration
report of the directors’ report that are not recognised as liabilities and are not included in the
key management personnel compensation.
Finance leases in the financial statements of lessees: sublease payments
AASB117(31)(d) 4. Where applicable, disclosure is required of the total of future minimum sublease payments
expected to be received under non-cancellable subleases at the end of the reporting period.
Inventory commitments
AASB101(Aus138.6) 5. Although commitments for the supply of inventories are excluded from the scope of AASB
101, in particular cases information about such commitments may be relevant to users of the
financial statements and therefore warrant disclosure in the notes. Disclosure may be
warranted, for example, where the amount involved is very significant or the period of
commitment is unusually long.
Arrangements containing a lease - payments cannot be separated
UIG4(15)(b) 6. Where an arrangement contains an operating lease but the lessee cannot reliably separate
the payments, all payments under the arrangement must be treated as lease payments for
the purpose of complying with the disclosure requirements in AASB 117. In addition, the
lessee must:
(a) disclose those payments separately from other lease payments that do not include
non-lease elements
(b) state that the payments include payments for non-lease elements.

AASB101(51)(c) 30 June 2011
(continued)
Commentary – Commitments
Changes to disclosures from trans-Tasman convergence project

ED200A 7. In July 2010, the AASB issued an exposure draft aimed at harmonising financial reporting
standards in Australia and New Zealand. Amongst others, the ED proposes to remove the
requirement to disclose commitments in AASB 101 paragraph Aus138.6 (see paragraph 1
AASB116(74)(c) above). While commitments for the purchase of property, plant and equipment, intangible
AASB117(31)(b), assets and investment property, for repair and maintenance of investment property and in
(35)(b)
AASB138(122)(e) relation to finance and operating leases must still be disclosed under other standards, the
AASB140(75)(h) following disclosures could be removed if the proposals are adopted:
(a) capital expenditure by time bands (note 39(a)) – aggregate disclosure will be
sufficient, and
(b) remuneration commitments (note 39(d)).
8. At the time of writing, the changes had not yet been finalised. However, they are expected to
be available for early adoption for 30 June 2011 reporting periods. We will inform you via
IFRS in Brief when they are released (www.pwc.com.au/assurance/ifrs/publications/ifrs-in-
brief).
40 Related party transactions 1-4,13,15-17
(a) Parent entities 5-7

AASB101(138)(c) The parent entity within the group is VALUE ACCOUNTS Holdings Limited. The ultimate Australian
AASB124(12),
(Aus12.1)(a),(b) parent entity is Lion (Australia) Limited which at 30 June 2011 owns 60% (2010 – 63.7%) of the issued
ordinary shares of VALUE ACCOUNTS Holdings Limited. The ultimate parent entity and ultimate
controlling party is Lion plc (incorporated in the United Kingdom) which at 30 June 2011 owns 100%
(2010 – 100%) of the issued ordinary shares of Lion (Australia) Limited.
(b) Subsidiaries
Interests in subsidiaries are set out in note 42.
(c) Key management personnel 2

Disclosures relating to key management personnel are set out in note 36.
(d) Transactions with other related parties 8,10

AASB124(17)(a) The following transactions occurred with related parties:
2011 2010
$ 14 $
Purchases of goods
AASB124(18)(g) Purchases of electronic equipment from other related parties 62,232 -
Dividend revenue
AASB124(18)(g) Other related parties 50,000 100,000
Superannuation contributions 11,12

AASB124(18)(g) Contributions to superannuation funds on behalf of employees 1,719,333 1,287,543
Other transactions
AASB124(18)(a) Dividends paid to ultimate Australian parent entity (Lion (Australia)
Limited) 679,000 611,000
AASB124(18)(a) Final call on partly paid ordinary shares paid by ultimate Australian
parent entity (note 32(e)) 840,321 -
AASB124(18)(a) Subscriptions for new ordinary shares by ultimate Australian parent
entity (note 32(k)) 2,313,211 -
AASB124(18)(f) Remuneration paid to directors of the ultimate Australian parent entity 55,419 49,467

AASB101(51)(c) 30 June 2011
(continued)
40 Related party transactions (continued)
(e) Outstanding balances arising from sales/purchases of goods and services 8,10
AASB124(17)(b) The following balances are outstanding at the end of the reporting period in relation to transactions
with related parties:
2011 2010
$ 14 $
Current payables (purchases of goods)

AASB124(18)(g) Other related parties 55,327 -
(f) Loans to/from related parties 8,10

2011 2010
$ 14 $
AASB124(18)(g) Loans to other related parties

AASB124(17)(b) Beginning of the year 200,000 100,000
AASB124(17)(a) Loans advanced 1,000,400 600,400
AASB124(17)(a) Loan repayments received (400,300) (500,400)
AASB124(17)(a) Interest charged 41,450 42,130
AASB124(17)(a) (41,450) (42,130)
Interest received
AASB124(17)(b) 800,100 200,000
End of year
AASB124(18)(a) Loans from Lion (Australia) Limited (ultimate Australian parent entity)
AASB124(17)(b) Beginning of the year - -
AASB124(17)(a) Loans advanced 150,000 100,000
AASB124(17)(a) Loan repayments made (50,000) (100,000)
AASB124(17)(a) (5,400) (4,900)
Interest paid
AASB124(17)(b) 100,000 -
End of year
AASB124(18)(d) Loans from associates

AASB124(17)(b) Beginning of the year - -
AASB124(17)(a) Loans advanced 285,230 200,220
AASB124(17)(a) Loan repayments made (200,000) (200,220)
AASB124(17)(a) (5,450) (4,830)
Interest paid
AASB124(17)(b) 85,230 -
End of year
AASB124(17)(c),(d) There is no allowance account for impaired receivables in relation to any outstanding balances, and no
expense has been recognised in respect of impaired receivables due from related parties.
9
(g) Terms and conditions
AASB124(17)(b)(i) Commercial office furniture was sold at cost.
Transactions relating to dividends, calls on partly paid ordinary shares and subscriptions for new
ordinary shares were on the same terms and conditions that applied to other shareholders.
All other transactions were made on normal commercial terms and conditions and at market rates,
except that there are no fixed terms for the repayment of loans between the parties. The average
interest rate on loans during the year was 9.5% (2010 – 9.75%).
AASB124(17)(b)(i) Outstanding balances are unsecured and are repayable in cash.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Related party transactions
Accounting standards for related party disclosures

AASB124(Aus1.2) 1. Accounting standards for related party disclosures are set out in AASB 124 Related Party
AASB124(Aus1.3)
Disclosures. AASB 124 applies to all entities, except not-for-profit public sector entities, and
has two distinct parts:
AASB124(Aus1.2) (a) paragraphs 1 to 22 apply to all reporting entities and financial statements that are,
or are held out to be, general purpose financial statements, and
AASB124(Aus1.4) (b) paragraphs Aus25.1 to Aus25.9.3 only apply to disclosing entities (see note 36
and the related commentary for details).
Presentation
2. All of the related party information required by AASB 124 that is relevant to VALUE
ACCOUNTS Holdings Limited, except for key management personnel compensation, has
been presented, or referred to, in one note. This is considered to be a convenient and
desirable method of presentation, but there is no requirement to present the information in
this manner. Compliance with the standard could also be achieved by disclosing the
information in relevant notes throughout the financial statements.
3. Key management personnel compensation and the additional information that must be
provided by disclosing entities is disclosed in note 36.
Materiality
AASB124(Aus1.9) 4. The disclosures required by paragraphs 1 to 22 of AASB 124 apply to the financial
AASB1031(9),(12)(b)
AASB124(Aus1.10) statements when the information is material. AASB 1031 Materiality points out that it may be
necessary to treat as material an item or an aggregate of items which would not be judged
material on the basis of the amount involved, because of their nature. This may apply when
transactions occur between an entity and parties who have a fiduciary responsibility in
relation to that entity, such as those transactions between the entity and its key management
personnel. Note that the disclosures required by paragraphs Aus25.1 to Aus25.9.3 are
deemed to be material.
Relationships between parents and subsidiaries
AASB124(12),(15) 5. Relationships between parents and subsidiaries shall be disclosed irrespective of whether
there have been transactions between those related parties. An entity shall disclose the
name of the entity’s parent and, if different, the ultimate controlling party. If neither the
entity’s parent nor the ultimate controlling party produces financial statements available for
public use, the name of the next most senior parent that does so shall also be disclosed.
AASB124(12) 6. The ultimate controlling party may be an individual or a group of individuals (eg a family).
AASB124(Aus12.1) 7. If any of the parent entities or the ultimate controlling parties disclosed as per paragraph 6
above are incorporated or otherwise constituted outside Australia, the disclosure must
identify which of the entities is incorporated overseas and where and disclose the name of
the ultimate controlling entity that is incorporated within Australia.
Transactions with related parties
AASB124(17) 8. If there have been transactions with related parties, entities must disclose:
(a) the nature of the related party transactions, and
(b) information about the transactions and outstanding balances necessary for an
understanding of the potential effect of the relationship on the financial
statements:
AASB124(17)(a) (i) the amount of the transactions
AASB124(17)(b) (ii) the amount of outstanding balances, including their terms and
conditions, whether they are secured, the nature of the consideration to
be provided in settlement and details of any guarantees given
AASB124(17)(c) (iii) provisions for doubtful debts related to the amount of outstanding
balances, and
AASB124(17)(d) (iv) the expense recognised during the period in respect of bad or doubtful
debts due from related parties.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Related party transactions
Terms and conditions

AASB124(17)(b)(i), 9. The terms and conditions of outstanding balances shall be disclosed, including whether they
(21)
are secured, and the nature of the consideration to be provided in settlement. Disclosures
that related party transactions were made on terms equivalent to those that prevail in arm’s
length transactions are made only if such terms can be substantiated.
Categories
AASB124(18) 10. The disclosures of related party transactions required by paragraph 17 of AASB 124 shall be
made separately for each of the following categories:
(a) the parent
(b) entities with joint control or significant influence over the entity
(c) subsidiaries
(d) associates
(e) joint ventures in which the entity is a venturer
(f) key management personnel of the entity or its parent, and
(g) other related parties.
Superannuation plans
AASB124(20) 11. Post-employment benefit plans for the benefit of employees of the entity, or of any entity that
is a related party of the entity, are related parties as per the definition in AASB 124
paragraph 9. This means that contributions made to such plans by the entity or any other
entity in the consolidated group must be disclosed as a related party transaction, regardless
of whether the plans are defined contribution or defined benefit plans.
Defined benefit group plans
AASB124(20) 12. Participation by a parent or subsidiary in a defined benefit plan that shares risks between
AASB119(34B)
group entities is a transaction between related parties and must be disclosed as such.
Aggregate or separate disclosure
AASB124(22) 13. Items of a similar nature may be disclosed in aggregate except when separate disclosure is
necessary for an understanding of the effects of related party transactions on the financial
statements of the entity.
Rounding
ASIC 98/100 14. Under ASIC Class Order 98/100 amounts disclosed in relation to transactions between
related parties can only be rounded to the nearest dollar for entities with total assets of less
than $1,000m and to the nearest $1,000 for entities with total assets of more than $1,000m.
Parent entity disclosure
AASB124(Aus1.5) 15. If the entity presents separate parent entity financial statements in addition to consolidated
financial statements, the disclosures required by paragraphs 1 to 22 of the revised AASB 124
must be made in relation to both the parent entity and the consolidated financial statements.
Relief from providing related party disclosures in relation to the parent entity is only given for
the additional disclosures required by AASB 124 Aus25.1 to Aus25.9.3.
Tax consolidation
UIG1052(59) 16. Where applicable (eg in individual financial statements of the parent entity), transactions with
related parties as the result of the tax consolidation regime will also need to be disclosed.
This includes:
(a) tax amounts assumed by a head entity
(b) amounts payable/receivable under a tax funding or tax sharing agreement
(c) equity contributions or distributions
For further information about accounting for the tax consolidation regime and related
disclosures see the commentary to note 9.
17. A tax consolidated group may include entities that are not controlled by the parent entity but
are controlled by the same foreign entity (referred to as a multiple entry consolidated group
or MEC group). Where the parent entity is the head entity in such an MEC group,
transactions with entities that are subject to common control must be separately disclosed.

AASB101(51)(c) 30 June 2011
(continued)
41 Business combination 1,2,11-19
(a) Summary of acquisition

AASB3(B64)(a)-(d) On 1 October 2010 the parent entity acquired 70% of the issued share capital of VALUE ACCOUNTS
Electronics Pty Ltd, a manufacturer of electronic equipment. The acquisition has significantly
increased the group’s market share in this industry which complements the group’s existing IT
consultancy division.
Details of the purchase consideration, the net assets acquired and goodwill are as follows:
$’000
AASB3(B64)(f) Purchase consideration (refer to (b) below):

Cash paid 1,450
Contingent consideration 100
AASB107(40)(a) 1,550
Total purchase consideration
AASB3(B64)(i) The assets and liabilities recognised as a result of the acquisition are as follows:
AASB107(40)(d)
Fair value
$’000
Cash 100
Trade receivables 780
Inventories 840
Plant and equipment 820
Deferred tax asset 80
Intangible assets: trademarks 20
Intangible assets: customer contracts 180
Trade payables (335)
Bank overdraft (150)
Deferred tax liability (160)
Retirement benefit obligations (25)
Net identifiable assets acquired * 1,915
AASB3(B64)(o)(i) Less: non-controlling interests (575)

Add: goodwill 210
Net assets acquired * 1,550
AASB3(B64)(j) * Included in the net assets acquired was a contingent liability in relation to alleged non-performance
AASB137(86)
under a sales contract. Refer to note 38 for why it is not practical to estimate the potential effect of this
claim. No amount was recognised for this contingent liability at the time of the acquisition or
3-5
subsequently.
AASB3(B64)(e),(k) The goodwill is attributable to the workforce and the high profitability of the acquired business. It will
not be deductible for tax purposes.
AASB101(38)
There were no acquisitions in the year ending 30 June 2010. 10

AASB101(51)(c) 30 June 2011
(continued)
41 Business combination (continued)

(i) Contingent consideration 3-5
AASB3(B64)(g) In the event that certain pre-determined sales volumes are achieved by the subsidiary for the year
ended 30 June 2011, additional consideration of up to $500,000 may be payable in cash.
The potential undiscounted amount payable under the agreement is between $0 for sales below
$2,000,000 and $500,000 for sales above $4,000,000. The fair value of the contingent consideration
of $100,000 was estimated by applying the income approach. The fair value estimates are based on a
discount rate of 6% and assumed probability-adjusted sales of VALUE ACCOUNTS Electronics Pty
Ltd of between $2,300,000 and $2,500,000.
AASB3(B67)(b) As at 30 June 2011, the contingent consideration has been derecognised, as the actual sales revenue
achieved by VALUE ACCOUNTS Electronics Pty Ltd was below $2,000,000. A gain of $100,000 was
included in other income. 9
(ii) Acquired receivables
AASB3(B64)(h) The fair value of acquired trade receivables is $780,000. The gross contractual amount for trade
receivables due is $807,000, of which $27,000 is expected to be uncollectible.
(iii) Non-controlling interests
AASB3(B64)(o)(i) In accordance with the accounting policy set out in note 1(i), the group elected to recognise the
non-controlling interests in VALUE ACCOUNTS Electronics Pty Ltd at its proportionate share of the
acquired net identifiable assets.
(iv) Revenue and profit contribution
AASB3(B64)(q) The acquired business contributed revenues of $1,520,000 and net profit of $125,000 to the group for
the period from 1 October 2010 to 30 June 2011. 7
If the acquisition had occurred on 1 July 2010, consolidated revenue and profit for the year ended 30
June 2011 would have been $59,030,000 and $5,070,000 respectively. These amounts have been
calculated using the group’s accounting policies and by adjusting the results of the subsidiary to reflect
the additional depreciation and amortisation that would have been charged assuming the fair value
adjustments to property, plant and equipment and intangible assets had applied from 1 July 2010,
8
together with the consequential tax effects.
(b) Purchase consideration – cash outflow

2011 2010
$'000 $'000
Outflow of cash to acquire subsidiary, net of cash acquired

AASB107(40)(b) 1,450 -
Cash consideration
AASB107(40)(c) Less: Balances acquired
Cash 100 -
Bank overdraft (150) -
(50) -
Outflow of cash – investing activities 1,500 -
Acquisition-related costs 6
AASB3(B64)(m) Acquisition-related costs of $100,000 are included in other expenses in profit or loss and in operating
cash flows in the statement of cash flows.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Business combination
General requirement
AASB3(59) 1. An acquirer is required to disclose information that enables users of its financial statements to
evaluate the nature and financial effect of business combinations that occurred either during
the reporting period or after the end of the reporting period but before the financial statements
are authorised for issue. Refer to note 46 for illustrative disclosures relating to an acquisition
that occurred after the reporting period.
Specific disclosures
AASB3(60),(B64) 2. Specific disclosures are required by paragraph B64 of AASB 3 Business Combinations for
-(B65)
each material business combination that occurred during the reporting period. The
information required by that paragraph shall be disclosed in aggregate for business
combinations effected during the reporting period that are individually immaterial.
Contingent liabilities acquired
AASB3(23) 3. Contingent liabilities must be recognised if there is a present obligation that arises from past
events and its fair value can be measured reliably, regardless of whether it is probable that an
outflow will be required. The required disclosures depend on whether the liability is
recognised on acquisition.
AASB3(B64)(j) 4. If the contingent liability was recognised on acquisition, the entity must provide the
AASB137(85)
disclosures required under AASB 137 Provisions, Contingent Liabilities and Contingent
Assets for provisions, being:
(a) a brief description of the nature of the obligation and expected timing of any
resulting outflows
(b) an indication of the uncertainties about the amount or timing of these outflows,
including major assumptions made concerning future events, if applicable, and
(c) the amount of any expected reimbursement, including the amount of any asset
recognised for that reimbursement
AASB3( B64)(j) 5. If the liability was not recognised because it could not be reliably measured, the entity must
disclose the following information:
(a) the reasons why the liability could not be measured reliably, and
AASB137(86) (b) the disclosures required under AASB 137 for contingent liabilities, being a brief
description of the nature of the contingent liability, an estimate of its financial effect,
an indication of the uncertainties relating to the amount or timing of any outflow and
the possibility of any reimbursement.
Acquisition-related costs
AASB3(B64)(m) 6. The disclosures shall also include:
(a) the amount of acquisition-related costs and, separately, the amount of those costs
recognised as an expense and the line item or items in the statement of
comprehensive income in which those expenses are recognised, and
(b) the amount of any issue costs not recognised as an expense and how they were
recognised.
Revenue and profit or loss since acquisition date
AASB3(B64)(q)(i) 7. Disclosure shall be made of the amount of the acquiree’s revenue and profit or loss since the
acquisition date included in the acquirer’s consolidated statement of comprehensive income
for the period, unless disclosure would be impracticable. If such disclosure would be
impracticable, that fact shall be disclosed, together with an explanation of why this is the
case.
Revenue and profit or loss as if occurred at the beginning of the period
AASB3(B64)(q)(ii) 8. Unless impracticable, the acquirer shall disclose the revenue and the profit or loss of the
combined entity for the period as though the acquisition date for all business combinations
that occurred during the period had been the beginning of the period. If disclosure of this
information would be impracticable, that fact shall be disclosed, together with an explanation
of why this is the case.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Business combination (continued)
Adjustments subsequent to the acquisition

AASB3(61) 9. An acquirer shall also disclose information that enables users of its financial statements to
evaluate the financial effects of adjustments recognised in the current reporting period that
relate to business combinations that occurred in the period or in previous reporting periods.
The relevant disclosures include details about any contingent consideration, a reconciliation
of the carrying amount of goodwill (see note 23) and information about incomplete acquisition
accounting, recognised contingent liabilities and any gains and losses recognised during the
reporting period (see paragraphs 16 – 18 below).
Comparatives
AASB101(38) 10. Under AASB 101, comparative information must be given for all numerical information
reported in the financial statements, including narratives. However, AASB 3 does not
separately require comparative information in respect of business combinations. In our view,
the AASB 3 disclosures are required only for business combinations occurring during the
period. This means that in the period following the combination, the disclosures required in
paragraph B64 of AASB 3 do not need to be repeated. However, the disclosures that are
required in relation to a prior business combination (paragraph 9 above and paragraphs 16-
18 below) must be made.
Equity interests issued as purchase consideration
AASB3(B64)(f)(iv) 11. When equity interests are issued or issuable as part of the cost of acquisition, the entity shall
disclose the number of instruments or interests issued and the method of determining the fair
value of those instruments or interests.
Transactions recognised separately from the business combinations
AASB3(B64)(l) 12. If the entity has entered into any transactions that are recognised separately from the
acquisition of assets and assumptions of liabilities in the business combination as per
paragraph 51 of AASB 3, it shall disclose:
(a) a description of each transaction
(b) how the acquirer accounted for each transaction
(c) the amounts recognised for each transaction and the line item in the financial
statements in which each amount is recognised, and
(d) if the transaction is the effective settlement of a pre-existing relationship, the
method used to determine the settlement amount.
AASB3(52) 13. Examples of separate transactions are transactions that in effect settle a pre-existing
relationship, remunerate employees or former owners for future services or reimburse the
acquiree or its former owners for paying the acquirer’s acquisition-related costs.
Bargain purchase
AASB3(B64)(n) 14. If the entity has made a bargain purchase as in paragraphs 34-36 in AASB 3, it must
disclose:
(a) the amount of any gain recognised in accordance with paragraph 34 of AASB 3
and the line item in the statement of comprehensive income in which the gain is
recognised, and
(b) a description of the reasons why the transaction resulted in a gain.
Business combination achieved in stages
AASB3(B64)(p) 15. Where the business combination was achieved in stages, the entity shall disclose:
(a) the acquisition-date fair value of the equity interest in the acquiree held by the
acquirer immediately before the acquisition date, and
(b) the amount of any gain or loss recognised as a result of remeasuring to fair value
the equity interest in the acquiree held by the acquirer before the business
combination and the line item in the statement of comprehensive income in which
that gain or loss is recognised.
Disclosures for a business combination achieved in stages are illustrated in our Illustrative
IFRS corporate consolidated financial statements (see Appendix V).

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Business combination (continued)
Initial accounting incomplete

AASB3(B67)(a) 16. If the initial accounting for a business combination is incomplete and the amounts recognised
in relation to the business combination have thus been determined only provisionally, the
entity must disclose:
(a) the reasons why the initial accounting is incomplete
(b) the assets, liabilities, equity interests or items of consideration for which the initial
accounting is incomplete, and
(c) the nature and amount of any measurement period adjustments recognised during
the reporting period in accordance with paragraph 49 of AASB 3.
Recognised contingent liabilities – subsequent to the acquisition
AASB3(B67)(c) 17. For contingent liabilities recognised in a business combination, the entity shall disclose:
AASB137(84) (a) a reconciliation of the carrying amount of the liability as at the beginning and at the
end of the reporting period, and
AASB137(85) (b) the information required by AASB 137 paragraph 85 (see paragraph 4 above).
Gain or loss recognised in the current reporting period
AASB3(B67)(e) 18. If the entity has recognised any gain or loss in the current reporting period that both:
(a) relates to the identifiable assets acquired or liabilities assumed in a business
combination that occurred in the current or previous reporting period, and
(b) is of such a size, nature or incidence that disclosure is relevant to understanding the
combined entity’s financial statements
it must disclose the amount and explanation of the gain or loss.
Additional disclosures
AASB3(63) 19. If the specific disclosures required by AASB 3 and other Australian Accounting Standards do
not satisfy the objectives set out in paragraphs 59 and 61 of the standard (paragraphs 1 and
9 above), the entity shall disclose whatever additional information is necessary to meet those
objectives.
42 Subsidiaries and transactions with non-controlling interests
(Not mandatory) (a) Significant investments in subsidiaries 1,2

AASB127(43)(b) The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiaries in accordance with the accounting policy described in note 1(b):
AASB127(43)(b) Country of Class of Equity holding **
Name of entity incorporation shares 2011 2010
% %
VALUE ACCOUNTS Retail Limited Australia Ordinary 65 65

Preference 100 100
VALUE ACCOUNTS Manufacturing
Limited (note (a)) Australia Ordinary 90 85
VALUE ACCOUNTS Electronics Pty
Ltd Australia Ordinary 70 -
VALUE ACCOUNTS Overseas
Limited Indonesia Ordinary 100 100
VALUE ACCOUNTS Consulting
Limited* Australia Ordinary 100 100
VALUE ACCOUNTS Development
Limited* Australia Ordinary 100 100
ASIC 98/1418 * These subsidiaries have been granted relief from the necessity to prepare financial reports in
accordance with Class Order 98/1418 issued by the Australian Securities and Investments
Commission. For further information refer to note 43.
AASB127(43)(b) ** The proportion of ownership interest is equal to the proportion of voting power held.

AASB101(51)(c) 30 June 2011
(continued)
(b) Transactions with non-controlling interests 3

AASB127(41)(e) On 21 April 2011, VALUE ACCOUNTS Holdings Limited acquired an additional 5% of the issued
shares of VALUE ACCOUNTS Manufacturing Limited for a purchase consideration of $500,000. The
carrying amount of the non-controlling interests in VALUE ACCOUNTS Manufacturing Limited on the
date of acquisition was $870,000. The group recognised a decrease in non-controlling interests of
$290,000 and a decrease in equity attributable to owners of the parent of $210,000. The effect of
changes in the ownership interest of VALUE ACCOUNTS Manufacturing Limited on the equity
attributable to owners of VALUE ACCOUNTS Holdings Limited during the year is summarised as
follows:
2011 2010
$'000 $'000
Carrying amount of non-controlling interests acquired 290 -

Consideration paid to non-controlling interests (500) -
Excess of consideration paid recognised in the transactions with
non-controlling interests reserve within equity (210) -
There were no transactions with non-controlling interests in 2010.
Commentary – Subsidiaries and transactions with non-controlling interests
List of significant subsidiaries

AASB127(42)(b), 1. A list of significant subsidiaries including names, country of incorporation or residence and
(43)(b)
proportion of ownership interest and voting power held (if different) must be disclosed:
AASB127(41)(b), (a) When a parent entity prepares separate financial statements (either with or without
(43)(b)
consolidated financial statements); and
AASB127(Aus43.1) (b) By not-for-profit public sector entities, where a group of entities (eg a government
and its controlled entities) is a reporting entity, but the preparation of separate
financial statements for the parent is not required.
2. While neither of these applies to VALUE ACCOUNTS Holdings Limited, we have decided to
retain the list of subsidiaries on a voluntary basis, as we consider this to be useful information,
in particular where a group has significant operating subsidiaries. However, groups with a
large number of subsidiaries should consider whether to remove the list altogether or disclose
only those subsidiaries that are significant to the consolidated financial statements.
Transactions with non-controlling interests
AASB127(41)(e) 3. If there have been any changes in a parent entity’s ownership interest in a subsidiary that did
not result in a loss of control, the entity must disclose a schedule that shows the effects of
such changes on the equity attributable to owners of the parent.
4. Disclosures not illustrated in these financial statements are:
AASB127(41)(c) (c) the end of the reporting period of the financial statements of a subsidiary when
such financial statements are used to prepare consolidated financial statements
and are as of a date or for a period that is different from that of the parent’s
financial statements, and the reason for using a different date or period
AASB127(41)(d) (d) the nature and extent of any significant restrictions (eg resulting from borrowing
arrangements or regulatory requirements) on the ability of subsidiaries to transfer
funds to the parent in the form of cash dividends or to repay loans or advances
AASB127(41)(f) (e) If control of a subsidiary is lost, the parent shall disclose the gain or loss, if any,
recognised in accordance with paragraph 34 of AASB 127 and:
(i) the portion of that gain or loss attributable to recognising any investment
retained in the former subsidiary at its fair value at the date when control
is lost, and
(ii) the line item(s) in the statement of comprehensive income in which the
gain or loss is recognised (if not presented separately in the statement of
comprehensive income).

AASB101(51)(c) 30 June 2011
(continued)
43 Deed of cross guarantee 1-2,5-10

ASIC 98/1418 VALUE ACCOUNTS Holdings Limited, VALUE ACCOUNTS Consulting Limited and VALUE
ACCOUNTS Development Limited are parties to a deed of cross guarantee under which each
company guarantees the debts of the others. By entering into the deed, the wholly-owned entities have
been relieved from the requirement to prepare a financial report and directors' report under Class
Order 98/1418 (as amended) issued by the Australian Securities and Investments Commission.
(a) Consolidated income statement, statement of comprehensive income and summary of

movements in consolidated retained earnings 3,4
ASIC 98/1418 The above companies represent a ‘closed group' for the purposes of the Class Order, and as there are
no other parties to the deed of cross guarantee that are controlled by VALUE ACCOUNTS Holdings
Limited, they also represent the ‘extended closed group'.
ASIC 98/1418 Set out below is a consolidated income statement, a consolidated statement of comprehensive income
and a summary of movements in consolidated retained earnings for the year ended 30 June 2011 of
the closed group consisting of VALUE ACCOUNTS Holdings Limited, VALUE ACCOUNTS Consulting
Limited and VALUE ACCOUNTS Development Limited.
2011 2010
4
Income statement $'000 $'000
Revenue from continuing operations 21,706 18,471

Changes in inventories of finished goods and work in progress 180 80
Raw materials and consumables used (6,684) (4,705)
Employee benefits expense (9,790) (9,620)
Depreciation and amortisation expense (495) (420)
Write off of assets damaged by fire (1,285) -
Finance costs (485) (255)
Share of net profits of associates and joint venture partnership
accounted for using the equity method 450 370
Income tax expense (950) (828)
Profit for the year 2,238 1,822
Statement of comprehensive income 4

Other comprehensive income
Gain on revaluation of land and buildings 420 376
Available-for-sale financial assets 64 (31)
Actuarial (losses)/gains on retirement benefit obligation (231) 139
Share of other comprehensive income of associates and joint
ventures 300 100
Income tax relating to components of other comprehensive income (166) (175)
Total comprehensive income for the year 2,625 2,231
Summary of movements in consolidated retained earnings

Retained earnings at the beginning of the financial year 2,278 1,292
Transfer from share capital on buy-back of preference shares 59 -
Actuarial (losses)/gains on retirement benefit obligation, net of tax (162) 97
Depreciation transfer, net of tax 14 24
Dividends provided for or paid (1,224) (957)
Retained earnings at the end of the financial year 3,203 2,278

AASB101(51)(c) 30 June 2011
(continued)
43 Deed of cross guarantee (continued)
(b) Consolidated balance sheet

ASIC 98/1418 Set out below is a consolidated balance sheet as at 30 June 2011 of the closed group consisting of
VALUE ACCOUNTS Holdings Limited, VALUE ACCOUNTS Consulting Limited and VALUE
ACCOUNTS Development Limited.
2011 2010
$'000 $'000
Current assets
Inventories 1,680 1,805
Financial assets at fair value through profit or loss 1,300 -
Derivative financial instruments 90 -
Total current assets 11,966 10,392
Non-current assets
Receivables 6,981 3,006
Investments accounted for using the equity method 3,775 3,275
Available-for-sale financial assets 900 -
Other financial assets 1,598 1,367
Property, plant and equipment 6,452 5,920
Investment properties 3,300 3,050
Total non-current assets 23,400 16,863
Total assets 35,366 27,255
Current liabilities
Borrowings 805 1,115
Current tax liabilities 380 380
Provisions 50 30
Total current liabilities 2,820 2,888
Non-current liabilities
Deferred tax liabilities 135 115
Provisions 180 165
Retirement benefit obligations 338 260
Total non-current liabilities 8,025 7,603
Total liabilities 10,845 10,491
Net assets 24,521 16,764
Equity
Contributed equity 20,113 14,106
Reserves 1,205 380

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Deed of cross guarantee
Deed of cross guarantee

ASIC 98/1418 1. ASIC Class Order 98/1418 relieves a company of a specified class that is wholly-owned by
an Australian company, a disclosing entity which is an Australian body corporate, or a
registered foreign holding company, of the necessity to prepare a financial report and
directors’ report where the requirements of the Class Order have been met. One of these
requirements is that the holding entity and the subsidiaries have become parties to a deed of
cross guarantee under which each of the entities guarantees the debts of the others.
2. ASIC has prepared an editorial note on the operation of the Class Order, together with
various pro forma documents, including a pro forma deed of cross guarantee.
ASIC 98/1418 3. The Class Order requires the consolidated financial statements to include adequate provision
in relation to the liabilities of any parties to the deed of cross guarantee which are not
consolidated where it is probable that those liabilities will not be fully met by those parties.
ASIC 98/1418 4. Where an entity has elected to present separately an income statement and a statement of
comprehensive income, it must do the same for the purpose of the disclosures required
under the Class Order.
Comparatives
ASIC 98/1418 5. Comparative information only needs to be provided if the holding entity was a holding entity
in a deed of cross guarantee at any time during the immediately preceding reporting period.
Extended closed group
ASIC 98/1418 6. The extended closed group is defined in the Class Order as ''the closed group and any other
entities which are parties to the deed of cross guarantee and which are controlled by the
Holding Entity''. For the purposes of these illustrative financial statements, the holding entity
is VALUE ACCOUNTS Holdings Limited. The Class Order requires disclosure of the
members of the closed group and, where applicable, the other members of the extended
closed group.
Additional disclosure requirements for extended closed group and other parties to the deed
ASIC 98/1418 7. If the consolidated financial statements cover entities which are not parties to the deed of
cross guarantee and the members of the extended closed group are not the same as the
closed group, Class Order 98/1418 requires note disclosure of consolidated information for:
(a) the closed group (as illustrated in note 43), and
(b) the holding entity and those entities which are parties to the deed of cross
guarantee and controlled by the holding entity (ie VALUE ACCOUNTS Holdings
Limited).
In the case of VALUE ACCOUNTS Holdings, the parties to the deed are all members of the
closed group. The information to be disclosed includes a statement of comprehensive
income and separate income statement (where applicable), setting out the information
specified by paragraphs 82-87 of AASB 101 Presentation of Financial Statements, opening
and closing balances of retained earnings, dividends provided for or paid, transfers to and
from reserves and a balance sheet complying with paragraphs 54 to 59 of AASB 101.
ASIC 98/1418 8. If there are any parties to the deed of cross guarantee which are not controlled by the holding
entity, the note disclosures shall include an income statement and balance sheet (and
retained earnings and dividend information) in respect of those parties (either individually or
in aggregate). In the case of VALUE ACCOUNTS Holdings Limited, all the parties to the
deed of cross guarantee are controlled by the holding entity (ie VALUE ACCOUNTS
Holdings Limited).

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Deed of cross guarantee (continued)
Disclosure of changes in parties to the deed of cross guarantee or eligible for the relief
ASIC 98/1418 9. Additional disclosures specified in Class Order 98/1418 and not illustrated in note 43
because they are not relevant to the parties to the VALUE ACCOUNTS Holdings Limited
deed of cross guarantee which shall also be made, where relevant are:
(a) details (including dates) of parties which, during or since the financial year, have
been:
(i) added by an assumption deed contemplated by the deed of cross
guarantee
(ii) removed by a revocation deed contemplated by the deed of cross
guarantee, or
(iii) the subject of a notice of disposal contemplated by the deed of cross
guarantee, and
(b) details (including dates and reasons) of any entities which obtained relief at the
end of the preceding financial year, but which were ineligible for relief in respect of
the current year.
Recognition of financial liability
AASB139(9),(43) 10. Parent entities and subsidiaries that are party to a deed of cross guarantee should be aware
that these guarantees are financial liabilities under AASB 139 and will have to be recognised
at their fair value, if material.
44 Investments in associates 1-10,12

2011 2010
$'000 $'000
(a) Movements in carrying amounts

Carrying amount at the beginning of the financial year 1,375 1,225
AASB128(38) Share of profits after income tax 200 150
Dividends received/receivable (50) (100)
AASB128(39) - 100
Share of increment on revaluation of freehold land
AASB128(38) 1,525 1,375
Carrying amount at the end of the financial year
AASB128(37)(b),(38) (b) Summarised financial information of associates

The group's share of the results of its principal associates and its aggregated assets (including
11
goodwill) and liabilities are as follows:
Company's share of:
Ownership
Interest Assets Liabilities Revenues Profit
% $'000 $'000 $'000 $'000
2011
Big Hide Pet Ltd* 25 1,095 495 1,310 100
Cuddly Bear Ltd* 35 785 235 930 70
Platypus Pty Ltd 30 525 150 455 30
2,405 880 2,695 200
2010
Big Hide Pet Ltd* 25 925 385 1,260 75
Cuddly Bear Ltd* 35 760 270 860 60
Platypus Pty Ltd 30 475 130 400 15
2,160 785 2,520 150
* listed entities
All of the above associates are incorporated in Australia.

AASB101(51)(c) 30 June 2011
(continued)
44 Investments in associates (continued)

2011 2010
$'000 $'000
AASB128(37)(a) (c) Fair value of listed investments in associates

Big Hide Pet Ltd 615 560
Cuddly Bear Ltd 570 505
1,185 1,065
(d) Contingent liabilities of associates

AASB128(40)(a) Share of contingent liabilities incurred jointly with other investors 150 120
AASB128(40)(b) Contingent liabilities relating to liabilities of the associate for which
the company is severally liable - 80
150 200
Commentary - Investments in associates
Accounting standards for investments in associates

AASB128(1),(13),(35) 1. Accounting standards for investments in associates are set out in AASB 128 Investments in
Associates.
Definitions
AASB128(2) 2. An associate is an entity, including an unincorporated entity such as a partnership, over which
the investor has significant influence and that is neither a subsidiary nor an interest in a joint
venture. Significant influence is the power to participate in the financial and operating policy
decisions of the investee but is not control or joint control over those policies.
Scope
AASB128(1) 3. AASB 128 does not apply to investments in associates held by:
(a) venture capital organisations, or
(b) mutual funds, unit trusts and similar entities including investment-linked insurance
funds
that upon initial recognition are designated as at fair value through profit or loss or are
classified as held for trading in accordance with AASB 139 Financial Instruments: Recognition
and Measurement. Such investments are measured at fair value in accordance with AASB
139, with changes in fair value recognised in profit or loss in the period of change.
AASB128(1)(b), 4. However, entities that do apply the scope exclusion should note that they will still need to
(37)(f)
disclose information about the nature and extent of any significant restrictions on the ability of
associates to transfer funds to the investor, in addition to the disclosures required under
AASB 7 Financial Instruments: Disclosures.
Equity accounting
Application
AASB128(1),(13),(35) 5. Subject to the paragraphs below, equity accounting is applied to investments in associates in
the consolidated financial statements only, or in the investor’s own financial statements if it
does not prepare consolidated financial statements.
Cost in the parent entity’s separate financial statements
AASB128(35) 6. Where an investor prepares consolidated financial statements, investments in associates
AASB127(38)
shall be accounted for in the investor’s (parent’s) separate financial statements at cost or in
accordance with AASB 139 unless those investments are classified as held for sale (or
included in a disposal group that is held for sale) - refer to paragraph 7(a) below. The same
accounting shall be applied for investments in associates, other than those held for sale. The
cost method is used in the VALUE ACCOUNTS Holdings Limited financial statements.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Investments in associates (continued)
Exemptions
7. Equity accounting is not applied when:
AASB128(13)(a),(14) (a) the investment is classified as held for sale in accordance with AASB 5 Non-current
Assets Held for Sale and Discontinued Operations (in which case the investment is
accounted for in accordance with AASB 5), or
AASB128(13)(b) (b) a parent entity is not required to present a consolidated financial statements as per
AASB 127 paragraphs 10 and Aus10.1 (see commentary paragraph 8 on page 62
for further information), or
AASB128(13)(c) (c) all of the following apply:
(i) the investor is a wholly-owned subsidiary, or is a partially-owned
subsidiary of another entity and its other owners, including those not
otherwise entitled to vote, have been informed about, and do not object
to, the investor not applying the equity method
(ii) the investor’s debt or equity instruments are not traded in a public market
(a domestic or foreign stock exchange or an over-the-counter market,
including local and regional markets)
(iii) the investor did not file, nor is it in the process of filing, its financial
statements with a securities commission or other regulatory organisation,
for the purpose of issuing any class of instruments in a public market
(iv) the ultimate Australian or any intermediate parent of the investor
produces consolidated financial statements available for public use that
comply with Australian Accounting Standards.
AASB127(38) 8. Entities applying the exemptions from equity accounting referred to in paragraphs 7(b) and (c)
above shall account for their investments in associates either at cost or in accordance with
AASB 139. As these entities are not scoped out of AASB 128, they will still need to comply
with the disclosure requirements in paragraphs 37 and 40 of AASB 128.
Classification
AASB128(38) 9. Investments in associates accounted for using the equity method shall be classified as
non-current assets.
Share of changes recognised in other comprehensive income
AASB128(39) 10. The investor’s share of changes recognised in other comprehensive income by the associate
shall also be recognised by the investor in other comprehensive income.
Summarised financial information of associates
AASB128(37)(b) 11. AASB 128 requires disclosure of summarised financial information of associates, including
aggregated amounts of assets, liabilities, revenues and profit or loss. This information can be
provided either by disclosing the group’s share (as is done by VALUE ACCOUNTS Holdings
Limited) or by disclosing the gross amounts of assets and liabilities (excluding goodwill) of the
associates.
12. Disclosure requirements of AASB 128 that are not applicable to VALUE ACCOUNTS
Holdings Limited are as follows:
AASB128(37)(c) (a) the reasons why the presumption that an investor does not have significant
influence is overcome if the investor holds, directly or indirectly through
subsidiaries, less than 20% of the voting or potential voting power of the investee
but concludes that it has significant influence
AASB128(37)(d) (b) the reasons why the presumption that an investor has significant influence is
overcome if the investor holds, directly or indirectly through subsidiaries, 20% or
more of the voting or potential voting power of the investee but concludes that it
does not have significant influence
AASB128(37)(e) (c) the end of the reporting period of the financial statements of an associate, when
such financial statements are used in applying the equity method and are as of a
date or for a period that is different from that of the investor, and the reason for
using a different date or different period
AASB128(38) (d) the investor’s share of any discontinued operations of associates

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Investments in associates (continued)
AASB128(37)(f) (e) the nature and extent of any significant restrictions (eg resulting from borrowing
arrangements or regulatory requirements) on the ability of associates to transfer
funds to the investor in the form of cash dividends, or repayment of loans or
advances
AASB128(37)(g) (f) the unrecognised share of losses of an associate, both for the period and
cumulatively, if an investor has discontinued recognition of its share of losses of an
associate
AASB128(37)(h) (g) the fact that an associate is not accounted for using the equity method in
accordance with paragraph 13 of AASB 128, if one of the exemptions is applied
AASB128(37)(i) (h) summarised financial information of associates, either individually or in groups, that
are not accounted for using the equity method, including the amounts of total
assets, total liabilities, revenues and profit or loss.
45 Interests in joint ventures 1-10
(a) Jointly controlled assets

AASB131(56) A subsidiary has entered into a joint venture called Fernwood Venture to develop properties for
residential housing. The subsidiary has a 50% participating interest in this joint venture and is entitled
to 50% of its output of completed properties. The group's interests in the assets employed in the joint
venture are included in the balance sheet, in accordance with the accounting policy described in note
10
1(b), under the following classifications:
Not mandatory 2011 2010

$'000 $'000
Current assets
Cash and cash equivalents 10 5
Inventories 410 310
Total current assets 420 315
Non-current assets
Property, plant and equipment – at cost 250 220
Accumulated depreciation (60) (50)
Total non-current assets 190 170
Share of assets employed in joint venture 610 485
AASB131(55)(a) For capital expenditure commitments relating to the Fernwood Venture refer to note 39.
(b) Joint venture partnership

AASB131(56) The parent entity has a 40% interest in the Wombat Partnership, which is resident in Australia and the
principal activity of which is the distribution of computer software.

