b'< NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2019Diluted earnings per share right to use the leased item) and a financial liability to pay Diluted earnings per share adjusts the figures used in therentals for almost all lease contracts. The accounting by determination of basic earnings per share to take into accountlessors, however, will not significantly change.the after income tax effect of interest and other financingThe consolidated entity is currently assessing the impact of the costs associated with dilutive potential ordinary shares andadoption of this standard and will adopt it from 1 July 2019. the weighted average number of shares assumed to have beenThe standard will primarily affect the accounting for the issued for no consideration in relation to dilutive potentialconsolidated entitys operating leases. As at the reporting ordinary shares. date, the consolidated entity has non-cancellable operating lease commitments of AUD9,028,273, as disclosed in Note 31.GOODS AND SERVICES TAX (GST) AND OTHERThis relates entirely to the lease for the casino premises forSIMILAR TAXES a 50-year term. Based on preliminary assessment, the current Revenues, expenses and assets are recognised net of thearrangement will meet the definition of lease under AASB 16. amount of associated GST, unless the GST incurred is notThe consolidated entity will recognise a right-of-use assetrecoverable from the tax authority. In this case it is recognisedand a corresponding liability in respect of the property lease, as part of the cost of the acquisition of the asset or as part and intends to apply the simplified transition approach and of the expense. will not restate the comparative amounts for the year priorto adoption.Receivables and payables are stated inclusive of the amountof GST receivable or payable. The net amount of GSTAASB 2016-5 Amendments to Australian Accountingrecoverable from, or payable to, the tax authority is includedStandardsClassification and Measurement ofin other receivables or other payables in the statement Share-Based Payment Transactionsof financial position. AASB 2016-5 clarifies the measurement basis for cash-Cash flows are presented gross of GST and similar taxes.settled share-based payments with performance conditions, The GST components of cash flows arising from investing ormodifications that change an award from cash-settled to financing activities which are recoverable from, or payable equity-settled and equity-settled awards that include a net to the tax authority, are presented as operating cash flows. settlement feature which requires employers to withhold amounts to settle the employees tax obligations. There has Commitments and contingencies are disclosed net of the amountbeen no significant impact on the financial statements.of GST recoverable from, or payable to, the tax authority.NOTE 2. CRITICAL ACCOUNTING NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET MANDATORYJUDGEMENTS, ESTIMATES AND OR EARLY ADOPTED ASSUMPTIONSAustralian Accounting Standards and Interpretations thatThe preparation of the financial statements requires have recently been issued or amended but are not yetmanagement to make judgements, estimates and assumptions mandatory, have not been early adopted by the consolidatedthat affect the reported amounts in the financial statements. entity for the annual reporting period ended 30 June 2019. Management continually evaluates its judgements and The consolidated entitys assessment of the impact of theseestimates in relation to assets, liabilities, contingent liabilities, new or amended Accounting Standards and Interpretations,revenue and expenses. Management bases its judgements, most relevant to the consolidated entity, are set out below. estimates and assumptions on historical experience and on other various factors, including expectations of future AASB 16 Leases events, management believes to be reasonable under the The new standard will be effective for annual periodscircumstances. The resulting accounting judgements and beginning on or after 1 January 2019. Early application isestimates will seldom equal the related actual results. The permitted, provided the new revenue standard, AASB 15judgements, estimates and assumptions that have a significant Revenue from Contracts with Customers, has been applied,risk of causing a material adjustment to the carrying amounts or is applied at the same date as AASB 16. AASB 16 willof assets and liabilities (refer to the respective Notes) within primarily affect the accounting by lessees and will result inthe next financial year are discussed below.the recognition of almost all leases on the balance sheet. The standard removes the current distinction between operating and financing leases and requires recognition of an asset (the DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT 49'