NUMERO DE HABITANTES
4 Transformación gradual de los residuos orgánicos
Cash and cash equivalents
Cash and cash equivalents consists of cash on hand, deposits held at call with banks, cash in transit, short term deposits and investments with original maturities of three months or less.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts.
Credit terms are generally between 30 – 135 days depending on the nature of the transaction.
All receivables are regularly reviewed and a provision for impairment of trade receivables is established when there is objective evidence that all amounts may not be collectible according to the original terms of the sales transaction. Bad debts are written-off when identified.
Other receivables
Other debtors are initially recorded at fair value of the consideration received or receivable.
Other debtors are classified as current assets unless the debtor has an unconditional right to defer settlement of the asset for at least 12 months after the statement of financial position date, in which case they are classified as non-current other debtors.
Subsequent measurement of other non-current debtors occurs at amortised cost, where the nominal value is discounted to present value, using the effective interest rate of the asset over the expected period of settlement.
Loans
Loans comprise employee share loans, loans to controlled entities and loans to Director related entities and other persons. All loans except for certain inter-entity loans are non-interest bearing and are initially recognised at fair value and subsequently recorded at amortised cost, representing the present value of the loan, calculated using the effective interest rate of the loan over its term.
Inventories
Inventories of finished goods, raw materials and stores and work in progress are valued at the lower of cost (using average or FIFO basis) and estimated net realisable value. Cost of manufactured goods is determined on a consistent basis, comprising raw materials, direct labour, other direct costs and related production overheads based on normal operating capacity, but excludes borrowing costs.
Net realisable value represents the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs to be incurred in the marketing, selling and distribution.
Inventories of wine stocks, shown as work in progress at cost, have been classified between current and non-current based on sales projections for the ensuing year.
Investments in controlled entities
Investments in controlled entities are accounted for using the purchase method. Under this method, the cost of an acquisition is measured at fair value of the assets given up, shares issued or liabilities undertaken at the date of acquisition. The excess
We draw your attention to note 2 which describes the impact on the reported results of Treasury Wine Estates arising from transactions and restructuring activities undertaken as part of the demerger from Foster’s Group Limited.
of the cost of acquisition over the fair value of the net assets of the subsidiary acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the statement of comprehensive income.
Changes in ownership interests of a subsidiary (that do not result in loss of control) are accounted for as an equity transaction, and have no impact on goodwill. To the extent that the consideration received for the acquisition of non- controlling interest exceeds the carrying value, the excess is recognised directly in equity attributable to the controlling interest.
Investments in associates and joint ventures
In the consolidated financial statements, investments in associates, which includes partnerships, are accounted for using the equity method of accounting and are initially recognised at cost.
Under this method, the TWE Group’s share of profits or losses are recognised in the statement of comprehensive income and its share of movements in reserves are recognised in the TWE Group’s consolidated other comprehensive income. The cumulative post acquisition changes in the TWE Group’s share of net assets of the associate, less any impairment losses, are adjusted against the cost of the investment. When the TWE Group’s share of losses in an associate equals or exceeds its interest in the associate, the TWE Group does not recognise any further losses, unless it has an obligation on behalf of the associate. Where there has been a change recognised directly in the associate’s equity, the TWE Group recognises its share of any changes and discloses, when applicable, in the consolidated statement of comprehensive income. Associates are those entities over which the TWE Group has significant influence, but not control and which is neither a subsidiary nor a joint venture.
Unrealised gains and losses in transactions between the TWE Group and its associates are eliminated to the extent of the TWE Group’s interest in the associates.
Financial assets
Financial assets are classified as either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or available-for-sale investments, as appropriate.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transactions costs. The TWE Group determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end.
Financial assets at fair value through the profit or loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair value through profit or loss’. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Derivatives are also classified as held for trading unless they are designated and effective hedging instruments. Gains or losses on investments held for trading are recognised in the statement of comprehensive income.
Held-to-maturity investment
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the TWE Group has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined period are not included in this classification.
Interest bearing investments that are intended to be held-to-maturity are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any discount or premium on acquisition, over the period to maturity. For investments carried at amortised cost, gains and losses are recognised in the statement of comprehensive income when the investments are derecognised or in the event of impairment, as well as through the amortisation process.
We draw your attention to note 2 which describes the impact on the reported results of Treasury Wine Estates arising from transactions and restructuring activities undertaken as part of the demerger from Foster’s Group Limited.