AASB101(51)(c) 30 June 2011
(continued)
45 Interests in joint ventures (continued)
(b) Joint venture partnership (continued)

AASB131(38),(46), The interest in the Wombat Partnership is accounted for in the financial statements using the equity
(57)
method of accounting (refer to note 17). Information relating to the joint venture partnership is set out
below.
2011 2010
$'000 $'000
AASB131(56) Share of partnership's assets and liabilities

Current assets 800 700
Non-current assets 2,850 2,600
Current liabilities 500 350

Non-current liabilities 900 1,050
Net assets 2,250 1,900
AASB131(56) Share of partnership's revenue, expenses and results

Revenues 4,015 3,920
Expenses (3,765) (3,700)
Profit before income tax 250 220
AASB131(55)(b) 250 200

Share of partnership's capital commitments
(c) Contingent liabilities relating to joint ventures

AASB131(54)(c) Each of the partners in the Wombat Partnership are jointly and
severally liable for the debts of the partnership. The assets of the
partnership exceed its debts.
AASB131(54)(b) Share of partnership's contingent liabilities in respect of a legal
claim lodged against the partnership 200 180
200 180
No material losses are anticipated in respect of any of the above contingent liabilities.
Commentary - Interests in joint ventures
Accounting standards for interests in joint ventures

AASB131(38),(46) 1. Accounting standards for interests in joint ventures are set out in AASB 131 Interests in Joint
Ventures.
Scope
AASB131(1) 2. AASB 131 does not apply to interests in jointly controlled entities held by:
(a) venture capital organisations, or
(b) mutual funds, unit trusts and similar entities including investment-linked insurance
funds
that upon initial recognition are designated as at fair value through profit or loss or are
classified as held for trading in accordance with AASB 139 Financial Instruments: Recognition
and Measurement. Such investments are measured at fair value in accordance with AASB
139, with changes in fair value recognised in profit or loss in the period of change.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Interests in joint ventures (continued)
AASB131(1) 3. However, entities that do apply the scope exclusion should note that they will still need to
disclose the following information in addition to the disclosures required under AASB 7
Financial Instruments: Disclosures:
AASB131(55) (a) the entity’s commitments in respect of its interests in joint ventures
AASB131(56) (b) a listing and description of interests in significant joint ventures and the proportion
of ownership interest held in jointly controlled entities.
Jointly controlled entities
Application
AASB131(38),(46) 4. Subject to the paragraphs below, interests in jointly controlled entities shall be accounted for
using proportionate consolidation or equity accounting in the consolidated financial
statements, or in the investor’s own financial statements if it does not prepare consolidated
financial statements. The option to use proportionate consolidation was introduced in April
2007. VALUE ACCOUNTS Holdings Limited has, however, elected to continue using the
equity method. We also note that the AASB has issued an exposure draft proposing to
remove the option of proportionate consolidation for joint venture entities (ED 157 Joint
Arrangements).
Cost in the parent entity’s separate financial statements
AASB131(46) 5. Where a venturer prepares consolidated financial statements, interests in jointly controlled
AASB127(38)
entities in the venturer’s (parent’s) separate financial statements are accounted for at cost or
in accordance with AASB 139. In the VALUE ACCOUNTS Holdings Limited financial
statements such interests are accounted for at cost.
Exemptions
6. Equity accounting is not applied when:
AASB131(2)(a),(42) (a) the interest is classified as held for sale in accordance with AASB 5 Non-current
Assets Held for Sale and Discontinued Operations (in which case the investment is
accounted for in accordance with AASB 5), or
AASB131(2)(b) (b) a parent entity is not required to present a consolidated financial statements as per
AASB 127 paragraphs 10 and Aus 10.1 (see commentary paragraph 8 on page 62
for further information), or
AASB131(2)(c) (c) all of the following apply:
(i) the venturer is a wholly-owned subsidiary, or is a partially-owned
subsidiary of another entity and its other owners, including those not
otherwise entitled to vote, have been informed about, and do not object
to, the venturer not applying the equity method
(ii) the venturer’s debt or equity instruments are not traded in a public
market (a domestic or foreign stock exchange or an over-the-counter
market, including local and regional markets)
(iii) the venturer did not file, nor is it in the process of filing, its financial
statements with a securities commission or other regulatory organisation,
for the purpose of issuing any class of instruments in a public market
(iv) the ultimate Australian or any intermediate parent of the venturer
produces consolidated financial statements available for public use that
comply with Australian Accounting Standards.
AASB127(38) 7. Entities exempted in accordance with paragraphs 6(b) or 6(c) above from applying the equity
method or proportionate consolidation shall account for their interests in jointly controlled
entities either at cost or in accordance with AASB 139.
Classification
AASB101(69), 8. Interests in jointly controlled entities accounted for using the equity method would normally be
(54)(e), (82)(c)
classified as non-current assets. The venturer’s share of the profit or loss of such entities, and
the carrying amount of those interests, shall be separately disclosed.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Interests in joint ventures (continued)
Minimum disclosures required

AASB131(56),(57) 9. In addition to the information about contingent liabilities and capital commitments that must be
disclosed under paragraphs 54 and 55 of AASB 131, a venture shall disclose:
(a) a listing and description of interests in significant joint ventures
(b) the proportion of ownership interest held in jointly controlled entities.
(c) for interests in joint venture entities that are recognised using the equity method or
the line-by-line reporting format for proportionate consolidation, the aggregate
amounts of:
(i) current assets
(ii) long-term assets
(iii) current liabilities
(iv) long-term liabilities
(v) income, and
(vi) expenses
related to an entity’s interests in joint ventures, and
(d) the method used to recognise its interest in jointly controlled entities.
Jointly controlled assets

AASB101(112)(c) 10. Where an entity has significant interests in jointly controlled assets or jointly controlled
operations, additional information about the assets employed in the joint venture such as
disclosed in note 47(a) will assist users in assessing the extent and financial impact of the
joint venture. In certain circumstances such a disclosure may be necessary under AASB 101
paragraph 112(c).
46 Events occurring after the reporting period 1-8
(a) Acquisition of Better Office Furnishings Limited 3,9,10

AASB110(21)(a),(b) On 15 August 2011 VALUE ACCOUNTS Holdings Limited acquired 93.8% of the issued shares in
AASB3(59)(b)
AASB3(B64),(B66) Better Office Furnishings Limited, a manufacturer of office furniture and equipment, for consideration
of $3,800,000. The acquisition is expected to increase the group's market share and reduce cost
through economies of scale.
The financial effects of this transaction have not been brought to account at 30 June 2011. The
operating results and assets and liabilities of the company will be consolidated from
15 August 2011. 1,2
Purchase consideration
AASB3(B64)(f) Details of the consideration transferred are:
$'000
Cash paid 3,750
Total purchase consideration 3,800

AASB101(51)(c) 30 June 2011
(continued)
46 Events occurring after the reporting period (continued)

AASB3(B64)(i) The provisionally determined fair values of the assets and liabilities of Better Office Furnishings
Limited as at the date of acquisition are as follows:
Fair value
$'000
Cash and cash equivalents 175

Customer list 285
Customer contracts 180
Inventories 1,010
Receivables 685
Payables (380)
Employee benefit liabilities, including superannuation (230)
Borrowings (250)
Net deferred tax assets 120
Net identifiable assets acquired 3,690
Less: non-controlling interest (250)

Add: goodwill 360
3,800
AASB3(B64)(e),(k) The goodwill is attributable to Better Office Furnishings Limited's strong position and profitability in
trading in the office furniture and equipment market and synergies expected to arise after the
company's acquisition of the new subsidiary. None of the goodwill is expected to be deductible for tax
purposes.
(i) Contingent consideration
AASB3(B64)(g) The contingent consideration arrangement requires the group to pay the former owners of Better
Office Furnishings Limited 5% of the profit of Better Office Furnishings Limited, in excess of $500,000
for the year ending 30 June 2012, up to a maximum undiscounted amount of $300,000.
The potential undiscounted amount of all future payments that the group could be required to make
under this arrangement is between $0 and $300,000. The fair value of the contingent consideration
arrangement of $50,000 has been estimated by applying the income approach. The fair value
estimates are based on a discount rate of 8% and assumed probability-adjusted profit in Better Office
Furnishings Limited of $1,400,000 to $1,800,000.
(ii) Acquisition-related costs
AASB3(B64)(m) Acquisition-related costs of $75,000 will be included in other expenses in profit or loss in the reporting
period ending 30 June 2012.
(iii) Non-controlling interest
AASB3(B64)(o) The group has chosen to recognise the non-controlling interest at its fair value for this acquisition. The
fair value of the non-controlling interest in Better Office Furnishings Limited, an unlisted company, was
estimated by applying a market approach and an income approach. The fair value estimates are
based on:
(a) as assumed discount rate of 8%
(b) as assumed terminal value based on a range of terminal EBITDA multiples between three
and five times
(c) long-term sustainable growth rate of 2%
(d) assumed financial multiples of companies deemed to be similar to Better Office Furnishings
Limited, and
(e) assumed adjustments because of the lack of control or lack of marketability that market
participants would consider when estimating the fair value of non-controlling interest in Better
Office Furnishing Limited.
(iv) Information not disclosed as not yet available 3,4

AASB3(B66) At the time the financial statements were authorised for issue, the group had not yet completed the
accounting for the acquisition of Better Office Furnishings Limited. In particular, the fair values of the
assets and liabilities disclosed above have only been determined provisionally as the independent
valuations have not been finalised. It is also not yet possible to provide detailed information about
each class of acquired receivables and any contingent liabilities of the acquired entity.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Events occurring after the reporting period
Non-adjusting events after the reporting period

AASB110(21)(b) 1. The above disclosure relates to an event that is indicative of conditions that arose after the
reporting period (ie a non-adjusting event). If the financial effect of the event cannot be
estimated, a statement to that effect shall be made.
Updating disclosure about conditions at the end of the reporting period
AASB110(19),(20) 2. If an entity receives information after the reporting period about conditions that existed at the
end of the reporting period, it shall update disclosures that relate to these conditions, in the
light of the new information. An example is where evidence becomes available after the
reporting period about a contingent liability that existed at the end of the reporting period. In
addition to considering whether it should recognise or change a provision under AASB 137
Provisions, Contingent Liabilities and Contingent Assets, an entity updates its disclosures
about the contingent liability in the light of that evidence.
Business combinations effected after the reporting period
AASB3(59)(b) 3. AASB 3 Business Combinations requires disclosures relating to business combinations
AASB3(B64)-(B66)
effected after the reporting period but before the financial statements are authorised for issue.
The acquirer shall disclose the information required by paragraph B64 of AASB 3 for each
business combination, unless the initial accounting for the business combination is incomplete
at the time the financial statements are authorised for issue. In that situation, the acquirer shall
describe which disclosures could not be made and the reasons why they cannot be made.
Certain business combination disclosures
4. VALUE ACCOUNTS Holdings Limited has not disclosed the details about the following items
because the accounting for the business combination was incomplete at the time the financial
statements were authorised for issue:
AASB3(B64)(h) (a) acquired receivables, including fair values, gross contractual amounts and an
estimate of contractual cash flows not expected to be collected, and
AASB3(B64)(j) (b) recognised or unrecognised contingent liabilities.
5. Other disclosures required by paragraph B64 of AASB 3 but that are not applicable to VALUE
ACCOUNTS Holdings Limited are:
AASB3(B64)(f)(iv) (a) the number of equity instruments or interests issued or issuable and the method of
determining the fair value of those instruments or interests.
AASB3(B64)(l) (b) a description of transactions that are recognised separately from the business
combination, how the acquirer has accounted for these transactions, amounts
recognised and, if the transaction is the effective settlement of a pre-existing
relationship, the method used to determine the settlement amount
AASB3(B64)(n) (c) for a bargain purchase, the amount of any gain recognised in accordance with
paragraph 34 of AASB 3, the line item in the statement of comprehensive income in
which the gain is recognised and a description of the reasons why the transaction
resulted in a gain, and
AASB3(B64)(p) (d) for a business combination achieved in stages, the acquisition-date fair value of the
equity interest held by the acquirer immediately before the acquisition date and the
amount of any gain or loss recognised as a result of remeasuring the equity interest
to fair value.
Criteria for classifying non-current asset or disposal group as held for sale met after end of the
reporting period
AASB5(12) 6. Refer to paragraph 18 of the commentary on discontinued operation (note 10) for disclosure
requirements where the criteria for classifying non-current assets or disposal groups as held
for sale are met after the reporting period.
Current loan events
AASB101(76) 7. In respect of loans classified as current liabilities, if the following events occur between the
end of the reporting period and the date the financial statements are authorised for issue,
those events qualify for disclosure as non-adjusting events in accordance with AASB 110
Events after the Reporting Period:
(a) refinancing on a long-term basis
(b) rectification of a breach of a long-term loan agreement, and
(c) the receipt from the lender of a period of grace to rectify a breach of a long-term
loan agreement ending at least twelve months after the reporting period.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Events occurring after the reporting period
Using pro forma balance sheets to disclose post-reporting date acquisitions and disposals
ASIC CO 05/644 8. To illustrate the financial effect of material acquisitions and disposals of entities or operations
after the reporting period, an entity may wish to present a pro forma balance sheet in the notes
to the financial statements. While the Corporations Act 2001 does not generally permit pro
forma financial statements to be included in a financial report, ASIC has given relief in these
particular circumstances, provided certain conditions set out in Class Order 05/644 apply.
AASB107(Aus20.1)
47 Reconciliation of profit after income tax to net cash inflow from operating
activities 1,2
2011 2010
$'000 $'000

Depreciation and amortisation 1,375 980
Impairment of goodwill 410 -
Write off of assets destroyed by fire 1,210 -
Non-cash employee benefits expense – share-based payments 546 396
Non-cash retirement benefits expense 2 89
Accrued interest on convertible note rights 15 -
Dividend and interest income (650) (600)
Net (gain) loss on sale of non-current assets (620) 30
Gain on disposal of machinery hire division (930) -
Fair value adjustment to investment property (50) (97)
Fair value adjustment to derivatives (48) (40)
Net (gain)/loss on sale of available-for-sale financial assets (26) 48
Fair value (gains)/losses on financial assets at fair value through profit
or loss (235) 140
Share of profits of associates and joint venture partnership (450) (370)
Gain on derecognition of contingent consideration (100) -
Net gain on debt defeasance (85) -
Net exchange differences (8) (17)
Change in operating assets and liabilities, net of effects from
purchase of controlled entity and sale of machinery hire division:
(Increase) in trade debtors and bills of exchange (4,483) (5,282)
(Increase) in inventories (1,412) (2,070)
(Increase) in financial assets at fair value through profit or loss (135) (685)
(Increase) decrease in deferred tax assets (162) 114
(Increase) decrease in other operating assets (676) 4,630
(Decrease) increase in trade creditors (632) (415)
(Decrease) increase in other operating liabilities (322) 612
Increase (decrease) in provision for income taxes payable 1,684 84
Increase (decrease) in deferred tax liabilities 371 131
(Decrease) increase in other provisions (92) 162
Net cash inflow (outflow) from operating activities 2,909 2,294
Commentary - Reconciliation of profit after income tax to net cash inflow from
operating activities
AASB107(Aus20.2) 1. Not-for-profit entities that highlight the net cost of services in their statement of comprehensive
income must disclose a reconciliation of cash flows arising from operating activities to net cost
of services as reported in the statement of comprehensive income.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Reconciliation of profit after income tax to net cash inflow from
operating activities (continued)
Indirect method of presenting cash flows from operating activities

AASB107(Aus20.1) 2. Entities that present their operating cash flows using the indirect method will not need to
disclose a reconciliation such as the one in note 47, since most of the information provided in
this note will in that case be provided in the statement of cash flows.
48 Non-cash investing and financing activities 1,2

2011 2010
$'000 $'000
AASB107(43) - 400
Acquisition of plant and equipment by means of finance leases
Deferred settlement of part proceeds of the sale of the machinery hire division is disclosed in note 10,
dividends satisfied by the issue of shares under the dividend reinvestment plan are shown in note 35
and options and shares issued to employees under the VALUE ACCOUNTS Employee Option Plan
and employee share scheme for no cash consideration are shown in note 50.
Commentary - Non-cash investing and financing activities
Information to be disclosed
AASB107(43) 1. Investing and financing transactions that do not require the use of cash or cash equivalents
shall be disclosed in a way that provides all the relevant information about the investing and
financing activities.
AASB107(44) 2. Other examples of transactions or events that would require disclosure under paragraph 43 of
AASB 107 include the following:
(a) acquisitions of assets by assuming directly related liabilities, such as purchase of a
building by incurring a mortgage to the seller
(b) acquisitions of entities by means of an equity issue
(c) conversion of debt to equity.
49 Earnings per share 1-10

2011 2010
Cents Cents
(a) Basic earnings per share

From continuing operations attributable to the ordinary equity
holders of the company 55.6 31.6
AASB133(68) From discontinued operation 6.0 3.4
Total basic earnings per share attributable to the ordinary equity
(b) Diluted earnings per share

From continuing operations attributable to the ordinary equity
AASB133(68) From discontinued operation 5.7 3.4
Total diluted earnings per share attributable to the ordinary equity

AASB101(51)(c) 30 June 2011
(continued)
49 Earnings per share (continued)
(c) Reconciliations of earnings used in calculating earnings per share

2011 2010
$'000 $'000
AASB133(70)(a) Basic earnings per share

Profit attributable to the ordinary equity holders of the company
used in calculating basic earnings per share:
From continuing operations 6,663 3,668
From discontinued operation 715 399
7,378 4,067
AASB133(70)(a) Diluted earnings per share
Profit from continuing operations attributable to the ordinary equity
holders of the company:
Used in calculating basic earnings per share 6,663 3,668
AASB133(70)(a) Add: interest savings on convertible notes 43 -
Used in calculating diluted earnings per share 6,706 3,668
Profit attributable to the ordinary equity holders of the company
used in calculating diluted earnings per share 7,421 4,067
(d) Weighted average number of shares used as the denominator

2011 2010
Number Number
AASB133(70)(b) Weighted average number of ordinary shares used as the

denominator in calculating basic earnings per share 11,982,785 11,619,872
AASB133(70)(b) Adjustments for calculation of diluted earnings per share:
Amounts uncalled on partly paid shares and calls in arrears 209,478 172,753
Options 55,701 42,649
Convertible notes 282,416 -
AASB133(70)(b) Weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating diluted
earnings per share 12,530,381 11,835,274
(e) Information concerning the classification of securities

(i) Partly paid ordinary shares
AASB133(72) Partly paid ordinary shares carry the right to participate in dividends in proportion to the amount paid
relative to the total issue price and to that extent they have been recognised as ordinary share
equivalents in the determination of basic earnings per share. Amounts uncalled on partly paid shares
and calls in arrears are treated as the equivalent of options to acquire ordinary shares and are
included as potential ordinary shares in the determination of diluted earnings per share.
(ii) Options
AASB133(72) Options granted to employees under the VALUE ACCOUNTS Employee Option Plan are considered
to be potential ordinary shares and have been included in the determination of diluted earnings per
share to the extent to which they are dilutive. The options have not been included in the determination
of basic earnings per share. Details relating to the options are set out in note 50.
AASB133(70)(c) The 200,000 options granted on 1 May 2011 are not included in the calculation of diluted earnings per
share because they are antidilutive for the year ended 30 June 2011. These options could potentially
dilute basic earnings per share in the future.

AASB101(51)(c) 30 June 2011
(continued)
49 Earnings per share (continued)

(iii) Convertible notes
AASB133(72) Convertible notes issued during the year are considered to be potential ordinary shares and have
been included in the determination of diluted earnings per share from their date of issue. The notes
have not been included in the determination of basic earnings per share. Details relating to the notes
are set out in note 28.
(iv) 7% non-redeemable participating preference shares
AASB133(72) The 7% non-redeemable participating preference shares were classified as equity and were a
separate category of ordinary shares for the purposes of determining earnings per share, rather than
potential ordinary shares. The shares were bought back and cancelled during the year - (refer to note
32(l)). They have not been included in the determination of basic or diluted earnings per share as no
shares were on issue at year end in this category of ordinary shares.
(v) 6% cumulative redeemable preference shares
AASB133(72) The 6% cumulative redeemable preference shares are not ordinary or potential ordinary shares and
have not been included in the determination of basic and diluted earnings per share. These shares
are classified as liabilities - refer to note 28.
Commentary - Earnings per share
Application of AASB 133

AASB133(Aus1.1) 1. AASB 133 Earnings per Share (EPS) applies to entities that are required to prepare financial
reports in accordance with Part 2M.3 of the Corporations Act 2001 and that:
(a) are reporting entities with listed ordinary shares, or are in the process of listing if
they have ordinary shares on issue, or
(b) disclose EPS.
AASB133(Aus1.6) 2. AASB 133 applies to disclosing entities that are not companies or other bodies corporate that
are listed on the Australian Securities Exchange (including listed managed investment
schemes). Such entities were previously relieved from the need to disclose EPS by
paragraph 10 of AASB 1030 Application of Accounting Standards to Financial Year Accounts
and Consolidated Accounts of Disclosing Entities other than Companies. That relief is
superseded by AASB 133.
AASB133(4) 3. When an entity presents both consolidated financial statements and separate financial
statements prepared in accordance with AASB 127 Consolidated and Separate Financial
Statements, the disclosures required by AASB 133 need be presented only on the basis of
the consolidated information. An entity that chooses to disclose EPS based on its separate
financial statements shall present such EPS information only in its separate statement of
comprehensive income, or income statement as applicable. An entity shall not present such
EPS information in the consolidated financial statements.
Financial instruments and other contracts generating potential ordinary shares
AASB133(72) 4. Financial instruments and other contracts generating potential ordinary shares may
incorporate terms and conditions that affect the measurement of basic and diluted EPS.
These terms and conditions may determine whether any potential ordinary shares are dilutive
and, if so, the effect on the weighted average number of shares outstanding and any
consequent adjustments to profit or loss attributable to ordinary equity holders. The
disclosure of the terms and conditions of such financial instruments and other contracts is
encouraged, if not otherwise required by AASB 7 Financial Instruments: Disclosures.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Earnings per share (continued)
Disclosure requirements not illustrated: not applicable to VALUE ACCOUNTS Holdings Limited
5. Disclosure requirements of AASB 133 that are not applicable to VALUE ACCOUNTS
Holdings Limited are:
AASB133(70)(d) (a) a description of ordinary share transactions or potential ordinary share
transactions, other than those accounted for in accordance with paragraph 64 of
AASB 133, that occur after the reporting period and that would have changed
significantly the number of ordinary shares or potential ordinary shares outstanding
at the end of the period if those transactions had occurred before the end of the
reporting period.
Information based on alternative amounts of earnings
AASB133(73),(73A) 6. If an entity discloses, in addition to basic and diluted EPS, amounts per share using a
reported component of the statement of comprehensive income (or separate income
statement) other than one required by AASB 133, such amounts shall be calculated using the
weighted average number of ordinary shares determined in accordance with the standard.
Basic and diluted amounts per share relating to such a component shall be disclosed with
equal prominence and presented in the notes to the financial statements. An entity shall
indicate the basis on which the numerator(s) is (are) determined, including whether amounts
per share are before tax or after tax. If a component is used that is not reported as a line item
in the statement of comprehensive income, a reconciliation shall be provided between the
component used and a line item that is reported in the statement of comprehensive income.
AASB133(73) 7. Alternative EPS, which are calculated using an alternative earnings numbers, should not be
presented in the statement of comprehensive income (or income statement, as applicable),
as AASB 133 requires these to be disclosed in the notes. However, as an exception, we
would accept presentation of alternative EPS in the statement of comprehensive income for
unit trusts with units that were reclassified from debt to equity during the current or the
previous reporting period as a result of a change in the trust deed. These trusts may disclose
alternative EPS calculated after adding back those finance costs which represent the net
increase in assets attributable to unitholders, but only for those reporting periods where there
is a mismatch in the treatment of finance cost between the periods presented in the financial
statements.
Major capital restructuring
AASB101(112)(c) 8. Where an entity has undergone a major capital restructuring and this has had a significant
impact on the EPS information calculated in accordance with AASB133, the entity should
consider providing appropriate explanations in the notes to the financial statements.
Retrospective adjustments
AASB133(64) 9. If the number of ordinary or potential ordinary shares outstanding increases as a result of a
capitalisation, bonus issue or share split, or decreases as a result of a reverse share split, the
calculation of basic and diluted EPS for all periods presented shall be adjusted
retrospectively. If these changes occur after the reporting period but before the financial
statements are authorised for issue, the per share calculations for those and any prior period
financial statements presented shall be based on the new number of shares. The fact that per
share calculations reflect such changes in the number of shares shall be disclosed. In
addition, basic and diluted EPS of all periods presented shall be adjusted for the effects of
errors and adjustments resulting from changes in accounting policies, accounted for
retrospectively.
Rounding
ASIC 98/100 10. Where larger companies adopt ASIC Class Order 98/100, basic and diluted earnings per
share may only be rounded to the nearest one tenth of a cent. It is recommended that smaller
companies should adopt the same limit for rounding of earnings per share.

AASB101(51)(c) 30 June 2011
(continued)
50 Share-based payments 1,10
(a) Employee Option Plan 2,3

AASB2(44),(45)(a) The establishment of the VALUE ACCOUNTS Employee Option Plan was approved by shareholders
at the 2006 annual general meeting. The Employee Option Plan is designed to provide long-term
incentives for senior managers and above (including executive directors) to deliver long-term
shareholder returns. Under the plan, participants are granted options which only vest if certain
performance standards are met. Participation in the plan is at the board's discretion and no individual
has a contractual right to participate in the plan or to receive any guaranteed benefits.
The amount of options that will vest depends on VALUE ACCOUNTS Holdings Limited's total return to
shareholders (TSR), including share price growth, dividends and capital returns, ranking within a peer
group of 20 selected companies that are listed on the ASX over a three year period. Once vested, the
options remain exercisable for a period of two years. Options are granted under the plan for no
consideration.
Options granted under the plan carry no dividend or voting rights.
When exercisable, each option is convertible into one ordinary share fourteen days after the release of
the half-yearly and annual financial results of the group to the market.
The exercise price of options is based on the weighted average price at which the company's shares
are traded on the Australian Securities Exchange (ASX) during the week up to and including the date
of the grant.
Set out below are summaries of options granted under the plan:
AASB2(45)(b)(i),(ii), Vested and
(iv),(vii),(d)
Balance Granted Exercised Forfeited Balance exercisable
Grant Expiry Exercise at start of during during during the at end of at end of
Date date price the year the year the year year the year the year
Number Number Number Number Number Number
2011
1 May 30 April
2008 2013 $2.28 114,500 - (53,900) (15,000) 45,600 45,600
1 May 30 April
2009 2014 $2.51 138,000 - - (25,000) 113,000 -
1 May 30 April
2010 2015 $2.78 212,000 - - (30,000) 182,000 -
1 May 30 April
2011 2016 $3.18 - 300,000 - (15,000) 285,000 -
Total 464,500 300,000 (53,900) (85,000) 625,600 45,600
AASB2(45)(b) Weighted average exercise

price $2.58 $3.18 $2.28 $2.68 $2.86 $2.28
2010
1 May 30 April
2007 2012 $2.09 99,000 - - (99,000) - -
1 May 30 April
2008 2013 $2.28 124,500 - - (10,000) 114,500 -
1 May 30 April
2009 2014 $2.51 155,000 - - (17,000) 138,000 -
1 May 30 April
2010 2015 $2.78 - 225,000 - (13,000) 212,000 -
Total 378,500 225,000 - (139,000) 464,500 -
AASB2(45)(b) Weighted average exercise

price $2.32 $2.78 - $2.21 $2.58 -
AASB2(45)(b)(iii) No options expired during the periods covered by the above tables.

AASB101(51)(c) 30 June 2011
(continued)
50 Share-based payments (continued)

AASB2(45)(c) The weighted average share price at the date of exercise of options exercised during the year ended
30 June 2011 was $3.03 (2010 – not applicable).
AASB2(45)(d) The weighted average remaining contractual life of share options outstanding at the end of the period
was 3.97 years (2010 – 4.05 years).
Fair value of options granted 4-7

AASB2(46),(47)(a)(i) The assessed fair value at grant date of options granted during the year ended 30 June 2011 was 80
cents per option (2010 – 75 cents). The fair value at grant date is independently determined using a
Black-Scholes option pricing model that takes into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date and expected price volatility of the underlying
share, the expected dividend yield and the risk free interest rate for the term of the option.
AASB2(47)(a)(i) The model inputs for options granted during the year ended 30 June 2011 included:
(a) options are granted for no consideration and vest based on VALUE ACCOUNTS Holdings
Limited's TSR ranking within a peer group of 20 selected companies over a three year
period. Vested options are exercisable for a period of two years after vesting
(b) exercise price: $3.18 (2010 – $2.78)
(c) grant date: 1 May 2011 (2010 – 1 May 2010)
(d) expiry date: 30 April 2016 (2010 – 30 April 2015)
(e) share price at grant date: $3.18 (2010 – $2.78)
(f) expected price volatility of the company's shares: 35% (2010 – 30%)
(g) expected dividend yield: 3.8% (2010 – 3.2%)
(h) risk-free interest rate: 6% (2010 – 5.5%)
AASB2(47)(a)(ii) The expected price volatility is based on the historic volatility (based on the remaining life of the
options), adjusted for any expected changes to future volatility due to publicly available information.
Where options are issued to employees of subsidiaries within the group, the subsidiaries compensate
VALUE ACCOUNTS Holdings Limited for the amount recognised as expense in relation to these
options.
(b) Employee share scheme 2,3

AASB2(44),(45)(a) A scheme under which shares may be issued by the company to employees for no cash consideration
was approved by shareholders at the 2007 annual general meeting. All Australian resident permanent
employees (excluding executive directors, other key management personnel of the group and the
group company secretary) who have been continuously employed by the group for a period of at least
one year are eligible to participate in the scheme. Employees may elect not to participate in the
scheme.
On 25 October 2010, the VALUE ACCOUNTS Employee Benefit Trust was formed to administer the
employee share scheme. This Trust has been consolidated in accordance with note 1(b)(ii).
Shares issued by the trust to the employees are acquired on-market prior to the issue. Shares held by
the trust and not yet issued to employees at the end of the reporting period are shown as treasury
shares in the financial statements, see note 32(g).
AASB2(46) Under the scheme, eligible employees may be granted up to $1,000 worth of fully paid ordinary shares
in VALUE ACCOUNTS Holdings Limited annually for no cash consideration. The market value of
shares issued under the scheme, measured as the weighted average price at which the company's
shares are traded on the ASX during the week up to and including the date of grant, is recognised in
the balance sheet as an issue of treasury shares by the trust (in 2010 as share capital) and as part of
employee benefit costs in the period the shares are granted.

AASB101(51)(c) 30 June 2011
(continued)
50 Share-based payments (continued)

Offers under the scheme are at the discretion of the company, and no offer may be made unless
annual profit growth in the financial year prior to the date of the offer was at least 3% greater than the
increase in the consumer price index.
Shares issued under the scheme may not be sold until the earlier of three years after issue or
cessation of employment by the group. In all other respects the shares rank equally with other
fully-paid ordinary shares on issue (refer to note 32(e)).
AASB2(47)(b) The number of shares issued to participants in the scheme is the offer amount divided by the weighted
average price at which the company's shares are traded on the ASX during the week up to and
including the date of grant.
Where shares are issued to employees of subsidiaries within the group, the subsidiaries compensate
VALUE ACCOUNTS Holdings Limited for the fair value of these shares.
2011 2010
Number of shares issued under the plan to participating employees
AASB2(47)(b) on 1 December 2010 (2010 – 2 December 2009) 145,902 142,857
AASB2(47)(b) Each participant was issued with shares worth $1,000 based on the weighted average market price of
$3.05 (2010 – $2.59).
(c) Expenses arising from share-based payment transactions 8,9

AASB2(RDR50.1) Total expenses arising from share-based payment transactions recognised during the period as part of
employee benefit expense were as follows:
2011 2010
$'000 $'000
Options issued under employee option plan 101 26

Shares issued under employee share scheme 445 370
546 396
Commentary - Share-based payments
Accounting standards for share-based payments

1. Accounting standards for share-based payments are set out in AASB 2 Share-based
Payment.
General requirement
AASB2(44) 2. An entity shall disclose information that enables users of the financial statements to
understand the nature and extent of share-based payment arrangements that existed during
the period.
AASB2(45) 3. The standard specifies the minimum disclosures that shall be made to satisfy the principle in
paragraph 2 above. Those minimum disclosures are illustrated in the VALUE ACCOUNTS
Holdings Limited share-based payments note, but the following alternatives are available:
AASB2(45)(a) (a) an entity with substantially similar types of share-based payment arrangements
may aggregate the information required by paragraph 45(a) of the standard, unless
separate disclosure of each arrangement is necessary to satisfy the principle in
paragraph 2 above
AASB2(45)(c) (b) if options were exercised on a regular basis throughout the period, an entity may
disclose the weighted average share price during the period instead of the
weighted average share price at the date of exercise
AASB2(45)(d) (c) if the range of exercise prices of share options outstanding at the end of the period
is wide, the outstanding options shall be divided into ranges that are meaningful for
assessing the number and timing of additional shares that may be issued and the
cash that may be received upon exercise of those options.

AASB101(51)(c) 30 June 2011
(continued)
Commentary - Share-based payments
Fair value of goods or services received, or of equity instruments granted

understand how the fair value of the goods or services received, or the fair value of the equity
instruments granted, during the period was determined.
AASB2(47) 5. If the entity has measured the fair value of goods or services received as consideration for
equity instruments of the entity indirectly, by reference to the fair value of the equity
instruments granted, the standard specifies the minimum disclosures that shall be made to
give effect to the principle in paragraph 4 above. The minimum disclosures relevant to
VALUE ACCOUNTS Holdings Limited are illustrated in the share-based payments note, but
the following additional disclosures may be applicable:
AASB2(47)(a)(iii) (a) for share options granted during the period, whether and how any other features of
the option grant were incorporated into the measurement of fair value, such as a
market condition
AASB2(47)(b) (b) for equity instruments other than share options granted during the period, the
number and weighted average fair value of those equity instruments at the
measurement date, and information on how that fair value was measured,
including:
(i) if fair value was not measured on the basis of an observable market
price, how it was determined
(ii) whether and how expected dividends were incorporated into the
measurement of fair value
(iii) whether and how any other features of the equity instruments granted
were incorporated into the measurement of fair value
AASB2(47)(c) (c) for share-based payment arrangements that were modified during the period:
(i) an explanation of those modifications
(ii) the incremental fair value granted (as a result of those modifications)
(iii) information on how the incremental fair value granted was measured,
consistently with the requirements set out in paragraphs 47(a) and (b) of
AASB 2, where applicable.
AASB2(48) 6. If the entity has measured directly the fair value of goods or services received during the
period, the entity shall disclose how that fair value was determined, for example, whether fair
value was measured at a market price for those goods or services.
AASB2(49) 7. If the entity has rebutted the presumption in paragraph 13 of AASB 2, it shall disclose that
fact, and give an explanation of why the presumption was rebutted. The rebuttable
presumption in paragraph 13 of AASB 2 is that the fair value of goods or services received
from parties other than employees can be estimated reliably.
Expenses arising from share-based payments
understand the effect of share-based payment transactions on the entity’s profit or loss for
the period and on its financial position.
AASB2(51) 9. To give effect to the principle in paragraph 8 above, the entity shall disclose at least the
following:
AASB2(51)(a) (a) the total expense recognised for the period arising from share-based payment
transactions in which the goods or services received did not qualify for recognition
as assets and hence were recognised immediately as an expense, including
separate disclosure of that portion of the total expense that arises from
transactions accounted for as equity-settled share-based payment transactions
AASB2(51)(b) (b) for liabilities arising from share-based payment transactions:
(i) the total carrying amount at the end of the period
(ii) the total intrinsic value at the end of the period of liabilities for which the
counterparty’s right to cash or other assets had vested by the end of the
period (eg vested share appreciation rights).
Overriding disclosure requirement
AASB2(52) 10. If the information required to be disclosed by AASB 2 does not satisfy the principles in
paragraphs 2, 4 and 8 above, the entity shall disclose such additional information as is
necessary to satisfy them.

AASB101(51)(c) 30 June 2011
(continued)
(New)
51 Parent entity financial information 1-3
(a) Summary financial information

CR2M.3.01 The individual financial statements for the parent entity show the following aggregate amounts:
2011 2010
$'000 $'000
Balance sheet
CR2M.3.01(1)(a),(k) Current assets 11,726 5,651
CR2M.3.01(1)(b),(k) Total assets 32,359 21,547
CR2M.3.01(1)(c),(k) Current liabilities 3,389 2,842
CR2M.3.01(1)(d),(k) Total liabilities 9,124 6,006
CR2M.3.01(1)(e),(k) Shareholders’ equity

Issued capital 19,212 13,870
Reserves
Revaluation surplus – property, plant and equipment 503 256
Cash flow hedges (119) (124)
Share-based payments 7 158 62
23,235 15,541
CR2M.3.01(1)(f),(k) 3,099 1,663

Profit or loss for the year
CR2M.3.01(1)(g)(k) 3,417 1,828

Total comprehensive income
CR2M.3.01(1)(h),(k) (b) Guarantees entered into by the parent entity 4-6

2011 2010
$'000 $'000
Carrying amount included in current liabilities 23 28

23 28
The parent entity has provided financial guarantees in respect of bank overdrafts and loans of
subsidiaries amounting to $65,000 (2010 – $60,000), secured by registered mortgages over the
freehold properties of the subsidiaries.
The parent entity has also given unsecured guarantees in respect of:
(i) finance leases of subsidiaries amounting to $500,000 (2010 – $600,000)
(ii) the bank overdraft of a subsidiary amounting to $190,000 (2010 – $45,000)
(iii) a bank loan of the subsidiary participating in the Fernwood Joint Venture (see note 45)
amounting to $750,000 (2010 – $800,000).
A liability has been recognised in relation to these financial guarantees in accordance with the policy
set out in notes 1(q) and 1(af).

AASB101(51)(c) 30 June 2011
(continued)
51 Parent entity financial information (continued)
(b) Guarantees entered into by the parent entity (continued)

In addition, there are cross guarantees given by VALUE ACCOUNTS Holdings Limited, VALUE
ACCOUNTS Consulting Limited and VALUE ACCOUNTS Development Limited as described in note
43. No deficiencies of assets exist in any of these companies.
The parent entity has further provided a guarantee in respect of obligations assumed by a State
Government Statutory Authority, as described in note 28.
No liability was recognised by the parent entity or the consolidated entity in relation to these last two
guarantees, as the fair value of the guarantees is immaterial.
CR2M.3.01(1)(i),(k) (c) Contingent liabilities of the parent entity

The parent entity did not have any contingent liabilities as at 30 June 2011 or 30 June 2010. For
information about guarantees given by the parent entity, please see above.
CR2M.3.01(1)(j),(k) (d) Contractual commitments for the acquisition of property, plant or equipment
As at 30 June 2011, the parent entity had contractual commitments for the acquisition of property,
plant or equipment totalling $150,000 (30 June 2010 – $100,000). These commitments are not
recognised as liabilities as the relevant assets have not yet been received.
Commentary – Parent entity financial information
CR2M.3.01(1) 1. Following changes made to the Corporations Act 2001 and the Corporations Regulations 2001
in June 2010, financial reports of entities that are the parent entity in a group no longer need to
include a complete set of financial statements for the separate parent entity. Instead, the notes
to the consolidated financial statements must include the following disclosures
(a) current assets of the parent entity
(b) total assets of the parent entity
(c) current liabilities of the parent entity
(d) total liabilities of the parent entity
(e) shareholders’ equity in the parent entity separately showing issued capital and each
reserve
(f) profit or loss of the parent entity
(g) total comprehensive income
(h) details of any guarantees entered into by the parent entity in relation to the debts of
its subsidiaries
(i) details of any contingent liabilities of the parent entity
(j) details of any contractual commitments by the parent entity for the acquisition of
property, plant and equipment
(k) comparative information for the previous period for each of paragraphs (a) to (i).
CR2M.3.01(2) 2. The disclosures must be determined in accordance with applicable accounting standards.
CR2M.3.01(3) 3. For the purposes of the Corporations Regulations, a parent entity is a company, registered
scheme or disclosing entity that is required by the accounting standards to prepare financial
statements in relation to a consolidated entity.
Financial guarantees
AASB139(9) 4. A financial guarantee contract is a contract that requires the issuer to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make
payment when due in accordance with the original or modified terms of a debt instrument.
AASB139(2)(e) 5. Financial guarantees must be accounted for in accordance with the provisions in AASB 139
AASB108(19)(b)
Financial Instruments: Recognition and Measurement, unless the issuer has previously
asserted explicitly that it regards such contracts as insurance contracts and has accounted for
them as such.

AASB101(51)(c) 30 June 2011
(continued)
Commentary – Parent entity financial information (continued)
Recognition and measurement

AASB139(43),(47)(c) 6. Where financial guarantee contracts are recognised under AASB 139, they must be initially
recognised at their fair value. Subsequently, the guarantees are measured at the higher of:
(a) the amount determined in accordance with AASB 137 Provisions, Contingent
Liabilities and Contingent Assets, and
(b) the amount initially recognised less, when appropriate, cumulative amortisation
recognised in accordance with AASB 118 Revenue.
Share-based payment funding reserve – accounting in the parent entity
7. It is assumed that under the VALUE ACCOUNTS Employee Share Trust, the employees own
the beneficial interest in the residual assets of the shares and there is no formal loan
arrangement in place between the parent entity and the Trust. As a result, the provision of
cash to the Trust to buy shares in the parent entity on market is recognised as an equity
transaction in the share-based payment reserve of the parent entity. If the entity (rather than
the employees) has a beneficial interest in the Trust’s residual assets, the entity should
recognise an investment in the Trust instead.

CA295(1)(c) Directors' declaration 1
30 June 2011
(Revised) In the directors' opinion:
CA295(4)(d) (a) the financial statements and notes set out on pages 65 to 283 are in accordance with the
Corporations Act 2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other
2
mandatory professional reporting requirements , and
(ii) giving a true and fair view of the consolidated entity's financial position as at 30 June
2011 and of its performance for the financial year ended on that date, and
CA295(4)(c) (b) there are reasonable grounds to believe that the company will be able to pay its debts as and
3
when they become due and payable , and
ASIC 98/1418 (c) at the date of this declaration, there are reasonable grounds to believe that the members of the
extended closed group identified in note 43 will be able to meet any obligations or liabilities to
which they are, or may become, subject by virtue of the deed of cross guarantee described in
4,5
note 43.
CA295(4)(ca) Note 1(a) confirms that the financial statements also comply with International Financial Reporting
6
Standards as issued by the International Accounting Standards Board.
CA295(4)(e) The directors have been given the declarations by the chief executive officer and chief financial officer
(Listed entities only) 7,8
required by section 295A of the Corporations Act 2001.
CA295(5)(a) This declaration is made in accordance with a resolution of the directors. 9
CA295(5)(c) M K Hollingworth 9
Director
Sydney
CA295(5)(b) 23 August 2011 9,10
Commentary – Directors' declaration
Format of directors’ declaration

1. The directors’ declaration illustrated above is included by way of example. Other formats can
be used as long as they comply with all relevant requirements.
Reference to other mandatory professional reporting requirements
2. Reference to other mandatory professional reporting requirements is not required, but is
recommended.
Solvency declaration
ASIC RG 22 3. In Regulatory Guide 22 ASIC provides guidance to directors and auditors of companies in
relation to the solvency declaration previously required by CA 301(5), but now required by CA
295(4)(c). As there is no substantive change to the requirements for the solvency declaration,
the guidance in Regulatory Guide 22 is still relevant. The Guide discusses the obligations on
directors in making the declaration, and the implications for auditors, under the following
headings:
(a) debts to be taken into account by directors in making the solvency statement
(b) matters to be considered by directors
(c) qualified statements by directors, and
(d) implications for auditors.

CA295(1)(c) Directors' declaration
30 June 2011
(continued)
Commentary - Directors' declaration (continued)
Deed of cross guarantee

ASIC 98/1418 4. ASIC Class Order 98/1418 relieves a company of a specified class that is wholly-owned by an
Australian company, a disclosing entity which is an Australian body corporate, or a registered
foreign holding company, of the necessity to prepare financial statements where the
requirements of the Class Order have been met. One of these requirements is that the holding
entity and the subsidiaries have become parties to a deed of cross guarantee under which
each of the entities guarantees the debts of the other entities.
ASIC 98/1418 5. Another requirement of the Class Order is that the directors’ declaration made in relation to
the consolidated financial statements must include comments along the lines shown. There
are further disclosure requirements for the notes to the financial statements which are
illustrated in note 43.
IFRS compliance statement
6. Following changes made to the Corporations Act 2001 in June 2011, the directors’ declaration
must now mention if the notes to the financial statements include an explicit and unreserved
statement of compliance with International Financial Reporting Standards (IFRS). However,
there is no need to explain why such a statement has been omitted, where this is the case.
Declarations by CEO and CFO - listed entities only
CA295(4)(c) 7. The directors’ declaration of a listed entity must state that the directors have been given the
declarations by the chief executive officer (CEO) and chief financial officer (CFO) required by
CA 295A in relation to the entity’s financial statements.
CA295A(1),(2) 8. The declarations must state whether, in the CEO and CFO’s opinion:
(a) the financial records of the entity for the financial year have been properly
maintained in accordance with CA 286
(b) the financial statements and notes for the financial year comply with accounting
standards
(c) the financial statements and notes for the financial year give a true and fair view
(d) any other matters that are prescribed by regulations in relation to the financial
statements and notes for the financial year are satisfied.
Dating and signing of declaration
CA295(5)(a)-(c) 9. The directors’ declaration shall be made in accordance with a resolution of the directors,
specify the date on which it was made and be signed by a director.
10. The deadlines for various kinds of entities for signing the directors’ declaration are set out in
Appendix C.

