b'< NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2019The consolidated entity has applied AASB 15 for the firstPRINCIPLES OF CONSOLIDATIONtime in the current period, using the modified retrospectiveThe consolidated financial statements incorporate the assets approach. Recognition of both gaming and non-gamingand liabilities of all subsidiaries of Donaco International revenue under the previous requirements already reflectsLimited (company or parent entity) as at 30 June 2019 and the concept of transfer of control of goods or services tothe results of all subsidiaries for the year then ended. Donaco customers (that is, revenue is recognised at the time that theInternational Limited and its subsidiaries together are referred performance obligation has been satisfied). The adoption ofto in these financial statements as the consolidated entity.AASB 15 resulted in the reclassification of revenue between gaming and non-gaming in relation to complimentary goods Subsidiaries are all those entities over which the consolidated or services provided to customers, which were included asentity has control. The consolidated entity controls an entity part of gaming transactions. when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and The adoption of these Accounting Standards andhas the ability to affect those returns through its power Interpretations did not have any material impact on theto direct the activities of the entity. Subsidiaries are fully financial performance or position of the consolidated entity. consolidated from the date on which control is transferred Any new, revised or amending Accounting Standards orto the consolidated entity. They are de-consolidated from the Interpretations that are not yet mandatory have not beendate that control ceases.adopted early. Intercompany transactions, balances and unrealised gains on BASIS OF PREPARATION transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the These general purpose financial statements have been preparedtransaction provides evidence of the impairment of the asset in accordance with Australian Accounting Standards andtransferred. Accounting policies of subsidiaries have been Interpretations issued by the AASB and the Corporations Actchanged where necessary to ensure consistency with2001, as appropriate for for-profit oriented entities. Thesethe policies adopted by the consolidated entity.financial statements also comply with International Financial Reporting Standards as issued by the International AccountingThe acquisition of subsidiaries is accounted for using the Standards Board. acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as Historical cost convention an equity transaction, where the difference between the The financial statements have been prepared under theconsideration transferred and the book value of the sharehistorical cost convention, except for the revaluation ofof the non-controlling interest acquired is recognised directly financial assets and liabilities at fair value through profit in equity attributable to the parent.or loss and derivative financial instruments. Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit Critical accounting estimates or loss and other comprehensive income, statement of The preparation of the financial statements requires thefinancial position and statement of changes in equity of the use of certain critical accounting estimates. It also requiresconsolidated entity. Losses incurred by the consolidated entity management to exercise its judgement in the process ofare attributed to the non-controlling interest in full, even if applying the consolidated entitys accounting policies. Thethat results in a deficit balance.areas involving a higher degree of judgement or complexity, Where the consolidated entity loses control over a subsidiary, or areas where assumptions and estimates are significant toit derecognises the assets including goodwill, liabilities and the financial statements, are disclosed in Note 2. non-controlling interest in the subsidiary together with any PARENT ENTITY INFORMATION cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the In accordance with the Corporations Act 2001, these financialconsideration received and the fair value of any investment statements present the results of the consolidated entity only.retained together with any gain or loss in profit or loss.Supplementary information about the parent entity is disclosed in Note 33. OPERATING SEGMENTSOperating segments are presented using the management approach, where the information presented is on the same basis as the internal reports provided to the Chief Operating DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT 43'