Notes To The Financial Statements (Continued) for the year ended 30 June 2014 2.2 CHANGES IN ACCOUNTING POLICIES AND DICLOSURES (Continued) New and amended standards and interpretations (continued) IFRS 11 Joint Arrangements IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly-controlled Entities — Non-monetary Contributions by Venturers. IFRS 11 removes the option to account for jointly controlled entities (JCEs) using proportionate consolidation. Instead, JCEs that meet the definition of a joint venture must be accounted for using the equity method. There is no impact on the organisation as a result of the application of the standard. IFRS 12 Disclosure of Interests in Other Entities IFRS 12 includes all of the disclosures that were previously in IAS 27 related to consolidated financial statements, as well as all of the disclosures that were previously included in IAS 31 and IAS 28. These disclosures relate to an entity’s interests in subsidiaries, joint arrangements, associates and structured entities. A number of new disclosures are also required, but have had no impact on the organisation’s financial position or performance. IFRS 13 Fair Value Measurement IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. There was no material impact on the organisation's financial statements. ANNUAL IMPROVEMENTS MAY 2012 These improvements (as applicable to the entity) have not had an impact on the organisation, but include: IFRS 1 First-time Adoption of International Financial Reporting Standards This improvement clarifies that an entity that stopped applying IFRS in the past and chooses, or is required, to apply IFRS, has the option to re-apply IFRS 1. If IFRS 1 is not re-applied, an entity must retrospectively restate its financial statements as if it had never stopped applying IFRS. IAS 1 Presentation of Financial Statements This improvement clarifies the difference between voluntary additional comparative information and the minimum required comparative information. Generally, the minimum required comparative information is the previous period. IAS 16 Property Plant and Equipment This improvement clarifies that major spare parts and servicing equipment that meet the definition of property, plant and equipment are not inventory. IAS 32 Financial Instruments, Presentation This improvement clarifies that income taxes arising from distributions to equity holders are accounted for in accordance with IAS 12 Income Taxes 2.3 SIGNIFCANT ACCOUNTING JUDGEMENTS, ESTAMATES AND ASSUMPTIONS The presentation of the organisation’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amount for revenues, expenses, assets and liabilities, at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability. In the process of applying the organisation’s policies, management has made the following estimates and assumptions, which have the most significant effect on the amounts recognised in the financial statements: Useful lives and residual values of plant and equipment The organisation assesses useful lives and residual values of plant and equipment after each year taking into consideration past experiences, technology changes and the total operating environment. No changes in the useful lives have been considered necessary during the year. Residual values will be reassessed each year and adjustments for depreciation will be done in future periods if there is impairment in value. 43