Auditor's report
30 June 2011
Independent auditor's report to the members of

VALUE ACCOUNTS Holdings Limited 1-8
The audit report will be provided by the entity’s auditor upon completion of the audit of the financial
report. As the wording of the report may differ in certain aspects from firm to firm, we have not
included an illustrative report in this publication.
Commentary - Independent auditor’s report
Form and content of audit report

CA307A 1. Standards and guidance on the preparation of audit reports on general purpose financial
APES410
statements are given in Auditing Standard ASA 700 Forming an Opinion and Reporting on a
Financial Report. Compliance with ASA 700 is mandatory for all audits carried out under the
Corporations Act 2001 and for all other audits carried out by members of the Accounting
Bodies.
2. In 2009, the Australian Auditing and Assurance Standards Board (AUASB) revised all
Australian Auditing Standards (ASAs) based on the new Clarity format version of the
International Standards on Auditing. These revised auditing standards are applicable for
financial reporting periods commencing on or after 1 January 2010. Application of the revised
standards is likely to affect the format of the audit opinion.
Other matters on which the auditor may be required to report
CA308(2) 3. If the auditor is of the opinion that the financial report does not comply with an accounting
standard, the audit report must, to the extent it is practicable to do so, quantify the effect of
the non-compliance. If it is not practicable to quantify the effect fully, the report must say why.
CA308(3) 4. The audit report must describe (on an exception basis):
(a) any defect or irregularity in the financial report
(b) any deficiency, failure or shortcoming in respect of the following matters:
(i) whether the auditor has been given all information, explanation and
assistance necessary for the conduct of the audit
(ii) whether the entity has kept financial records sufficient to enable a
financial report to be prepared and audited
(iii) whether the entity has kept other records and registers as required by
the Corporations Act 2001.
CA308(3A) 5. The audit report must include any statements or disclosures required by auditing standards.

T +61 2 8266 0000, F +61 2 8266 9999, www.pwc.com.au

Auditor's report
30 June 2011
(continued)
Commentary - Independent auditor’s report (continued)
CA308(3B) 6. If the financial report includes additional information under CA 295(3)(c) (information included
to give a true and fair view of financial position and performance), the audit report must
include a statement of the auditor’s opinion on whether the inclusion of that additional
information was necessary to give the true and fair view required by CA 297.
Disclosing entities that are companies – remuneration report
CA300A(1),(1A) 7. Disclosing entities that are companies must include a remuneration report in their directors’
CA308(3C)
report in a separate and clearly identified section. Where such a report has been included,
the auditor must also report on whether the remuneration complies with section 300A of the
Corporations Act 2001.
GS008 8. The Auditing and Assurance Standards Board has provided guidance on the audit reporting
implications of this requirement, including the appropriate changes to the wording of the audit
report, in Auditing Guidance Statement GS008 The Auditor’s Report on a Remuneration
Report Pursuant to Section 300A of the Corporations Act 2001.

Shareholder information 5,6
30 June 2011
ASX(4.10)
The shareholder information set out below was applicable as at 15 August 2011. 1
A. Distribution of equity securities

ASX(4.10.7) Analysis of numbers of equity security holders by size of holding:
Class of equity security
Redeemable
Ordinary shares
preference Convertible
Holding Shares Options shares notes
1 - 1000 250 60 - -
1,001 - 5,000 150 32 - 1
5,001 - 10,000 100 1 - -
10,001 - 100,000 20 2 - -
100,001 and over 12 - 1 -
ASX(4.10.5) 532 95 1 1
ASX(4.10.8) There were 30 holders of less than a marketable parcel of ordinary shares.
B. Equity security holders
Twenty largest quoted equity security holders 2

ASX(4.10.9) The names of the twenty largest holders of quoted equity securities are listed below:
Name Ordinary shares
Percentage of
Number held issued shares
Lion (Australia) Limited 8,480,448 60.00
Enterprise Limited 1,074,190 7.60
Investments Trading Limited 621,900 4.40
Nominee Corporation Limited 395,754 2.80
Australian Superannuation Fund 367,486 2.60
A B Bank Limited 339,218 2.40
Trustees Incorporated 310,950 2.20
Pacific Investments Incorporated 282,682 2.00
K N Meares 254,413 1.80
Kangaroo Traders Pty Limited 251,587 1.78
Land Corporation Limited 226,145 1.60
Electrical Traders Pty Limited 212,011 1.50
Project Development Limited 52,296 0.37
Eastern Limited 42,402 0.30
N T Toddington 36,721 0.26
H G Wells 27,473 0.19
M K Hollingworth 22,000 0.16
R J Hunter 14,059 0.10
R M Lyon 13,074 0.09
B A Wilson 13,200 0.09
13,038,009 92.24
ASX(4.10.16)
Unquoted equity securities 3
Number Number
on issue of holders
6% cumulative redeemable preference shares held by Trimark
Securities Limited 1,000,000 1
7% convertible notes of $1,000 each held by Dominion
Enterprises Limited 2,000 1
Options issued under the VALUE ACCOUNTS Employee Option
Plan to take up ordinary shares 625,600* 95
* Number of unissued ordinary shares under the options. No

person holds 20% or more of these securities.

Shareholder information
30 June 2011
(continued)
C. Substantial holders 4
ASX(4.10.4) Substantial holders in the company are set out below:
Number
held Percentage
Ordinary shares
Lion plc (as holding company of Lion (Australia) Limited) 4 8,480,448 60.00%
Enterprise Limited 1,074,190 7.60%
6% cumulative redeemable preference shares

Trimark Securities Limited 1,000,000 100.00%
D. Voting rights
ASX(4.10.6) The voting rights attaching to each class of equity securities are set out below:
(a) Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have
one vote and upon a poll each share shall have one vote.
(b) 6% cumulative redeemable preference shares
One vote for each share, but limited to matters affecting the rights of such shares.
(c) 7% convertible notes
One vote for each note, but limited to matters affecting the rights of such notes.
(d) Options
No voting rights.
Commentary - Shareholder information
Date at which made

ASX(4.10) 1. The shareholder information must be current at a date specified by the entity which is no
more than 6 weeks before the annual report is sent to shareholders.
Twenty largest equity security holders
ASX(4.10.9) 2. Disclosure is required of the names of the twenty largest holders of each class of quoted
equity securities, the number of equity securities each holds and the percentage of capital
each holds.
Unquoted equity securities
ASX(4.10.16) 3. Disclosure is required of the number of each class of unquoted equity securities on issue
(except CHESS Depositary Interests (CDIs)) as well as the number of holders for each class.
If one person holds 20% or more of a class of unquoted equity securities, disclosure of that
holder’s name and the number of equity securities held is also required, unless the securities
were issued under an employee incentive scheme.
Substantial holders
ASX(4.10.4) 4. Disclosure is required of the names of substantial holders in the entity, and the number of
equity securities in which each substantial holder and the substantial holder’s associates
have a relevant interest, as disclosed in substantial holding notices given to the entity. If a
substantial holding notice discloses that related bodies corporate have the same relevant
CA9 interest in the same number of equity securities, the annual report need only include the
name of the holding company. Substantial holdings are those of 5% or more of the total votes
attached to the voting shares or interests in the entity.
Restricted securities or securities subject to voluntary escrow
ASX(4.10.14) 5. Where there are restricted securities or securities subject to voluntary escrow, disclosure is
ASX(19.12)
required of the number and class of such securities on issue and the date that the escrow
period ends. Restricted securities are defined in Chapter 19 of the Listing Rules.
Issues of securities for the purposes of Item 7 of CA 611 not yet completed
ASX(4.10.21) 6. Disclosure is required of a summary of any issues of securities approved for the purposes of
Item 7 of section 611 of the Corporations Act 2001 which have not yet been completed.

VALUE ACCOUNTS Holdings
Limited
Annual concise report
for the year ended 30 June 2011
A sample concise report illustrating financial reporting disclosure requirements with

supporting commentary.
Reporting requirements covered include:
 Corporations Act 2001

 Accounting Standard AASB 1039 Concise Financial Reports
 Australian Securities and Investments Commission Releases
This sample concise report is provided as a guide to the requirements of the Corporations
Act 2001 and AASB 1039 and should be used in conjunction with the commentary on
concise reporting requirements set out at the end of this section of this publication.
Alternative wordings and forms of presentation may be adopted so long as they include
the specific disclosures prescribed.
Source of disclosure requirements

A column has been provided in the reports and statements for direct reference to the
source of disclosure requirements.
Abbreviations
Abbreviations used in this booklet are set out in Appendix I.

Concise financial report - 30 June 2011
Contents
Page
Directors' report (not included - see page 293)
Concise financial report
Commentary on preparation of concise reports 313
Relationship of the concise financial report to the full financial report 3

CA314(2)(e) The concise financial report is an extract from the full financial report for the year ended 30 June
AASB1039(33)(a),(b)
2011. The financial statements and specific disclosures included in the concise financial report have
been derived from the full financial report.
AASB1039(33)(c),(d) The concise financial report cannot be expected to provide as full an understanding of the financial
performance, financial position and financing and investing activities of VALUE ACCOUNTS Holdings
Limited and its subsidiaries as the full financial report. Further financial information can be obtained
from the full financial report.
CA314(2)(e) The full financial report and auditor's report will be sent to members on request, free of charge. Please
AASB1039(33)(d)
call 1800 XX YY ZZ (free call) and a copy will be forwarded to you. Alternatively, you can access both
the full financial report and the concise report via the internet at our Shareholders' Centre on our
website: www.valueaccounts.com.au.
Commentary

ASIC RG13 2. Guidance on issues relating to the use of ACNs is set out in ASIC Regulatory Guide 13.
Relationship of the concise financial report to the full financial report
AASB1039(33) 3. The first page of the concise financial report shall prominently display advice to the effect
that:
(a) the concise financial report is an extract from the financial report
(b) the financial statements and specific disclosures included in the concise financial
report have been derived from the financial report
(c) the concise financial report cannot be expected to provide as full an understanding
of the financial performance, financial position and financing and investing
activities of the entity as the financial report
(d) further financial information can be obtained from the financial report and that the
financial report is available, free of charge, on request to the entity.

Directors' report
30 June 2011
CA314(2)(b) The concise report must include the directors’ report for the year containing all relevant information
required by sections 298-300A of the Corporations Act 2001. A sample directors’ report is included in
the full annual report for VALUE ACCOUNTS Holdings Limited included in this publication and is not
repeated here.
As an alternative, the directors may elect to only publish their annual directors’ report in the concise
report and not in the full annual report. They will then need to distribute the concise report to all
persons or organisations requiring a copy of the directors’ report (including recipients of the full annual
report).
ASIC 98/2395 As indicated on page 45 of the commentary on the annual directors’ report in the full annual report,
ASIC Class Order 98/2395 permits certain information otherwise required to be included in the
directors’ report to be transferred to the full financial report or a document attached to the directors’
report. Any information otherwise required by CA 298(1)(c), 298(1A), 299 or 299A that is transferred
out of the directors’ report using the relief available under the Class Order must be included in the
concise report. Refer to the summary of contents of directors’ reports on pages 42 - 44 for information
on the requirements of these sections.
CA300(2) Information required by CA 300 may be transferred from the directors’ report to the full financial report
ASIC 98/2395
in accordance with subsection 300(2), or to the full financial report or a document attached to the
directors' report, except for information required by CA 300(11B) and (11C) which can only be
transferred to the financial report. Where this occurs, the transferred information does not have to be
included in a concise report. Refer to pages 42 - 44 for information on the requirements of CA 300.

AASB1039(18)(a),(19) VALUE ACCOUNTS Holdings Limited
Consolidated income statement 1,2,4
2011 2010
Notes $'000 $'000
Revenue from continuing operations 4 58,540 42,280

progress 1,681 255
Depreciation and amortisation expense (1,375) (980)
Impairment of goodwill (410) -
Write off of assets damaged by fire (1,210) -
Share of net profits of associates and joint venture
Income tax expense (3,151) (1,465)

Profit from discontinued operation 5 715 399


Owners of VALUE ACCOUNTS Holdings Limited 7,378 4,067
Non-controlling interests 1,034 387
8,412 4,454
Cents Cents
AASB1039(30(d) Earnings per share for profit from continuing
operations attributable to the ordinary equity holders
of the company: 3
Basic earnings per share 55.6 31.6
Diluted earnings per share 53.5 31.0
Earnings per share for profit attributable to the

ordinary equity holders of the company: 3
notes.

AASB1039(18)(a) VALUE ACCOUNTS Holdings Limited
Consolidated statement of comprehensive income
2011 2010
Notes $'000 $'000

Changes in the fair value of available-for-sale financial
assets 64 (31)
Changes in the fair value of cash flow hedges 27 (21)
Actuarial (losses)/gains on retirement benefit obligation (309) 197
Exchange differences on translation of foreign operations (5) 60
Net investment hedge (9) -
Share of other comprehensive income of associates and
joint ventures 300 100
Income tax relating to components of other comprehensive
income (188) (228)

Total comprehensive income for the year is attributable to:
8,835 5,045
accompanying notes.

AASB1039(18)(b)
As at 30 June 2011
2011 2010 1 July 2009 *

Notes $'000 $'000 $'000
ASSETS
Current assets
Cash and cash equivalents 8,229 2,812 2,400
Trade and other receivables 12,935 7,084 3,243
Inventories 7,153 4,672 3,700
Financial assets at fair value through profit or loss 1,300 915 370
Derivative financial instruments 88 40 -
29,705 15,523 9,713
Assets classified as held for sale 250 4,955 -

Total current assets 29,955 20,478 9,713
Non-current assets
Receivables 1,476 380 5,011
Investments accounted for using the equity method 3,775 3,275 3,025
Available-for-sale financial assets 1,010 828 997
Held-to-maturity investments 210 - -
Derivative financial instruments 8 12 -
Property, plant and equipment 12,095 8,080 8,145
Investment properties 3,300 3,050 3,205
Deferred tax assets 734 438 552
Intangible assets 895 945 910
Total non-current assets 23,503 17,008 21,845
Total assets 53,458 37,486 31,558
LIABILITIES
Current liabilities
Trade and other payables 1,700 2,477 2,930
Borrowings 2,980 3,555 2,869
Derivative financial instruments 310 321 289
Current tax liabilities 2,746 1,077 989
Provisions 360 210 170
Other current liabilities 395 370 290
8,491 8,010 7,537
Liabilities directly associated with assets classified as

held for sale - 500 -
Total current liabilities 8,491 8,510 7,537
Borrowings 9,464 7,525 7,250
Deferred tax liabilities 1,289 704 573
Retirement benefit obligations 482 146 254
Total non-current liabilities 11,678 8,645 8,273
Total liabilities 20,169 17,155 15,810
Net assets 33,289 20,331 15,748
* See note 2(a) for details regarding the restatement as a result of an error.

As at 30 June 2011
(continued)
2011 2010 1 July 2009 *

$'000 $'000 $'000
Notes
EQUITY
Contributed equity 19,200 13,870 13,241
Reserves 1,205 681 226
Retained earnings 10,199 4,184 912
Capital and reserves attributable to owners of VALUE
ACCOUNTS Holdings Limited 30,604 18,735 14,379
Non-controlling interests 2,685 1,596 1,369
Total equity 33,289 20,331 15,748
* See note 2(a) for details regarding the restatement as a result of an error.

AASB1039(18)(d)
Consolidated statement of changes in equity 1,4
Attributable to owners of VALUE

ACCOUNTS Holdings Limited
Contri- Non-con-
Notes $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 July 2009 13,241 226 902 14,369 1,369 15,738

Adjustment on correction of
error (net of tax) 2(a) - - 10 10 - 10
Restated total equity at the
beginning of the financial year 13,241 226 912 14,379 1,369 15,748

the year as reported in the 2010
financial statements - 429 4,220 4,649 387 5,036
Adjustment on correction of
error 2(a) - - 9 9 - 9
Restated total comprehensive
income for the year - 429 4,229 4,658 387 5,045
Transactions with owners in their

capacity as owners:
Contributions of equity, net of
transaction costs 629 - - 629 - 629
Dividends provided for or paid - - (957) (957) (160) (1,117)
Employee share options - value of
employee services - _____ 26 _______ - _____ 26 - _____ 26
629 _____ 26 ___ (957) ___ (302) (160) __ (462)
Balance at 30 June 2010 13,870 681 4,184 18,735 1,596 20,331

the year - 626 7,175 7,801 1,034 8,835
Transactions with owners in their

capacity as owners:
transaction costs and tax 5,714 - - 5,714 - 5,714
Buy-back of preference shares, net
of tax (524) - 64 (460) - (460)
Value of conversion rights on
convertible notes 140 - - 140 - 140
Non-controlling interest on
acquisition of subsidiary - - - - 575 575
Transactions with non-controlling
interests - (210) - (210) (290) (500)
Dividends provided for or paid 7 - - (1,224) (1,224) (230) (1,454)
Employee share options - value of
employee services - 101 - 101 - 101
Employee share scheme - 7 - ______ 7 _______- ______7
5,330 (102) (1,160) ___ 4,068 _____ 55 __ 4,123
Balance at 30 June 2011 19,200 1,205 10,199 30,604 2,685 33,289
accompanying notes.

AASB1039(18)(c)
2011 2010
Notes $'000 $'000
Cash flows from operating activities

Receipts from customers (inclusive of goods and services
tax) 54,502 42,793
Payments to suppliers and employees (inclusive of goods
and services tax) (48,795) (38,074)
5,707 4,719
Payments for financial assets at fair value through profit or
loss (735) (685)
Proceeds from disposal of financial assets at fair value
Insurance recovery relating to fire 300 -
Transaction costs relating to acquisition of subsidiary 6 (100) -
Interest paid (1,340) (593)
Income taxes paid (1,813) (1,531)
Net cash inflow from operating activities 2,909 2,294
Cash flows from investing activities

Payment for acquisition of subsidiary, net of cash acquired 6 (1,500) -
Payments for property, plant and equipment (6,882) (3,165)
Payments for investment property (200) -
Payments for available-for-sale financial assets (47) (133)
Payments for held-to-maturity investments (210) -
Payment of development costs (100) (20)
Loans to related parties (1,180) (630)
Proceeds from sale of machinery hire division 5 3,960 -
Proceeds from sale of property, plant and equipment 2,785 739
Proceeds from sale of available-for-sale financial assets 75 272
Repayment of loans by related parties 469 526
Joint venture partnership distributions received 200 120
Dividends received 350 400
Interest received 350 300
Net cash (outflow) from investing activities (1,930) (1,591)
Cash flows from financing activities

Proceeds from issues of shares and other equity securities 4,178 -
Proceeds from calls on shares and calls in arrears 1,500 -
Proceeds from borrowings 7,983 975
Payments for shares bought back (450) -
Payments for shares acquired by the VALUE ACCOUNTS
Employee Share Trust (450) -
Share issue and buy-back transaction costs (65) -
Repayment of borrowings (6,655) (1,054)
Finance lease payments (25) -
Transactions with non-controlling interests (500) -
Dividends paid to company’s shareholders 7 (940) (698)
Dividends paid to non-controlling interests in subsidiaries 7 (230) (160)
Net cash inflow (outflow) from financing activities 4,346 (937)
Net increase (decrease) in cash and cash equivalents 5,325 (234)

Cash and cash equivalents at the beginning of the financial
year 562 780
Effects of exchange rate changes on cash and cash
equivalents (8) 16
Cash and cash equivalents at end of year 5,879 562
The above consolidated statement of cash flows should be read in conjunction with the
accompanying notes.

Commentary - Concise financial statements
Presentation as in full financial report

AASB1039(20), 1. The financial statements shall be presented as they are in the full financial report, in
(22),(23)
accordance with other accounting standards, except for the omission of cross references to
notes to the financial statements in the full financial report and exclusion of parent entity
information. It is recommended in AASB 1039 that the financial statements in the concise
financial report be cross referenced, where appropriate, to disclosures in the concise
financial report.
AASB1039(19) 2. Where an entity has elected to present a separate income statement in the full financial
statements, it should do the same in the concise financial report.
Earnings per share (EPS)
AASB1039(30)(d) 3. EPS information is required only in respect of entities required to comply with AASB 133
Earnings per Share. The EPS disclosures are required even if the amounts are zero, since
AASB 1039 deems them to be material by their nature.
Discussion and analysis
AASB1039(24)-(27) 4. The financial statements of entities other than listed public companies shall be accompanied
by discussion and analysis to assist the understanding of members. The discussion and
analysis is intended to enhance the usefulness of the concise financial report to members
and to help compensate for the brevity of the report compared with the full financial report. As
VALUE ACCOUNTS Holdings Limited is a listed company, no discussion and analysis is
included in this illustrative concise financial report. For further discussion of these
requirements refer to paragraphs 11-15 of the commentary on preparation of concise reports
on page 314.

Notes to the financial statements
30 June 2011
(continued)
This concise financial report relates to the consolidated entity consisting of VALUE ACCOUNTS
Holdings Limited and the entities it controlled at the end of, or during, the year ended 30 June 2011.
The accounting policies adopted have been consistently applied to all years presented, unless
otherwise stated in note 2 below.
ASIC 99/90
Not mandatory Investments Commission, relating to the ’rounding off’ of amounts in financial reports. Amounts in the
concise financial report have been rounded off in accordance with that Class Order to the nearest
1
thousand dollars.
1 Presentation currency
AASB1039(31)(a) The presentation currency used in this concise financial report is Australian dollars.
2 Correction of error, change in accounting policy and revision of

accounting estimates 2
(Revised) (a) Correction of error in accounting for leasing contract
AASB1039(31)(c) In March 2011, a subsidiary undertook a detailed review of its leasing contracts and discovered that
the terms and conditions of a contract for the lease of equipment had been misinterpreted. As a
consequence, the equipment had been incorrectly accounted for as a finance lease rather than as an
operating lease.
The error has been corrected by restating each of the affected financial statement line items for the
prior periods as follows:
30 June
30 June Increase/ 2010 30 June Increase/ 1 July 2009
2010 (Decrease) (Restated) 2009 (Decrease) (Restated)
$'000 $'000 $'000 $'000 $'000 $'000

Property, plant and
equipment 8,380 (300) 8,080 8,495 (350) 8,145
Deferred tax asset 446 (8) 438 557 (5) 552
Current borrowings (3,593) 38 (3,555) (2,904) 35 (2,869)
Non-current borrowings (7,814) 289 (7,525) (7,580) 330 (7,250)
Net assets 20,267 19 20,286 15,738 10 15,748
Retained earnings (4,165) (19) (4,184) (902) (10) (912)

Total equity (20,267) (19) (20,286) (15,738) (10) (15,748)

30 June 2011
(continued)
2 Correction of error, change in accounting policy and revision of

accounting estimates (continued)
(a) Correction of error in accounting for leasing contract (continued)

Profit
Increase/ 2010
2010 (Decrease) (Restated)
$’000 $’000 $’000
Income statement (extract)
Depreciation and amortisation expense (1,030) 50 (980)
Other expenses (1,147) (75) (1,222)
Finance costs (622) 37 (585)
Profit before income tax 5,508 12 5,520
Income tax expense (1,462) (3) (1,465)

Profit for the year 4,445 9 4,454

Owners of VALUE AIFRS Holdings Limited 4,058 9 4,067
4,445 9 4,454
AASB108(49)(b)(ii) Basic and diluted earnings per share for the prior year have also been restated. The amount of the
correction for both basic and diluted earnings per share was an increase of $0.1 cents per share.
(b) Revision of useful lives of plant and equipment

AASB1039(31)(c) During the year the estimated total useful lives to a subsidiary of certain items of plant and equipment
used in the manufacture of furniture were revised. The net effect of the changes in the current
financial year was an increase in depreciation expense of $180,000.
Assuming the assets are held until the end of their estimated useful lives, depreciation of the group in
future years in relation to these assets will be increased by the following amounts:
Year ending 30 June $'000
2012 140
2013 110
2014 60
2015 30
South- All other
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
AASB1039(29)(a) Total segment

revenue 15,100 5,100 11,600 13,300 4,100 3,850 6,600 59,650
AASB1039(29)(a) Inter-segment revenue (100) (100) (600) (300) (100) (500) (300) (2,000)
Revenue from
external customers 15,000 5,000 11,000 13,000 4,000 3,350 6,300 57,650
AASB1039(29)(b)
Adjusted EBITDA 3,390 1,400 1,900 4,000 700 900 1,897 14,187
AASB1039(29)(c) Total segment

assets 11,830 5,500 11,600 9,640 3,510 2,590 5,738 50,408
AASB1039(29)(d) Total segment

liabilities 805 600 750 700 400 100 200 3,555

30 June 2011
(continued)

South- All other
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
AASB1039(29)(a) Total segment

revenue 12,150 6,660 - 12,100 4,540 1,350 5,200 42,000
AASB1039(29)(a)
Inter-segment revenue (150) (100) - (100) (100) (10) (100) (560)
Revenue from
external customers 12,000 6,560 - 12,000 4,440 1,340 5,100 41,440
AASB1039(29)(b)
Adjusted EBITDA 2,850 990 - 2,580 350 230 759 7,759
AASB1039(29)(c) Total segment

assets 9,400 4,500 - 7,023 3,025 1,500 5,120 30,568
AASB1039(29)(d) Total segment

liabilities 990 750 - 993 270 100 490 3,593
The strategic steering committee assesses the performance of the operating segments based on a
measure excludes the effects of equity-settled share-based payments and unrealised gains/(losses)
on financial instruments. Interest income and expenditure are not allocated to segments, as this type
of activity is driven by the central treasury function, which manages the cash position of the group.
A reconciliation of adjusted EBITDA to operating profit before income tax is provided as follows: 4
2011 2010
$'000 $'000

Depreciation (1,240) (950)
Amortisation (135) (30)
Goodwill impairment (410) -
Impairment of other assets (1,210) -
Other 920 -
Error in the accounting for a leasing contract in the Australian Furniture manufacture
segment 5
Due to a misinterpretation of the terms and conditions of a major leasing contract, segment assets
and segment liabilities of the Australian Furniture manufacture segment for the year ended 30 June
2010 were overstated by $300,000 and $289,000 respectively. The error also had the effect of
overstating adjusted EBITDA for the year ended 30 June 2010 for that segment by $75,000.
The error has been corrected by restating each of the affected segment information line items for the
prior year, as described above.
Further information on the error is set out in note 2(a).

30 June 2011
(continued)
AASB1039(30)(a)
4 Sales revenue 6,7
2011 2010
$'000 $'000
Sales revenue from continuing operations 58,540 42,280

Sales revenue from discontinued operation 1,200 6,460
59,740 48,740
5 Discontinued operation 8
(a) Description
AASB1039(16) On 30 April 2010 the group announced its intention to sell the machinery hire division and initiated an
active program to locate a buyer and complete the sale. The division was sold on 31 August 2010 with
effect from 1 September 2010 and the division disposed of is reported in this financial report as a
discontinued operation.
Financial information relating to the discontinued operation for the period to the date of disposal is set
out below.
(b) Financial performance and cash flow information

August 2010 (2011 column) and the year ended 30 June 2010.
2011 2010
$'000 $'000
Revenue 1,200 6,460

Expenses (1,109) (5,890)
Profit before income tax 91 570
Income tax expense (27) (171)

Profit after income tax of discontinued operation 64 399
Gain on sale of the division before income tax 930 -

Income tax expense (279) -
Gain on sale of the division after income tax 651 -
Profit attributable to owners of the parent entity relates to:

7,378 4,067
Net cash inflow from operating activities 1,166 710

Net cash inflow (outflow) from investing activities (2011 includes an
inflow of $3,960,000 from the sale of the division) 3,960 (190)
Net cash (outflow) from financing activities - (280)
Net increase in cash generated by the division 5,126 240

30 June 2011
(continued)
5 Discontinued operation (continued)
(c) Details of the sale of the division

2011 2010
$'000 $'000

Cash 3,960 -
Fair value of contingent consideration 100 -
Present value of amount due on 31 March 2013 250 -
Total disposal consideration 4,310 -
Carrying amount of net assets sold (3,380) -

Gain on sale before income tax 930 -
Income tax expense (279) -

Gain on sale after income tax 651 -
In the event the operations of the machinery hire division achieve certain performance criteria during
the period 1 September 2010 to 31 March 2012 as specified in an ‘earn out’ clause in the sale
the fair value of the consideration was determined to be $100,000. It has been recognised as an
available-for-sale financial assets.
At year end, the fair value was re-estimated to be $110,000. Of this change in fair value, $20,000
related to the remeasurement of the expected cash flows and was taken to profit or loss, net of related
income tax. The gain is presented in other income. A fair value loss of $10,000 relating to changes in
market interest rate was recognised in other comprehensive income and included in the
available-for-sale financial assets reserve in equity, also net of related income tax.
The carrying amounts of assets and liabilities as at the date of sale (31 August 2010) were:
31 August 2011
$'000

Inventories 950
Total assets 3,810

Net assets 3,380

30 June 2011
(continued)
6 Business combination 8
AASB1039(16) On 1 October 2010 the parent entity acquired 70% of the issued share capital of VALUE ACCOUNTS
Electronics Pty Ltd, a manufacturer of electronic equipment. The acquisition has significantly
increased the group’s market share in this industry which complements the group’s existing IT
consultancy division.
$'000
Purchase consideration:
Cash paid 1,450
Contingent consideration (refer below) 100
The assets and liabilities recognised as a result of the acquisition are as follows:
Fair value
$'000
Cash 100
Trade receivables 780
Inventories 840
Plant and equipment 820
Deferred tax asset 80
Intangible assets: trademarks 20
Intangible assets: customer contracts 180
Trade payables (335)
Bank overdraft (150)
Deferred tax liability (160)
Retirement benefit obligations (25)
Less: non-controlling interests (575)

Add: goodwill 210
Net assets acquired 1,550
(i) Contingent consideration

In the event that certain pre-determined sales volumes are achieved by the subsidiary, for the year
ended 30 June 2011, additional consideration of up to $500,000 may be payable in cash.
The potential undiscounted amount payable under the agreement is between $0 for sales below
$2,000,000 and $500,000 for sales above $4,000,000. The fair value of the contingent consideration
of $100,000 was estimated by applying the income approach. The fair value estimates are based on a
discount rate of 6% and assumed probability-adjusted sales of VALUE ACCOUNTS Electronics Pty
Ltd of between $2,300,000 and $2,500,000.
As at 30 June 2011, the contingent consideration has been derecognised, as the actual sales revenue
achieved by VALUE ACCOUNTS Electronics Pty Ltd was below $2,000,000. A gain of $100,000 was
included in other income.
(ii) Non-controlling interests
The group has elected to recognise the non-controlling interest in VALUE ACCOUNTS Electronics Pty
Ltd at its proportionate share of the acquired net identifiable assets.

30 June 2011
(continued)
6 Business combination 8 (continued)

(iii) Revenue and profit contribution
The acquired business contributed revenues of $1,520,000 and net profit of $125,000 to the group for
the period from 1 October 2010 to 30 June 2011.
If the acquisition had occurred on 1 July 2010, consolidated revenue and consolidated profit for the
year ended 30 June 2011 would have been $59,030,000 and $5,070,000 respectively. These
amounts have been calculated using the group's accounting policies and by adjusting the results of
the subsidiary to reflect the additional depreciation and amortisation that would have been charged
assuming the fair value adjustments to property, plant and equipment and intangible assets had
applied from 1 July 2010, together with the consequential tax effects.
7 Dividends 9
2011 2010
$'000 $'000
(a) Ordinary shares

AASB1039(30)(b)(i) Final dividend for the year ended 30 June 2010 of 5 cents (2009 - 4
cents) per fully paid share paid on 10 October 2010 (2009 - 11
October 2009) 1
AASB1039(30)(c)(i) Fully franked (2009 - 60% franked) based on tax paid @ 30% - 5
cents (2009 - 2.4 cents) per share 586 273
AASB1039(30)(c)(ii) Unfranked final dividend for the year ended 30 June 2009 - 1.6
cents per share - 182
586 455
AASB1039(30)(b)(i) Interim dividend for the year ended 30 June 2011 of 5 cents (2010 -
4 cents) per fully paid share paid 10 March 2011 (2010 - 11 March
2010)1
AASB1039(30)(c)(i) Fully franked based on tax paid @ 30% 603 467
(b) 7% non-redeemable participating preference shares
AASB1039(30)(b)(i) Annual dividend of 7 cents (2010 - 7 cents) per share paid 20
1
February 2011 (2010 - 21 February 2010)
AASB1039(30)(c)(i) Fully franked based on tax paid @ 30% 35 35
AASB1039(30)(b) Total dividends provided for or paid 1,224 957
(c) 6% cumulative redeemable preference shares

AASB1039(30)(b)(i), Dividends on these shares of 6 cents (2010 - 6 cents) per share
(c)(ii)
totalling $60,000 (2010 - $60,000) paid on 30 June 2011 (2010 - 30
June 2010) have been charged to profit or loss as interest and
finance charges because the shares are classified as liabilities
(d) Dividends not recognised at year end

AASB1039(30)(b)(ii), In addition to the above dividends, since year end the directors have
(c)(i)
recommended the payment of a final dividend of 7 cents per fully
paid ordinary share, (2010 - 5 cents) fully franked based on tax paid
at 30%. The aggregate amount of the proposed dividend expected
to be paid on 9 October 2011 out of retained earnings at 30 June
2011, but not recognised as a liability at year end, is 989 586

30 June 2011
(continued)
Acquisition of Better Office Furnishings Limited

AASB1039(31)(b) On 15 August 2011 VALUE ACCOUNTS Holdings Limited acquired 93.8% of the issued shares in
AASB110(21)(a),(b)
Better Office Furnishings Limited, a manufacturer of office furniture and equipment, for consideration
of $3,800,000. The acquisition is expected to increase the group’s market share and reduce cost
The financial effects of this transaction have not been brought to account at 30 June 2011. The
operating results and assets and liabilities of the company will be consolidated from 15 August 2011.
(i) Purchase consideration
Details of the consideration transferred are:
$'000
Cash paid 3,750
The provisionally determined fair values of the assets and liabilities of Better Office Furnishings
Limited as at the date of acquisition are as follows:
Fair value
$'000

Customer list 285
Inventories 1,010
Receivables 685
Payables (380)
Borrowings (250)

Add: goodwill 360
3,800
The goodwill is attributable to Better Office Furnishings Limited’s strong position and profitability in
company’s acquisition of the new subsidiary. None of the goodwill is expected to be deductible for tax
purposes.
(ii) Contingent consideration
The contingent consideration arrangement requires the group to pay the former owners of Better
Office Furnishings Limited 5% of the profit of Better Office Furnishings Limited, in excess of $500,000
arrangement of $50,000 has been estimated by applying the income approach. The fair value
estimates are based on a discount rate of 8% and assumed probability-adjusted profit in Better Office
Furnishings Limited of $1,400,000 to $1,800,000.
(iii) Acquisition-related costs
Acquisition-related costs of $75,000 will be included in other expenses in profit or loss in the reporting
period ending 30 June 2012.

30 June 2011
(continued)
8 Events occurring after the reporting period (continued)

(iv) Non-controlling interest
The group has chosen to recognise the non-controlling interest at its fair value for this acquisition. The
based on:
(a) an assumed discount rate of 8%
(b) an assumed terminal value based on a range of terminal EBITDA multiples between three
and five times
Limited, and
participants would consider when estimating the fair value of the non-controlling interest in
Better Office Furnishing Limited.
(v) Information not disclosed as not yet available
At the time the financial statements were authorised for issue, the group had not yet completed the
accounting for the acquisition of Better Office Furnishings Limited. In particular, the fair values of the
assets and liabilities disclosed above have only been determined provisionally as the independent
valuations have not been finalised. It is also not yet possible to provide detailed information about
each class of acquired receivables and any contingent liabilities of the acquired entity.
9 Contingent liabilities 8
AASB1039(16) A claim for unspecified damages was lodged against VALUE ACCOUNTS Electronics Pty Ltd in June
2010 in relation to alleged non-performance under a sales contract. The company has disclaimed
liability and is defending the action. At the time of the acquisition of VALUE ACCOUNTS Electronics
Pty Ltd, the fair value of the obligation could not be measured with sufficient reliability. No amount was
therefore recognised as part of the acquisition accounting. It is still not practical to estimate the
potential effect of this claim but legal advice indicates that any liability that may arise in the unlikely
event the claim is successful will not be significant.

30 June 2011
(continued)
Commentary - Notes to the concise financial statements
Rounding
1. Refer to paragraph 11 of Appendix F for requirements relating to rounding of amounts in
concise financial reports.
Errors, changes in accounting policies and revision of estimates
AASB1039(31)(c) 2. Where there is a change in accounting policy or estimates from those used in the preceding
reporting period, or a correction of a prior period error, which has a material effect in the
current reporting period, or is expected to have a material effect in a subsequent reporting
period, the information required about such a change or correction by the relevant accounting
standards that are applicable to the current reporting period shall be disclosed. For example,
where there has been a change in accounting policy, the relevant information required by
paragraphs 28 - 29 of AASB 108 Accounting Policies, Changes in Accounting Estimates and
Errors must be provided.
Segment disclosures
AASB1039(29) 3. The concise financial report shall disclose the following amounts if they are disclosed in the
segment note in the full financial report:
(a) revenues from sales to external customers and revenues from transactions with
other operating segments of the same entity
(b) a measure of profit or loss
(c) a measure of total assets, and
(d) a measure of liabilities.
4. Although not required by AASB 1039, we recommend including a reconciliation of the total of
the reportable segment measures of profit or loss to the entity’s profit or loss before tax
expense, consistent with the disclosures required for an interim report.
5. The information disclosed in relation to the error is also not required by AASB 1039.
However, the impact of a material error on segment information is likely to be relevant to the
understanding of segment information. Disclosure along the lines of that shown in the
illustrative note may be necessary to adequately explain the information presented.
Sales revenue
AASB1039(30)(a) 6. Disclosure is required of the amount of sales revenue recognised and included in revenue in
accordance with AASB 118 Revenue. This includes revenue recognised in respect of
discontinued operations. There is no specific requirement to show the breakdown between
sales revenue from continuing operations and discontinued operations.
AASB1039(30) 7. Sales revenue must be disclosed even if the amount is zero, since AASB 1039 deems it to
be material by its nature.
Additional information
AASB1039(16) 8. If there are particular items which are of such a nature or estimated magnitude that the
concise financial report would be misleading if there were no disclosures about them,
sufficient disclosures must be added. Examples of items that may require disclosure are
business combinations, discontinued operations and contingent liabilities. Depending on the
circumstances, some or all of the information disclosed in the full annual financial statements
should be included in the concise financial report.
Dividends
AASB1039(30)(b) 9. The dividend disclosures are required even if the amounts are zero, since AASB 1039 deems
them to be material by their nature.
Subsequent events
AASB1039(31)(b) 10. Disclosure shall be made of the information required by paragraph 21 of AASB 110 Events
after the Reporting Period, in respect of each event occurring after the reporting period that
does not relate to conditions existing at the end of the reporting period.
AASB1039(34),(35) 11. The requirements relating to comparative information in other accounting standards that have
been adopted in the preparation of the complete set of financial statements are also
applicable to concise financial reports. When disclosure is not required with respect to the
current reporting period for an item in paragraphs 28 to 32 of AASB 1039 but was required in
the preceding reporting period, it is still necessary to disclose the comparative information.

30 June 2011
The directors declare that in their opinion, the concise financial report of the consolidated entity for the
year ended 30 June 2011 as set out on pages 294 to 310 complies with Accounting Standard AASB
1039 Concise Financial Reports.
The concise financial report is an extract from the full financial report for the year ended 30 June
2011. The financial statements and specific disclosures included in the concise financial report have
been derived from the full financial report.
The concise financial report cannot be expected to provide as full an understanding of the financial
performance, financial position and financing and investing activities of the consolidated entity as the
full financial report, which is available on request.
This declaration is made in accordance with a resolution of the directors.
M K Hollingworth
Director
Sydney
23 August 2011
Commentary – Directors' declaration
Directors’ declaration not mandatory

1. There is no requirement in the Corporations Act 2001 or in AASB 1039 to include a directors’
declaration in a concise report. It is recommended, however, that such a declaration be
included to provide a formal sign-off by the directors on the concise financial report. The
directors’ declaration illustrated above is included by way of example. Other formats may be
used.

Auditor's report
30 June 2011
Independent auditor's report to the members of

ASA700
CA314(2)(c) VALUE ACCOUNTS Holdings Limited 1-4
Report on the concise financial report
The audit report will be provided by the entity’s auditor upon completion of the audit of the financial
report. As the wording of the report may differ in certain aspects from firm to firm, we have not
included an illustrative report in this publication.
Commentary - Independent auditor's report
Form and content of auditor’s report on concise report

1. A concise report must include:
CA314(2)(c) (a) a statement by the auditor:
(i) that the financial report has been audited
(ii) whether, in the auditor’s opinion, the concise financial report complies
with AASB 1039 Concise Financial Reports, and
CA314(2)(d) (b) a copy of any qualification in, and of any statements included in the emphasis of
matter section of, the auditor’s report on the financial report.
GS001 2. Standards and guidance on the preparation of audit reports on summary financial statements
are given in Auditing Standard ASA 700 Forming an Opinion and Reporting on a Financial
Report and ASA 810 Engagement to Report on Summary Financial Statements. Specific
guidance in relation to concise financial reports is included in Guidance Statement GS 001
Concise Financial Reports under the Corporations Act 2001.
Audit of discussion and analysis
CA314(3) 3. As stated in paragraphs 11-15 of the commentary on the preparation of concise reports on
GS001(9)
page 314, AASB 1039 requires the inclusion of a discussion and analysis in concise financial
reports of entities other than listed companies. Where such a discussion and analysis is
included, CA 314(3) requires the auditor to report on whether it complies with the
requirements in AASB 1039. However, CA 314(3)(b) also states that the auditor need not
otherwise audit the statements made in the discussion and analysis.
Remuneration report contained in the directors’ report
GS001(39) 4. If the directors’ report that forms part of the concise report includes a remuneration report
which has been audited, a copy of the auditor’s report on the remuneration report must be
included with the auditor’s report on the concise report.

T +61 2 8266 0000, F +61 2 8266 9999, www.pwc.com.au

Preparation of concise reports
30 June 2011
Commentary on preparation of concise reports
Corporations Act 2001 requirements for concise reports

CA314(1)(b) 1. Companies, registered schemes and disclosing entities have the option of sending concise
CA316(1)(b)
reports to members to meet annual reporting requirements. Members also retain the right to
request a copy of the full financial report, directors’ report and auditor’s report (the full annual
report) free of charge.
CA319(1) 2. Where a concise report is prepared, the full annual report must be prepared and both reports
must be lodged with ASIC, and ASX, where relevant, and laid before the annual general
meeting.
3. The following table compares the contents of a concise report with that of a full annual report.
Full annual report Concise report

CA314(2)(b) Directors’ report Directors’ report
CA314(2)(a) Complete set of financial statements and Concise financial report
notes thereto
Directors’ declaration Directors’ declaration not mandatory, but
recommended
CA314(2)(c) Audit report Statement by auditor
CA314(2)(d) Copy of any audit modification
CA314(2)(e) - Statement that the report is a concise report
and that the full financial report and auditor’s
report are available on request, free of
charge
Concise financial reports

4. The concise financial report must be drawn up in accordance with AASB 1039 Concise
Financial Reports which requires a concise financial report to include, as a minimum:
(a) the following financial statements:
AASB1039(18)(a),(19) (i) a single statement of comprehensive income, or a separate income
statement and statement of comprehensive income, as applicable
AASB1039(18)(b) (ii) balance sheet (statement of financial position)
AASB1039(18)(c) (iii) statement of cash flows
AASB1039(18)(d) (iv) statement of changes in equity
AASB1039(24) (b) discussion and analysis of the financial statements (not required by listed
companies), and
(c) specific disclosures of:
AASB1039(29) (i) selected segment information
AASB1039(30)(a) (ii) sales revenue *
AASB1039(30(b) (iii) the amount of dividends, in aggregate and per share, identifying:
AASB1039(30)(b)(i) - dividends paid during the period and date of payment *
AASB1039(30)(b)(ii) - dividends proposed or declared before the financial report was
authorised for issue, and the expected date of payment, separately
identifying, where relevant, those recognised from those not
recognised as a distribution to owners during the period *
AASB1039(30)(c) (iv) in respect of each dividend disclosed in accordance with (c)(iii) above,
the amount, in aggregate and per share, of the dividend that:
AASB1039(30)(c)(i) - has been or will be franked and the tax rate at which the dividend
has been or will be franked *
AASB1039(30)(c)(ii) - has not been or will not be franked *
AASB1039(30)(d) (v) where the entity is required to comply with AASB 133 Earnings per
Share, the amount of basic earnings per share and diluted earnings per
share *
AASB1039(31)(a) (vi) the presentation currency used
AASB1039(31)(b) (vii) events occurring after the reporting date
AASB1039(31)(c) (viii) changes in accounting policies or estimates, or corrections of prior
period errors, and
AASB1039(28) (ix) notification if the going concern basis is not used, or has become
inappropriate after the reporting date.
AASB1039(30) * These items must be disclosed even if the amounts are zero, since AASB 1039 deems
them to be material by their nature.

Preparation of concise reports
30 June 2011
Commentary on preparation of concise reports (continued)
Preparation and presentation

AASB1039(12) 5. The financial statements and specific disclosures (identified in paragraphs 28-32 of AASB
1039) required in a concise financial report shall be derived from the full financial report of
the entity. Any other information included in a concise financial report shall be consistent with
the full financial report.
AASB1039(14) 6. AASB 1039 does not prescribe the format in which the information is presented in a concise
financial report. The format is developed having regard to the particular circumstances of the
entity and the presentation of relevant, reliable, understandable and comparable information
about the entity’s financial performance, financial position and financing and investing
activities. Entities are encouraged to develop a format that best meets the information needs
of their members.
AASB1039(16),(17) 7. The nature and estimated magnitude of particular items are disclosed if it is likely that the
concise financial report would be misleading without such disclosures. The content of a
concise financial report specified in AASB 1039 constitutes the minimum level of disclosure.
Where there are particular features of the operations and activities of the entity that are
significant, the entity may need to provide additional information in the concise financial
report in order to comply with paragraph 16 of the standard.
Parent entities
AASB1039(3) 8. Where an entity is the parent of a group, AASB 1039 applies to the consolidated financial
statements of the entity and the notes to those statements, and does not require that parent
financial information be provided.
AASB1039(20) 9. Each financial statement shall be presented as it is in the full financial report, in accordance
with other accounting standards, except for the omission of cross-references to notes to the
financial statements in the full financial report.
AASB1039(22) 10. It is recommended in AASB 1039 that the financial statements in the concise financial report
be cross-referenced, where appropriate, to disclosures in the concise financial report.
Discussion and analysis
AASB1039(24),(26) 11. The financial statements of entities other than listed public companies shall be accompanied
by discussion and analysis to assist the understanding of members. The discussion and
analysis is intended to enhance the usefulness of the concise financial report to members
and to help compensate for the brevity of the report compared with the full financial report.
AASB1039(25) 12. Listed companies are not required to provide discussion and analysis in the concise financial
report because, unlike other entities, they are required by section 299A of the Corporations
Act 2001 to provide an operational and financial report in the directors’ report that is part of
the concise report. Paragraph 24 of AASB 1039 only exempts listed companies from the
statutory obligation to provide discussion and analysis of the financial statements. It does not
prohibit a listed company from providing any discussion and analysis that it considers would
assist a reader to understand the financial statements in the concise financial report. As
VALUE ACCOUNTS Holdings Limited is a listed company, no discussion and analysis is
included in this illustrative concise financial report. Paragraphs 26 and 27 of AASB 1039
provide guidance on the type of information that should be disclosed in the concise financial
report of an unlisted entity.
GS001(21),(22) 13. Where it is required, the discussion and analysis must form part of the concise financial
report and is subject to audit. In these situations, it is important that management and
auditors discuss the content of concise financial reports, and in particular the discussion and
analysis, at an early stage to ensure that any issues are identified on a timely basis.
GS001(23) 14. For example, if the discussion and analysis includes information which is of a subjective
and/or prospective nature, the auditor must assess whether the inclusion of such information
has the potential to mislead users. If the auditor considers that the information is overly
subjective and/or prospective in nature, and/or that it is information which cannot be
quantified or verified, the auditor may need to make modifications to the audit report.
15. Discussion and analysis may be provided for each of the individual financial statements or in
some other way, so long as the information forms part of the concise financial report. For
example, all of the discussion and analysis could be included in a single note to the financial
statements.

Interim report for the half-year ended
31 December 2011
A sample half-year report illustrating the interim financial reporting and other half-year reporting
disclosure requirements with supporting commentary.
Reporting requirements covered include:
 Corporations Act 2001

 Accounting Standard AASB 134 Interim Financial Reporting including amendments issued up to
15 January 2011, and
 Listing Rules of the Australian Securities Exchange (ASX; but see comment below)
This sample half-year financial report is provided as a guide to AASB 134 and the half-year reporting
requirements of the Corporations Act 2001 and the ASX Listing Rules and should be used in
conjunction with the commentary on interim reporting requirements set out at the end of this section of
this publication. Alternative wordings and forms of presentation may be adopted so long as they
include the specific disclosures prescribed.
The report is a half-year financial report for a company that is a parent entity and a disclosing entity
reporting under Part 2M.3 of the Corporations Act 2001 and has been presented in accordance with
AASB 134.
The purpose of this half-year report is to highlight disclosure requirements, provide sample
disclosures and serve as a convenient reference to source material. The disclosures shown should be
adapted to particular situations as required.
Not illustrated
The report does not illustrate the additional reporting requirements for listed companies that are set
out in Appendix 4D to Listing Rule 4.2A.3.
Source of disclosure requirements

A column has been provided in the reports and statements for direct reference to the source of
disclosure requirements.
Abbreviations
Abbreviations used in this booklet are set out in Appendix I.

AASB101(49),(51)(a)
Interim report 1 - 31 December 2011
Contents
Page
Directors' report 317
Interim financial report
Independent auditor's review report to the members 345
Preparation of interim financial reports 346
AASB134(6) This interim financial report does not include all the notes of the type normally included in an annual
Not mandatory
financial report. Accordingly, this report is to be read in conjunction with the annual report for the year
ended 30 June 2011 and any public announcements made by VALUE ACCOUNTS Holdings Limited
during the interim reporting period in accordance with the continuous disclosure requirements of the
Corporations Act 2001. 4
Commentary
Title of report
1. Where a non-statutory interim financial report is prepared (ie one that is not required under
the Corporations Act 2001), we recommend that the report be renamed as 'Interim financial
report for the quarter/half-year/nine months ended…..'.
ASIC RG13 3. Guidance on issues relating to the use of ACNs is set out in ASIC Regulatory Guide 13.
Interim report to be read in conjunction with annual report
4. See paragraph 2 of the commentary to the notes to the consolidated financial statements
(page 341) for discussion as to why this disclosure should be retained.

Directors' report
31 December 2011
Directors' report 1-6,12
CA306 Your directors present their report on the consolidated entity consisting of VALUE ACCOUNTS
Holdings Limited and the entities it controlled at the end of, or during, the half-year ended 31
December 2011.
Directors
CA306(1)(b) The following persons were directors of VALUE ACCOUNTS Holdings Limited during the whole of
the half-year and up to the date of this report:
J C Campbell
A L Cunningham
M K Hollingworth
R J Hunter
C A Maxwell
N T Toddington
H G Wells
B C Bristol
CA306(1)(b) J R Peterson was appointed a director on 1 November 2011 and continues in office at the date of this
report.
CA306(1)(b) B A Wilson was a director from the beginning of the financial year until his resignation on 29 July
2011.
Review of operations 7
CA306(1)(a) A summary of consolidated revenues and results for the half-year by significant industry segments is
set out below: 8
Segment revenues Segment results
Comparatives not
mandatory 2011 2010 2011 2010
$'000 $'000 $'000 $'000
Furniture - manufacture
- Australia 9,700 8,434 1,645 1,343
- Indonesia 2,165 2,200 534 403
Furniture - retail (Australia) 5,290 3,422 1,403 710
IT consulting
- Australia 8,905 8,049 702 1,301
- South-East Asia 2,370 1,900 480 450
Electronic equipment (Australia) 1,800 1,449 330 260
Other 2,165 1,760 370 394
Total segment revenue/result 32,395 27,214 5,464 4,861
Segment results are adjusted earnings before interest, tax, depreciation and amortisation, which is
the measure of segment result that is reported to the strategic steering committee to assess the
performance of the operating segments. For a reconciliation to operating profit before tax refer to
note 2.
Comments on the operations and the results of those operations are set out below:
(a) Furniture - manufacturing
The furniture division manufactures and sells a range of furniture, principally hardwood
side-boards, chairs and tables and commercial office furniture. The division was adversely
affected by new competitors in Asia, but this was countered in the 2011 financial year by
the development of additional business in Australia, which has continued in this half-year,
and the profit of $670,000 ($469,000 after tax) on the sale of freehold land.

Directors' report
31 December 2011
(continued)
Review of operations (continued)

(b) Furniture – retail
The retail furniture division operates a chain of stores, mainly on the eastern seaboard and
in Victoria. The division has continued to grow rapidly since its establishment in July 2010.
The directors expect further growth in sales and profits in the remainder of the financial
year.
(c) IT consulting
The IT consulting division provides business IT management, design, implementation and
support. It has shown a significant increase in revenue, although unfortunately combined
with an increase of the associated cost due to a severe skills shortage in this area and a
legal claim brought against this division by customers. The directors are confident of
increasing the cost recovery rate again in the second half of the 2012 financial year.
(d) Electronic equipment
Through the acquisition of VALUE ACCOUNTS Electronics Pty Ltd in October 2010, the
group is now also involved in the manufacture and sale of electronic equipment. Although
this division did not contribute greatly to revenues and results until now, the directors see
significant growth potential in this area and have recently approved a plan to expand the
production facilities in 2012. A block of land suitable for this purpose was acquired in
December 2011.
(e) Other activities
Other activities include the development and resale of land and the management of
investment properties. The investment property division suffered a small loss due to a
weakening of the rental and real estate market. The results of the other division were
satisfactory. Not included in the segment results is the machinery hire division which was
sold on 31 August 2010. Further information on the sale and the results of this division is
set out in note 9 to the consolidated financial statements.
(f) Significant gains and expenses
8
The results were affected by the following significant gains and expenses:
Comparatives not
mandatory 2011 2010
$'000 $'000
Gains:
Gain on sale of freehold land - 670
Less: Applicable income tax - (201)
- 469
Gain on sale of machinery hire division - 930

- 651
Expenses
Provision for legal claim 375 -
Less: Applicable income tax (113) -
262 -
Impairment of goodwill - 410

Less: Applicable income tax - -
- 410
Write off of assets destroyed by fire - 1,210

- 847
An insurance recovery of $300,000 relating to the fire was recognised as other income in
the half-year ending 31 December 2010.
Auditor's independence declaration 1(c)

CA306(2) A copy of the auditor's independence declaration as required under section 307C of the Corporations
CA307C
Act 2001 is set out on page 320.

Directors' report
31 December 2011
(continued)
Rounding of amounts 9
Investments Commission, relating to the 'rounding off' of amounts in the directors' report and financial
report. Amounts in the directors' report and financial report have been rounded off to the nearest
thousand dollars in accordance with that Class Order.
CA306(3)(a)
This report is made in accordance with a resolution of directors. 10
Director 10
Sydney
CA306(3)(b)
24 February 2012 10,11

Directors' report
31 December 2011
(continued)
CA306(2)
CA307C Auditor's Independence Declaration 1(c)
As lead auditor for the review of VALUE ACCOUNTS Holdings Limited for the half-year ended 31
December 2011, I declare that, to the best of my knowledge and belief, there have been:
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001
in relation to the review; and
(b) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of VALUE ACCOUNTS Holdings Limited and the entities it controlled
during the period.
A B Jones Sydney
Partner 24 February 2012
PricewaterhouseCoopers

T +61 2 8266 0000, F +61 2 8266 9999, www.pwc.com.au

Directors' report
31 December 2011
(continued)
Commentary - Directors' report
Contents of directors' reports

1. The information to be disclosed in the half-year directors’ report is significantly less extensive
than is required in the directors’ report for a financial year. The half-year report is only
required to contain:
CA306(1)(a) (a) a review of the entity’s operations during the half-year and the results of those
operations, and
CA306(1)(b) (b) the name of each person who has been a director of the disclosing entity at any
time during or since the end of the half-year and the period for which they were a
director
CA306(2) (c) a copy of the auditor’s independence declaration made under CA 307C in relation
CA307C
to the audit or review for the half-year
CA306(2) (d) where applicable, disclosures relating to additional information included in the
financial report under CA 303(3)(c) - see paragraph 2 below.
Disclosures required where additional information is included to give true and fair view
CA306(2) 2. If the financial report for a half-year includes additional information under CA 303(3)(c)
(information included to give a true and fair view of financial position and performance), the
directors’ report for the half-year must:
(a) set out the directors’ reasons for forming the opinion that the inclusion of that
additional information was necessary to give the true and fair view required by CA
305, and
(b) specify where that additional information can be found in the financial report.
This disclosure is not illustrated in the VALUE ACCOUNTS Holdings Limited directors’
report, as there is no additional information included under CA 303(3)(c).
ASIC 98/2395 3. ASIC Class Order 98/2395 permits entities to transfer information otherwise required to be
ASIC RG 68(76),
(77C) included in the half-year directors’ report to the financial report or a document included with
the directors’ report and financial report.
ASIC 98/2395 4. Entities taking advantage of the relief provided by ASIC Class Order 98/2395 must comply
with the following conditions:
(a) the directors’ report must contain a clear cross-reference to the page or pages
containing the transferred information
(b) the entity must never distribute or make available the directors’ report and
financial report without the transferred information included, and must take
reasonable steps to ensure that no-one else distributes or makes those
documents available without the transferred information included
(c) a document containing the transferred information must be lodged with ASIC as if
it were a part of the report required to be lodged under CA 320.
5. Any information transferred from the directors’ report to the financial report becomes a part
of the financial report and must be covered by the audit or review report.
6. Comparative information is not required for information transferred from the directors’ report
to the financial report unless that information is also required by an accounting standard.
Review of operations
CA306(1)(a) 7. The requirement is to present a review of the operations of the entity reported on and the
results of those operations. No guidance has been provided by ASIC as to the extent of
comments required. More or less detail than that illustrated may be appropriate in particular
circumstances.
Comparative figures
8. Comparative figures are not mandatory for directors’ reports, but are recommended in the
interests of more meaningful disclosure.

Directors' report
31 December 2011
(continued)
Rounding of amounts
ASIC 98/100 9. See Appendix F for detailed commentary on rounding of amounts in the directors’ report and
financial report. The commentary covers the requirements of ASIC Class Order 98/100
which permits entities to round off as follows, subject to certain conditions and exceptions:
$10m (but less than $1,000m) $1,000
$1,000m (but less than $10,000m) $100,000
$10,000m $1,000,000
Dating and signing of report
CA306(3) 10. The directors’ report must be made in accordance with a resolution of the directors, specify
the date on which it was made and be signed by a director.
CA320 11. There is no specific deadline for signing the directors’ report, but it will need to be signed 2
ASX(4.2B)
months after the end of the half-year to meet the ASX lodgement deadline for the half-year
report if the entity is a listed entity other than a mining exploration entity. The ASIC
lodgement deadline is 75 days after the end of the half-year.
Interim reports not required by the Corporations Act 2001
12. There is no legal or other requirement for a directors' report to be included in an interim
report unless the report is a half-year report for a disclosing entity prepared under Division 2
of Part 2M.3 of the Corporations Act 2001.

AASB134(8)(b)
Consolidated income statement 1-9,12
For the half-year ended 31 December 2011
Half-year
AASB134(20)(b) 2011 2010
Notes $'000 $'000
Revenue from continuing operations 32,100 26,174
Other income 485 1,361

progress (136) 250
Impairment of goodwill - (410)
Write off of assets damaged by fire - (1,210)
Other expenses (2,307) (673)
Share of net profits of associates and joint venture
Income tax expense (1,175) (909)


Profit for the half-year 3 3,050 3,053

Non-controlling interests 450 488
3,050 3,053
Cents Cents
AASB134(11) Earnings per share for profit from continuing operations
10,11
attributable to the ordinary equity holders of the company:
AASB134(11) Earnings per share for profit attributable to the
10,11
ordinary equity holders of the company:
notes.

AASB134(8)(b)
Consolidated statement of comprehensive income 1-9,12
Half-year
AASB134(20)(b) 2011 2010
Notes $'000 $'000
Profit for the half-year 3,050 3,053

Changes in the fair value of available-for-sale financial assets 16 14
Changes in the fair value of cash flow hedges 284 18
Actuarial gains/(losses) on retirement benefit obligation 81 (143)
Net investment hedge 4 -
Exchange differences on translation of foreign operations (15) 25
Income tax relating to components of other comprehensive income (172) (44)
Other comprehensive income for the half-year, net of tax 393 130
Total comprehensive income for the half-year 3,443 3,183
Total comprehensive income for the half-year is attributable to:

Non-controlling interests 450 488
3,443 3,183
accompanying notes.

Consolidated balance sheet
As at 31 December 2011
31 December 30 June
AASB134(20)(a) 2011 2011
Notes $'000 $'000
ASSETS
Current assets
Financial assets at fair value through profit or loss 4 1,150 1,300
29,733 29,705
Assets classified as held for sale - 250
Non-current assets
Receivables 1,530 1,476
Investments accounted for using the equity method 3,680 3,775
Available-for-sale financial assets 1,060 1,010
Held-to-maturity investments 300 210
Property, plant and equipment 4 13,535 12,095
Investment properties 3,150 3,300
Deferred tax assets 1,112 734
Intangible assets 1,532 895
LIABILITIES
Current liabilities
Current tax liabilities 1,202 2,746
Other current liabilities 350 395
Total current liabilities 6,772 8,491
Borrowings 6 10,225 9,464
Deferred tax liabilities 1,640 1,289
Provisions 442 443
Retirement benefit obligations 377 482
Total non-current liabilities 12,684 11,678
Net assets 36,186 33,289
EQUITY
Reserves 1,608 1,205
Capital and reserves attributable to the owners of VALUE
ACCOUNTS Holdings Limited 32,986 30,604
Non-controlling interests 3,200 2,685

AASB134(8)(c)
Consolidated statement of changes in equity 1-8
Attributable to owners of VALUE

ACCOUNTS Holdings Limited
Contri- Non-con-
Notes $'000 $'000 $'000 $'000 $'000 $'000
AASB134(20)(c) Balance at 1 July 2010 13,870 681 4,184 18,735 1,596 20,331
Total comprehensive income - 223 2,472 2,695 488 3,183

for the half-year
Transactions with owners in

their capacity as owners:
Dividends provided for or paid 8 - - (586) (586) (109) (695)
Employee share options - value
of employee services - 47 - 47 - 47
Employee share scheme - 7 - 7 - 7
162 54 (586) (370) 466 96
Balance at 31 December 2010 14,032 958 6,070 21,060 2,550 23,610
AASB134(20)(c) Balance at 1 July 2011 19,200 1,205 10,199 30,604 2,685 33,289
Total comprehensive income - 329 2,664 2,993 450 3,443

for the half-year
Transactions with owners in

their capacity as owners:
Dividends provided for or paid 8 - - (989) (989) (185) (1,174)
Employee share options - value
of employee services - 63 - 63 - 63
Employee share scheme - 11 - 11 - 11
304 74 (989) (611) 65 (546)
19,504 1,608 11,874 32,986 3,200 36,186

Balance at 31 December 2011
accompanying notes.

AASB134(8)(d)
Consolidated statement of cash flows 1-8,12
AASB134(20)(d) Half-year
2011 2010
Notes $'000 $'000
Cash flows from operating activities 13-16

Receipts from customers (inclusive of goods and services
tax) 33,070 24,006
Payments to suppliers and employees (inclusive of goods
and services tax) (24,426) (23,597)
8,644 409
Payments for financial assets at fair value through profit or
loss (500) -
Proceeds from disposal of financial assets at fair value
Insurance recovery relating to fire 3 - 300
Transaction costs relating to acquisition of subsidiary 10 (75) (100)
Interest paid (893) (603)
Income taxes paid (2,937) (1,147)
Net cash inflow (outflow) from operating activities 5,069 (996)
Cash flows from investing activities 13-16

Payment for acquisition of subsidiary, net of cash acquired 10 (3,575) (1,500)
Payments for property, plant and equipment 4 (2,060) (2,511)
Payments for investment property - (150)
Payments for available-for-sale financial assets (73) (27)
Payments for held-to-maturity investments (90) (150)
Payments for patents and trademarks (20) (9)
Payment of development costs (25) (58)
Loans to related parties (541) (330)
Proceeds from sale of machinery hire division 9 - 3,960
Proceeds from sale of property, plant and equipment 2,425 1,495
Proceeds from sale of available-for-sale financial assets 49 85
Repayment of loans by related parties 548 300
Joint venture partnership distributions received 250 120
Dividends received 160 150
Interest received 170 180
Net cash (outflow) inflow from investing activities (2,782) 1,555
13-16
Cash flows from financing activities
AASB134(16A)(e) Proceeds from issues of shares and other equity securities 7 104 -
AASB134(16A)(e) Proceeds from borrowings 6 6,487 4,500
Payments for shares acquired by the VALUE ACCOUNTS
Employee Share Trust 7 (460) (450)
AASB134(16A)(e) Repayment of borrowings (6,050) (3,400)
AASB134(16A)(e) Finance lease payments (15) (25)
AASB134(16A)(f) Dividends paid to company’s shareholders (784) (412)
Dividends paid to non-controlling interests in subsidiaries (185) (110)
Net cash (outflow) inflow from financing activities (903) 103
Net increase in cash and cash equivalents 1,384 662

Cash and cash equivalents at the beginning of the
half-year 5,879 562
Effects of exchange rate changes on cash and cash
equivalents 5 (7)
Cash and cash equivalents at end of the half-year 7,268 1,217
The above consolidated statement of cash flows should be read in conjunction with the accompanying
notes.

Commentary - Consolidated financial statements
Condensed financial statements

1. An interim financial report contains either a complete set of financial statements as described
in AASB 101 Presentation of Financial Statements or a set of condensed financial
statements as described in AASB 134 Interim Financial Reporting.
2. The interim financial report for VALUE ACCOUNTS Holdings Limited contains condensed
financial statements, in that it does not include all of the notes that would be required in a
complete set of financial statements. However, the primary financial statements are
presented in a format consistent with the consolidated financial statements that are required
to be presented in an annual financial report under AASB 101 Presentation of Financial
Statements and AASB 107 Statement of Cash Flows. If condensed primary financial
statements are presented as permitted under AASB 134, the statements should be clearly
labelled as such (eg change the heading to ‘condensed consolidated income statement’ /
‘statement of comprehensive income’ / ‘balance sheet’ / ‘statement of changes in equity’ /
‘statement of cash flows’).
AASB134(10) 3. If an entity publishes condensed financial statements in its interim financial report, these
condensed financial statements shall include, at a minimum, each of the headings and
subtotals that were included in its most recent annual financial report and the selected
explanatory notes as required by AASB 134 Interim Financial Reporting. Additional line items
or notes shall be included if their omission would make the condensed interim financial
report misleading.
Periods covered
AASB134(20)(d) 4. The interim financial report shall include:
(a) statements of comprehensive income (and separate income statements, where
applicable) for the current interim period and cumulatively for the current annual
reporting period to date, with comparative statements of comprehensive income
for the comparable interim periods (current and annual reporting period to date) of
the immediately preceding annual reporting period
(b) balance sheets (statements of financial position) as of the end of the current
interim period and as of the end of the immediately preceding annual reporting
period
(c) statements of changes in equity showing changes in equity cumulatively for the
current annual reporting period to date, with a comparative statement for the
comparable annual reporting period-to-date period of the immediately preceding
annual reporting period
(d) statements of cash flows cumulatively for the current annual reporting period to
date, with a comparative statement for the comparable annual reporting
period-to-date period of the immediately preceding annual reporting period.
AASB134(20)(b) 5. For a half-year report, the current interim period and the annual reporting period to date are
the same. However, where an entity prepares quarterly interim financial reports, the
statement of comprehensive income in the interim financial reports for the second and third
quarters will need to include additional columns showing the annual reporting period to date
and the comparative annual reporting period to date for the corresponding interim period.
6. This half-year financial report is for a disclosing entity reporting under Part 2M.3 of the
Corporations Act 2001. If an interim financial report is presented for a different interim
reporting period, the heading of the financial statements should specify the interim reporting
period covered (eg 'For the quarter ended 30 September 2010' or 'For the third quarter
ended 31 March 2011') and the heading for the figures should indicate whether they are
presented for a quarter, a half-year or the annual reporting period to date, as appropriate.
IAS1(BC33) 7. AASB 134 has a year-to-date approach to interim reporting and does not replicate the
requirements of AASB 101 in terms of comparative information. As a consequence, it is not
necessary to provide an additional balance sheet (statement of financial position) as at the
beginning of the earliest comparative period presented where an entity has made a
retrospective change in accounting policies and/or a retrospective reclassification.

(continued)
Commentary - Consolidated financial statements (continued)
Comparatives in interim reports - new disclosing entities

8. Where an entity becomes a disclosing entity and has to prepare an interim financial report
for the first time, it will have to provide comparative information for the previous
corresponding interim period. This is the case even though the entity would not have
prepared a report for that interim period. Relief from this requirement which was included in
the previous Australian accounting standard on interim reports (AASB 1029) has not been
carried over into the IFRS equivalent standard (AASB 134). Furthermore, entities will not be
able to claim that it is impracticable to determine the comparatives retrospectively.
Separate income statement
AASB101(12),(81) 9. AASB 101 permits entities to present the components of profit or loss either as part of a
AASB134(8A)
single statement of comprehensive income or in a separate income statement. If an entity
has decided to retain a separate income statement in its annual financial statements it shall
also use this format for its interim report. For further information see the commentary to the
income statement and statement of comprehensive income in the annual report.
Earnings per share
AASB134(11),(11A) 10. Entities that are within the scope of AASB 133 Earnings per Share shall present basic and
dilutive earnings per share (EPS) for the interim period as follows:
 in the statement of comprehensive income – if the entity presents a single
statement, or
 in the income statement – if the entity presents a separate income statement and
statement of comprehensive income.
11. AASB 134 does not specifically require disclosure of EPS for profit from continuing and
discontinued operations, but where there are discontinued operations we recommend that
they be disclosed separately as required in an annual statement by AASB 133.
UIG1031(6),(7) 12. UIG 1031 Accounting for the Goods and Services Tax (GST) provides that revenues and
expenses shall be recognised net of the amount of GST, except that where GST relating to
expense items is not recoverable from the taxation authority it shall be recognised as part of
the item of expense.
UIG1031(10) 13. Cash flows shall be included in the statement of cash flows on a gross basis, subject to
paragraph 14 below and to AASB 107.
UIG1031(11) 14. The GST component of cash flows arising from investing and financing activities which is
recoverable from, or payable to, the taxation authority shall be classified as operating cash
flows and will be included in receipts from customers or payments to suppliers, as
appropriate.
15. Some entities have experienced difficulty in adjusting net-of-GST revenue and expense
amounts to GST-inclusive amounts for statements of cash flows. At the UIG meeting in April
2001, UIG members agreed that it would be inappropriate to allow alternative approaches to
the preparation of statements of cash flows. Accordingly, the requirements of UIG 1031
Accounting for the Goods and Services Tax (GST) remain in force.
16. At the UIG meeting in September 2000, UIG members noted that although GST amounts are
not required to be disclosed in statements of cash flows, an entity could choose to make
specific GST disclosures in the statement itself or in notes to the statement.

CA303(1)(b) VALUE ACCOUNTS Holdings Limited
AASB134(8)(e) Notes to the financial statements 4,5,15-18
31 December 2011
1 Basis of preparation of half-year report 1,3,17-19

AASB134(19) This condensed consolidated interim financial report for the half-year reporting period ended 31
(Revised)
December 2011 has been prepared in accordance with Accounting Standard AASB 134 Interim
Financial Reporting and the Corporations Act 2001.
AASB134(6) This condensed consolidated interim financial report does not include all the notes of the type
Not mandatory
normally included in an annual financial report. Accordingly, this report is to be read in conjunction
with the annual report for the year ended 30 June 2011 and any public announcements made by
VALUE ACCOUNTS Holdings Limited during the interim reporting period in accordance with the
2
continuous disclosure requirements of the Corporations Act 2001.
AASB134(16A)(a) The accounting policies adopted are consistent with those of the previous financial year and
8-9
corresponding interim reporting period.
(a) Impact of standards issued but not yet applied by the entity 10
AASB134(16A) AASB 9 Financial Instruments addresses the classification, measurement and derecognition of
(Revised)
financial assets and financial liabilities. The standard is not applicable until 1 January 2013 but is
available for early adoption. When adopted, the standard will affect in particular the group’s
accounting for its available-for-sale financial assets, since AASB 9 only permits the recognition of fair
value gains and losses in other comprehensive income if they relate to equity investments that are not
held for trading. Fair value gains and losses on available-for-sale debt investments, for example, will
therefore have to be recognised directly in profit or loss. In the current reporting period, the group
recognised $15,000 of such gains in other comprehensive income.
There will be no impact on the group’s accounting for financial liabilities, as the new requirements only
affect the accounting for financial liabilities that are designated at fair value through profit or loss and
the group does not have any such liabilities. The derecognition rules have been transferred from
AASB 139 Financial Instruments: Recognition and Measurement and have not been changed. The
group has not yet decided when to adopt AASB 9.
AASB134(16A)(g)(v)
(a) Description of segments
Management has determined the operating segments based on the reports reviewed by the strategic
steering committee that are used to make strategic decisions. The strategic steering committee
currently consists of the managing director, the chief financial officer and the manager for corporate
planning.
The committee considers the business from both a product and a geographic perspective and has
identified six reportable segments. Furniture manufacturing consists of commercial office furniture,
hardwood side boards, chairs and tables which are manufactured and sold both in Australia and in
Indonesia. The committee monitors the performance in those two regions separately. Since July 2010,
the manufacturing business has been supplemented by a chain of retail stores in Australia. Business
IT management, design, implementation and support services are provided both in Australia and in a
number of South East Asian countries and performance is also monitored separately for those two
regions.
Although the electronic equipment segment does not meet the quantitative thresholds required by
AASB 8, management has concluded that this segment should be reported, as it is closely monitored
by the strategic steering committee as a potential growth segment and is expected to materially
contribute to group revenue in the future. This segment was established following the acquisition of
VALUE ACCOUNTS Electronics Pty Ltd in October 2010.
The development of residential land, currently in the Koolabah Estate in Queensland and the Eureka
Estate in New South Wales, the purchase and resale of commercial properties, principally in Brisbane
and Sydney and the management of investment properties are not reportable operating segments, as
they are not separately included in the reports provided to the strategic steering committee. The
results of these operations are included in the 'all other segments' column.
The machinery hire division was sold effective from 1 September 2010. Information about this
discontinued segment is provided in note 9.

31 December 2011
(continued)
AASB8(23) (b) Segment information provided to the strategic steering committee

the half-year ended 31 December 2011 is as follows:
South - All other
Half-year 2011 Australia Indonesia Australia Australia East Asia Australia segments Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

AASB134(16A)(g)(i) Total segment
revenue 9,700 2,165 5,290 8,905 2,370 1,800 2,165 32,395
AASB134(16A)(g)(ii) Inter-segment
revenue (50) (50) (400) (200) (100) (200) (200) (1,200)
Revenue from
external
customers 9,650 2,115 4,890 8,705 2,270 1,600 1,965 31,195
AASB134(16A)(g)(iii) Adjusted EBITDA 1,645 534 1,403 702 480 330 370 5,464
Half-year 2010
AASB134(16A)(g)(i) Total segment
revenue 8,434 2,200 3,422 8,049 1,900 1,449 1,760 27,214
AASB134(16A)(g)(ii) Inter-segment
revenue (50) (100) (300) (200) (100) (300) (300) (1,350)
Revenue from
external
customers 8,384 2,100 3,122 7,849 1,800 1,149 1,460 25,864
AASB134(16A)(g)(iii) Adjusted EBITDA 1,343 403 710 1,301 450 260 394 4,861
AASB134(16A)(g)(iv)
Total segment
assets
31 December 12,049 5,700 11,910 9,970 3,825 2,225 6,390 52,069
2011
30 June 2011 11,830 5,500 11,600 9,640 3,510 2,590 5,738 50,408
The strategic steering committee assesses the performance of the operating segments based on a
measure excludes the effects of equity-settled share-based payments and unrealised gains/losses on
financial instruments. Interest income and expenditure are not allocated to segments, as this type of
activity is driven by the central treasury function, which manages the cash position of the group.
AASB134(16A)(g)(vi) A reconciliation of adjusted EBITDA to operating profit before income tax is provided as follows:
Half-year
2011 2010
$'000 $'000
Other 190 -
The amounts provided to the strategic steering committee with respect to total assets are measured in
a manner consistent with that of the financial statements. These assets are allocated based on the
operations of the segment and the physical location of the asset.

31 December 2011
(continued)
3 Profit for the half-year 3,4,12,13

Half-year
2011 2010
$'000 $'000
Profit for the half-year includes the following items that are unusual
because of their nature, size or incidence:
Gains
AASB134(16A)(c) Gain on sale of freehold land (included in other income) - 670
Not mandatory Less: Applicable income tax expense - (201)
- 469
Expenses
AASB134(16A)(c) Provision for legal claim (included in other expenses) – see note 5
below 375 -
Less: Applicable income tax (113) -
262 -
AASB134(16A)(c) Impairment of goodwill - 410

Not mandatory Less: Applicable income tax benefit - -
- 410
AASB134(16A)(c) Write off of assets destroyed by fire

Office and warehouse building - 465
Plant and equipment - 210
Inventories - 535
- 1,210
Less: Insurance recovery - (300)
- 910
Not mandatory Less: Applicable income tax benefit - (273)
- 637
(New)
4 Current financial assets at fair value through profit or loss 4,5
AASB134(15B)(h), In September 2011, a major investment of VALUE ACCOUNTS Holdings Limited was delisted. As it is
(k),(15C)
AASB7(27B)(c)(iv) no longer possible to determine the fair value of this investment using quoted prices or observable
market data, it has been reclassified from level 1 into level 3. Its fair value is now determined based
on the present value of net cash inflows from expected future dividends and subsequent disposal of
the securities. The discount rate used to determine the present value of the net cash inflows (12%) is
based on a market interest rate and the risk premium specific to the investment.
AASB7(27B)(e) If the estimated earnings growth rate of the dividends (5%) and the risk-adjusted discount rate (12%)
were 10% higher/lower than expected, the fair value of the investment would be $52,000 higher/lower
and profit after tax would be $36,000 higher/lower.

31 December 2011
(continued)
4 Current financial assets at fair value through profit or loss (continued)

AASB134(15B)(h), The following table presents the group’s financial assets measured and recognised at fair value at 31
(15C)
AASB7(44G) December and 30 June 2011:
AASB7(27B)(a) At 31 December 2011 Level 1 Level 2 Level 3 Total

$'000 $'000 $'000 $'000
Assets
profit or loss
Trading securities 800 - 350 1,150
Equity securities 370 150 520
Total assets 1,485 168 635 2,288
AASB7(27B)(a) At 30 June 2011 Level 1 Level 2 Level 3 Total

$'000 $'000 $'000 $'000
Assets
profit or loss
Trading securities 1,300 - - 1,300
Equity securities 350 150 500
Total assets 1,950 161 295 2,406
AASB134(15B)(k), The following table presents the changes in level 3 instruments for the half-year ended 31 December
(15C)
2011:
Trading
derivatives at
Unlisted fair value
equity through Contingent
AASB7(27B)(c) securities profit or loss consideration Total
$'000 $'000 $'000 $'000
Opening balance 30 June 2011 150 35 110 295

Transfer into level 3 500 - - 500
Other increases - 12 - 12
(Losses)/gains recognised in other
comprehensive income (17) (5) (22)
(Losses)/gains recognised in other
income (150) - - (150)
Closing balance 31 December 2011 500 30 105 635

31 December 2011
(continued)
(Revised)
5 Property, plant and equipment 3-5
AASB134(15B)(d), In December 2011, the group acquired a block of vacant land on the Gold Coast at a cost of
(15C)
$700,000. The land will be used for the construction of additional production facilities for the electronic
equipment division.
$'000 $'000 $'000 $'000 $'000
At 30 June 2011
AASB116(73)(d) - - (615) (4,820) (5,435)
Net book amount 2,570 2,380 1,505 5,640 12,095
Half-year ended 31
December 2011
AASB116(73)(e) Opening net book amount 2,570 2,380 1,505 5,640 12,095
AASB116(73)(e)(iii) Acquisition of subsidiary - - 300 1,795 2,095
AASB116(73)(e)(i),
(74)(b) Additions 850 80 600 530 2,060
AASB116(73)(e)(ii) Assets classified as held for
sale and other disposals (270) (160) (900) (940) (2,270)
AASB116(73)(e)(vii) - (25) (275) (310) (610)
Depreciation charge
AASB116(73)(e) 3,270 2,350 1,220 6,695 13,535
At 31 December 2011
AASB116(73)(d) - - (795) (5,130) (5,925)
Net book amount 3,270 2,350 1,220 6,695 13,535
AASB134(16A)(i)
(New) 6 Intangible assets – goodwill 14
31 December 31 December
2011 2010
$'000 $'000
AASB3(B67)(d) At 1 July
Cost 940 745
Accumulated amortisation and impairment (410) -
Net book amount 530 745
Half-year ended 31 December

Opening net book amount 530 745
Exchange differences (10) 10
Acquisition of business (note 12) 360 210
Impairment charge - (410)
Closing net book amount 880 555
At 31 December
Cost 1,290 955
Accumulated amortisation and impairment (410) (410)
Net book amount 880 545

31 December 2011
(continued)
7 Current provisions 12-13

AASB134(16A)(c) A new legal claim was brought against the group in November 2011, asserting that the IT consulting
division had breached certain registered patents of a competitor. A provision of $375,000 was
recognised for this claim.
8 Non-current borrowings 3-5,9-10

AASB134(16A)(c),(e) In December 2011, the group renegotiated its existing loan facility to finance the construction of the
new production plant for the electronic equipment division. The total available amount under the
facility was increased by $2,000,000 of which $700,000 were drawn down as at 31 December 2011.
The full facility is now is repayable in three annual instalments, commencing 1 December 2017.
AASB134(15C) The loan is a fixed rate, Australian-dollar denominated loan which is carried at amortised cost. The
renegotiation did therefore not have any impact on the entity’s exposure to foreign exchange and
interest rate risk. As at 31 December 2011, the contractual maturities of the group’s non-derivative
financial liabilities were as follows:
Contractual maturities of Less 6 - 12 Between Between Over 5 Total Carrying

financial liabilities than 6 months 1 and 2 2 and 5 years contrac- Amount
months years years tual cash (assets)/
flows liabilities
At 31 December 2011 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Non-derivatives
Trade payables 1,725 - - - - 1,725 1,725
finance leases) 1,439 1,300 500 2,490 7,761 13,490 12,300
Total non-derivatives 3,225 1,361 620 2,845 7,856 15,907 14,540
At 30 June 2011
Non-derivatives
Trade payables 1,700 - - - - 1,700 1,700
finance leases) 1,439 1,439 910 2,595 6,321 12,704 11,869
Financing arrangements
The group’s undrawn borrowing facilities were as follows:
31 December 2011 30 June 2011
$'000 $'000
Floating rate
- Expiring within one year (bank overdraft and bill facility) 7,400 7,400
- Expiring beyond one year (bank loans) 6,160 4,470
13,560 11,870

31 December 2011
(continued)
9 Equity securities issued

2011 2010 2011 2010
Shares Shares $'000 $'000
Issues of ordinary shares during

the half-year
AASB134(16A)(e) Exercise of options issued under
the VALUE ACCOUNTS
Employee Option Plan 45,600 - 104 -
Issued for no consideration:
AASB134(16A)(e) Dividend reinvestment plan
issues 64,152 58,983 205 174
109,752 58,983 309 174
Movements in treasury shares

during the half-year
AASB134(16A)(e) Acquisition of shares by the
VALUE ACCOUNTS Employee
Share Trust (145,000) (150,000) (459) (450)
AASB134(16A)(e) Employee share scheme issue 143,290 145,902 454 438
Net movement (1,710) (4,098) (5) (12)
10 Dividends
Half-year
2011 2010
$'000 $'000
(a) Ordinary shares

AASB134(16A)(f) Dividends provided for or paid during the half-year 989 586
(b) 6% cumulative redeemable preference shares
Dividends on these shares of $30,000 (2010 - $30,000) have been
recognised in the balance sheet as payables and have been
charged to profit or loss as interest and finance charges because
the shares are classified as liabilities.
(c) Dividends not recognised at the end of the half-year

Not mandatory In addition to the above dividends, since the end of the half-year the
directors have recommended the payment of an interim dividend of
5 cents per fully paid ordinary share (2010 - 5 cents), fully franked
based on tax paid at 30%. The aggregate amount of the proposed
dividend expected to be paid on 10 April 2012 out of retained
earnings at 31 December 2011, but not recognised as a liability at
the end of the half-year, is 432 574

31 December 2011
(continued)
11 Discontinued operation 14,15

(a) Description
AASB134(16A)(c),(i) On 30 April 2010 a controlled entity announced its intention to sell the machinery hire division and
initiated an active program to locate a buyer and complete the sale. The division was sold on 31
August 2010 with effect from 1 September 2010 and the division disposed of was reported in the
financial statements for the half-year ending 31 December 2010 as a discontinued operation.
Financial information relating to the discontinued operation for the period to the date of disposal is set
out below.
(b) Financial performance and cash flow information

August 2010.
Half-year
2011 2010
$'000 $'000
Revenue - 1,200
Expenses - (1,109)
Profit before income tax - 91
Income tax expense - (27)

Profit after income tax of discontinued operation - 64
Gain on sale of the division before income tax - 930

Gain on sale of the division after income tax - 651
Profit from discontinued operation - 715
Half-year
2011 2010
$'000 $'000
Net cash inflow from ordinary activities - 1,166

Net cash inflow (outflow) from investing activities (2010 includes an
inflow of $3,960,000 from the sale of the division) - 3,960
Net cash (outflow) from financing activities - -
Net increase in cash generated by the division - 5,126

31 December 2011
(continued)
11 Discontinued operation (continued)
AASB5(38) (c) Carrying amounts of assets and liabilities

AASB107(40)(d)
The carrying amounts of assets and liabilities as at 31 August 2010 were:

31 August
2010
$'000

Inventories 950
Total assets 3,810

Net assets 3,380
(d) Details of the sale of the division

Half-year
2011 2010
$'000 $'000

Cash - 3,960
Fair value of contingent consideration - 100
Present value of amount due on 31 March 2013 - 250
Total disposal consideration - 4,310
Carrying amount of net assets sold - (3,380)

Gain on sale before income tax - 930

Gain on sale after income tax - 651
In the event the operations of the machinery hire division achieve certain performance criteria during
the fair value of the consideration was determined to be $100,000 and was recognised as an
available-for-sale financial asset. As at 31 December 2011 the fair value was estimated to be
$105,000.

31 December 2011
(continued)
AASB134(16A)(i)
12 Business combination 14,15,20
Current period
AASB3(B64)(a)-(d) On 15 August 2011 VALUE ACCOUNTS Holdings Limited acquired 93.8% of the issued shares in
Better Office Furnishings Limited, a manufacturer of office furniture and equipment, for consideration
of $3,800,000. The acquisition is expected to increase the group's market share and reduce cost
$'000
AASB3(B64)(f) Purchase consideration
Cash paid 3,750
AASB3(B64)(i) The assets and liabilities recognised as a result of the acquisition are as follows:
Fair value
$'000

Customer list 285
Inventories 1,010
Receivables 685
Payables (380)
Borrowings (250)

Add: goodwill 360
3,800
AASB3(B64)(e),(k) The goodwill is attributable to Better Office Furnishings Limited’s strong position and profitability in
company’s acquisition of the new subsidiary. None of the goodwill is expected to be deductible for
tax purposes.
(i) Acquisition-related costs
AASB3(B64)(m) Acquisition-related costs of $75,000 are included in other expenses in profit or loss.
(ii) Contingent consideration
AASB3(B64)(g) The contingent consideration arrangement requires the group to pay the former owners of Better
Office Furnishings Limited 5% of the profit of Better Office Furnishing Limited, in excess of $500,000
arrangement of $50,000 was estimated by applying the income approach. The fair value estimates
are based on a discount rate of 8% and assumed probability-adjusted profit in Better Office
Furnishing Limited of $1,400,000 to $1,800,000.
AASB3(B67)(b) As at 31 December 2011, there was an increase of $35,000 recognised in profit or loss for the
contingent consideration arrangement as the assumed probability-adjusted profit in Better Office
Furnishings Limited was recalculated to be in the region of $2,200,000 to $2,500,000.
(iii) Acquired receivables
AASB3(B64)(h) The fair value of trade and other receivables is $685,000 and includes trade receivables with a fair
value of $623,000. The gross contractual amount for trade receivables due is $705,000, of which
$82,000 is expected to be uncollectible.

31 December 2011
(continued)
12 Business combination (continued)

(iv) Non-controlling interest
AASB3(B64)(o) The group has chosen to recognise the non-controlling interest at its fair value for this acquisition. The
based on:
(a) an assumed discount rate of 8%
(b) an assumed terminal value based on a range of terminal EBITDA multiples between three
and five times
Limited, and
participants would consider when estimating the fair value of the non-controlling interest in
Better Office Furnishing Limited.
(v) Revenue and profit contribution
AASB3(B64)(q) The acquired business contributed revenues of $230,000 and net profit of $75,000 to the group for the
period from 15 August 2011 to 31 December 2011. If the acquisition had occurred on 1 July 2011,
consolidated revenue and consolidated profit for the half-year ended 31 December 2011 would have
been $32,205,000 and $3,754,000 respectively.
Prior period
On 1 October 2010 the parent entity acquired 70% of the issued share capital of VALUE ACCOUNTS
Electronics Pty Ltd. Details of this business combination were disclosed in note 41 of the group’s
annual financial statements for the year ended 30 June 2011.
13 Contingencies 4
(a) Contingent liabilities

AASB134(15B)(m) A claim for unspecified damages was lodged during the period against the furniture division. The
company has disclaimed liability and is defending the action. No provision in relation to the claim has
been recognised in the financial statements as legal advice indicates that it is unlikely that any
significant liability will arise.
AASB134(16A)(c), The claim lodged against VALUE ACCOUNTS Electronics Pty Ltd in June 2010 and disclosed in the
(15B)(f)
note 38 of the annual financial statements was settled through mediation. A payment of $25,000 was
made to the claimant.
14 Related party transactions 3-6,12-13

AASB134(15) During the half-year ended 31 December 2011, VALUE ACCOUNTS Holdings Limited entered into a
(15B)(j)
contract with Combined Construction Company Proprietary Limited for the construction of the new
production facilities for the electronic equipment division. Mr A L Cunningham is a director and
shareholder of Combined Construction Company Proprietary Limited. The contract is a fixed price
contract for the sum of $1,300,000. It is based on normal commercial terms and conditions.

AASB134(16A)(h) On 31 January 2012 VALUE ACCOUNTS Holdings Limited acquired all of the issued shares in
Complete Office Furniture Limited, a manufacturer and retailer of premium office furniture and
equipment, for cash consideration of $4,500,000.
The provisionally determined fair value of the net identifiable assets of the company at the date of
acquisition was $4,090,000 and the purchased goodwill amounted to $410,000.
The financial effects of the above transaction have not been brought to account at 31 December
2011. The operating results and assets and liabilities of the company will be brought to account from
31 January 2012.

31 December 2011
(continued)
Commentary - Notes to the consolidated financial statements
Presentation
1. This half-year financial report is for a disclosing entity reporting under Part 2M.3 of the
Corporations Act 2001. If an interim financial report is presented for a different interim reporting
period:
(a) the heading of the notes to the consolidated financial statements should specify the
interim reporting period covered (eg 'For the quarter ended 30 September 2010' or
'For the third quarter ended 31 March 2011')
(b) the heading for the figures presented in the notes should indicate whether they are
presented for a quarter, a half-year or annual reporting period to date, as
appropriate, if they relate to the consolidated statement of comprehensive income,
statement of changes in equity or statement of cash flows, and
(c) references to the half-year financial report and period should be amended, as
appropriate, to reflect the period covered.
2. While there is no longer a requirement to prominently display an explicit statement that the
interim financial report is to be read in conjunction with the most recent annual financial
report, we recommend retaining it as it is a useful explanation and reminder of the nature of
an interim report. Entities may also want to place this statement on the front cover of the
interim financial report as illustrated on the example contents page, to make this clear to
readers of the interim financial report.
Significant events and transactions
AASB134(15)) 3. In June 2010, the AASB clarified the requirements regarding the types of disclosures that
AASB2010-4(12)
should be included in interim financial reports as part of its annual improvements project. In
particular, it confirmed the overriding principle that interim financial reports must include an
explanation of events and transactions that are significant to an understanding of the
changes in financial position and performance of the entity since the end of the last annual
reporting period.
AASB134(15B) 4. Examples of events or transactions that may require specific disclosures are:
AASB2010-4(12)
(a) a write-down of inventories to net realisable value and the reversal of such a
write-down
(b) recognition of a loss from the impairment of financial assets, property, plant and
equipment, intangible assets, or other assets, and the reversal of such an
impairment loss
(c) the reversal of any provisions for the costs of restructuring
(d) acquisitions and disposals of items of property, plant and equipment
(e) commitments for the purchase of property, plant, and equipment
(f) litigation settlements
(g) corrections of prior period errors
(h) changes in the business or economic circumstances that affect the fair value of
the entity’s financial assets and financial liabilities, whether those assets or
liabilities are recognised at fair value or amortised cost
(i) any loan default or breach of a loan agreement that has not been remedied on or
before the end of the reporting period
(j) related party transactions
(k) transfers between levels of the fair value hierarchy used in measuring the fair
value of financial instruments
(l) changes in the classification of financial assets as a result of a change in the
purpose or use of those assets, and
(m) changes in contingent liabilities or contingent assets.
AASBR134(15C) 5. The information disclosed in relation to these events and transactions shall update the
AASB2010-4(12)
relevant information presented in the most recent annual financial statements and that are
required under other accounting standards (eg AASB 7 Financial Instruments: Disclosures).
For example, VALUE ACCOUNTS Holdings Limited has acquired a significant parcel of land
in the six months to December 2011. To show the impact of this acquisition on total property,
plant and equipment, it has updated its reconciliation of property, plant and equipment from
the last financial statements.
AASB2010-4(5) 6. The amendments to AASB 134 apply to annual reporting periods beginning on or after 1
Amendments to
IAS 34(BC3) January 2011 and they are therefore mandatory for half-years ending 30 June and 31
December 2011. However, entities should also consider them for earlier periods (eg 31
December 2010 interim reports), since they were merely meant to clarify the existing
requirements.

31 December 2011
(continued)
Commentary - Notes to the consolidated financial statements (continued)
Other disclosures
AASB134(16A) 7. In addition to disclosing significant events and transactions as explained in paragraphs 3 to 5
AASB2010-4(12)
above, an entity shall include the information set out in paragraph 16A of AASB 134 in the
notes in the interim financial report, unless the information is not material or disclosed
elsewhere in the interim financial report. The information shall normally be reported on an
annual reporting period to date basis.
Accounting policies
AASB134(16A)(a) 8. The interim financial report shall include a statement that the same accounting policies and
AASB2010-4(12)
methods of computation are followed in the interim financial report as compared with the
most recent annual financial statements or, if those policies or methods have been changed,
a description of the nature and effect of the change.
9. Where an entity prepares its first interim financial report and there is no previous annual
report, we believe that a complete disclosure of significant accounting policies should be
provided.
Impact of standards issued but not yet applied
10. While not explicitly required under AASB 134, entities should also consider explaining the
impact of the future adoption of an accounting standard that has been issued but does not
yet need to be applied by the entity. This would be the case in particular where adoption of
the standard will have a significant impact on the amounts recognised in the financial
statements. AASB 9 Financial Instruments is an example of a standard that may require
disclosure, depending on the circumstances of the entity.
Segment information
AASB134(16A)(g) 11. AASB 134 requires disclosure of segment information if an entity is within the scope of AASB
AASB2010-4(12)
8 Segment Reporting. This includes:
(a) the following amounts, if they are included in the measure of segment profit or
loss reviewed by the chief operating decision maker or otherwise regularly
provided to the chief operating decision maker:
(i) revenues from external customers
(ii) intersegment revenues
(b) a measure of segment profit or loss
(c) total assets for which there has been a material change from the amount
disclosed in the last annual financial statements
(d) a description of the differences from the last annual financial statements in the
basis of segmentation or in the basis of measurement of segment profit or loss
(e) a reconciliation of the total of the reportable segment measures of profit or loss to
the entity’s profit or loss before tax expense (tax income) and discontinued
operations (can be done on an after-tax basis if tax is allocated to reportable
segments).
Unusual items
AASB134(16A)(c) 12. Disclosure is required of the nature and amount of items affecting assets, liabilities, equity,
AASB2010-4(12)
profit or loss, or cash flows that are unusual because of their nature, size, or incidence.
13. Disclosure of the income tax applicable to unusual items (paragraph 9 above) is not required
by AASB 134, but we recommend its disclosure in interim reports in the absence of detailed
income tax note disclosures.
Changes in the composition of the entity
AASB134(16A)(i) 14. AASB 134 requires interim financial reports to disclose the effect of changes in the
composition of the entity during the interim period, including business combinations,
obtaining or losing control of subsidiaries and long-term investments, restructurings, and
discontinued operations. In the case of business combinations, the entity shall disclose the
information required to be disclosed under paragraphs 59-62 and B64-B67 of AASB 3
Business Combinations. If the goodwill relating to the acquisition is material, the disclosure
should also include a reconciliation of goodwill as per paragraph B67(d) of AASB 3. See also
commentary paragraph 19 below for disclosures that are not applicable to VALUE
ACCOUNTS Holdings Limited and therefore are not illustrated in note 10.

31 December 2011
(continued)
Commentary - Notes to the consolidated financial statements (continued)
Comparative information for narrative disclosures

15. AASB 134 does not comment on whether narrative information that was disclosed in the
interim financial report for the comparative period must be repeated in the current interim
financial report. However, as per paragraph 6 of AASB 134, the interim financial report is
intended to provide an update on the last complete set of annual financial statements. It
should therefore focus on new activities, events and circumstances and does not need to
duplicate information previously reported. On this basis and consistent with our view
expressed in the commentary to note 43 of the annual financial report, we do not believe it is
necessary to repeat business combination disclosures that were also included in the latest
annual financial statements. However, we have chosen to retain the comparative disclosures
for the discontinued operation since this disclosure explains amounts separately presented
in the income statement for the comparative period. These amounts may not necessarily be
the same as the amounts reported in relation to the discontinued operation in the latest
annual financial statements.
Events occurring after the reporting period
AASB134(16A)(h) 16. The interim financial report shall disclose events after the interim period that have not been
reflected in the interim financial statements. Such disclosure would normally also include an
indication of the financial effect of each event, where possible.
Changes in estimates
AASB134(16A)(d) 17. The interim financial report shall disclose the nature and amount of changes in estimates of
amounts reported in prior interim periods of the current annual reporting period or changes in
estimates of amounts reported in prior annual reporting periods, if those changes have a
material effect in the current interim period.
Seasonal or cyclical interim operations
AASB134(16A)(b),(21) 18. Where the interim operations are seasonal or cyclical, the interim financial report shall
include explanatory comments about the seasonality or cyclicality of those operations.
Where operations are highly seasonal, AASB 134 suggests the inclusion of financial
information for the twelve months up to the end of the interim reporting period and
comparative information for the prior twelve-month period may be useful. Accordingly,
entities whose business is highly seasonal are encouraged to consider reporting such
information in addition to the information required by the standard.
Issuances, repurchases and repayments of debt and equity securities
AASB134(16A)(e) 19. The interim financial report shall disclose details of issuances, repurchases, and repayments
of debt and equity securities. Repurchases and repayments of equity securities are not
illustrated in the example disclosures in this example interim report because there were no
such transactions during the half-year under review.
Business combinations
20. In addition to the disclosures illustrated in note 10, entities must also disclose information
about the following items where applicable:
AASB3(B64)(j) (a) contingent liabilities (at acquisition and subsequently)
AASB3(B64)(l),(m) (b) transactions that are recognised separately from the business combinations,
including acquisition-related costs
AASB3(B64)(n) (c) bargain purchases
AASB3(B64)(p) (d) business combinations achieved in stages
AASB3(B67)(a) (e) incomplete initial accounting for a business combination and subsequent
adjustments
AASB3(B67)(b) (f) changes to contingent consideration assets and liabilities, and
AASB3(B67)(e) (g) gains and losses recognised during the period relating to assets or liabilities
acquired in a business combination in the current or previous reporting period.

CA303(1)(c) Directors' declaration
31 December 2011
In the directors’ opinion:

CA303(4)(d) (a) the financial statements and notes set out on pages 323 to 343 are in accordance with the
Corporations Act 2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements 2, and
(ii) giving a true and fair view of the consolidated entity's financial position as at 31
December 2011 and of its performance for the half-year ended on that date, and
CA303(4)(c) (b) there are reasonable grounds to believe that VALUE ACCOUNTS Holdings Limited will be
3
able to pay its debts as and when they become due and payable.
CA303(5)(a)
This declaration is made in accordance with a resolution of the directors. 4
Director 4
Sydney
CA303(5)(b)
24 February 2012 4,5
Commentary - Directors' declaration
Format of directors’ declaration

1. The directors’ declaration illustrated above is included by way of example. Other formats can
be used as long as they comply with all relevant requirements.
Reference to other mandatory professional reporting requirements
2. Reference to other mandatory professional reporting requirements is not required, but is
recommended.
Solvency declaration
ASIC RG 22 3. In Regulatory Guide 22 ASIC provides guidance to directors and auditors of companies in
relation to the solvency declaration previously required in annual reports by the former CA
301(5), and now required in half-year reports by CA 303(4)(c). As there is no substantive
change to the requirements for the solvency declaration, the guidance in the guide is still
relevant. It discusses the obligations on directors in making the declaration, and the
implications for auditors, under the following headings:
(a) debts to be taken into account by directors in making the solvency statement
(b) matters to be considered by directors
(c) qualified statements by directors, and
(d) implications for auditors.
Dating and signing of declaration
CA303(5)(a)-(c) 4. The directors’ declaration shall be made in accordance with a resolution of the directors,
specify the day on which it was made and be signed by a director.
CA320 5. There is no specific deadline for signing the directors’ declaration, but it will need to be
ASX(4.2B)
signed within 2 months after the end of the half-year to meet the ASX lodgement deadline for
the half-year report if the entity is a listed entity other than a mining exploration entity. The
ASIC lodgement deadline is 75 days after the end of the half-year.
Interim reports not required by the Corporations Act 2001
6. There is no legal or other requirement for a directors’ declaration to be included in an interim
report unless the report is a half-year report for a disclosing entity prepared under Part 2M.3
of the Corporations Act 2001. However, we recommend the inclusion of a declaration by the
directors in other interim reports prepared under AASB 134 covering the matters in the
directors’ declaration above (other than compliance with the Corporations Regulations 2001).

Auditor's review report
31 December 2011

ASRE2410(32)(a),(b)
CA309(4) Independent auditor's review report to the members
of VALUE ACCOUNTS Holdings Limited 1-6
The review or audit report (as applicable) will be provided by the entity’s auditor upon completion of
the review or audit of the financial report. As the wording of the report may differ in certain aspects
from firm to firm, we have not included an illustrative report in this publication.
Commentary - Independent auditor's review or audit report
Audit or review report

CA302(b),307,309 1. The half-year financial report of a disclosing entity prepared under Part 2M.3 of the
Corporations Act 2001 must be audited or reviewed by the auditor. The requirements for
auditors in conducting a review of half-year financial statements of disclosing entities are set
out in ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the
Entity. Compliance with auditing standards is mandatory for all audits and reviews carried
out under the Corporations Act 2001 and for all other audits and reviews carried out by
members of the Accounting Bodies.
Corporations Act 2001 requirements
CA309(5A) 2. The audit or review report must include any statements or disclosures required by auditing
standards.
CA309(5B) 3. If the financial report includes additional information under CA 303(3)(c) (information
included to give a true and fair view of financial position and performance), the audit or
review report must include a statement of the auditor’s opinion on whether the inclusion of
that additional information was necessary to give the true and fair view required by CA 305.
Review reports
CA309(4),(5) 4. An auditor who reviews the financial report for a half-year must report to members on
whether the auditor became aware of any matter in the course of the review that makes the
auditor believe that the financial report does not comply with Division 2 of Part 2M.3 of the
Corporations Act 2001. The review report must describe any such matter and say why that
matter makes the auditor believe that the financial report does not comply with Division 2.
Audit reports
CA309(2) 5. Where the financial report for a half-year has been audited rather than reviewed and the
auditor is of the opinion that the financial report does not comply with an accounting
standard, the audit report must, to the extent it is practicable to do so, quantify the effect of
the non-compliance. If it is not practicable to quantify the effect fully, the report must say
why.
CA309(3) 6. The audit report must describe (on an exception basis):
(a) any defect or irregularity in the financial report
(b) any deficiency, failure or shortcoming in respect of the following matters:
(i) whether the auditor has been given all information, explanation and
assistance necessary for the conduct of the audit
(ii) whether the entity has kept financial records sufficient to enable a
financial report to be prepared and audited
(iii) whether the entity has kept other records and registers as required by

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Preparation of interim reports
31 December 2011
Commentary on the preparation of interim reports
Accounting standard on interim reporting

AASB134 1. Accounting standards for interim reporting are set out in AASB 134 Interim Financial
Reporting. The standard prescribes the minimum content of all general purpose interim
financial reports as well as the principles for recognition and measurement in these reports.
AASB134(Aus1.1) 2. AASB 134 applies to each disclosing entity required to prepare half-year financial reports in
accordance with Part 2M.3 of the Corporations Act 2001 as well as other entities that
prepare interim financial reports that are, or are held out to be, general purpose financial
statements.
AASB134(4) 3. An interim financial report is a financial report containing either a complete set of financial
statements (as described in AASB 101 Presentation of Financial Statements) or condensed
financial statements (as described in AASB 134) for an interim period. An interim period is a
reporting period shorter than a full annual reporting period.
AASB134(8) 4. As a minimum, AASB 134 requires the presentation of a condensed balance sheet
(statement of financial position), a condensed statement of comprehensive income, a
condensed statement of changes in equity, and a condensed statement of cash flows in
interim financial reports with the specific supporting note disclosures prescribed in the
standard.
Title
5. Where a non-statutory interim financial report is prepared (ie one that is not required under
the Corporations Act 2001), we recommend that the report be renamed as 'Interim financial
report for the quarter/half-year/nine months ended.....'.
Interim financial reports presented as a complete set of financial statements
AASB134(9) 6. If an entity publishes a complete set of financial statements as its interim financial report, the
form and content of that report shall conform to the requirements of AASB 101 Presentation
of Financial Statements.
Disclosure requirements of other standards not generally applicable
AASB134(18) 7. Accounting standards other than AASB 134 specify disclosures that should be made in
financial statements. In that context, financial statements mean complete sets of financial
statements of the type normally included in annual financial statements and sometimes
included in other reports. While the disclosure requirements of other accounting standards
do not generally apply to interim financial reports, there are some exceptions to this rule:
AASB134(16A)(i) (a) for business combinations – provide the disclosures required by AASB 3
AASB134(15C) (b) for events or transactions that have significantly changed the entity’s financial
position or performance since the last annual reporting period – provide an update
to the relevant information included in the last annual financial statements
AASB1(32),(33) (c) for first-time adopters – provide disclosures required by paragraphs 32 and 33 of
AASB 1.
Accounting policies
AASB134(28) 8. An entity shall apply the same accounting policies in its interim financial report as are applied
in its annual financial statements, except for accounting policy changes made after the date
of the most recent annual financial statements that are to be reflected in the next annual
financial statements. However, the frequency of an entity’s reporting (annual, half-yearly, or
quarterly) shall not affect the measurement of its annual results. To achieve that objective,
measurements for interim reporting purposes shall be made on an annual reporting
period-to-date basis.
AASB134(29) 9. Requiring that an entity apply the same accounting policies in its interim financial report as in
its annual financial statements may seem to suggest that interim period measurements are
made as if each interim period stands alone as an independent reporting period. However,
by providing that the frequency of an entity’s reporting should not affect the measurement of
its annual results, paragraph 28 of AASB 134 acknowledges that an interim period is a part
of a larger annual reporting period. Annual reporting period-to-date measurements may
involve changes in estimates of amounts reported in prior interim periods of the current
annual reporting period. But the principles for recognising assets, liabilities, income and
expenses for interim periods are the same as in annual financial statements.

31 December 2011
(continued)
Commentary on the preparation of interim reports (continued)
10. Applying the same accounting policies as in the annual financial statements also requires
application of the provisions of accounting standards dealing with the classification of items
as assets, liabilities, equity, revenue and expenses. This includes the provisions of AASB
132 Financial Instruments: Presentation concerning the classification of financial instruments
as debt or equity, as they affect the amount of total liabilities and total equity as disclosed in
the balance sheet and also, via the presentation of related outflows as either interest or
dividends, the profit or loss as shown in the income statement. The statement of cash flows
may also be affected due to the presentation of the outflows as either interest or dividends.
11. The recognition and measurement requirements of new or revised accounting standards
shall be applied to interim financial reports once the standards become operative. This
means, if the operative date of a standard is annual reporting periods beginning on or after 1
January 2011, the recognition and measurement requirements of the standard shall be
applied to half-years ending 30 June 2011, as that period is part of the financial year
beginning on 1 January 2011.
Single and parent entity interim financial reports
AASB134(14) 12. An interim financial report must be prepared on a consolidated basis if the entity’s most
recent annual financial statements were consolidated statements. Single entity interim
financial reports will be presented for entities that are not parent entities. AASB 134 neither
requires nor prohibits the inclusion of the parent’s separate financial statements in the
entity’s interim financial report.
ASIC10/654 13. In contrast, interim reports prepared under the Corporations Act 2001 should not include
separate financial statements for the parent entity if the entity is required to prepare
consolidated financial statements. However, if an entity wishes to include both consolidated
and separate parent entity financial statements in the interim report, it can do so using the
relief provided by ASIC class order 10/654.
Use of estimates
AASB134(41) 14. The measurement procedures to be followed in an interim financial report shall be designed
to ensure that the resulting information is reliable and that all material financial information
that is relevant to an understanding of the financial position or performance of the entity is
appropriately disclosed. While measurements in both annual and interim financial reports are
often based on reasonable estimates, the preparation of interim financial reports generally
will require a greater use of estimation methods than annual financial statements.
Materiality
AASB134(23) 15. In deciding how to recognise, measure, classify, or disclose an item for interim financial
reporting purposes, materiality shall be assessed in relation to the interim period financial
data. In making assessments of materiality, it shall be recognised that interim measurements
may rely on estimates to a greater extent than measurements of annual financial data.
Corporations Act 2001 requirements for half-year financial reports of disclosing entities
CA292(1),302, 16. The Corporations Act 2001 requires a disclosing entity to prepare financial reports twice
323D(5)
each year, once in respect of the first six months (plus or minus seven days) of a financial
year (the half-year) and once in respect of the financial year. A half-year report is not
required if the entity is not a disclosing entity when lodgement is due. For a newly
incorporated or registered entity, the first half-year is defined as the period of six months
from the date of incorporation or registration. This will not be six months before the entity’s
year end where, for example, its first financial year is not a twelve month period or it is
specifically permitted to have a financial year shorter or longer than twelve months to
synchronise its year end with that of a new parent entity.
ASIC 08/15 17. ASIC has given class order relief from the requirement to prepare and lodge a financial
report for a half-year where this is the entity’s first financial year and the full financial year will
only be eight months or less.
CA304,305 18. The Corporations Act 2001 requires the half-year financial report to comply with accounting
CA303(3)
standards and any further requirements in the Corporations Regulations 2001, and to give a
true and fair view of the financial position and performance of the disclosing entity. CA
303(3)(c) requires the notes to the financial statements to disclose any information not
otherwise required by accounting standards or the Corporations Regulations 2001 that is
necessary to give a true and fair view.

31 December 2011
(continued)
Commentary on the preparation of interim reports (continued)
CA320 19. Disclosing entities shall lodge their half-year reports with ASIC within 75 days of the end of
ASX(4.2B)
the half-year. There is no specific requirement for half-year reports to be sent to the
disclosing entity’s members. Listed entities (other than mining exploration entities) shall
lodge the half-year report with the ASX within two months of the end of the half-year. For
further information see paragraphs 20 - 21 below.
20. A body is a disclosing entity if it has issued ED (short for 'enhanced disclosure') securities.
For further information about disclosing entities see paragraph … of Appendix A.
Listed disclosing entities
ASX(4.2A) 21. A listed entity shall give the ASX the following information or documents:
ASX(4.2A.1) (a) if the entity is established in Australia, a copy of the documents a disclosing entity
shall lodge with ASIC under CA 320 (ie the financial report prepared under AASB
134, including the directors’ declaration and a directors’ report for the half-year
and the audit or review report)
ASX(4.2A.2) (b) if the entity is not established in Australia, the accounts, information or documents
prepared under the law of its home jurisdiction which are equivalent to those that
a disclosing entity shall lodge with ASIC under CA 320, and any other information
or documents that would be required under CA 320 - see paragraph 22 below.
The accounts shall be audited or subject to review. The audit or review report
shall be given to the ASX with the accounts
ASX(4.2A.3) (c) unless the entity is a mining exploration entity, the information set out in Appendix
4D (half-year report) of the ASX Listing Rules. A responsible entity shall give the
information to the ASX with any necessary adaptation. The additional disclosures
required by Appendix 4D are not covered in the illustrative interim financial report
on pages 317 to 344.
ASX(4.2B) 22. The information referred to in paragraph 20 above shall be given to the ASX immediately all
of it becomes available, and no later than it lodges any accounts with ASIC or the regulatory
bodies in the jurisdiction in which it is established. The information shall be lodged no later
than:
(a) for an entity which is not a mining exploration entity - two months after the end of
the accounting period
(b) for an entity which is mining exploration entity - 75 days after the end of the
accounting period.

Annual and interim financial reporting
2011
Appendices
Page
Appendix A
Preparation of annual financial reports in Australia 350
Appendix B
Preparation and audit of annual statutory financial reports (flowchart) 363
Appendix C
Annual reporting deadlines 365
Appendix D
Accounting and reporting pronouncements 369
Appendix E
Indemnification and insurance of officers and auditors 378
Appendix F
Rounding of amounts 380
Appendix G
Changes in accounting policies 382
Appendix H
AASB 9 Financial Instruments 386
Appendix I
Abbreviations 404

Appendix A
Preparation of annual financial reports in Australia

Preparation and lodgement of annual financial reports under the Corporations Act 2001
CA297 1. The Corporations Act 2001 (the Act) requirements for the preparation and audit of annual
financial reports by various kinds of entities are summarised in the flowchart in Appendix B.
Financial reports required under the Act must give a true and fair view of the entity’s financial
position and performance. The annual reporting deadlines for disclosing entities, other public
and proprietary companies and registered schemes are summarised in Appendix C.
CA295(1) 2. A financial report consists of:
(a) financial statements for the year that are required by accounting standards,
being a:
AASB101(10) (i) statement of financial position (balance sheet)
(ii) statement of comprehensive income (or separate income statement and
statement of comprehensive income)
(iii) statement of changes in equity, and
(iv) statement of cash flows
(c) notes to the financial statements, and
(d) directors’ declaration.
CA295(2) 3. Following changes made to the Act by the Corporations Amendment (Corporate Reporting
Reform) Act 2010 (Corporate Reporting Reform Act) in June 2010 companies have to prepare
either of the following – but no longer both together:
(a) financial statements in relation to a single entity (if there are no subsidiaries), or
(b) if required under the accounting standards, consolidated financial statements.
Instead of a complete set of financial statements for the parent entity, the consolidated
financial statements now have to include key financial information for the parent entity, as
illustrated in note 51 of the VALUE ACCOUNTS Holdings Limited annual report.
ASIC 10/654 4. As a result of these changes, the side-by-side inclusion of consolidated and parent entity
financial statements is legally no longer required or permitted. However, if a parent entity
wishes to continue presenting its separate financial statements together with the consolidated
financial statements, it can do so under class order 10/654 provided by the Australian
Securities and Investments Commission (ASIC). The class order is particularly needed by
entities with an Australian Financial Services Licence (AFSL) and entities regulated by the
Australian Prudential Regulation Authority, as they must continue presenting separate
financial statements for the parent entity in addition to the consolidated financial statements.
The class order is open ended and does not have any special conditions (eg there is no need
to mention the application of the class order in the notes).
ASIC 06/441 5. Similarly, ASIC has also permitted related registered schemes to include their financial
statements in adjacent columns in a single financial report provided they have a common
responsible entity or responsible entities that are wholly beneficially owned by the same
entity. Please refer to the class order for further conditions that must be satisfied.

Appendix A
(continued)
6. The following graph summarises the reporting framework for the preparation of statutory
2
financial reports.
• Listed entities 6
• Registered schemes 6
• Other disclosing entities 6
• Other public companies 5,6
• Large proprietary companies 6
• Small proprietary companies reporting

as large proprietary companies (eg a
foreign controlled small proprietary
company) 3, 6
Yes No
Is the entity publicly
accountable?
Is the entity a
reporting entity?
Yes
No
Are GPFSs being

Choice of alternatives Yes prepared?
No
Apply all relevant standards Apply all relevant standards AASB 101, 107, 108, 1031 and
and interpretations and and interpretations with 1048 apply. Apply other standards
provide full disclosures 1 reduced disclosures 1,4 and interpretations as agreed by
members or users. 1,3
1 If the financial statements, as prepared in accordance with the Corporations Act 2001, the Corporations Regulations
2001 and accounting standards, would not otherwise give a true and fair view of the financial position and performance
of the entity, additional information must be provided to ensure that a true and fair view is given.
2 If an entity prepares non-statutory GPFSs, all relevant standards and interpretations should be applied, but the entity
may choose to apply the reduced disclosure regime early as outlined in paragraphs 12 to 20 below.
3 AASB 101, AASB 107, AASB 108, AASB 1031 and AASB 1048 apply to entities that are required to prepare financial
reports under Chapter 2M of the Act. Refer to paragraphs 70 – 84 of this Appendix for comments on the reporting
requirements for non-reporting entities preparing special purpose financial statements, including references to the ASIC
guide Reporting requirements for non-reporting entities. If small proprietary companies are requested to prepare financial
reports by ASIC or members with at least 5% of voting rights, they do not have to be prepared in accordance with
relevant accounting standards, including those mentioned above, where this is specified in the request (ie special
purpose financial statements can be prepared if the request specifies the extent to which relevant accounting standards
are to be applied, subject to comments in paragraphs 70 – 84 on non-reporting entities).
4 Entities that prepare general purpose financial statements and that are not publicly accountable can elect to apply the
new reduced disclosure regime early, see paragraph 12 to 20 below.
5 Small companies limited by guarantee no longer need to prepare or lodge any financial reports unless they are directed
to do so by members or ASIC, see paragraph 39 below.
6 For an explanation of the different types of entities refer to Appendix B.
Accounting standards
CA296 7. All entities reporting under the Act must prepare their financial statements in accordance with
the accounting standards issued by the Australian Accounting Standards Board (AASB). If the
financial report, as prepared in accordance with the Act, the Corporations Regulations 2001
(the Regulations) and accounting standards, would not otherwise give a true and fair view of
the financial position and performance of the entity, additional information must be provided to
ensure that a true and fair view is given. However, most accounting standards only apply to
reporting entities and financial statements that are, or are held out to be, general purpose
financial statements (GPFSs). This is referred to as the ‘reporting entity concept’ and is
explained further in paragraphs 22 and 25 to 33 below.

Appendix A
(continued)
8. Subject to the reduced disclosure regime described in paragraph 12 below, the accounting
standards for for-profit entities are consistent with International Financial Reporting Standards
(IFRS). However, there are some additional disclosure requirements and a couple of
standards and interpretations on issues that are not dealt with under IFRS, being, for
example, general and life insurance contracts and Petroleum Resource Rent Tax. These will
be withdrawn if a particular issue is subsequently addressed by the IASB or the IFRS
Interpretations Committee. Further, Australian accounting standards have specific provisions
added for not-for-profit and public sector entities which may not always be compliant with
IFRS. The standards on issue as at 15 January 2011 are listed in Appendix D.
CA334(5) 9. Individual accounting standards specify their application date. However, an entity may elect to
apply a standard earlier than its application date unless the standard says otherwise. An
entity required to prepare financial reports under Part 2M.3 of the Act can only adopt an
AASB standard early where the directors make a written election in accordance with CA
334(5).
ASIC Act225,227 10. The AASB is responsible for accounting standard setting for all entities, including companies,
public sector entities and not-for-profit entities. The Financial Reporting Council oversees the
accounting standard setting process for both the private and public sectors. Some of the
Council’s main functions in this area are:
(a) to provide broad oversight of the processes for setting accounting standards in
Australia
(b) appointing the members of the AASB (other than the Chair)
(c) approving and monitoring the AASB’s priorities, business plan, budgets and
staffing arrangements
(d) determining the AASB’s broad strategic direction and giving it directions, advice
and feedback
(e) monitoring the development of international accounting standards and furthering
the development of a single set of accounting standards for world-wide use.
11. No reference is made in this publication to any of the AAS accounting standards. The only
remaining AAS standard is a standard for superannuation plans. The AASB intends to replace
this standard with an AASB standard in 2011.
Revised differential reporting framework for general purpose financial statements
AASB1053(7),(9) 12. In June 2010, the AASB introduced a new two-tier differential reporting regime which applies
to all entities that prepare GPFSs:
AASB1053(11) (a) Tier 1 is IFRS as adopted in Australia, including standards specific to Australian
entities. For-profit entities that are publicly accountable (see paragraphs 15 to 18
below) will continue to apply the current versions of the Australian Accounting
Standards without changes.
(b) Tier 2 is the new reduced disclosure regime which retains the recognition and
measurement requirements of IFRS, but with reduced disclosure requirements for
many entities. For-profit entities that do not have public accountability can elect to
apply this tier.
13. The new regime is mandatory for entities with annual reporting periods beginning on or after 1
July 2013 with early adoption available from June 2010.
14. At this stage, the reporting entity concept (see paragraphs 22 and 28 to 33 below) has not
been affected by this new regime. While the AASB had initially proposed that all entities
lodging financial statements with ASIC should be deemed reporting entities and therefore
prepare general purpose financial statements, this proposal is still being considered by the
Board. The AASB has agreed to undertake further research on the application of the reporting
entity concept and will reconsider the issue in ‘phase 2’ of its review of the differential
reporting framework (ie between now and June 2014).
Public accountability
AASB1053 15. Public accountability means accountability to those existing and potential resource providers
Appendix A
and others external to the entity who make economic decisions but are not in a position to
demand reports tailored to meet their particular information needs.
AASB1053 16. A for-profit private sector entity has public accountability if:
Appendix A
(a) its debt or equity instruments are traded in a public market or it is in the process of
issuing such instruments for trading in a public market (a domestic or foreign stock
exchange or an over-the-counter market, including local and regional markets), or
(b) it holds assets in a fiduciary capacity for a broad group of outsiders as one of its
primary businesses. This is typically the case for banks, credit unions, insurance
companies, securities brokers/dealers, mutual funds and investment banks.

Appendix A
(continued)
AASB1053 17. The following for-profit entities are deemed to have public accountability:
Appendix B
(a) disclosing entities (see paragraph 34 below), even if their debt or equity instruments
are not traded in a public market or are not in the process of being issued for
trading in a public market
(b) co-operatives that issue debentures
(c) registered managed investment schemes
(d) superannuation plans regulated by the Australian Prudential Regulation Authority
(APRA) other than Small APRA Funds as defined by APRA Superannuation
Circular No. II.E.1 Regulation of Small APRA Funds, December 2000, and
(e) authorised deposit-taking institutions.
IFRS for SMEs(1.4) 18. Not all entities that hold assets in a fiduciary capacity for a broad group of outsiders are
IFRS for SMEs(BC57)
publicly accountable. If the assets are held merely for reasons incidental to the entity’s
primary business, the definition of public accountability would not be satisfied. Examples of
such entities may include travel or real estate agents, schools, charitable organisations, co-
operative enterprises and utility companies. An entity only has public accountability under the
second leg of the definition if the holding of assets in a fiduciary capacity is one of the entity’s
primary businesses.
Not-for profit and public sector entities
AASB1053(11),(13), 19. The Australian Government and all of the State, Territory and Local Governments must
(15)
continue to apply the tier 1 requirements for their whole-of-government and general
government sector financial reports. All other public sector entities and all not-for-profit private
sector entities are permitted to use tier 2 and provide reduced disclosures, unless a relevant
regulator requires compliance with tier 1.
IFRS compliance
AASB2010-2(20) 20. Because of the reduced disclosures, entities applying tier 2 reporting requirements will not be
AASB1013(RDR15.2)
able to state compliance with IFRSs. Instead, entities will have to make an explicit and
unreserved statement of compliance with Australian Accounting Standards – Reduced
Disclosure Requirements where they comply with all requirements of the reduced disclosure
regime.
Further information
21. For more detailed information about the reduced disclosure regime and an illustration of the
types of disclosures that can be removed if an entity is eligible to report under tier 2 please
refer to our VALUE ACCOUNTS Reduced Disclosure Pty Limited publication. This publication
is available from our web site at www.pwc.com.au/assurance/ifrs and will also be included on
the VALUE ACCOUNTS Holdings 2011 CD.
Reporting entity concept and general purpose financial statements
AASB101(Aus1.1) 22. AASB accounting standards generally only apply to reporting entities and financial statements
AASB107(Aus1.1)
AASB108(Aus2.1) that are, or are held out to be, GPFSs. However, AASB 101 Presentation of Financial
AASB1031(2) Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in
AASB1048(2)(a)
Accounting Estimates and Errors, AASB 1031 Materiality and AASB 1048 Interpretation and
Application of Standards all apply to each entity that is required to prepare financial reports in
accordance with Chapter 2M of the Act. As a result, these standards must be applied when
preparing statutory financial reports for all:
(a) public companies
(b) large proprietary companies
(c) small proprietary companies required to comply with the large proprietary company
reporting requirements (eg certain foreign controlled small proprietary companies)
(d) registered schemes
even if they are not reporting entities.

Appendix A
(continued)
Small proprietary companies

CA293,294 23. Small proprietary companies requested to prepare financial reports by ASIC or members
holding at least 5% of the voting rights will not need to apply the above standards if the
requests specify that the reports do not have to comply with them.
CA45A(2) 24. A proprietary company is a small proprietary company for a financial year if at least two of the
following conditions are satisfied:
(a) consolidated revenue is less than $25 million
(b) consolidated gross assets at the end of the year are less than $12.5 million
(c) the company and the entities it controls have fewer than 50 employees at the end of
the financial year.
CA45A(6) 25. Consolidated revenue and consolidated assets must be calculated in accordance with
accounting standards in force at the relevant time even if the standards do not otherwise
apply, eg because the company is not a reporting entity. The consolidation must include the
parent entity and any entities it controls under the principles in AASB 127 Consolidated and
Separate Financial Statements, but excludes any controlling entity or sister entities.
CA45A(5) 26. Employees are to be counted on a full-time equivalent basis as at the end of the financial year.
Part-time employees are counted as an appropriate fraction of a full-time equivalent. Seasonal
or casual employees are only included if they were employed on the last day of the financial
year.
27. There is no definition of ‘employees’ in the Corporations Act 2001 so the common law must be
relied on for guidance. The most commonly applied criterion is the presence of a right of control
by the employer over the manner in which an employee works.
Reporting entities
SAC1(40) 28. Reporting entities are defined in SAC 1 Definition of the Reporting Entity as ''all entities
AASB101(7.2)
(including economic entities) in respect of which it is reasonable to expect the existence of
users dependent on general purpose financial statements for information which will be useful
to them for making and evaluating decisions about the allocation of scarce resources''.
AASB101(7) 29. General purpose financial statements are defined in AASB 101 as ''those intended to meet the
needs of users who are not in a position to require an entity to prepare reports tailored to their
particular information needs''.
SAC1(19)-(22) 30. Guidance on determining whether an entity is a reporting or non-reporting entity is set out in
SAC 1. The primary factors outlined in SAC 1 include:
(a) the level of separation of management and ownership
(b) economic or political importance/influence; for example, dominant market position,
and
(c) financial characteristics such as size and indebtedness.
ASIC RG 85 31. ASIC has issued a guide Reporting requirements for non-reporting entities in which it
expresses concern that some companies which are required to prepare financial reports
under the Act prepare special purpose financial statements on the basis they are not reporting
entities when this may not be the case.
32. ASIC will look closely at cases where entities claim to be non-reporting entities and will seek
explanations from directors where it appears reasonable to expect that there are users
dependent on general purpose financial statements. An entity should not be regarded as a
non-reporting entity solely because there is little or no separation between its members and
management. If the company has a significant number of creditors or employees, ASIC
believes it would be reasonable to expect the existence of users dependent on general
purpose financial statements. Directors should bear this in mind when deciding whether or not
an entity is a reporting entity.
CA296 33. Directors of an entity that identifies itself as a non-reporting entity and elects not to adopt the
requirements of all accounting standards would be in breach of the requirement to comply
with accounting standards contained in CA 296 if the circumstances of the entity indicate it is
a reporting entity.

Appendix A
(continued)
Disclosing entities
CA111AC 34. A body is a disclosing entity if it has issued ED (short for ‘enhanced disclosure’) securities.
CA111AD
Disclosing entities include:
CA111AE (a) entities that are listed on a prescribed financial market (limited to Australian
markets)
CA111AF (b) entities that issue securities (other than debentures and managed investment
products) pursuant to a disclosure document, and after such an issue, and at all
times since the issue, at least 100 persons held securities in the relevant class
CA111AFA (c) entities that issue managed investment products under a Product Disclosure
Statement, if at least 100 persons hold such products
CA111AG(1) (d) entities that issue securities (other than debentures) as consideration for offers
under an off-market takeover bid, and after such an issue, and at all times since the
issue, at least 100 persons held securities in the relevant class
CA111AG(2) (e) entities whose securities are issued under a compromise or scheme of
arrangement, and after such an issue, and at all times since the issue, at least 100
persons held securities in the relevant class
CA111AI (f) borrowers required to appoint a trustee under CA 283AA.
35. By their very nature, all disclosing entities are reporting entities and therefore have to prepare
general purpose financial statements.
Modifications to disclosing entity provisions
36. Modifications to the disclosing entity provisions have been made as follows:
(a) the following securities have been declared not to be ED securities:
CR1.2A.01(a) (i) listed securities of an entity classified as an exempt foreign entity under
ASX(1.11)
the ASX Listing Rules (now known as an ASX Foreign Exempt Listing)
CR1.2A.01(b) (ii) securities quoted on the Australian Bloodstock Exchange Limited
(b) the following entities have been exempted from the disclosing entity provisions:
CR1.2A.02 (i) foreign companies issuing securities under foreign takeover offers or
schemes of arrangement (where the requirements of CR 1.2A.02 are
met)
CR1.2A.03 (ii) foreign companies offering shares for issue or sale to Australian
employees under an employee share scheme in respect of which a
disclosure document is lodged with ASIC
ASIC 98/106 (c) regulated superannuation funds, approved deposit funds and pooled
superannuation trusts (within the meaning of the Superannuation Industry
(Supervision) Act 1993) have been exempted from the financial records and
reporting requirements of Parts 2M.2 and 2M.3 of the Corporations Act 2001 by
ASIC Class Order 98/106.
Disclosing entities which cease to be disclosing entities before deadline
ASIC 98/2016 37. ASIC Class Order 98/2016 applies to entities which cease to be disclosing entities after the
ASIC RG 68(49),(50)
end of a financial year but before the earlier of:
(a) 3 months after the end of the financial year, and
(b) if the entity is required to have an annual general meeting (AGM), 21 days before
the date of the next AGM after the end of the financial year.
ASIC 98/2016 38. The Class Order provides relief from the full-year financial reporting requirements of Chapter
ASIC RG 68(49),(50)
2M of the Act to the extent that those requirements apply to the entity as a disclosing entity,
on condition that:
(a) the entity complies with the requirements of Chapter 2M as if it had not been a
disclosing entity at the end of the financial year, and
(b) the directors of the entity resolve before the earlier of the dates in paragraph 37 that
there are no reasons to believe that the entity may become a disclosing entity
before the end of the next financial year.

Appendix A
(continued)
Companies limited by guarantee

39. Following amendments made by the Corporate Reporting Reform Act in June 2010,
companies limited by guarantee are now subject to a three-tiered differential reporting
framework:
CA45B,292(3), (a) Companies with revenue less than no longer need to prepare or lodge any
CA294A,294B
$250,000 that are not deductible gift financial reports, unless they are
recipients within the meaning of the directed to do so by members or ASIC
Income Tax Assessment Act 1997
CA301(3) (b) Companies with revenue less than will need to prepare and lodge a full
$250,000 that are deductible gift financial report, but they can choose to
recipients, and have that report reviewed rather than
audited
Companies with revenue more than
$250,000 but less than $1 million
(c) Companies with revenue of $1 million must lodge an audited financial report
or more
Accounting standards and materiality

AASB1031(9) 40. Accounting standards apply when information resulting from their application is material.
Information is material if its omission, misstatement or non-disclosure has the potential,
individually or collectively, to:
(a) influence the economic decisions of users taken on the basis of the financial
statements, or
(b) affect the discharge of accountability by the management or governing body of the
entity.
AASB1031(12) 41. In deciding whether an item or an aggregate of items is material, the size and nature of the
AASB124(Aus1.10)
omission or misstatement of the items usually need to be evaluated together. In particular
circumstances, either the nature or the amount of an item or an aggregate of items could be
the determining factor. It should be noted that AASB 124 Related Party Disclosures deems
the disclosures required by that standard in relation to key management personnel of
disclosing entities to be material in all circumstances, irrespective of the amounts involved.
Further discussion of materiality is set out in AASB 1031 Materiality and the Framework for
the Preparation and Presentation of Financial Statements.
Accounting interpretations
AASB Interpretations 42. Accounting interpretations are now issued by the AASB under the AASB Interpretations
Model
Model (June 2006). An Interpretations Agenda Committee, comprising the AASB Chairman
and two other AASB members, considers issue proposals, IFRIC Draft Interpretations and
IFRIC Interpretations and recommends a course of action to the AASB. Advisory panels are
formed on a topic-by-topic basis. The role of the panels is to prepare alternative views and
provide recommendations for consideration by the AASB. Issues relating to interpreting
Australian equivalents to IFRS are in the first instance forwarded to the IFRS Interpretations
Committee for consideration. The AASB expects that unique domestic interpretations of
Australian Accounting Standards will only be required in rare and exceptional circumstances.
43. Until June 2006, guidance on urgent financial reporting issues not dealt with, or not dealt with
specifically in accounting standards was provided by the UIG. Consensus views were
communicated in UIG Interpretations that were prepared by the UIG and issued by the AASB.
AASB1048(9) 44. Compliance with AASB and UIG interpretations is mandatory by virtue of paragraph 9 of
AASB 1048 Interpretation and Application of Standards. AASB and UIG Interpretations on
issue as at 15 January 2011 are listed in Appendix D.

Appendix A
(continued)
Framework
Framework(1) 45. The Framework for the Preparation and Presentation of Financial Statements (Framework)
was issued by the AASB in July 2004 as part of Australia’s convergence with IFRS. The
Framework sets out the concepts that underlie the preparation and presentation of financial
statements for external users. The purpose of the Framework is to:
(a) assist the AASB in the development of future accounting standards and in its review
of existing accounting standards, including evaluating proposed IASB
pronouncements
(b) assist the AASB in promoting harmonisation of regulations, accounting standards
and procedures relating to the presentation of financial statements by providing a
basis for reducing the number of alternative accounting treatments permitted by
accounting standards
(c) assist preparers of financial statements in applying accounting standards and in
dealing with topics that have yet to form the subject of an accounting standard
(d) assist auditors in forming an opinion as to whether financial statements conform
with accounting standards
(e) assist users of financial statements in interpreting the information contained in
financial statements prepared in conformity with accounting standards
(f) provide those who are interested in the work of the AASB with information about its
approach to the formulation of accounting standards.
Framework(2),(3) 46. The Framework is not an accounting standard and hence does not define standards for any
particular measurement or disclosure issue. Nothing in the Framework overrides any specific
accounting standard. In a limited number of cases there may be a conflict between the
Framework and an accounting standard. In those cases where there is a conflict, the
requirements of the accounting standard prevail over those of the Framework. As, however,
the AASB will be guided by the Framework in the development of future standards and in its
review of existing standards, the number of cases of conflict between the Framework and
accounting standards will diminish through time.
AASB108(11)(b) 47. Entities shall refer to the Framework as a source of guidance in developing and applying an
accounting policy if there is no accounting standard or interpretation dealing with an
accounting issue.
Statements of Accounting Concepts
Framework(Aus1.4) 48. The Framework has superseded SAC 3 Qualitative Characteristics of Financial Information
and SAC 4 Definition and Recognition of the Elements of Financial Statements. However,
SAC 1 Definition of the Reporting Entity and SAC 2 Objective of General Purpose Financial
Reporting remain in existence and form part of the overall conceptual framework for general
purpose financial reporting in Australia.
APES205(4.1) 49. While compliance with SACs in the preparation, presentation or audit of general purpose
financial statements as such is not mandatory for members of the Accounting Bodies,
members must take all reasonable steps to apply the principles and guidance in the SACs
and the Framework when assessing whether an entity is a reporting entity.

Appendix A
(continued)
Entity-specific disclosures
50. Certain accounting standards are applicable only to specified classes of entities:
AASB8(Aus2.1) (a) AASB 8 Operating Segments – applies only to listed entities and entities that file, or
(Aus2.2)
are in the process of filing, their financial statements with a regulator for the
purpose of issuing financial instruments in a public market
AASB133(Aus1.1) (b) AASB 133 Earnings per Share – applies to entities required to prepare financial
reports in accordance with Part 2M.3 of the Act that:
(i) are reporting entities and have listed ordinary shares or are in the
process of listing if they have ordinary shares, or
(ii) elect to disclose earnings per share
AASB134(Aus1.1) (c) AASB 134 Interim Financial Reporting – applies to all general purpose interim
financial reports, including half-year financial reports of each disclosing entity
required to be prepared under Part 2M.3 of the Act
AASB1038(1.1) (d) AASB 1038 Life Insurance Contracts – applies only to life insurers or to parent
entities in groups that include a life insurer
AASB124(Aus1.4) (e) AASB 124 Related Party Disclosures – paragraphs Aus25.1 to Aus25.9.3 apply to
disclosing entities required to prepare financial reports in accordance with Part
2M.3 of the Act
AAS25(3) (f) AAS 25 Financial Reporting by Superannuation Plans – applies to superannuation
plans
(g) AASB 1004 Contributions – applies to not-for-profit entities and to financial
statements of General Government Sectors (GGS)
AAS27(3) (h) AASB 1049 Whole of Government and General Government Sector Financial
Reporting – applies to each government’s whole of government general purpose
financial statements and GGS financial statements
AASB1050(2) (i) AASB 1050 Administered Items – applies to government departments
AASB1051(2) (j) AASB 1051 Land Under Roads – applies to local governments, government
departments, whole of governments and financial statements of GGSs
AASB1052(3) (k) AASB 1052 Disaggregated Disclosures – applies to local governments and
government departments
Corporations Act relief
CA111AT,340,341 51. ASIC may grant relief from certain of the financial reporting and audit requirements of the Act
ASIC RG 43
ASIC RG 51 under CA 340 or CA 341, and disclosing entity relief may be provided under CA 111AT.
ASIC RG 95 Regulatory Guide 43 sets out ASIC's policy on applications for relief under CA 340 and CA
341 and indicates how it will exercise its discretionary power in granting relief. Policy relating
to the granting of relief under CA 111AT is set out in Regulatory Guide 95. Further discussion
of ASIC's policies and procedures on the processing of applications for relief is set out in
Regulatory Guide 51.
Pro-forma financial information in the financial report
ASIC CP 69 52. In July 2005, ASIC issued a consultative paper Disclosing pro forma financial information
which explains under which circumstances an entity is permitted to include pro-forma financial
information, being information that is not specifically required to be disclosed and/or that is not
prepared in accordance with relevant accounting standards, in its statutory financial report.
According to the paper, pro-forma financial information may be included in the notes to the
financial statements if the additional information is necessary to give a true and fair view of
the financial position and financial performance of the entity for the reporting period. Where
pro-forma information is included, it must not be misleading and not be presented with greater
prominence than the statutory information. Pro-forma financial statements, being financial
statements that purport or appear to be, for example, a balance sheet, income statement or
statement of cash flows but have not been prepared in accordance with statutory financial
reporting requirements, must not be included in a financial report.
53. ASIC may grant special relief from these requirements, however, it is expected that this will
only occur in rare and exceptional circumstances. One example of where relief has been
granted relates to the disclosure of pro forma information for a business combination which
occurred after the reporting period. See the commentary to note 48 for further information.

Appendix A
(continued)

CA295(2)(b) 54. A parent entity must prepare consolidated financial statements in accordance with AASB 127
AASB127(Aus1.1),(9)
(Aus10.1) Consolidated and Separate Financial Statements if:
 it is a reporting entity itself, or
 the group of which it is the parent entity is a reporting entity
AASB127(4) 55. These financial statements must consolidate the parent entity’s investments in subsidiaries. A
subsidiary is defined in AASB 127 as ''an entity, including an unincorporated entity such as a
partnership, that is controlled by another entity (known as the parent)''. Control is defined as
''the power to govern the financial and operating policies of an entity so as to obtain benefits
from its activities''.
AASB127(18),(20) 56. The consolidated information is presented as one set of financial statements which are
prepared by combining the financial statements of the parent and its subsidiaries line by line
by adding together like items of assets, liabilities, equity, income and expenses. Intragroup
balances, transactions, income and expenses are eliminated in full such that the consolidated
financial statements present the financial information about the group as that of a single
economic entity.
CA323 57. If an entity is required to prepare consolidated financial statements, a director or officer of a
subsidiary must give the parent entity all information requested that is necessary to prepare
the consolidated financial statements and the notes to those statements.
58. Relief from preparing consolidated financial statements is only available where:
 the impact of consolidation is not material (see paragraphs 40 and 41 above)
AASB127(10),
(Aus10.1)
 the parent is an intermediate parent and the conditions in AASB 127 paragraphs 10
and Aus10.1 are satisfied, or
ASIC 98/1418
 the parent entity is relieved from preparing financial reports under ASIC Class
Order 98/1418 because it is a wholly-owned subsidiary company which has entered
into a deed of cross guarantee with its holding company.
59. The preparation of consolidated financial reports by non-reporting entities is discussed in
paragraphs 75 and 76 below.
Stapled securities and dual listed company arrangements
AASB3(43)(c) 60. The following transactions are business combinations that are achieved by contract alone:
 the stapling of equity securities of two or more legal entities, such that the securities
cannot be traded or transferred independently and those entities have the same
owners, and
 dual-listed company (DLC) arrangements between two listed legal entities in which
their activities are managed under contractual arrangements as a single economic
entity while retaining their separate legal identities.
AASB3(43)(c),(44) 61. The revised AASB 3 Business Combinations that was issued in March 2008 specifically
includes business combinations that are achieved by contract alone in its scope. One of the
combining entities must therefore be identified as the parent entity. This parent entity will
prepare consolidated financial statements in accordance with the general principles in AASB
3 and AASB 127 Consolidated and Separate Financial Statements. Accordingly, the
identifiable assets, liabilities and contingent liabilities of the acquiree(s) must be recognised at
their fair value. However, they will be attributed to non-controlling interest. Goodwill will only
be recognised where the entity elects to measure the non-controlling interest at fair value.
Where the non-controlling interest is measured at the proportionate share of the net assets,
no goodwill arises.
Staplings and DLCs before AASB 3(revised) became effective
62. The original version of AASB 3 excluded business combinations achieved by contract alone
from its scope. Any staplings that occurred before the revised AASB 3 became applicable (1
July 2009) but after transition to the Australian equivalents to IFRS (AIFRS) on 1 January
2005 had to be accounted for in accordance with AASB Interpretation 1002 Post-Date-of-
Transition Stapling Arrangements. However, the principles in AASB-I 1002 were consistent
with those set out in paragraph 61 above, except that there was no choice to measure the
non-controlling interest at its fair value and hence goodwill could never be recognised. AASB-I
1002 was superseded when the revised AASB 3 became operative.
UIG1001(16),(17) 63. DLC arrangements that were affected after transition to AIFRS but before the revised AASB 3
became operative had to be accounted for by applying the requirements of AASB 108
Accounting Policies, Changes in Accounting Estimates and Errors to determine the
appropriate accounting policy. AASB 3 did not apply as it excluded business combinations by
contract alone from its scope.

Appendix A
(continued)
Staplings and DLCs entered into before transition to AIFRS

AASB1(15) 64. Where the stapling occurred, or DLC arrangement was entered into, before the date of
transition to AIFRS, entities could apply the exemption in paragraph 15 of AASB 1 First-time
Adoption of Australian Equivalents to International Financial Reporting Standards and were
able to elect not to account for the stapling or DLC under AASB 3 or AASB 108. Instead, UIG
Interpretation 1001 Consolidated Financial Reports in Relation to Pre-Date-of-Transition Dual
Listed Company Arrangements and Interpretation 1013 Consolidated Financial Reports in
Relation to Pre-Date of Transition Stapling Arrangements provided how these arrangements
were to be accounted for post-transition to AIFRS. Both interpretations were superseded
when the revised AASB 3 became operative.
UIG1013(7), 65. Where an entity did apply the exemption in AASB 1 to a pre-AIFRS stapling, it still had to
UIG1013(8), (9)
identify one of the combining entities as the parent entity on the date of transition to AIFRS.
This parent entity prepares a consolidated financial report for the stapled entity, but is
permitted to do so on the same basis as the combined financial report for those entities
immediately before adopting AIFRS, ie without applying purchase accounting principles and
eliminating the equity of the controlled entities.
UIG1001(6)-(9) 66. Entities with DLC arrangements that elected not to restate the accounting for their DLC on
transition to AIFRS shall continue to identify both parent entities as the parent entity for the
purpose of preparing consolidated financial reports. The consolidated financial report of each
parent entity shall be the combined financial report of the dual listed entities prepared on the
same basis as the combined financial report for those entities immediately before adopting
AIFRS.
Legal requirements
CA295(2)(b) 67. The financial report for the stapled entity must be presented as the consolidated financial
report of the identified parent entity and not as a combined financial report of the stapled
group to satisfy the parent entity’s reporting obligations under the Corporations Act 2001.
ASIC 05/642 68. ASIC has released Class order 05/642 Combining financial reports of stapled security issuers
which permits issuers of stapled securities to present their financial statements and the
consolidated or combined financial statements of the stapled group in adjacent columns in
one financial report.
ASIC RG 29 69. ASIC Regulatory Guide 29 Financial reporting by Australian entities in dual listed company
arrangements sets out the financial reporting requirements for entities in DLC arrangements,
including what type of information must be lodged and distributed to members.
Reporting requirements for non-reporting entities
70. An entity reporting under Chapter 2M of the Act that is not a reporting entity need not comply
CA297 with accounting standards other than AASB 101, AASB 107, AASB 108, AASB 1031 and
AASB 1048 when preparing statutory financial reports which are special purpose financial
statements. The Act, however, still requires that the financial reports give a true and fair view
of the financial position and performance of the entity. The comments in paragraphs 71 to 80
below should be borne in mind, especially paragraph 73. These comments summarise ASIC’s
views as expressed in the guide Reporting requirements for non-reporting entities, which
discusses the application of accounting standards to non-reporting entities required to
prepare financial reports under the Act and of the reporting entity test.
AASB101(Aus7.1) 71. Special purpose financial statements are financial statements other than general purpose
financial statements. For guidance on determining when an entity may be a non-reporting
entity refer to paragraphs 30 to 33 above.
72. Where financial statements are to be prepared for a non-reporting entity as special purpose
financial statements, the directors (or their equivalent) must ensure that the shareholders and
other potential users of the financial statements:
(a) understand that the financial statements can only be used for the special purpose
for which they are prepared and cannot be used for any other purpose, and
(b) understand that the auditor, where applicable, will issue a special purpose audit
report on the financial statements.
Compliance with recognition and measurement requirements
ASIC RG 85 73. ASIC believes that non-reporting entities, which are required to prepare financial reports in
accordance with the Act, must still comply with the recognition and measurement
requirements of all applicable accounting standards in order to give a true and fair view of
their financial position and results of their operations. Non-compliance with the recognition
and measurement requirements may further result in a breach of CA 1308 (giving false and
misleading information) and CA 254T (paying dividends).

Appendix A
(continued)
74. The recognition and measurement requirements of accounting standards include, but are not
limited to, requirements relating to depreciation of non-current assets, tax effect accounting,
lease accounting, measurement of inventories, and recognition and measurement of liabilities
for employee entitlements. The provisions of accounting standards dealing with the
classification of items as assets, liabilities, equity, income and expenses also apply. This
would include the provisions of AASB 132 Financial Instruments: Presentation concerning the
classification of financial instruments issued as debt or equity.
ASIC RG 85 75. Consolidation is prima facie also a recognition and measurement requirement. However,
AASB127 (Aus1.1),
(9), (Aus10.1) ASIC did not consider consolidation necessary for the financial report to give a true and fair
view when Regulatory Guide 85 was issued in July 2005. As the guide has neither been
withdrawn nor updated, it can still be applied, although in the context of the revised AASB
127. Consolidated financial statements should therefore be prepared if either the parent entity
or the group is a reporting entity unless the criteria in AASB 127 paragraph 10 are met (see
paragraph 58 above). This is in contrast to RG 85 which states that the sole determining
factor is whether the group is a reporting entity.
76. The financial statements of a non-reporting parent entity which does not prepare consolidated
financial statements should include a note stating that consolidated financial statements have
not been prepared because neither the parent nor the group is a reporting entity. An example
of such a note is as follows:
Consolidated financial statements have not been prepared for the company and its
subsidiaries because neither the company nor the group is a reporting entity and
the directors have decided not to comply with AASB 127 Consolidated and
Separate Financial Statements. These financial statements should be read in
conjunction with the separate financial statements of the subsidiaries listed in note
X.
Compliance with disclosure requirements
CA295(3)(c) 77. Directors of non-reporting entities must also consider carefully the need to make disclosures
CA297
which are not prescribed by the mandatory accounting standards, but which may be
necessary in order for the financial statements to give a true and fair view. If knowledge of the
matters is necessary for the financial statements to give a true and fair view, the directors
should include the appropriate disclosures in the financial statements. Such disclosures could
include significant related party transactions or contingent liabilities.
78. Non-reporting entities that hold out their financial statements to be general purpose financial
statements must comply with all relevant requirements of accounting standards and
interpretations.
APES205(6) 79. Members of the Accounting Bodies who are involved in, or are responsible for, the
preparation, presentation, audit, review or compilation of an entity’s special purpose financial
statements are required, except where the statements will be used solely for internal
purposes, to take all reasonable steps to ensure that the special purpose financial
statements, and any associated audit, review or compilation report clearly states:
(a) that the financial statements are special purpose financial statements
(b) the purpose for which the financial statements have been prepared, and
(c) the significant accounting policies adopted in the preparation and presentation of
the special purpose financial statements.
80. Illustrative special purpose financial statements for a proprietary company that is required to
prepare financial reports under the Act, but is not a reporting entity, are included in VALUE
ACCOUNTS Special Purpose Annual financial reporting 2011, a PwC publication covering the
reporting obligations of non-reporting proprietary companies. This publication is available in
electronic form from your usual PwC contacts.
Reduced disclosure regime and special purpose financial statements
81. Tier 2 of the reduced disclosure regime in AASB 1053 can only be applied by entities that
prepare general purpose financial statements. Non-reporting entities that prepare special
purpose financial statements will therefore have to comply with all disclosures requirements in
AASB 101, AASB 107 and AASB 108 even if there are some disclosures in these standards
that could be omitted by entities reporting under tier 2 of the reduced disclosure regime (eg
auditor’s remuneration and reconciliation of operating cash flows).

Appendix A
(continued)
Non-statutory financial reports

82. A small proprietary company that is not a reporting entity and is not required by the Act or
ASIC to prepare a financial report has more scope to adopt accounting policies which do not
comply with specific recognition or measurement requirements than entities which are
required to prepare financial statements which give a ‘true and fair view’. Provided such an
entity is not subject to some other legislation, agreement or constituent document which
requires the preparation of financial statements which give a true and fair view it will not
normally need to comply with the Act, AASB or AAS accounting standards or AASB and UIG
interpretations if the financial statements are prepared as special purpose financial
statements. However, it may choose to do so voluntarily, particularly with the recognition and
measurement rules if they are relevant for the specific purpose for which the statements are
being prepared. If special purpose financial statements are prepared, the requirements of
APES 205 Conformity with Accounting Standards described in paragraph 79 above are
applicable.
CA293,294 83. Small proprietary companies that prepare financial statements at the request of shareholders
or ASIC will need to comply with accounting standards to the extent required by the request.
SAC1 84 The reporting entity and general purpose financial reporting concepts discussed above in the
APES 205
context of companies are also generally applicable to non-corporate entities in the private and
public sectors by virtue of the requirements of SAC 1 and APES 205. The financial statements
of many unincorporated joint ventures may be special purpose financial statements.
Financial years
CA323D(1),(2) 85. The first financial year of entities reporting under the Act starts on the day on which the entity
is registered or incorporated and lasts for 12 months, or a period not longer than 18 months
determined by the directors. Subsequent financial years must be 12 months long plus/minus
seven days.
CA323D(2A) 86. Having said that, following amendments made by the Corporate Reporting Reform Act in June
2010, entities can now change their financial year-end at any time, provided the change:
(a) is made in good faith
(b) is in the best interest of the entity, and
(c) the entity has not already changed its financial year in the previous five years.
CA323D(2A) 88. However, a word of caution. If an entity changes its year-end under the new rules, this cannot
result in a financial year that is longer than 12 months. For example, if a company intends to
move from a June year-end to a December year-end, it will need to do this by having a six
month financial year from July 2011 to December 2011 as opposed to an 18 month financial
year.
CA323D(4) 87. Entities are also still permitted to change their year-end in order to synchronise it with the
ASIC 98/96
ASIC RG 58.45-52 year-end of an Australian controlling entity, provided the accounting standards require the
preparation of consolidated financial statements and the change is made within 12 months
after the change of control occurred. Controlled entities of a foreign parent can apply ASIC
class order 98/96 to change their year-end provided there is a synchronisation requirement in
the parent’s place of origin.
CA323D(4). 89. Entities that change their year-end to synchronise it with the year-end of a controlling entity
ASIC98/96
CA250P may still do this by having a financial year up to 18 months in length. Public companies need
to keep in mind, though, that they are required to lay the annual report for the financial year
before an AGM and to hold an AGM at least once in each calendar year. They may need to
apply to ASIC for an extension of time to hold their AGM.
ASIC INFO 17 90. Where an entity has changed its financial year as permitted under the Act or class order
98/96, it needs to notify ASIC of the change in writing. The notification should include the start
and end dates of the old and new financial year and the exception under which the entity is
changing its financial year.
CA340,342 91. If everything else fails, entities can also apply to ASIC under section 340 of the Act for
ASIC INFO 17
individual relief to change their financial year (see paragraph 51 above). However, ASIC can
only grant relief if the entity can demonstrate that not changing the year-end, or having to do
this by having a shorter financial year would impose unreasonable burdens.

PwC
This flowchart identifies which entities must prepare audited financial
reports under Chapter 2M of the Corporations Act 2001 (the Act).
Entity type Is a statutory financial report required under the Act? Must report be audited?
Disclosing entity or
Yes Yes
registered scheme
Yes
Does the company have revenue of less than $250,000 and is No Is revenue less Yes Company can choose to
Company limited by
not a deductible gift recipient within the meaning of the Income Tax No than have its report reviewed
guarantee
Assessment Act 1997? Yes $1 million? or audited
No
Yes
Yes
Is the company eligible to apply the wholly-owned subsidiaries ASIC relief No
Public company No
from the requirement to prepare annual financial reports? (CO 98/1418)
363
Yes Yes
Yes
Is the company eligible to apply the wholly-owned subsidiaries ASIC relief No No
Large proprietary company No Is the ASIC audit Yes
from the requirement to prepare annual financial reports? (CO 98/1418)
Yes relief Class Order Yes
applied? (CO No
Was the small proprietary company controlled by a foreign

Small proprietary company
company for all or part of the financial year?
No Yes
Was the foreign controlled small propriety company consolidated for the period of control in a financial report
lodged with ASIC by the registered foreign company or by an intermediate Australian parent entity, which is a
disclosing entity, company or registered scheme? (CA 292(2))
Yes No
Is the company eligible to apply the relief for a member of a ‘small group’
under ASIC CO 98/0098?
Yes No
No
No Is the ASIC audit Yes
Is the company eligible to apply the wholly owned subsidiaries ASIC relief from the requirement to prepare
Yes relief Class Order Yes
annual financial reports? (ASIC 98/1418)
applied? (CO No
Yes No Yes
No Does ASIC / do Yes
Have ASIC or shareholders with at least 5% of the votes in the company requested the shareholders want No
Yes
small propriety company to prepare an annual financial report? (CA 293,294) the report audited? No
Yes
Preparation and audit of annual statutory financial reports
Appendix B

Appendix B
Preparation and audit of annual statutory financial reports
(continued)
Corporations Act entities

The following table provides a brief summary of the types of entities that are regulated under
Type of company Description
CA45A,112,113,148 Proprietary company  Can have no more than 50 non-employee shareholders
 Must have ‘Proprietary’ in its name (or Pty)
 Normally limited by shares, but can also be unlimited
 Name must indicate whether limited (‘Limited’ or ‘Ltd’) or
unlimited
 Financial reporting obligations depend on whether the
company is ‘large’ or ‘small’, see paragraphs 24 to 27 of
Appendix A
CA9,112 Public company  A company other than a proprietary company
 Can be limited by shares, limited by guarantee, no liability
(mining companies only) or unlimited
 Name must indicate whether the company is a no liability
company (NL) or a limited company; an exception exists
for companies limited by guarantee which are set up for
charitable purposes.
CA9 Managed investment A scheme with the following features:
scheme  people contribute consideration to acquire rights to
benefits produced by the scheme
 the contributions are pooled or used in common
enterprise, and
 the members do not have day-to-day control over the
operation of the scheme.
Time sharing schemes are also MIS. Other types of entities
are, however, specifically excluded, see the definition of MIS in
section 9 of the Act.
MIS have to be registered if

CA601ED
 they have more than 20 members,
 they were/are promoted by a person in the business
of promoting schemes, or
 ASIC determines that there are a number of schemes
that are closely related and which, in aggregate, have
more than 20 members.
CA601FA
Registered MIS must have a responsible entity which is a
public company that holds an AFS licence authorising it to
CA601FB operate a scheme. The responsible entity is liable to scheme
members for all aspects of the scheme’s operation. It can
delegate any aspect of operations to a third party (eg a
custodian), but it cannot delegate its liability.
CA9 Listed entity A reference to ‘listed’ means inclusion in the official list of a
CR2C.1.01
(company or registered prescribed financial market operated in Australia. At present,
scheme) the following markets are prescribed:
 Australian Securities Exchange (ASX)
 Bendigo Stock Exchange Ltd
 National Stock Exchange of Australia Limited.
Disclosing entity All listed companies & listed registered schemes are disclosing
entities.
Other public companies and unlisted registered schemes may
also satisfy the definition of a disclosing entity in certain
circumstances (see paragraph 34 of Appendix A for details).

Appendix C
Annual reporting deadlines

The annual reporting deadlines for disclosing entities, other public and proprietary companies and
registered schemes are summarised in the following table. 'Annual report' refers to the financial report
for the financial year, including the directors’ declaration, and the audit report on that financial report.
It may also refer to a concise financial report prepared under CA 314(2).
The deadlines refer to periods after the year end, except in relation to responses to the extract of
particulars, and the deadline for sending a notice of annual general meeting (AGM), which refers to a
period prior to the date of the meeting.
Disclosing entities Proprietary companies
Other Unlisted ‘Grand-
20
Action Listed Unlisted public registered Small Large fathered’
26
companies schemes large
Sign directors’
2,3 2
declaration and 3 months 3 months 4 months 3 months - 4 months 4 months
1
report
ASX(4.3A),(4.3B),
Listed entities only Lodge Appendix 4E 4-6
2 months - - - - - -
with ASX
CA319(3)
Lodge annual report 7-10 2 4 months 22
18,19,23,24 3 months 3 months 4 months 3 months - 2,21 -
with ASIC
CA315(1),(3),(4)
4 months
Send annual report to 11 11 3
23,24 (schemes - 3 4 months 4 months 3 months - 4 months 4 months
members 11,12
months)
CA249H(1),249HA
14 13,14 13,14 16 16 16 16
Send notice of AGM 28 days 21 days 21 days - - - -
CA250N(2)
25 15 16 16 16 16
Hold AGM 5 months 5 months 5 months - - - -
CA346A-346C
Respond to ASIC re 17
Within 28 days of the date of issue of the extract by ASIC
extract of particulars
Directors’ declaration and directors’ report

CA319(3) 1. There is no specific deadline for signing the directors’ declaration and report, but they will
need to be signed by the stated deadlines to enable the annual report to be lodged with ASIC
on time.
Proprietary company is a disclosing entity
CA319(3)(a) 2. A deadline of 3 months applies if the company is a disclosing entity.
Financial reports requested by shareholders or ASIC
CA315(2) 3. If financial reports are requested by shareholders with at least 5% of the votes in the
CA294(3)
company, or ASIC, the deadline is the later of 4 months after year end or 2 months after the
shareholder request, or, as specified in the ASIC request (the date must be a reasonable one
in view of ASIC’s request).
Listed entities
ASX(4.3A) 4. A listed entity (except a mining exploration entity) must lodge the information set out in
Appendix 4E (preliminary final report) with ASX. A responsible entity must give the
information to ASX with any necessary adaptation. The information in Appendix 4E must use
the same accounting policies as the accounts on which it is based and must comply with all
relevant accounting standards. Foreign entities may provide the information in accordance
with accounting standards acceptable to the ASX (eg International Financial Reporting
Standards).

Appendix C
(continued)
ASX(4.3B) 5. The information referred to in paragraph 4 above must be given to ASX immediately all of it
becomes available, and no later than it lodges any accounts with ASIC or the regulatory
bodies in the jurisdiction in which it is established.
ASX(4.3D),(4.5A) 6. Once a listed entity is or becomes aware of any circumstances which are likely to affect the
results or other information contained in the preliminary final report given to the ASX under
Listing Rules 4.3 or 4.3A, the entity must immediately give the ASX an explanation of the
circumstances and the effects they are expected to have on the entity’s current or future
financial performance or financial position. There is no requirement to also include
information about the circumstances in the financial statements, but some entities may wish
to continue to make this disclosure, as previously required under Listing Rule 4.10.1.
ASX(4.5) 7. All listed entities that are established in Australia must give the annual report to the ASX
ASIC RG 28
ASIC 98/104 when they lodge it with ASIC. They must also give the ASX a copy of any concise report at
ASIC 99/90 the same time. Under ASIC Regulatory Guide 28 and Class Order 98/104, lodgement with
the ASX can also satisfy a listed entity’s obligation to lodge documents with ASIC. Special
rules apply to entities that are not established in Australia, see ASX Listing Rules 4.5.2 and
4.5.3 for details.
ASX(4.7A) 8. If an ASX Debt Listing is required to comply with CA 319 (disclosing entities) or CA 601CK
(registered foreign companies), it must give ASX a copy of the documents that it lodges with
ASIC no later than the time that it lodges them. If it is not required to comply with CA 319 or
CA 601CK, it must give to ASX, in English, a copy of any annual accounts that it lodges with
the regulatory authorities in the jurisdiction in which it is established within 10 business days
of lodging them.
ASX(4.7A.1) 9. If an ASX Debt Issuer was admitted on the basis of a guarantee provided by a parent entity,
and the parent entity is required to comply with CA 601CK, the ASX Debt Issuer must give
ASX a copy of the documents that the parent entity lodges with ASIC no later than the time
that the parent entity lodges them. If the parent entity is not required to comply with CA
601CK, the ASX Debt Issuer must give to ASX, in English, a copy of any annual accounts
that the parent entity lodges with the regulatory authorities in the jurisdiction in which it is
established, immediately after the parent entity lodges them.
ASX(4.8) 10. If securities in, or loans or advances to, an unlisted entity are a listed entity’s main asset, the
listed entity must give the ASX the latest accounts of the unlisted entity, together with any
auditor’s report or statement when the listed entity gives its annual report and any concise
report to the ASX. This is not required if the unlisted entity is included in the listed entity’s
consolidated financial statements.
Sending annual reports to members
CA315(1) 11. The deadline is the latest date for sending annual reports to members. They must be sent at
CA314(1AA),(1AE)
least 21 days before the AGM if that date is earlier. Entities may elect to make their annual
report available on their web site and only send hard copy reports to those members that
have requested them.
ASX(4.7),(4.7.1) 12. If the annual report or concise report sent to members of a listed entity under CA 314
contains information additional to that lodged with the ASX/ASIC under Listing Rule 4.5
within 3 months after the year end (eg information required under ASX 4.10), it must give the
ASX a copy of the report sent to members on the earlier of the first day it sends it to
members or the last day for it to be given to members under CA 315 (ie 4 months, or 3
months for schemes). If the annual report sent to members does not include additional
information/documents to those already lodged, the entity must tell the ASX that this is the
case.
Annual general meeting (AGM)
CA249H(1)-(4) 13. Companies other than listed companies may specify a longer minimum period of notice of
meetings if they have a Constitution. Such companies may call an AGM on shorter notice if
all members entitled to attend and vote at the AGM agree beforehand. However, shorter
notice is not permitted for an AGM of a public company at which a resolution will be moved to
remove a director under CA 203D or to appoint a director in place of a director removed
under that section. Shorter notice is also not permitted for a meeting of a company at which a
resolution will be moved to remove an auditor under CA 329.

Appendix C
(continued)
CA249J(4),(5) 14. Under CA 249J(4), a notice of meeting sent by post is taken to be given 3 days after it is
CA135(1)(a),(2) posted. A notice sent by fax, or other electronic means, or made available by electronic
means, is taken to be given on the business day after it is sent or the member is notified that
the notice is available. CA 249J(4) is a replaceable rule. Replaceable rules apply to each
company registered after 1 July 1998 and to any company registered before that date that
repeals its Constitution. A replaceable rule may be displaced or modified by a company’s
Constitution.
CA250N(4) 15. A public company that has only one member is not required to hold an AGM unless
specifically required to do so under its Constitution.
16. Registered schemes and proprietary companies are not required to hold AGMs unless
specifically required to do so under their Constitution.
Extract of particulars
CA346A-346C 17. ASIC must issue an extract of particulars to each company and registered scheme within two
CA1351(3)(4) weeks of the entity’s review date (generally the anniversary of the entity’s registration), and
the entity is required to correct any incorrect information within 28 days of the issue date of
the extract. If the information in the extract of particulars is correct no response is required,
but the annual review fee must be paid within 2 months of the review date. Companies also
have the option of prepaying their annual review fee for a period of 10 years by way of a
single lump sum payment.
Solvency resolution
CA347A 18. Directors who have not lodged a financial report with ASIC under Chapter 2M of the
Corporations Act 2001 within the period of 12 months before the entity’s review date are
required to pass a solvency resolution within 2 months after the review date. Entities to which
this requirement applies include:
(a) small proprietary companies that are not required to prepare and lodge financial
reports
(b) wholly-owned subsidiaries that have entered into deeds of cross guarantee with
their parent entities and apply the ASIC Class Order relief from preparing financial
reports
(c) large proprietary companies that qualify as ‘grandfathered’ former exempt
proprietary companies and are not required to lodge their financial reports with
ASIC (see paragraph 22 below), and
(d) companies that have failed to lodge their financial reports with ASIC, as required
by the Act.
CA347B(1),(2) 19. If the directors pass a negative solvency resolution the company must notify ASIC of that fact
within 7 days of passing the resolution. If the directors do not pass a solvency resolution
within 2 months after the review date the company must notify ASIC of that fact within 7 days
after the 2 month period following the review date.
Proprietary companies
CA315(4),319(3) 20. The large proprietary company reporting deadlines apply to foreign controlled small
proprietary companies which are required to report under CA 292(2)(b) if they are not eligible
to apply the relief provided by ASIC Class Order 98/1418 (see Appendix B).
ASIC 05/638 21. Large proprietary companies eligible for relief under ASIC Class Order 05/638 (formerly
Class Order 98/99) need not lodge annual reports with ASIC. Financial reports must still be
prepared, audited and distributed to shareholders.
CA1408 22. Under the Class Order, a large proprietary company that is not a disclosing entity does not
need to lodge an annual report with ASIC if it qualifies as a ‘grandfathered’ exempt
proprietary company under section 319(4) of the old Corporations Law, which continues to
have application by virtue of CA 1408. A company is a ‘grandfathered’ exempt proprietary
company if:
(a) it was an exempt proprietary company on 30 June 1994 and has continued to
meet the definition of exempt proprietary company (as in force at 30 June 1994) at
all times since that date
(b) it was a large proprietary company at the end of the first financial year that ended
after 9 December 1995
(c) its financial statements and financial reports for the financial year ending during
1993 and each later financial year have been audited before the deadline for
reporting to members for that year, and
(d) it lodged the required notice with ASIC after the commencement of the First
Corporate Law Simplification Act on 9 December 1995.

Appendix C
(continued)
Externally administered companies

ASIC 03/392 23. A company that has a liquidator appointed does not have to comply with Part 2M.3 (financial
reporting) of the Corporations Act 2001. Such a company will not need to lodge an annual
report with ASIC or send it to members.
ASIC 03/392 24. Where a relevant external administrator is appointed in relation to a company no earlier than
3 months before the end of the company’s reporting period, the company does not have to
lodge an annual report with ASIC or send it to members until 6 months after that
appointment. To rely on this relief, the company must comply with certain conditions set out
in ASIC Class Order 03/392. For the purposes of the Class Order, a relevant external
administrator is:
(a) an administrator of a company
(b) a managing controller appointed to the whole or substantially the whole of the
property of a company
(c) a provisional liquidator of a company,
where no other person was acting in one of those capacities in relation to the company at the
time of their appointment.
ASIC RG 174(64)-(81) 25. ASIC may grant an externally administered public company an extension of time within which
the company is required to hold an AGM. ASIC’s policy in this regard is set out in Interim
Policy Statement 174 Externally administered companies: Financial reporting and AGMs.
Other public companies – companies limited by guarantee
CA292(3) 26. Companies limited by guarantee are also public companies. However, they are only required
to prepare and lodge a financial report if they:
CA45B (a) are a ‘deductible gift recipient’ within the meaning of the Income Tax Assessment
Act 1997, or
CA45B (b) have revenue of more than $250,000, or
CA292(3),294A,294B (c) have been directed members or ASIC to do so.

Appendix D
Accounting and reporting pronouncements
Accounting and reporting pronouncements on issue at 15 January 2011 are listed below and on the following pages.
New or revised pronouncements since 15 January 2010 are highlighted as 'new' or 'revised' as appropriate. However,
this does not include consequential amendments made to other standards as a result of the release of a revised or new
standard (eg AASB 2010-2) and editorial amendments made by AASB 2010-5.
AASB Standards
AASB Issued/ New/

Amended Revised
1 6/10 Revised* First-time Adoption of Australian Equivalents to International Financial
Reporting Standards
6/07 Implementation Guidance to AASB 1
2 7/09 Share-based Payment
3 6/10 Revised* Business Combinations
4 4/09 Insurance Contracts
5 5/09 Non-current Assets Held for Sale and Discontinued Operations
6 4/07 Exploration for and Evaluation of Mineral Resources
7 11/10 Revised* Financial Instruments: Disclosures
8 5/09 Operating Segments (applicable 1 January 2010)
9 12/10 Revised Financial Instruments
101 6/10 Revised* Presentation of Financial Statements
102 7/08 Inventories
107 5/09 Statement of Cash Flows
108 7/08 Accounting Policies, Changes in Accounting Estimates and Errors
110 7/08 Events after the Reporting Period
111 4/09 Construction Contracts
112 3/08 Income Taxes
116 7/08 Property, Plant and Equipment
117 5/09 Leases
118 5/09 Revenue
119 7/08 Employee Benefits
120 7/08 Accounting for Government Grants and Disclosure of Government
Assistance
121 6/10 Revised* The Effects of Changes in Foreign Exchange Rates
123 4/09 Borrowing Costs (revised standard applicable 1 January 2010)
124 12/09 Related Party Disclosures
127 7/08 Consolidated and Separate Financial Statements
128 6/10 Revised* Investments in Associates
129 7/08 Financial Reporting in Hyperinflationary Economies
131 6/10 Revised* Interests in Joint Ventures
132 6/10 Revised* Financial Instruments: Presentation
133 3/08 Earnings per Share
134 6/10 Revised* Interim Financial Reporting
136 5/09 Impairment of Assets
137 3/08 Provisions, Contingent Liabilities and Contingent Assets
138 5/09 Intangible Assets
139 6/10 Revised* Financial Instruments: Recognition and Measurement
140 7/08 Investment Property
141 7/08 Agriculture
1004 12/07 Contributions (revised standard applicable 1 July 2008)
1023 4/09 General Insurance Contracts
1031 7/04 Materiality
1038 4/09 Life Insurance Contracts
1039 8/08 Concise Financial Reports
1048 6/10 Revised Interpretation and Application of Standards
1049 9/08 Whole of Government and General Government Sector Financial Reporting
* Includes amendments made by AASB 2010-3 and AASB 2010-4 as a result of the annual improvements project.

Appendix D
(continued)
AASB Standards (continued)
AASB Issued/ New/

Amended Revised
1050 12/07 Administered Items
1051 12/07 Land Under Roads
1052 12/07 Disaggregated Disclosures
1053 6/10 New Application of Tiers of Australian Accounting Standards
2010-1 2/10 New Amendments to Australian Accounting Standards – Limited Exemption
from Comparative AASB 7 Disclosures for First-time Adopters [AASB 1 &
AASB 7]
2010-2 6/10 New Amendments to Australian Accounting Standards arising from Reduced
Disclosure Requirements
2010-3 6/10 New Amendments to Australian Accounting Standards arising from the Annual
Improvements Project [AASBs 3, 7, 121, 128, 131, 132 & 139]
2010-4 6/10 New Further Amendments to Australian Accounting Standards arising from the
Annual Improvements Project [AASBs 1, 7, 101 & 134 and Interpretation
13]
2010-5 10/10 New Amendments to Australian Accounting Standards [AASBs 1, 3, 4, 5, 101,
107, 112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and
Interpretations 112, 115, 127, 132 & 1042]
2010-6 11/10 New Amendments to Australian Accounting Standards – Disclosures on
Transfers of Financial Assets [AASB 1 & AASB 7]
2010-7 12/10 New Amendments to Australian Accounting Standards arising from AASB 9
(December 2010)
2010-8 12/10 New Amendments to Australian Accounting Standards – Deferred Tax:
Recovery of Underlying Assets [AASB 112]
2010-9 12/10 New Amendments to Australian Accounting Standards – Severe Hyperinflation
and Removal of Fixed Dates for First-time Adopters [AASB 1]
2010-10 12/10 New Further Amendments to Australian Accounting Standards – Removal of
Fixed Dates for First-time Adopters [AASB 2009-11 & AASB 2010-7]
Note: Amending standards issued before 2010 are not listed above.
AAS Standards
AAS Issued/
Amended
25 12/05 Financial Reporting by Superannuation Plans
Statements of Accounting Concepts
SAC Issued/
Amended
1 8/90 Definition of the Reporting Entity
2 8/90 Objective of General Purpose Financial Reporting

Appendix D
(continued)
AASB Interpretations 1
Interpre- Issued/ New/

tation Amended Revised
AASB Interpretations corresponding to IASB Interpretations
4 2/07 Determining whether an Arrangement contains a Lease
9 5/09 Reassessment of Embedded Derivatives
10 9/06 Interim Financial Reporting and Impairment
11 2/07 AASB 2 – Group and Treasury Share Transactions
12 2/07 Service Concession Arrangements
13 6/10 Revised Customer Loyalty Programmes
14 12/09 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction
15 8/08 Agreements for the Construction of Real Estate
16 5/09 Hedges of a Net Investment in a Foreign Operation
17 12/08 Distribution of Non-cash Assets to Owners
18 3/09 Transfer of Assets from Customers
19 12/09 Extinguishing Financial Liabilities with Equity Instruments
129 2/07 Service Concession Arrangements: Disclosures
Other AASB Interpretations
1003 11/07 Australian Petroleum Resource Rent Tax
1038 12/07 Contributions by Owners Made to Wholly-Owned Public Sector Entities
1
The AASB also publishes rejection statements for issues raised but not taken onto the AASB’s agenda. These can be
found on the AASB’s web site at www.aasb.com.au under Pronouncements/Board agenda decisions.
Urgent Issues Group Interpretations

UIG Interpretations corresponding to IASB Interpretations
1 7/04 Changes in Existing Decommissioning, Restoration and Similar Liabilities
2 3/08 Members’ Shares in Co-operative Entities and Similar Instruments
5 6/05 Rights to Interests arising from Decommissioning, Restoration and
Environmental Rehabilitation Funds
6 10/05 Liabilities arising from Participating in a Specific Market - Waste Electrical
and Electronic Equipment
7 2/06 Applying the Restatement Approach under AASB 129 Financial Reporting
in Hyperinflationary Economics
8 3/06 Scope of AASB 2
107 3/08 Introduction of the Euro
110 7/04 Government Assistance - No Specific Relation to Operating Activities
112 12/04 Consolidation - Special Purpose Entities
113 7/04 Jointly Controlled Entities - Non-Monetary Contributions by Venturers
115 7/04 Operating Leases - Incentives
121 7/04 Income Taxes - Recovery of Revalued Non-Depreciable Assets
125 7/04 Income Taxes - Changes in the Tax Status of an Entity or its Shareholders
127 7/04 Evaluating the Substance of Transactions Involving the Legal Form of a
Lease
131 7/04 Revenue - Barter Transactions Involving Advertising Services
132 7/04 Intangible Assets - Web Site Costs

Appendix D
(continued)
Urgent Issues Group Interpretations (continued)

Other UIG Interpretations
1017 11/04 Developer and Customer Contributions for Connection to a
Price-Regulated Network
1019 9/04 The Superannuation Contributions Surcharge
1030 9/04 Depreciation of Long-Lived Physical Assets: Condition-Based
Depreciation and Related Methods
1031 7/04 Accounting for the Goods and Services Tax (GST)
1039 7/04 Substantive Enactment of Major Tax Bills in Australia
1042 12/04 Subscriber Acquisition Costs in the Telecommunications Industry
1047 11/04 Professional Indemnity Claims Liabilities in Medical Defence
Organisations
1052 6/05 Tax Consolidation Accounting
1055 9/04 Accounting for Road Earthworks
AASB Exposure Drafts 2
ED Issued/ New/
Amended Revised
157 5/07 Joint Arrangements
164 6/08 An improved Conceptual Framework for Financial Reporting: The
Objectives of Financial Reporting and Qualitative Characteristics and
Constraints of Decision-useful Financial Reporting Information
166 8/08 Simplifying Earnings per Share: Proposed amendments to AASB 133
167 10/08 Discontinued Operations: Proposed amendments to AASB 5
171 12/08 Consolidated Financial Statements
174 1/09 Amendments to Australian Accounting Standards to facilitate GAAP/GFS
Harmonisation for Entities with the GGS
179 5/09 Superannuation Plans and Approved Deposit Funds
180 6/09 Income from Non-exchange Transactions
181 6/09 Fair Value Measurement
183 6/09 Management Commentary
184 7/09 Financial Instruments: Classification and Measurement
185 7/09 Rate-regulated Activities
189 11/09 Financial Instruments: Amortised Cost and Impairment
191 1/10 Measurement of Liabilities in AASB 137 (Limited re-exposure of proposed
amendment to AASB 137)
193 3/10 New Conceptual Framework for Financial Reporting: The Reporting Entity
194 4/10 New Request for Comment on IPSASB Exposure Draft Service Concession
Arrangements: Grantor
195 5/10 New Defined Benefit Plans (proposed amendments to AASB 119)
197 6/10 New Presentation of Items of Other Comprehensive Income (proposed
amendments to AASB 101)
198 7/10 New Revenue from Contracts with Customers (including Tier 2 Supplement)
199 7/10 New Measurement Uncertainty Analysis Disclosure for Fair Value
Measurements (Limited re-exposure of proposed disclosure)
200A 7/10 New Proposals to Harmonise Australian and New Zealand Standards in
Relation to Entities Applying IFRSs as Adopted in Australia and New
Zealand
200B 7/10 New Proposed Separate Disclosure Standards
201 8/10 New Insurance Contracts
202 8/10 New Leases (including Tier 2 Supplement)
203 9/10 New Removal of Fixed Dates for First-time Adopters (proposed amendments to
AASB 1)
204 9/10 New Deferred Tax: Recovery of Underlying Assets (proposed amendments to
AASB 112) (including Tier 2 Supplement)
205 9/10 New Extending Relief from Consolidation, the Equity Method and Proportionate
Consolidation

Appendix D
(continued)
AASB Exposure Drafts (continued) 2
ED Issued/ New/
Amended Revised
206 10/10 New Severe Hyperinflation (proposed amendment to AASB 1) (including Tier 2
Supplement)
207 12/10 New Amendments to AASB 7: Tier 2
208 12/10 New Hedge Accounting
2
These are current exposure drafts that have not yet resulted in the issue or reissue of an accounting standard.
Australian Invitations to Comment and Consultation papers
ITC Issued/ New/

Amended Revised
15 4/08 Request for Comment on IPSASB Exposure Draft ED 34 Social Benefits:
Disclosure of Cash Transfers to Individuals or Households and IPSASB
Consultation Paper Social Benefits: Issues in Recognition and
Measurement
10/08 Discussion Paper: Initial Accounting for Internally Generated Intangible
Assets
19 01/09 Request for Comment on IASB Discussion Paper Preliminary Views on
Financial Statement Presentation
22 2/10 New Request for Comment on IPSASB Consultation Paper Reporting on the
Long-Term Sustainability of Public Finances
23 4/10 New Request for Comment on IASB Discussion Paper DP/2010/1 Extractive
Activities
8/10 New Discussion Paper: The Annual Improvements Process – Proposals to
Amend the Due Process Handbook for the IASB
24 10/10 New Request for Comment on IASB Request for Views on Effective Dates and
Transition Methods
International Financial Reporting Standards (Standards issued by the IASB are known as International Financial
Reporting Standards (IFRS). Previous IASs remain in force until amended or withdrawn, see listing below.)
IFRS Issued/ New/

Amended Revised
1 12/10 Revised* First-time Adoption of International Financial Reporting Standards
2 4/09 Share-based Payment
3 5/10 Revised* Business Combinations
4 3/09 Insurance Contracts
5 4/09 Non-current Assets Held for Sale and Discontinued Operations
6 6/05 Exploration for and Evaluation of Mineral Resources
7 10/10 Revised* Financial Instruments: Disclosures
8 4/09 Operating Segments (applicable 1 January 2010)
9 10/10 Revised Financial Instruments
* Includes amendments made in the annual improvements project.
International Accounting Standards (Standards issued by the IASB are known as International Financial Reporting
Standards (IFRS) - see listing above. Previous IASs remain in force until amended or withdrawn.)
IAS Issued/ New/

Amended Revised
1 5/10 Revised* Presentation of Financial Statements
2 5/08 Inventories
7 4/09 Statement of Cash Flows
8 5/08 Accounting Policies, Changes in Accounting Estimates and Errors
10 5/08 Events After the Reporting Period
11 5/99 Construction Contracts
12 12/10 Revised Income Taxes
16 5/08 Property, Plant and Equipment

Appendix D
(continued)
International Accounting Standards (continued)
IAS Issued/ New/

Amended Revised
17 4/09 Leases
18 4/09 Revenue
19 5/08 Employee Benefits
20 5/08 Accounting for Government Grants and Disclosure of Government
Assistance
21 5/10 Revised* The Effects of Changes in Foreign Exchange Rates
23 5/08 Borrowing Costs (revised standard applicable 1 January 2010)
24 11/09 Related Party Disclosures
26 6/86 Accounting and Reporting by Retirement Benefit Plans
27 5/08 Consolidated and Separate Financial Statements
28 5/10 Revised* Investments in Associates
29 5/08 Financial Reporting in Hyperinflationary Economies
31 5/10 Revised* Interests in Joint Ventures
32 5/10 Revised* Financial Instruments: Presentation
33 12/03 Earnings per Share
34 5/10 Revised* Interim Financial Reporting
36 4/09 Impairment of Assets
37 7/98 Provisions, Contingent Liabilities and Contingent Assets
38 4/09 Intangible Assets
39 5/10 Revised* Financial Instruments: Recognition and Measurement
40 5/08 Investment Property
41 5/08 Agriculture
* Includes amendments made in the annual improvements project.
IFRS for SMEs

7/09 New International Financial Reporting Accounting Standard for Small and
Medium-sized Entities
3
International Interpretations - IFRS Interpretations Committee
IFRIC Issued/ New/

Amended Revised
1 5/04 Changes in Existing Decommissioning, Restoration and Similar Liabilities
2 11/04 Members’ Shares in Co-operative Entities and Similar Instruments
4 11/06 Determining whether an Arrangement Contains a Lease
5 12/04 Rights to Interests arising from Decommissioning, Restoration and
Environmental Rehabilitation Funds
6 9/05 Liabilities arising from Participating in a Specific Market - Waste Electrical
and Electronic Equipment
7 11/05 Applying the Restatement Approach under IAS 29 Financial Reporting in
Hyperinflationary Economies
8 1/06 Scope of IFRS 2
9 4/09 Reassessment of Embedded Derivatives
10 7/06 Interim Financial Reporting and Impairment
11 11/06 IFRS 2 - Group and Treasury Share Transactions
12 11/06 Service Concession Arrangements
13 5/10 Revised Customer Loyalty Programmes
14 11/09 The Limit on a Defined Benefit Asset, Minimum Funding Requirements
and their Interaction
15 7/08 Agreements for the Construction of Real Estate
16 4/09 Hedges of a Net Investment in a Foreign Operation
17 11/08 Distribution of Non-cash Assets to Owners
18 1/09 Transfer of Assets from Customers
19 11/09 New Extinguishing Financial Liabilities with Equity Instruments
3
The IFRS Interpretations Committee also maintains a list of items not taken onto its agenda, including reasons why
an issue was rejected. This list is regularly updated and can be accessed on the IASB’s web site at www.iasb.org under
Standards development/Work plan for interpretations.

Appendix D
(continued)
International Interpretations - SIC
SIC Issued/
Amended
7 5/98 Introduction of the Euro
10 7/98 Government Assistance - No Specific Relation to Operating Activities
12 11/04 Consolidation - Special Purpose Entities
13 11/98 Jointly Controlled Entities - Non-Monetary Contributions by Venturers
15 11/98 Operating Leases - Incentives
21 7/00 Income Taxes - Recovery of Revalued Non-Depreciable Assets
25 7/00 Income Taxes - Changes in the Tax Status of an Enterprise or its Shareholders
27 12/01 Evaluating the Substance of Transactions in the Legal Form of a Lease
29 11/06 Service Concession Arrangements: Disclosures
31 12/01 Revenue - Barter Transactions Involving Advertising Services
32 3/02 Intangible Assets - Web Site Costs
Other IASB pronouncements

Issued New/ Document
Revised
9/10 Revised Conceptual Framework for Financial Reporting 2010
12/10 New Management Commentary – A framework for presentation
International Accounting Standard exposure drafts and similar documents
ED Issued/ New/
Amended Revised
9 9/07 ED Joint Arrangements
8/08 ED Simplifying Earnings per Share: Proposed amendments to IAS 33
9/08 ED Discontinued Operations: Proposed amendments to IFRS 5
10/08 DP Preliminary Views on Financial Statements Presentation
10 12/08 Consolidated Financial Statements
ED/2009/5 5/09 Fair Value Measurement
ED/2009/7 7/09 Financial Instruments: Classification and Measurement
ED/2009/8 7/09 Rate-regulated Activities
ED/2009/12 11/09 Financial Instruments: Amortised Cost and Impairment
ED/2010/1 1/10 Measurement of Liabilities in IAS 37 (Limited re-exposure of proposed
amendments to IAS 37)
ED/2010/2 3/10 New Conceptual Framework for Financial Reporting The Reporting Entity
ED/2010/3 4/10 New Defined Benefit Plans – Proposed amendments to IAS 19
ED/2010/5 5/10 New Presentation of Items of Other Comprehensive Income – Proposed
amendments to IAS 1
ED/2010/6 6/10 New Revenue from Contracts with Customers
ED/2010/7 6/10 New Measurement Uncertainty Analysis Disclosure for Fair Value
Measurements – Limited re-exposure of proposed disclosure
ED/2010/8 7/10 New Insurance Contracts
ED/2010/9 8/10 New Leases
ED/2010/10 8/10 New Removal of Fixed Dates for First-time Adopters – Proposed
amendments to IFRS 1
9/10 New Consultation Paper: The annual improvements process – Proposals to
amend the Due Process Handbook for the IASB
ED/2010/11 9/10 New Deferred Tax: Recovery of Underlying Assets – Proposed amendments
to IAS 12
ED/2010/12 9/10 New Severe Hyperinflation – Proposed amendment to IFRS 1
10/10 New Request for Views on Effective Dates and Transition Methods
11/10 New Consultation Paper: Status of Trustee’s Strategy Review
ED/2010/13 12/10 New Hedge Accounting
International Interpretations (IFRIC) exposure drafts and similar documents
ED Issued/ New/
Amended Revised
DI/2010/1 8/10 New Stripping Costs in the Production Phase of a Surface Mine

Appendix D
(continued)
Proposed draft legislation with financial reporting impact
Issued
12/10 Exposure Draft: Corporations Amendment (Improving Accountability on Director and Executive
Remuneration) Bill 2011
ASIC Regulatory Guides
RG New/ New/
Revised Revised
13 8/95 ACN, ARBN and company names
16 7/08 External administrators: reporting matters and lodging documents
22 6/92 Directors' statement as to solvency
26 6/92 Resignation of auditors
28 7/03 Relief from dual lodgment of financial reports
29 3/07 Financial reporting by Australian entities in dual listed company
arrangements
34 12/07 Auditors’ obligations: reporting to ASIC
43 10/08 Financial reports and audit relief
44 7/99 Annual general meetings – extension of time
46 9/08 Unlisted property schemes – improving disclosure for retail investors
51 9/06 Applications for relief
58 8/09 Financial reporting requirements – registered foreign companies and
Australian companies with foreign company shareholders
62 8/00 Better disclosure for investors
64 1/00 Failure to lodge documents (currently under review)
68 3/07 New financial reporting and procedural requirements
85 7/05 Reporting requirements for non-reporting entities
89 Disclosing pro forma financial information – yet to be released (currently
CP 69)
95 3/97 Disclosing entity provisions relief
108 7/08 No-action letters
115 8/10 Revised Audit relief for proprietary companies
157 2/00 Financial reports for offer information statements
170 9/02 Prospective financial information
174 6/03 Externally administered companies: Financial reporting and AGMs (Interim
Policy Statement)
187 2/07 Auditor rotation
198 7/09 Unlisted disclosing entities: continuous disclosure obligations
217 7/10 New Duty to prevent insolvent trading: Guide for directors
ASIC Class Orders and other instruments
CO Issued/ New/
Amended Revised
98/96 7/07 Synchronisation of financial year with foreign parent company (amended
by CO 07/505)
98/98 8/09 Small foreign controlled proprietary companies (not part of large group)
financial reporting relief (amended by CO 00/321,03/67, 07/505, 7/822 and
09/626)
98/100 9/06 Rounding in financial reports and directors’ reports (amended by CO
99/90, CO 00/321, 04/667, 05/641, 06/51 and 6/709)
98/101 2/99 Members of companies, registered schemes and disclosing entities who
are uncontactable (amended by CO 99/90)
98/104 7/99 Dual lodgement relief - listed disclosing entities other than undertakings
(amended by CO 99/90 and CO 99/837)
98/106 7/98 Financial reports of superannuation funds, approved deposit funds and
pooled superannuation trusts
98/1417 8/10 Revised Audit relief for proprietary companies (amended by CO 99/90, CO
01/1086, 02/247, 02/1016, 06/51 and 10/545)
98/1418 8/09 Wholly-owned entities (amended by CO 98/2017, 00/321, 01/1087,
02/248, 02/1017, 04/663, 04/682, 04/1624, 05/542, 06/51, 08/11, 08/255,
08/618 and 09/626)

Appendix D
(continued)
ASIC Class Orders and other instruments (continued)
CO Issued/ New/
Amended Revised
98/2016 10/98 Entities which cease to be disclosing entities before their deadline
98/2395 7/05 Transfer of information from the directors’ report (amended by CO 05/641)
99/90 2/99 Concise reports
00/2449 3/02 ASX electronic lodgment facility - relief from paper form lodgment
(amended by CO 02/267)
00/2451 12/00 Electronic lodgment of certain reports with the ASX - approval
02/968 9/02 Interim relief from financial reporting obligations for companies in external
administration
02/1432 7/07 Registered foreign companies - financial reporting requirements (amended
by CO 07/550)
03/392 6/03 Externally administered companies: Financial reporting relief
03/748 8/03 Reporting requirements under s989B
03/823 9/03 Relief from licensing, accounting and audit requirements for foreign
authorised deposit-taking institutions
05/638 7/05 Anomalies preventing certain large proprietary companies from being
grandfathered
05/639 7/05 Application of accounting standards by non-reporting entities
05/642 7/10 Revised Combining financial reports of stapled security issuers (amended by CO
10/655)
05/644 7/05 Disclosing post-balance date acquisitions and disposals
06/06 1/06 Dual lodgment relief for NSX-listed disclosing entities
06/68 2/06 Conditional relief for foreign licensees from financial reporting and record
keeping obligations
06/441 6/06 Including different registered scheme financial reports in a single
document (replaced CO 05/643)
08/15 1/08 Disclosing entities - half-year financial reporting relief
10/654 7/10 New Inclusion of parent entity financial statements in financial reports
ASIC provides regular reports on its recent decisions on applications for relief. These can be found on the ASIC web
site under Financial reporting/Applying for relief. For reports issued in 2010, see Advisories 10-14 (REP 184), 10-148
(REP 203) and 10/242 (REP 217).
ASIC financial reporting Advisories and Media Releases – 2010
AD/MR Issued
MR10/147 7/10 ASIC focuses attention on 2010 financial reports
AD10/164 7/10 ASIC releases guidance on a director’s duty to prevent insolvent trading
AD10/165 7/10 ASIC provides relief for parent entity financial statements
AD10/183 8/10 Changes to resolution-passing and form lodging arrangements for audit relief
AD10/215 10/10 Financial reporting panel issues decisions following ASIC referrals
AD10/219 10/10 Financial reporting panel releases decisions on accounting treatments
AD10/282 12/10 ASIC’s review of 30 June 2010 financial reports and focuses for 31 December 2010
ASIC Consultation Papers
CP Issued/ New/
Amended Revised
69 7/05 Disclosing pro forma financial information (Draft guide)
133 4/10 New Agribusiness managed investment schemes: Improving disclosure for
retail investors
134 4/10 New Infrastructure entities: Improving disclosure for retail investors
141 10/10 New Mortgage schemes: Strengthening the disclosure benchmarks
142 10/10 New Related party transactions
143 10/10 New Expert reports and independence of experts: Updates to RG 111 and RG
112
146 11/10 New Over-the-counter contracts for difference: Improving disclosure for retail
investors

Appendix E
Indemnification and insurance of officers and auditors

CA9,199A,199B, 1. The directors' report must disclose information about any indemnification or insurance
300(1)(g),(8),(9)
arrangements that are permitted under CA 199A and 199B of the Corporations Act 2001. The
provisions cover past and present officers or auditors. An officer is defined in CA 9 to mean:
(a) a director or secretary of the corporation, or
(b) a person:
(i) who makes, or participates in making, decisions that affect the whole,
or a substantial part, of the business of the corporation, or
(ii) who has the capacity to affect significantly the corporation's financial
standing, or
(iii) in accordance with whose instructions or wishes the directors of the
corporation are accustomed to act (excluding advice given by the
person in the proper performance of functions attaching to the person's
professional capacity or their business relationship with the directors or
the corporation), or
(c) a receiver, or receiver and manager, of the property of the corporation, or
(d) an administrator of the corporation, or
(e) an administrator of a deed of company arrangement executed by the corporation,
or
(f) a liquidator of the corporation, or
(g) a trustee or other person administering a compromise or arrangement made
between the corporation and someone else.
Insurance
CA199B 2. The disclosure in the VALUE ACCOUNTS Holdings Limited directors' report relates to an
insurance arrangement. CA 199B prohibits a company or a related body corporate from
insuring an officer or an auditor (whether the premium is paid directly or through an
interposed entity) against liabilities (other than for legal costs) arising out of:
CA199B(1)(a) (a) conduct involving a wilful breach of duty in relation to the company, or
CA199B(1)(b) (b) a contravention of CA 182 or 183 (improper use of position or information by
individual to gain advantage for self or some other person, or to cause detriment to
company).
CA300(1)(g),(8)(b) 3. For insurance arrangements that are not prohibited under CA199B, CA 300(8) requires
disclosure of details of any premium paid, or agreed to be paid, for insurance against a
current or former officer’s or auditor’s liability for legal costs.
CA300(9)(a)-(c),(f) 4. Specific disclosures required in relation to insurance arrangements are:
(a) for officers - their name or the class of officer to which they belong or belonged
(b) for auditors - their name
(c) except where prohibited by the insurance contract:
(i) the nature of the liability, and
(ii) the amount of the insurance premium.
Indemnities for officers and auditors
CA300(1)(g),(8)(a) 5. The directors’ report must disclose details of any indemnity given to a current or former
officer or auditor against a liability that is permitted under CA 199A(2) or (3), or any relevant
agreement under which an officer or auditor may be given an indemnity of that kind.
Generally, the disclosure of an indemnity will mirror the wording of the relevant indemnity in
the contract or auditor's engagement letter.
6. CA 199A(2) prohibits a company or a related body corporate from indemnifying an officer or
an auditor (whether by agreement or by making a payment and whether directly or through
an interposed entity) against any of the following liabilities:
CA199A(2)(a) (a) owed to the company or a related body corporate
CA199A(2)(b) (b) for a pecuniary penalty order under CA 1317G or a compensation order under CA
1317H or CA 1317HA, and
CA199A(2)(c) (c) owed to a third party and which did not arise out of conduct in good faith.
CA199A(2) CA 199A(2) does not apply to a liability for legal costs.

Appendix E
(continued)
7. CA 199A(3) prohibits a company or a related body corporate from indemnifying an officer or an

auditor (whether by agreement or by making a payment and whether directly or through an
interposed entity) against legal costs incurred in defending an action if the costs are incurred:
CA199A(3)(a) (a) in defending or resisting proceedings in which the person is found to have a liability
for which they could not be indemnified under CA 199A(2)
CA199A(3)(b) (b) in defending or resisting criminal proceedings in which the person is found guilty
CA199A(3)(c) (c) in defending or resisting proceedings brought by ASIC or a liquidator for a court
order if the grounds for making the order are found by the court to have been
established, or
CA199A(3)(d) (d) in connection with proceedings for relief to the person under the Corporations Act
2001 in which the court denies the relief.
CA199A(3) 8. CA 199A(3)(c) (paragraph 7(c) above) does not apply to costs incurred in responding to
actions taken by ASIC or a liquidator as part of an investigation before commencing
proceedings for the court order.
CA300(9)(a)-(e) 9. Specific disclosures required where an indemnity has been given or agreed to be given are:
(a) for officers – their name or the class of officer to which they belong or belonged
(b) for auditors – their name
(c) the nature of the liability
(d) for an indemnity given – the amount the company paid and any other action the
company took to indemnify the officer or auditor, and
(e) for an agreement to indemnify – the amount that the agreement requires the
company to pay and any other action the relevant agreement requires the company
to take to indemnify the officer or auditor.
Other illustrative disclosures
10. Following are illustrative examples of disclosures which might be made with respect to an
indemnity to comply with CA 300(8). Whether an indemnity requires disclosure and the details
required to be disclosed will need to be decided on a case by case basis. Legal advice should
be sought if there is any doubt as to the disclosure required to comply with CA 300(8).
Indemnities for officers
CA300(1)(g),(8)(a), During the financial year, VALUE ACCOUNTS Holdings Limited gave the managing
(9)(a),(c),(d)
director, Mr N T Toddington and the company secretary, Ms S M Barker an
indemnity against legal costs incurred in successfully defending proceedings
brought against Mr Toddington and Ms Barker, in their capacity as officers of the
company under the Fair Trading Act. The amount paid by the company was
$20,000.
Agreement to indemnify officers
CA300(1)(g),(8)(a), During the financial year, VALUE ACCOUNTS Holdings Limited agreed to indemnify
(9)(a),(c),(e)
each director and secretary of the company and of its Australian based subsidiaries
against any liability:
(a) to a party other than VALUE ACCOUNTS Holdings Limited or a related
body corporate, but only to the extent that the liability arises out of
conduct in good faith, and
(b) for legal costs incurred in connection with proceedings for relief to the
director or secretary under the Corporations Act 2001 in which the court
grants the relief.
The amount payable under the agreement is the full amount of the liability. No
liability has arisen under these indemnities as at the date of this report.
Agreement to indemnify auditor
CA300(1)(g),(8)(a), During the financial year, VALUE ACCOUNTS Holdings Limited agreed to indemnify
(9)(b),(c),(e)
Checker & Co, the former auditors of its subsidiary, VALUE ACCOUNTS Trading
Limited, against:
(a) all liabilities (other than liabilities to VALUE ACCOUNTS Holdings
Limited, VALUE ACCOUNTS Trading Limited or a related body
corporate) arising out of their duties as auditor of VALUE ACCOUNTS
Trading Limited in the period 1 July 2009 up to the date of their
resignation on 29 April 2010, but only to the extent that the liability arises
out of conduct in good faith
(b) legal costs incurred in defending an action for a liability within the scope
of the indemnity referred to in paragraph (a).
The amount payable under the agreement is the full amount of the liability. No
liability has arisen under this indemnity as at the date of this report.

Appendix F
Rounding of amounts
Rounding of amounts
AASB 101 disclosure requirements
AASB101(51)(e) 1. The level of rounding used in presenting amounts in the financial report shall be displayed
prominently, and repeated when it is necessary for a proper understanding of the information
presented.
Rounding of amounts
ASIC 98/100 2. A company, registered scheme or disclosing entity with total assets in excess of $10 million
in its own or consolidated balance sheet (statement of financial position) may round off
amounts shown in the financial report and directors’ report in accordance with ASIC Class
Order 98/100. Subject to certain exclusions and conditions, amounts may be rounded off to
the following prescribed amounts:
$10 million (but less than $1,000m) $1,000
$1,000 million (but less than $10,000m) $100,000
$10,000 million $1 million
Lower prescribed amounts
ASIC 98/100 3. An entity may substitute a lower amount (the Lower Prescribed Amount) for a prescribed
amount otherwise required by the Class Order (the Replaced Prescribed Amount) provided
that the Lower Prescribed Amount is:
(a) one-tenth of one cent, one cent, $1, $1,000 or $100,000
(b) less than the Replaced Prescribed Amount, and
(c) applied for all amounts in the financial report and directors' report to which the
Replaced Prescribed Amount otherwise applied.
4. An example of the application of the above paragraph, is a company with assets in excess of
$10,000 million which decides to round off to the nearest $100,000, rather than the also
permitted $1 million. In such a case the company must round-off all amounts to the nearest
$100,000 (except as stated in paragraphs 5 and 7-9 below). It cannot choose to round some
amounts to $100,000 and others to $1 million.
Exclusions
ASIC 98/100 5. The Class Order does not permit any amount to be rounded, the rounding of which has the
potential to adversely affect:
(a) decisions about the allocation of scarce resources made by users of the financial
report and the directors’ report, or
(b) the discharge of accountability by management or the directors of the entity or in
relation to the auditors.
Conditions
ASIC 98/100 6. The following conditions apply:
(a) if the amount is half or less than half the prescribed amount it must be shown as
'nil' or the equivalent thereof - except that if the amounts in the financial report
(including the consolidated financial statements) and the comparative figures are
half or less than half the prescribed amount, the item and the amount may be
omitted
(b) comparative amounts must also be rounded
(c) the financial report or directors’ report must state that the entity is an entity to
which the Class Order applies and that amounts have been rounded off in
accordance with the Class Order
(d) each page where rounding has occurred must clearly disclose the extent of
rounding, and
(e) where amounts are rounded to the nearest $100,000, they must be presented in
the form of millions of dollars and one decimal place representing hundreds of
thousands of dollars, with a clear indication that the amounts are presented in
millions of dollars.

Appendix F
Rounding of amounts
(continued)
Items not subject to full rounding

ASIC 98/100 7. The following disclosures must be shown to the nearest dollar by entities with assets (or
consolidated assets) of more than $10 million but not more than $1,000 million, and may only
be rounded to the nearest $1,000 by entities with assets (or consolidated assets) of more
than $1,000 million:
Financial statement disclosures
AASB 2(44),(46),(51) Share-based payments
AASB 101((Aus126.1), Remuneration of auditors
(Aus126.2) *
AASB 124(16) Compensation of key management personnel
AASB 124(17),(18) Related party transactions
AASB 124 (Aus25.4), (Aus25.6), Other key management personnel information
(Aus25.7.1) to (Aus25.9.2)
* These paragraph references are to the now superseded version of AASB 101. While the
Class Order has not yet been updated, we believe that they should be read as referring to
paragraphs Aus138.1 and Aus138.2 in the 2007 version of AASB 101.
Directors’ report disclosures
CA 300(1)(d) Options granted over unissued shares or interests to
directors and the 5 most highly remunerated officers
CA 300(1)(g),(8),(9) Indemnification/insurance of officers or auditors
CA 300(11),(12) Directors’ interests in securities
CA 300(11B),(11C) Non-audit services
CA 300(13)(a) Fees paid to responsible entity and associates
CA 300A(1)(c),(1)(e) Remuneration of directors and executives
8. The following directors’ report disclosures may only be rounded to the nearest cent:
ASIC 98/100 CA 300(6)(c) Issue price of unissued shares or interests under
option
CA 300(7)(d),(e) Amounts unpaid, paid, or agreed to be considered as
paid, on shares or interests issued as a result of the
exercise of an option.
Earnings per share
ASIC 98/100 9. Basic and diluted earnings per share to be disclosed under AASB 133(66)-(69) may only be
rounded to the nearest one-tenth of a cent.
Illustrative wording
ASIC 98/100 10. Suggested wording for the directors' report and financial report where amounts are rounded
AASB101(51)(e)
off to the nearest tenth of a million dollars or million dollars is set out below:
Rounding of amounts
The company is of a kind referred to in Class Order 98/100 issued by the
Australian Securities and Investments Commission, relating to the 'rounding off' of
amounts in the directors' report (or financial report). Amounts in the directors'
report (or financial report) have been rounded off in accordance with that Class
Order to the nearest tenth of a million dollars (or million dollars), or in certain
cases, to the nearest thousand dollars.
Concise reports
ASIC 98/100 11. Relief adopted in the full financial report must also be reflected in the concise financial report,
ASIC 99/90
where prepared. Exactly the same conditions apply in relation to rounding in the concise
report as in the full report, including the requirement for a clear disclosure of the extent of
rounding, and reference to ASIC Class Order 98/100.

Appendix G
Changes in accounting policy
Changes in accounting policy 1-3

This appendix provides an example of a retrospective change in accounting policy and illustrates how
such a change may be disclosed. We have chosen the accounting for investment property as this was
one of the more recent examples of a retrospective change in policy. We do note that the new policy
has been mandatory since 1 July 2009 and therefore any change should have been recognised in the
prior reporting period. However, there are currently no new/revised accounting standards that are
applicable to VALUE ACCOUNTS Holdings Limited which would require retrospective application for
financial reporting periods commencing 1 July 2010. For that reason we have decided to retain the
previous example in this Appendix.
In addition to the disclosures set out below, entities will also need to include a third balance sheet as
at the beginning of the earliest period presented. This has been illustrated in the main part of this
publication and we have therefore not repeated it here.
AASB101(10)(e),(117)
1 Summary of significant accounting policies (extracts)
AASB101(119) (s) Investment property

AASB140(75)(a), Investment property, principally comprising freehold office buildings, is held for long-term rental yields
(75)(d)
and is not occupied by the group. Investment property is carried at fair value, which is based on active
market prices, adjusted, if necessary, for any difference in the nature, location or condition of the
specific asset. If this information is not available, the group uses alternative valuation methods such
as recent prices in less active markets or discounted cash flow projections. These valuations are
reviewed annually by a member of the Australian Property Institute. Changes in fair values are
recorded in the profit or loss as part of other income.
Change in accounting policy
AASB108(28)(c) Investment property now also includes properties that are under construction for future use as
AASB140(8)(e)
AASB2008-5(68) investment properties. These are also carried at fair value unless the fair value cannot yet be reliably
determined. Where that is the case, the property will be accounted for at cost until either the fair value
becomes reliably determinable or construction is complete. This is different to previous years where
properties under construction were accounted for at cost and presented under property, plant and
equipment until construction was complete.
The change in policy was necessary following changes made to AASB 140 Investment Property as a
result of the IASB’s 2008 Improvements standard.
AASB140(85B) VALUE ACCOUNTS Holdings Limited has elected to adopt the revised rules retrospectively from 1
AASB102(28)(d)
July 2008 and has revalued the property that was in construction at that time to fair value as of that
date. The fair value of the property had been determined at that time by an external valuer as part of
the valuation of the whole portfolio but had not been recognised as this was not permitted under the
previous rules.
AASB108(28)(f)(i), The following adjustments were made to the balance sheet as at 1 July 2008:
(g)
Increase/ 1 July 2008

Notes 30 June 2008 (Decrease) (Restated)
$'000 $'000 $'000

Property, plant and
equipment (property under
construction) 20 8,245 (100) 8,145
Investment property 21 3,085 120 3,205
Deferred tax liabilities 29 (567) (6) (573)
Net assets 15,734 14 15,748
Retained earnings 33 898 14 912

Non-controlling interests - - -
Total equity 15,734 14 15,748

Appendix G
(continued)
AASB108(28)(f)(i), There was no impact on the balance sheet as at 30 June 2009 as the construction of the property was
(g)
completed in the year ending 30 June 2009 and the property had therefore already been carried at fair
value in the 2009 financial statements. There were no other properties under construction as at 30
June 2009. However, profit for 2009 changed as follows:
Profit
Increase/ 2009
Notes 2009 * (Decrease) (Restated)
$'000 $'000 $'000
Income statement
(extract)
Other income 6 301 (20) 281
Profit before income tax 5,540 (20) 5,520
Income tax expense 9 (1,471) 6 (1,465)

Profit from discontinued
operation 10 399 - 399
Profit for the year 4,468 (14) 4,454

Owners of VALUE
ACCOUNTS Holdings
Limited 4,081 (14) 4,067
4,468 (14) 4,454
* The 2009 amounts are after correction of the error referred to in note 7(a).
AASB108(28)(f)(ii) Balance sheet items other than those mentioned above were not affected by the retrospective
adoption of the revised policy. 6
AASB108(28)(f)(ii) Basic earnings per share reduced by 0.1c from 35.1c to 35.0c and diluted earnings per share by 0.1c
from 34.5c to 34.4c.
20 Non-current assets – Property, plant and equipment (extract)

$'000 $'000 $'000 $'000 $'000
AASB116(RDR73.1) At 1 July 2008

AASB116(73)(d) - - (570) (4,025) (4,595)
Net book amount (see (g)
below) 2,350 1,050 910 3,835 8,145
(a) Assets in the course of construction

AASB116(74)(b) The carrying amounts of the assets disclosed above include the following expenditure recognised in
relation to property, plant and equipment which is in the course of construction:
2009 2011 1 July 2008 5

$'000 $'000 $'000
Buildings (g) - - -
Machinery and vehicles 350 150 100
Furniture, fittings and equipment 100 50 50
Total assets in the course of construction 450 200 150

Appendix G
(continued)
(g) Change in accounting policy 5

AASB101(10)(f),(39) Refer to note 1(s) for explanations of a change in accounting policy and retrospective adjustments
recognised on 1 July 2008. The amounts disclosed in this note are after these adjustments.
21 Non-current assets – Investment properties (extract)

2010 2009
$'000 $'000
At Fair value
AASB140(76) Opening balance at 1 July * 3,050 3,205
AASB140(76)(a) Acquisitions 200 -
AASB140(76)(a) Capitalised subsequent expenditure - 10
AASB140(76)(c) Classified as held for sale or disposals - (112)
AASB140(76)(d) Net gain/(loss) from fair value adjustment 50 97
AASB140(76)(f) - (150)
Transfer (to)/from inventories and owner-occupied property
AASB140(76) 3,300 3,050
Closing balance at 30 June
AASB101(10)(f),(39) * Refer to note 1(s) for explanations of a change in accounting policy and retrospective adjustments
5
29 Non-current liabilities – Deferred tax liabilities (extract)

AASB112(81)(g)(ii) Invest- Financial
Property, ments in assets at fair
plant and associate Investment value through
Movements equipment s property * profit/loss Other Total
$'000 $'000 $'000 $'000 $'000 $'000
At 1 July 2008* 294 68 90 6 115 573

Charged/(credited)
AASB112(81)(g)(ii) - to profit or loss 98 15 29 41 14 197
comprehensive
income 154 30 - - (5) 179
At 30 June 2009 546 113 119 47 124 949
AASB101(10)(f),(39) * Refer to note 1(s) for explanations of a change in accounting policy and retrospective adjustments
5
Commentary – Changes in accounting policy
Initial application of Australian Accounting Standard

AASB108(28) 1. When initial application of an Australian Accounting Standard has an effect on the current
period or any prior period, would have such an effect except that it is impracticable to
determine the amount of the adjustment, or might have an effect on future periods, an entity
shall disclose:
(a) the title of the Australian Accounting Standard
(b) when applicable, that the change in accounting policy is made in accordance with
its transitional provisions
(c) the nature of the change in accounting policy
(d) when applicable, a description of the transitional provisions
(e) when applicable, the transitional provisions that might have an effect on future
periods
(f) for the current period and each prior period presented, to the extent practicable,
the amount of the adjustment:
(ii) if AASB 133 Earnings per Share applies to the entity, for basic and
diluted earnings per share

Appendix G
(continued)
Commentary – Changes in accounting policy (continued)
(g) the amount of the adjustment relating to periods before those presented, to the
extent practicable, and
(h) if retrospective application required by paragraph 19(a) or (b) of AASB 108
Accounting Policies, Changes in Accounting Estimates and Errors is impracticable
for a particular prior period, or for periods before those presented, the
circumstances that led to the existence of that condition and a description of how
and from when the change in accounting policy has been applied.
Voluntary change in accounting policy
AASB108(29) 2. When a voluntary change in accounting policy has an effect on the current period or any prior
period, would have an effect on that period except that it is impracticable to determine the
amount of the adjustment, or might have an effect on future periods, an entity shall disclose:
(a) the nature of the change in accounting policy
(b) the reasons why applying the new accounting policy provides reliable and more
relevant information
(c) for the current period and each prior period presented, to the extent practicable,
the amount of the adjustment:
(ii) if AASB 133 applies to the entity, for basic and diluted earnings per
share
(d) the amount of the adjustment relating to periods before those presented, to the
extent practicable, and
(e) if retrospective application is impracticable for a particular prior period, or for
periods before those presented, the circumstances that led to the existence of that
condition and a description of how and from when the change in accounting policy
has been applied.
Impact of change on prior interim financial reports
AASB101(112)(c) 3. There is no longer an explicit requirement to disclose the financial effect of a change in
accounting policy that was made during the final interim period on prior interim financial
reports of the current annual reporting period. However, where the impact on prior interim
reporting periods is significant, an entity should consider explaining this fact and the financial
effect as part of the disclosures made under paragraphs 28 and 29 of AASB 108.
Additional comparative information
reclassified items in its financial statements, it must present a third balance sheet (statement
of financial position) as at the beginning of the earliest comparative period presented.
However, where the retrospective change in policy or the restatement has no effect on this
earliest statement of financial position, we believe that it would be sufficient for the entity to
merely disclose that fact.
AASB101(39) 5. The requirement to present comparative information for the beginning of the earliest period
presented also extends to the related notes. To satisfy this requirement, additional
comparative information has been provided in note 20(a) as these amounts had been
affected by the change in policy. The reconciliations of property, plant and equipment,
investment property and deferred tax liabilities already provide comparative information as of
1 July 2008. However, footnotes have been added highlighting the fact that the opening
balances have been adjusted. .
6. Many of the notes to the balance sheet will be unaffected by the restatement or
reclassification. In our view it is not necessary to present the additional information for notes
that are not affected, provided that the entity states in its financial statements that the other
notes have not been impacted. The omission of this information in relation to unaffected
notes is, in our view, not material and is therefore permitted.

Appendix H
AASB 9 Financial Instruments
AASB 9 Financial Instruments 1,2

AASB9(Aus1.3), AASB 9 Financial Instruments was issued in December 2009 and is applicable for annual reporting
(Aus1.4)
periods beginning on or after 1 January 2013. The standard may be applied early to annual
reporting periods ending on or after 31 December 2009. 3,4,5
This document illustrates the types of disclosures that would be required if VALUE ACCOUNTS
Holdings Limited had decided to adopt AASB 9 for its reporting period ending 30 June 2011.
Depending on individual circumstances, additional disclosures may be necessary that are not
applicable to VALUE ACCOUNTS Holdings Limited. These are explained in the commentary at the
end of this document. The disclosures in this document must be read in the context of the
assumptions set out below. Different facts and circumstances could result in different
measurements and classifications. 14,22-32
Assumptions made
In compiling these illustrative disclosures, we have made the following assumptions:
 VALUE ACCOUNTS Holdings Limited has chosen 1 July 2010 as the date of initial
application of the new standard. 6-9
 The group has elected to apply the limited exemption in paragraph 8.2.12 and has
therefore not restated comparative periods in the year of initial application. As a
consequence: 10-12
 any adjustments to carrying amounts are recognised at the beginning of the
current reporting period (ie 1 July 2010)
 financial assets are not reclassified in the balance sheet for the comparative
period.
 a third balance sheet is not required as comparatives are not restated, and
 both old and new accounting policies must be disclosed, as the old policies
are still applied to the amounts presented in the comparative period.
 The group has elected to present in other comprehensive income changes in the fair
value of its equity investments that were previously classified as available-for-sale.
These investments do not meet the definition of held for trading in AASB 139 (as
amended by paragraph 37 of AASB 2009-11 Amendments to Australian Accounting
Standards arising from AASB 9). 17,19
 Debt securities that were previously classified as available-for-sale did not meet the
criteria to be classified at amortised cost in accordance with AASB 9, because the
objective of the group’s business model is not to hold these debt securities in order to
collect their contractual cash flows.
 Investments in preference shares previously classified as available-for-sale were

reclassified to fair value through profit or loss as these instruments are classified as a
debt instrument under AASB 132 Financial Instruments: Presentation by the issuer.
These instruments do not meet the criteria for classification at amortised cost, as their
contractual terms do not give rise to cash flows on specified dates that are solely
payments of principal and interest on the principal amount outstanding.
 A contingent consideration receivable was classified as at fair value through profit or

loss because its cash flows are dependent on company’s earnings and are therefore
not solely payments of principal and interest.
 Debentures and zero-coupon bonds that would have previously been classified as held-
to-maturity are now classified at amortised cost. The group intends to hold the assets to
maturity to collect contractual cash flows and these cash flows consists solely of
payments of principal and interest on the principal amount outstanding.
 The group did not incur any gains or losses from the derecognition of financial assets
measured at amortised cost. 30
 The group did not have any financial assets designated as at fair value through profit or
loss in accordance with AASB 139 and it did not designate any financial assets at fair
value through profit or loss on initial application of AASB 9. 25,26,32
 The group decided not to early adopt the amendments to AASB 9 relating to the
recognition and measurement of financial liabilities and the derecognition of financial
instruments that were issued in December 2010.

Appendix H
(continued)
AASB101(10)(b), Consolidated income statement (extract)
(81)(a),(82)
2011 2010
Notes $'000 $'000

Income tax expense (3,146) (1,465)

Profit from discontinued operation 5 715 399


8,401 4,454

AASB101(10)(b), Consolidated statement of comprehensive income (extract)
(81)(a),(82)
2011 2010
Notes $'000 $'000

Available-for-sale financial assets - (31)

Financial assets at fair value through other comprehensive
income 80 -
Income tax relating to components of other comprehensive

income (193) (228)
Total comprehensive income for the year is attributable to:
8,850 5,000

Appendix H
(continued)

AASB101(8)(a),(68) Balance sheets (extracts)
AASB101(46)(c) As at 30 June 2011
2011 2010
Notes $'000 $'000
ASSETS
Current assets
AASB7R(8)(a) Financial assets at fair value through profit or loss 1,300 915
29,705 15,523
Assets classified as held for sale 250 4,955

Non-current assets
AASB7R(8)(f)
AASB2009-11(17) Receivables and other financial assets at amortised cost 16 1,686 380
AASB7R(8)(a)
AASB2009-11(17) Financial assets at fair value through profit or loss 17 510 -
AASB7R(8)(h) Financial assets at fair value through other comprehensive
AASB2009-11(17)
income 18 500 -
AASB7(8)(d) Available-for-sale financial assets 18 - 828
Investments accounted for using the equity method 19 3,775 3,275
Property, plant and equipment 12,095 8,080
Investment property 3,300 3,050
Net assets 33,259 20,286
EQUITY
Reserves 1,159 636
Capital and reserves attributable to owners of VALUE
ACCOUNTS Holdings Limited 30,574 18,690
Non-controlling interests 2,685 1,596

Appendix H
(continued)
AASB101(10)(c),(106) Consolidated statement of changes in equity (extract)
Attributable to owners of
Non-con-
Contributed Retained trolling Total
Notes $'000 $'000 $'000 $'000 $'000 $'000
AASB101(106)(d) Balance at 30 June 2010 13,870 636 4,184 18,690 1,596 20,286
AASB101(106)(b) Adjustment on change in

accounting policy (net of tax) 1(o) - (27) 27 - - -
Restated total equity at 1 July 13,870 609 4,211 18,690 1,596 20,286
2010
accompanying notes.
Notes to the consolidated financial statements
1 Summary of significant accounting policies (extracts)
AASB101(110) (a) Basis of preparation (extract)

(ii) Early adoption of standards 3,4
AASB108(28) The group has elected to apply AASB 9 Financial Instruments (as issued in December 2009) and
AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 from 1 July
2010, because the new accounting policies provide more reliable and relevant information for users to
assess the amounts, timing and uncertainty of future cash flows. In accordance with the transition
provisions, comparative figures have not been restated. See note 1(o) below for further details on the
10,11
impact of the change in accounting policy.
As permitted under the transitional provisions, the group has elected not to adopt the December 2010
revised version of AASB 9 which addresses the accounting for financial liabilities and the derecognition
of financial assets and liabilities. Further information about the impact of these amendments is provided
in note 1(ae).
AASB101(119),(120) (d) Foreign currency translation (extract)

AASB101(119) (ii) Transactions and balances
AASB121(23)(c),(30) Non-monetary items that are measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined. Translation differences on assets and
liabilities carried at fair value are reported as part of the fair value gain or loss. For example,
translation differences on non-monetary assets and liabilities such as equities held at fair value
through profit or loss are recognised in profit or loss as part of the fair value gain or loss and
translation differences on non-monetary assets such as equities whose changes in the fair value are
presented in other comprehensive income are included in the related reserve in equity. 15
[Refer to the main body of the publication for the rest of this policy.]

Appendix H
(continued)
Notes to the financial statements (continued)
1 Summary of significant accounting policies (extracts/continued)
AASB101(119) (o) Investments and other financial assets

AASB7(21)
Classification and reclassification – prior to 1 July 2010

[Insert previous policy – see main body of publication]
Recognition and derecognition
[No change, insert existing policy – see main body of publication]
Measurement – prior to 1 July 2010
[Insert previous policy – see main body of publication]
Classification – from 1 July 2010
AASB9(4.1) As from 1 July 2010 the group classifies its financial assets in the following measurement categories:
those to be measured subsequently at fair value and those to be measured at amortised cost. The
classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows.
(i) Debt investments – at amortised cost
AASB9(4.2) A debt investment is classified as at amortised cost only if both of the following criteria are met:
 the asset is held within a business model with the objective to collect the contractual
cash flows, and
 the contractual terms give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal outstanding.
The nature of any derivatives embedded in the debt investment are considered in determining
whether the cash flows of the investment are solely payment of principal and interest on the principal
outstanding and are not accounted for separately.
(ii) Debt investments – at fair value through profit or loss
AASB9(4.4) If either of the two criteria above are not met, the debt investment is classified as at fair value through
profit or loss.
AASB9(4.5) The group has not designated any debt investments as measured at fair value through profit or loss
so as to eliminate or significantly reduce an accounting mismatch.
AASB9(4.9) The group is required to reclassify all affected debt investments when and only when its business
model for managing those assets changes.
(iii) Equity investments
AASB9(5.4.4),(5.4.5) All equity investments are measured at fair value. Equity investments that are held for trading are
measured at fair value through profit or loss. For all other equity investments, the group can make an
irrevocable election at initial recognition of each investment to recognise changes in fair value through
other comprehensive income (OCI) rather than profit or loss.
Measurement – from 1 July 2010
AASB9(5.1.1) At initial recognition, the group measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs that are directly attributable to
the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through
profit or loss are expensed in profit or loss.
AASB9(5.4.1) A gain or loss on a debt investment that is subsequently measured at fair value and is not part of a
hedging relationship is recognised in profit or loss and presented net in the income statement within
other income or other expenses in the period in which it arises.
AASB9(5.4.2) A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of
a hedging relationship is recognised in profit or loss when the financial asset is derecognised or
impaired and through the amortisation process using the effective interest rate method.
AASB9(5.4.4),(5.4.5) The group subsequently measures all equity investments at fair value. Where the group’s
(B5.12)
management has elected to present fair value gains and losses on equity investments in other
comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit
AASB7(B5)(e) or loss. Dividends from such investments continue to be recognised in profit or loss as other revenue
when the group’s right to receive payments is established (see note 1(e)(vi)) and as long as they
represent a return on investment.

Appendix H
(continued)
Notes to the financial statements (continued)

AASB7(B5)(e) Changes in the fair value of financial assets at fair value through profit or loss are recognised in other
income or other expenses in the income statement as applicable (notes 6 and 8). Interest income
from these financial assets is included in the net gains/(losses). Dividend income is presented as
other revenue.
AASB7(27), Details on how the fair value of financial instruments is determined are disclosed in note 2.
AASB139(48),(48A),
AG69-AG82
Impairment
(i) Assets carried at amortised cost
AASB9(5.2.2) The group assesses at the end of each reporting period whether there is objective evidence that a
AASB139(58),(59)
financial asset or group of financial assets measured at amortised cost is impaired. A financial asset
or a group of financial assets is impaired and impairment losses are incurred only if there is objective
evidence of impairment as a result of one or more events that occurred after the initial recognition of
the asset (a loss event) and that loss event (or events) has an impact on the estimated future cash
flows of the financial asset or group of financial assets that can be reliably estimated.
[Refer to the main body of the publication for the rest of the policy.]
(ii) Assets classified as available-for-sale – prior to 1 July 2010
[Insert previous policy – refer to the main body of this publication]
Change in accounting policy 13,20
AASB9(8.2.3) The policies were changed to comply with AASB 9 Financial Instruments as issued in December
2009. This version of AASB 9replaces the provisions of AASB 139 that relate to the classification and
measurement of financial assets. It requires financial assets to be classified into two measurement
categories: those measured as at fair value and those measured at amortised cost. The determination
is made at initial recognition. The classification depends on the entity’s business model for managing
its financial instruments and the contractual cash flow characteristics of the instrument.
AASB9(8.2.4) While AASB 9 does not need to be applied until financial reporting periods commencing on or after 1
January 2013, the group has decided to adopt it early from 1 July 2010. On that date, the group’s
management has assessed which business models apply to the financial assets held by the group at
the date of initial application of AASB 9 (1 July 2010). 6 The main effects resulting from this
11,12
assessment were:
AASB7(44J)
AASB108(28)(f)
 Certain investments in debentures, debt securities and preference shares had to be
reclassified from available-for-sale to financial assets at fair value through profit or loss
($380,000 as at 1 July 2010). Fair value movements on these investments can no
longer be recorded through OCI as they are not equity investments. They also do not
meet the criteria to be classified as at amortised cost in accordance with AASB 9,
because the objective of the business model is not to hold these instruments in order to
collect their contractual cash flows. Related fair value gains of $27,000 were transferred
from the available-for-sale financial assets reserve to retained earnings on 1 July 2010.
In the 2011 financial year, fair value gains related to these investments amounting to
$10,000 were recognised in profit or loss, along with the related deferred tax expense of
$3,000.
AASB108(28)(f)
 The group elected to present in other comprehensive income changes in the fair value
of all its equity investments previously classified as available-for-sale, because the
business model is to hold these equity investments for long-term strategic investment
and not for trading. As a result, assets with a fair value of $448,000 were reclassified
from available-for-sale financial assets to financial assets at fair value through OCI and
fair value gains of $124,000 were reclassified from the available-for-sale financial
assets reserve to the financial assets at fair value through OCI reserve on 1 July 2010.
Other income for the 2011 financial year was $26,000 lower as there is no longer any
reclassification of accumulated amounts from reserves to profit or loss on the disposal
of these investments (tax impact $8,000).
 There was no difference between the previous carrying amount and the revised carrying
amount of the financial assets at 1 July 2010 to be recognised in opening retained
earnings.
 The group did not have any financial assets in the balance sheet that were previously
designated as fair value through profit or loss but are no longer so designated. Neither
did it designate any financial asset at fair value through profit or loss on initial
application of AASB 9.

Appendix H
(continued)

AASB7(44I) The financial assets of the group have been reclassified as follows: 20,21
Original New
Measurement Measurement
$000 * category ** $000 * category **
Current financial assets
Cash and cash equivalents 2,812 Amortised cost 2,812 Amortised cost
Trade receivables 6,767 Amortised cost 6,767 Amortised cost
Loans to key management
personnel 26 Amortised cost 26 Amortised cost
Other receivables 216 Amortised cost 216 Amortised cost
Equity securities – held for
trading 915 FVTPL 915 FVTPL
Non-current financial assets
Loans to related parties 200 Amortised cost 200 Amortised cost
Loans to key management
personnel 180 Amortised cost 180 Amortised cost
Other receivables - Amortised cost - Amortised cost
Equity securities 448 Available-for-sale 448 FVOCI
Debentures 270 Available-for-sale 270 FVTPL
Preference shares 110 Available-for-sale 110 FVTPL
Contingent consideration - Available-for-sale - FVTPL
Debentures and zero coupon
bonds held to collect
contractual cash flows - Held-to-maturity - Amortised cost
* Carrying amount as at 1 July 2010, being the date of initial application

** FVTPL = financial assets measured at fair value through profit or loss
FVOCI = investments in equity instruments designated as measured at fair value through other
The impact of these changes in the entity’s accounting policy on individual line items in the financial
statements can be summarised as follows:
Current year
impact Prior year restatement
Profit
Profit Increase/ Increase/ 2010
AASB108(28)(f)(i),(g) (Decrease) 2010 * (Decrease) (Restated)
$'000 $'000 $'000 $'000
Income statement
Other income (16,000) - - -
Income tax expense 5,000 - - -
Profit for the year (11,000) - - -
Statement of comprehensive
income
other comprehensive income
(available-for-sale financial assets) 16,000
Income tax relating to components of
other comprehensive income (5,000) - - -
Other comprehensive income for
the year 11,000 - - -
the year - - - -
Basic earnings per share xx c

Diluted earnings per share xx c

Appendix H
(continued)

1 July 30 June
30 June Increase/ 2010 30 June Increase/( 2009
AASB108(28)(f)(i),(g) 2010 * (Decrease) (Restated) 2009 Decrease) (Restated)
$'000 $'000 $'000 $'000 $'000 $'000

Non-current assets
Financial assets at FVTPL - 380 380 - - -
Financial assets at FVOCI - 448 448 - - -
Available-for-sale financial
assets 828 (828) - - - -
Total non-current assets 16,963 - 19,963 - - -
Net assets 20,286 - 20,286 - - -
Reserves
Available-for-sale
financial assets 151 (151) -
Financial assets at fair
value through OCI - 124 124 - - -
Retained earnings 4,184 27 4,211 - - -
Total equity 20,286 - 20,286 - - -
* The 30 June 2010 amounts are after correction of the error referred to in note 7(a).
5 Revenue (extract)
2011 2010
$'000 $'000
Other revenue
AASB7R(11A)(d) Dividends from equity investments at fair value through other
AASB2009-11(17)
comprehensive income (note 18)
Related to investments derecognised during the period 20 -
Related to investments held at the end of the reporting period 120 -
AASB118(35)(b)(v) Dividends – other investments 160 300
6 Other income (extract)

2011 2010
Notes $'000 $'000
AASB7(20)(a)(ii) Net gain on sale of available-for-sale financial assets 18 - -

AASB7(20)(a)(i) Fair value gains on financial assets at fair value through
14, 17
profit or loss 265 -

Appendix H
(continued)
(extract)
(iii) Details of the sale of the division

AASB132(11) In the event the operations of the machinery hire division achieve certain performance criteria during
AASB139(9)
the fair value of the consideration was determined to be $100,000. It has been recognised as a
financial asset at fair value through profit or loss, see note 17.
AASB39(AG8), At year end, the fair value was re-estimated to be $110,000. The increase in fair value was recognised
AASB139(55)(b)
in other income, see note 6.
16 Non-current assets - Receivables and other financial assets at amortised

cost
2011 2010
$'000 $'000
AASB101(78)(b) Loans to related parties 800 200

Loans to key management personnel* 251 180
AASB101(78)(b) Other receivables* 425 -
AASB101(77) Debentures (a) 150 -
AASB101(77) Zero coupon bonds (b) 60 -
1,686 380
* Refer to note 12 for the current portions of these receivables.

Further information relating to loans to related parties and key management personnel is set out in
notes 42 and 38 respectively.
(a) Impaired financial assets and financial assets past due

AASB7(37)(a),(b) None of the non-current receivables and other financial assets at amortised cost are impaired or past
due but not impaired.
(b) Fair values

AASB7(25) The fair values and carrying amounts of non-current receivables and other financial assets at
amortised cost are as follows:
2011 2010
Carrying Carrying
$'000 $'000 $'000 $'000
Loans to related parties 800 800 200 200

Loans to key management personnel 251 271 180 174
Other receivables 425 410 - -
Debentures 150 165 - -
Zero coupon bonds 60 63 - -
1,686 1,709 380 374
AASB7(27) The fair values are based on cash flows discounted using a current lending rate of 7.5% (2010 -
7.2%) for other receivables and of 8.9% (2010 - 8.2%) for loans to related parties and key
management personnel. The fair value of the debentures and the zero coupon bonds was determined
by reference to published price quotations in an active market.

Appendix H
(continued)
16 Non-current assets - Receivables and other financial assets at amortised

cost (continued)
(c) Risk exposure

AASB7(31) Information about the group's exposure to credit risk, foreign exchange and interest rate risk is
AASB7(36)(a)
provided in note 2. The maximum exposure to credit risk at the end of the reporting period is the
carrying amount of each class of financial asset mentioned above.
AASB7(36)(c) The debentures and zero coupon bonds were all issued by entities rated ‘AA’ or higher. They are
AASB7(34)
denominated in Australian currency. As a result, there is no exposure to foreign currency risk. There
is also no exposure to price risk as the entity intends to hold them to maturity.
17 Non-current assets - Financial assets at fair value through profit or loss

AASB7(25) Financial assets at fair value through profit or loss include the following classes of financial assets:
2011 2010
$'000 $'000
Listed securities
Debentures 210 -
Preference shares 90 -
300 -
Unlisted securities
Debentures 75 -
Preference shares 25 -
100 -
Contingent consideration (note 10) 110 -
510 -
(a) Fair values

AASB7(27) Unlisted securities are traded in inactive markets. Their fair value is determined based on the present
value of net cash inflows from expected future interest or dividends and subsequent disposal of the
securities. The discount rate used to determine the present value of the net cash inflows was based
on a market interest rate and the risk premium specific to the unlisted securities (2011 - 10%; 2010 -
9%).15
AASB7(27) The fair value of the listed securities is based on their current bid prices in an active market.
(b) Impairment and risk exposure

AASB7(36)(a) The maximum exposure to credit risk at the end of the reporting period is the carrying amount of the
debentures and preference shares classified as at fair value through profit or loss.
AASB7(37),(36)(c) None of the financial assets are either past due or impaired. All of the debentures and preference
shares were issued by entities rated ‘AA’ or higher.
AASB7(34) All of the non-current financial assets at fair value through profit or loss are denominated in Australian
currency. For an analysis of the sensitivity of these financial assets to interest rate risk refer to note 2.

Appendix H
(continued)
18 Non-current assets – Equity investments at fair value through other

comprehensive income and available-for-sale financial assets 17-19
AASB7(25) Equity investments at fair value through other comprehensive income (2010 – available-for-sale
financial assets – see (g) below) include the following classes of financial assets:
2011 2010
$'000 $'000
Equity investments
Listed equity securities (b),(c) 350 350
Unlisted equity securities (a),(b) 150 98
500 448
Debt investments
Listed debentures - 210
Unlisted debentures (a) - 60
Listed preference shares - 90
Unlisted preference shares (a) - 20
- 380
500 828
(a) Unlisted securities

AASB7(27) Unlisted securities are traded in inactive markets. Their fair value is determined based on the present
value of net cash inflows from expected future interest or dividends and subsequent disposal of the
securities. The discount rate used to determine the present value of the net cash inflows was based
on a market interest rate and the risk premium specific to the unlisted securities (2011 - 10%; 2010 -
16
9%).
AASB127(41)(b) Included in unlisted securities are shares in VALUE ACCOUNTS Trustee Pty Ltd at fair value of $2
(2010 - $2). The parent entity owns 100% of the issued capital of VALUE ACCOUNTS Trustee Pty
Ltd, which is the trustee of the VALUE ACCOUNTS Employees’ Superannuation Fund. VALUE
ACCOUNTS Trustee Pty Ltd is not a controlled entity of VALUE ACCOUNTS Holdings Limited
because it is required to act as a trustee in the interests of the members of the superannuation fund,
rather than those of VALUE ACCOUNTS Holdings Limited.
(b) Equity investments at fair value through other comprehensive income

AASB7R(11A)(c) Equity investments at fair value through other comprehensive income comprise the following individual
investments:
2011 2010
$'000 $'000
Listed securities
Fluffy Bear Limited 125 -
Old Kangaroo Limited 75 -
Crazy Emu Limited 80 -
Sleepy Koala Limited 70 -
Unlisted securities
Cheeky Goanna Limited 100 -
Brolga Dance Supplies Limited 50 -
500 -

Appendix H
(continued)
18 Non-current assets – Equity investments at fair value through other

comprehensive income and available-for-sale financial assets (continued)
(c) Disposals
AASB7R(11B) Since 1 July 2010, the group has sold its shares held in Angels Air Limited as a result of a takeover
AASB7R(20)(viii)
AASB2009-11(17) offer for cash. The shares sold had a fair value of $75,000 and the group realised a gain of $26,000
which is included in other comprehensive income.
AASB9(8.2.1) In the previous financial period, the group sold its investment in Devils Dreams Limited, as this
investment no longer suited the group’s investment strategy. The shares sold had a fair value of
$143,000 at the time of the sale and the group realised a loss of $48,000. Since the disposal occurred
prior to the date of the initial adoption of AASB 9 Financial Instruments and the entity has elected not to
apply AASB 9 retrospectively, the loss and associated tax impact was reclassified from reserves and
included in profit or loss for that period (see note 8).
(d) Investments in related parties

AASB124(17) Refer to note 19 for information on the carrying amount of investments in joint ventures and
associates. In addition, the equity investments include $100,000 (2010 – $80,000) of securities held in
entities that are controlled by the ultimate parent entity, Lion Plc.
(e) Non-current assets pledged as security

AASB7(14) Refer to note 28 for information on non-current assets pledged as security by the group.
(f) Impairment and risk exposure

AASB7(34) All of the equity investments at fair value through OCI and the financial assets classified as available-
for-sale as at 30 June 2011 are denominated in Australian currency. For an analysis of the sensitivity
of these financial assets to price and interest rate risk refer to note 2.
AASB7(36)(a) The maximum exposure to credit risk at the end of the reporting period was the fair value of the
debentures classified as available-for-sale.
AASB7(36)(c) None of the available-for-sale financial assets were either past due or impaired as at 30 June 2011.
(g) Change of accounting policy

See note 1(o) for explanations regarding the change of accounting policy and the reclassification of
certain investments from available-for-sale to financial assets at fair value through profit or loss (note
17).
33 Reserves and retained earnings (extracts)
(a) Reserves
2011 2010
Notes $'000 $'000
$'000 $'000
AASB101(106)(d)(ii) Movements:
Financial assets at fair value through other comprehensive
income
Balance 1 July * 124 -
AASB7R(20)(a)(viii)
AASB2009-11(17) Net gains/losses - gross 18 80 -
AASB112(61),(81)(a)
AASB101(90) Deferred tax 9,29 (24) -
Balance 30 June 180 -

Appendix H
(continued)
33 Reserves and retained earnings (extracts - continued)

2011 2010
Notes $'000 $'000

Balance 1 July * - 173
AASB7(20)(a)(ii) Revaluation – gross 18 - (31)
AASB112(61),(81)(ab)
AASB101(90) Deferred tax 9,29 - 9
AASB101(92),(95) Reclassification adjustments
AASB7(20)(a)(ii) Transfer to profit or loss – gross - -
AASB112(61),(81)(ab)
AASB101(90) Deferred tax 9,29 - -
Balance 30 June - 151
* Refer to note 1(o) for explanations of a change in accounting policy and adjustments recognised on
1 July 2010. The amounts disclosed in this note are after these adjustments.
(b) Retained earnings

AASB101(106)(d) Movements in retained earnings were as follows:
2011 2010
Notes $'000 $'000
Balance 1 July * 4,211 912

Net profit for the year 7,367 4,067
AASB101(106)(d)(ii) Items of other comprehensive income recognised directly
in retained earnings
Actuarial (losses)/gains on retirement benefit
obligation, net of tax 31(f) (217) 138
Dividends 35 (1,224) (957)
Transfer from share capital on buy-back of preference
shares 32(d) 64 -
Depreciation transfer, net of tax 33(a) 14 24
Balance 30 June 10,215 4,184
* Refer to note 1(o) for explanations of a change in accounting policy and retrospective adjustments
AASB101(79)(b) (c) Nature and purpose of reserves
(ii) Financial assets at fair value through other comprehensive income
AASB7R(11A)(e) As explained in note 1(o), the group has elected to recognise changes in the fair value of certain
AASB2009-11(17)
investments in equity securities in other comprehensive income. These changes are accumulated in a
separate reserve within equity. The entity does not have any policy on transferring amounts from this
reserve to another reserve or to retained earnings when the relevant equity securities are sold.
(ii) Available-for-sale financial assets
Until 30 June 2010, changes in the fair value and exchange differences arising on translation of
investments, such as equities, classified as available-for-sale financial assets, were recognised in
other comprehensive income, as described in note 1(o) and accumulated in a separate reserve within
equity. Amounts were reclassified to profit or loss when the associated assets were sold or impaired.
The balance in the reserve was transferred to the financial assets at fair value through OCI reserve
and to retained earnings on 1 July 2010 as a result of the change in accounting policy described in
note 1(o).

Appendix H
(continued)
Commentary - AASB 9 Financial Instruments
New accounting standard for financial assets

AASB9(Aus1.2),(1.3) 1. AASB 9 Financial Instruments was first issued in December 2009 and subsequently revised in
December 2010 to incorporate requirements regarding the recognition and measurement of
financial liabilities and the derecognition of financial instruments. It is mandatory for annual
reporting periods beginning on or after 1 January 2013 and applies to all reporting entities and
financial statements that are, or are held out to be, general purpose financial statements.
2. AASB 9 does not yet address the accounting for impairments or hedge accounting as these
are currently under discussion by the IASB. However, we expect these to be incorporated into
AASB 9 once the IASB has finalised its new guidance in those areas.
Early application permitted
AASB9(Aus1.4) 3. Entities may adopt AASB 9 (as issued in December 2009) early to annual reporting periods
AASB9R(Aus1.3)
ending on or after 31 December 2009 provided they disclose that fact and apply the
amendments made by AASB 2009-11 Amendments to Australian Accounting Standards
arising from AASB 9 at the same time. If an entity intends to adopt the December 2010
version of AASB 9 early, it must also apply the amendments made by AASB 2010-7
Amendments to Australian Accounting Standards arising from AASB 9 (December 2010).
AASB9R(Aus1.7) 4. An entity can decide to adopt the rules on financial assets (ie the December 2009 version of
AASB 9) early without having to adopt subsequent phases of the standard (eg the new rules
for financial liabilities) as soon as they are issued. However, if an entity wishes to adopt any of
the later stages early, it will have to adopt the standard in its entirety at that time, ie including
any requirements that it has not previously applied. For the purposes of this Appendix, VALUE
ACCOUNTS Holdings Limited has adopted the December 2009 version of AASB 9 instead of
the December 2010 version. References in the left hand column are therefore to the 2009
version unless otherwise indicated with an ‘R’ (AASB9R).
Impact of early adoption on equity-accounted investments
AASB128(26),(27) 5. Entities with equity-accounted investments that plan to adopt AASB 9 early will also need to
consider the impact of the adoption on the financial statements of the investee. AASB 128
Investments in Associates requires the use of uniform accounting policies and states that
adjustments shall be made where the investee’s accounting policies are different to those of
the investor.
Initial application date
AASB9(8.2.2) 6. AASB 9 introduces the concept of a ‘date of initial application’, being the date an entity first
applies the requirements of the standard. This date is important for:
(a) identifying the assets to which AASB 9 should be applied – see paragraph 10
below
AASB9(8.2.4) (b) assessing the business model, ie which financial assets satisfy the conditions for
measurement at amortised cost
AASB9(8.2.7)-(8.2.9) (c) designations or de-designations for using the fair value option, and
AASB9(8.2.7) (d) designations of non-trading equity investments as at fair value through other
comprehensive income (OCI).
7. For example, at the date of initial application an entity assesses the business model for
holding a particular asset on the basis of the facts and circumstances that exist at that date.
The resulting classification is then applied retrospectively, irrespective of the entity’s business
model in prior reporting periods. Similarly, at the date of initial application, an entity may
designate a financial asset at fair value through profit or loss, or an investment in an equity
instrument as at fair value through other comprehensive income on the basis of the facts and
circumstances that exist at that date. An entity can also revoke a previous designation of a
financial asset as measured at fair value through profit or loss. In each case, the new
classification is applied retrospectively.
AASB9(8.2.2) 8. If an entity has decided to adopt AASB 9 before 1 January 2011, it can choose any date
between 7 December 2009 (the date of the issue of AASB 9) and 31 December 2010 for initial
application. For entities adopting the standard on or after 1 January 2011, the initial
application date is the beginning of the first reporting period in which the standard is adopted.

Appendix H
(continued)
Commentary - AASB 9 Financial Instruments (continued)
AASB9(8.2.3) 9. If the entity adopts the standard for a financial reporting period commencing on or before 1
January 2011 and chooses an initial application date which is not at the beginning of the
reporting period, it must disclose that fact and the reasons for using that date.
Retrospective application
AASB9(8.2.1) 10. As a general rule, the new standard must be adopted retrospectively and the opening
balances for the earliest period presented must be restated. However, despite the
retrospective application, the standard is not applied to financial assets that had already been
derecognised at the date of initial application. As a consequence:
(a) assets that had been derecognised prior to the date of initial application are not
reclassified in any of the balance sheets presented (including balance sheets for
comparative periods)
(b) gains or losses that were reclassified from OCI to profit or loss on the sale of
available-for-sale investments prior to the date of initial application are not
transferred back into OCI as part of the retrospective adoption, and
(c) impairment losses recognised on available-for-sale investments that were sold prior
to the date of initial application are not reversed on transition.
Relief for early adopters
AASB9(8.2.12) 11. Entities that adopt the new standard for reporting periods beginning before 1 January 2012
are further exempt from the requirement to restate prior periods. If an entity applies this
exemption, it recognises any adjustments to the carrying amounts of the financial assets at
the beginning of the annual reporting period that includes the date of initial application in
opening retained earnings (or other component of equity, as appropriate).
12. VALUE ACCOUNTS Holdings Limited has applied the exemption in paragraph 8.2.12 and has
therefore not restated the comparatives for the 2010 reporting period. If we decided not to
apply the exemption, we would:
(a) have to restate the comparative balance sheet for 2010 to show the financial
assets in their new categories
(b) have to include a third balance sheet as at 1 July 2009 showing how the
retrospective application affected the opening balances at that date. We would also
have to add corresponding comparative information to all notes affected by the
restatement
(c) have to restate the income statement and statement of comprehensive income for
the 2010 reporting period. For example, any gains/losses on available-for-sale debt
instruments that were previously recognised in OCI would have to be presented in
other income/expense
(d) not need to include all of the previous accounting policies. However, we would still
have to explain any changes to the policies and their impact.
Disclosure of change in accounting policy
AASB108(28) 13. VALUE ACCOUNTS Holdings Limited has described the impact of the change in accounting
AASB7R(44I)
AASB2009-11(17) policy both in narrative and tabular form. Depending on the complexity and materiality of an
entity’s financial assets, either of these two forms of presentations may be sufficient on its
own. However, the table showing the classification under the old and new rules should be
provided unless another format is more appropriate.
Flow-on impact on other statements and notes not illustrated
14. The adoption of AASB 9 and associated change in accounting policy for financial assets may
also affect the following:
(a) statement of cash flows (presentation of cash flows)
(b) note 2 Financial risk management – sensitivity analysis (impact on profit/loss and
other equity) and fair value disclosures
(c) note 9 Income tax expense
(d) note 33(b) Retained earnings.
These changes are not illustrated in this publication, as they only affect the amounts disclosed
but do not result in new disclosures as such.

Appendix H
(continued)
Foreign exchange gains and losses on equity investments

AASB9(5.4.4) 15. AASB 9 permits an entity to make an irrevocable election to present in other comprehensive
(B5.14)
income changes in the fair value of an investment in an equity instrument that is not held for
trading. Such an investment is not a monetary item. The gain or loss that is presented in other
comprehensive income in accordance with AASB 9 therefore includes any related foreign
exchange component.
Fair value of unlisted investments
AASB9(8.2.11), 16. AASB 9 removes the exemption allowing unquoted equities and derivatives on unquoted
(B5.5)-(B5.8)
equities to be measured at cost. Such investments are required to be measured at fair value.
AASB 9 provides guidance on when cost may be an appropriate estimate of fair value. Any
difference between the previous carrying amount in accordance with AASB 139 (cost less
impairment) and the fair value (AASB 9) should be recognised in the opening retained
earnings of the reporting period that includes the date of initial application.
Equity investments at fair value through OCI
AASB9(5.4.4),(B5.12) 17. AASB 9 requires all equity investments to be measured at fair value. However an entity may
make an irrevocable election at initial recognition to present all fair value changes for non-
trading equity investments in other comprehensive income (OCI). There is no subsequent
reclassification of fair value gains and losses to profit or loss on disposal and no impairment is
recognised in profit or loss. Dividends received from these investments must be recognised in
profit or loss unless the dividend clearly represents a recovery of part of the cost of the
investment.
AASB7R(11A) 18. If an entity has elected to measure any of its non-trading equity investments at fair value
AASB2009-11(17)
through OCI, it must disclose:
(a) which investments have been designated to be measured at fair value through OCI
(b) the reasons for using this presentation alternative
(c) the fair value of each such investment at the end of the reporting period
(d) dividends recognised during the period, showing separately those related to
investments derecognised during the reporting period and those related to
investments held at the end of the reporting period
(e) any transfers of the cumulative gain or loss within equity during the period and the
reason for such transfers
AASB7R(11B) (f) for any equity investments that were derecognised during the period, the reason for
AASB2009-11(17)
disposing of the investments, the fair value of the investments at the date of
derecognition and the cumulative gain or loss on disposal.
AASB139R(9) 19. In accordance with AASB 139R(9) a financial asset is held for trading if:
AASB2009-11(37)
(a) it is acquired or incurred principally for the purpose of selling or repurchasing it in
the near term
(b) on initial recognition it is part of a portfolio of identified financial instruments that
are managed together and for which there is evidence of a recent actual pattern of
short-term profit-taking, or
(c) it is a derivative.

Appendix H
(continued)
First application of AASB 9

20. When AASB 9 is first adopted, the entity must disclose:
AASB7R(44I)(a) (a) the original measurement category and carrying amount determined in accordance
AASB2009-11(17)
with AASB 139
AASB7R(44I)(b) (b) the new measurement category and carrying amount determined in accordance
AASB2009-11(17)
with AASB 9
AASB7R(44I)(c) (c) the amounts of any financial assets in the balance sheet that were previously
AASB2009-11(17)
designated as measured at fair value through profit or loss but that are no longer so
designated, distinguishing between those that AASB 9 requires an entity to
reclassify and those that an entity elects to reclassify
AASB7R(44J)(a) (d) qualitative information about how the entity applied the classification requirements
AASB2009-11(17)
in AASB 9 to those financial assets whose classification has changed as a result of
applying AASB 9
AASB7R(44J)(b) (e) qualitative information about the reasons for any designation or de-designation of
AASB2009-11(17)
financial assets or financial liabilities as measured at fair value through profit or loss
AASB9(8.2.3) (f) where applicable, the reasons for choosing an application date which is not at the
beginning of a reporting period, see paragraph 9 above.
AASB7R(44I) 21. The quantitative disclosures should be made in tabular format unless another format is more
AASB 2009-11(17)
AASB9(8.2.12) appropriate. The original and new carrying amounts to be included in this disclosure should be
at the beginning of the annual reporting period that includes the date of initial application.
22. In addition to the disclosures illustrated above, the following information must also be
disclosed where applicable.
Statement of comprehensive income
23. The following amounts must be disclosed as separate line items in the statement of
comprehensive income:
AASB101R(82)(aa) (a) gains and losses arising from the derecognition of financial assets measured at
AASB2009-11(21)
amortised cost
AASB101R(82)(ca) (b) if a financial asset is reclassified so that it is measured at fair value, any gain or
AASB2009-11(21)
loss arising from a difference between the previous carrying amount and its fair
value at the reclassification date (as defined in AASB 9).
Statement of comprehensive income or notes
24. The following items of income, expense, gains or losses must be disclosed either in the
statement of comprehensive income or in the notes:
AASB7R(20)(a)(i) (a) net gains or losses on financial assets that are designated at fair value through
AASB2009-11(17)
profit or loss upon initial recognition
AASB7R(20)(a)(vi) (b) net gains or losses on financial assets measured at amortised cost
AASB2009-11(17)
AASB7R(20)(c) (c) fee income (other than amounts included in determining the effective interest rate)
AASB2009-11(17)
arising from financial assets at amortised cost.
Financial assets designated at fair value through profit or loss
AASB9(4.5) 25. AASB 9 continues to allow entities the option to designate assets at fair value through profit or
loss at initial recognition where this significantly reduces an accounting mismatch. The
designation at fair value through profit or loss is irrevocable.
26. If the entity has any financial assets that are designated as measured at fair value through
profit or loss it must disclose:
AASB7R(B5)(aa)) (a) the nature of the financial assets the entity has designated as measured at fair
AASB2009-11(19)
value through profit or loss, and
(b) how the entity has satisfied the criteria in paragraph 4.5 of AASB 9 for such
designation.

Appendix H
(continued)
Reclassified financial assets

AASB9(4.9),(5.3.1), 27. AASB 9 prohibits reclassifications between fair value and amortised cost except in rare
(5.3.2),(B5.9)-(B5.11)
circumstances when the entity’s business model changes. All reclassifications are accounted
for prospectively. Any difference between the carrying amount and fair value on a
reclassification is recognised in a separate line in profit or loss. To ensure full transparency,
the standard requires additional disclosures for any reclassification.
AASB7R(12B) 28. If the entity has reclassified any financial assets as a result of changes in its business model it
AASB2009-11(17)
must disclose:
(a) the date of reclassification
(b) a detailed explanation of the change in business model and a qualitative
description of its effect on the entity’s financial statements
(c) the cumulative amount reclassified into and out of each category.
AASB7R(12D) 29. If the entity has assets reclassified so that they are measured at amortised cost it must
AASB2009-11(17)
disclose:
(a) in the year of reclassification – the fair value of the financial assets at the end of the
reporting period and the fair value gain or loss that would have been recognised in
profit or loss during the reporting period if the financial assets had not been
reclassified, and
AASB7R(12C) (b) for each reporting period following reclassification until derecognition – the effective
AASB2009-11(17)
interest rate determined on the date of reclassification and the interest income or
expense recognised.
Derecognition of financial assets at amortised cost
AASB7R(20A) 30. Where applicable, the entity must disclose an analysis of the gains or losses arising from the
AASB2009-11(17)
derecognition of financial assets measured at amortised cost, showing separately gains and
losses and explaining the reasons for the derecognition.
Equity investments at fair value through other comprehensive income
AASB7R(11A)(e) 31. If the entity transfers cumulative gains or losses within equity it must disclose the amounts
AASB2009-11(17
transferred and the reasons for such transfers.
Disclosures in first year of adoption of AASB 9
AASB7R(44J)(b) 32. In the first year of adoption, the entity must also disclose information about the de-designation
AASB2009-11(17)
of financial assets at fair value through profit or loss (see paragraph 6 above), where
applicable.

Appendix I
Abbreviations
Abbreviations used in this publication are set out below.

AAG Accounting Guidance Releases
AARF Australian Accounting Research Foundation
AAS Australian Accounting Standards issued jointly by CPA Australia and The
Institute of Chartered Accountants in Australia
AASB Australian Accounting Standards Board
AASB (Number) Accounting Standards issued by the AASB
AASB (Number)R Revised accounting standard – not yet operative
AASB-I (Number) Interpretations issued by the AASB
AB Accounting Bulletins issued by the AARF
ABN Australian Business Number
ACN Australian Company Number
ADI Authorised Deposit-taking Institution
AfS Available-for-sale (financial assets)
AFSL Australian Financial Services Licence
AGAAP Australian Generally Accepted Accounting Principles
AGM Annual General Meeting
AGS Auditing Guidance Statements
AIFRS Australian equivalents to International Financial Reporting Standards
APES Standards issued by the Accounting Professional & Ethical Standards Board
(APESB)
APS Miscellaneous Professional Statements
ASA Auditing Standards issued by the AUASB under the Corporations Act 2001
ASIC Australian Securities and Investments Commission
ASIC Act Australian Securities and Investments Commission Act 2001
ASIC CP ASIC Consultation Paper
ASIC IR ASIC Information Releases
ASIC RG ASIC Regulatory Guide
ASIC (Number) ASIC Class Orders
ASX ASX Limited, trading as Australian Securities Exchange
ASX (Number) ASX Listing Rules
AUASB Auditing and Assurance Standards Board
CA Corporations Act 2001
CESR Committee of European Securities Regulators
CGC ASX Corporate Governance Council - Principles of Good Corporate
Governance and Best Practice Recommendations
CGU Cash-Generating Unit
CLERP 9 Corporate Law Economic Reform Program (Audit Reform and Corporate
Disclosure) Act 2004
CPA CPA Australia

Appendix I
Abbreviations
(continued)
CPRS Carbon Pollution Reduction Scheme

CR Corporations Regulations 2001
DP Discussion Papers
ED Accounting Exposure Drafts
ED securities Enhanced Disclosure securities
EITE Energy-intensive trade-exposed
FRC Financial Reporting Council
FRS Financial Reporting Standard (UK)
FVTPL (Financial assets/liabilities at) fair value through profit or loss
GAAP Generally Accepted Accounting Principles
GGS General Government Sectors
GPFS General Purpose Financial Statements
GS Guidance Statements issued by the AUASB
IAS International Accounting Standards
IASB International Accounting Standards Board
ICAA The Institute of Chartered Accountants in Australia
IFRIC Interpretations issued by the IFRS Interpretations Committee of the IASB
IFRS International Financial Reporting Standards
IFSA Investment and Financial Services Association
KPI Key Performance Indicator
LTI Long-term Incentive
MEC group Multiple Entry Consolidated group
MIS Managed Investment Scheme
OCI Other comprehensive income
PSASB Public Sector Accounting Standards Board (former)
RDR Reduced Disclosure Regime
SAC Statements of Accounting Concepts
SRS Act Corporations Legislation Amendment (Simpler Regulatory System) Act 2007
STI Short-term Incentive
TSR Total shareholder return
UIG Urgent Issues Group
UIG (Number) UIG Interpretations

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The Institute of Chartered Accountants

Welcome to the 2011 edition in our VALUE ACCOUNTS Holdings series.

The latest edition:

PwC offices and contact details 406

 updated various accounting policies (eg, impairment of financial assets, borrowings,

 illustrated the impact of a retrospective restatement through an error.

 Classification of rights issues (AASB 2009-10 – assumed no impact on VALUE ACCOUNTS

 Extinguishing financial liabilities with equity instruments (Interpretation 19 – assumed no

Early adoption of standards

Specialised companies and industry-specific requirements

 simplify the audit fee disclosures

Commentary - Annual report

Quotation of Australian Business Number or Australian Company Number

PwC 5 VALUE ACCOUNTS Holdings Limited

Directors M K Hollingworth BEc, FAIM, FAus IMM

Divisional general managers Furniture - manufacturing

PwC 6 VALUE ACCOUNTS Holdings Limited

Bankers Finance Corporation Limited

Commentary - Corporate directory

Entities listed under ASX Listing Rule 1.3.2(b)

PwC 7 VALUE ACCOUNTS Holdings Limited

Directors' report 1-4,34,35

Dividends - VALUE ACCOUNTS Holdings Limited

PwC 8 VALUE ACCOUNTS Holdings Limited

Review of operations 6-8

Significant changes in the state of affairs

Matters subsequent to the end of the financial year

Likely developments and expected results of operations 9

PwC 9 VALUE ACCOUNTS Holdings Limited

Environmental regulation 2,10-13

Information on directors 14-17

PwC 10 VALUE ACCOUNTS Holdings Limited

Information on directors (continued) 14-17

CA300(10)(a) J C Campbell BEng. Non-executive director. Age 67.

PwC 11 VALUE ACCOUNTS Holdings Limited

Information on directors (continued) 14-17

CA300(10)(a) B A Wilson MA (Cantab). Independent non-executive director. Age 54.

PwC 12 VALUE ACCOUNTS Holdings Limited

Information on directors (continued) 14-17

A = Number of meetings attended

PwC 13 VALUE ACCOUNTS Holdings Limited

Not mandatory Retirement, election and continuation in office of directors 19

Non-executive and executive directors – see pages 10 to 13 above

Other key management personnel 45,46

Changes since the end of the reporting period 55

Role of the remuneration committee

PwC 14 VALUE ACCOUNTS Holdings Limited

PwC 15 VALUE ACCOUNTS Holdings Limited

PwC 16 VALUE ACCOUNTS Holdings Limited

TSR rank Proportion of options that vest

PwC 17 VALUE ACCOUNTS Holdings Limited

PwC 18 VALUE ACCOUNTS Holdings Limited

PwC 19 VALUE ACCOUNTS Holdings Limited

PwC 20 VALUE ACCOUNTS Holdings Limited

Base salary including Termination

PwC 21 VALUE ACCOUNTS Holdings Limited