Donaco International Limited / 2017 Annual Report Donaco International Limited / 2017 Annual Report 34 35 35 Donaco International Limited / 2017 Annual Report Donaco International Limited / 2017 Annual Report 34 Notes to the Financial Statements for the year ended 30 June 2017 Note 1: Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. New, revised or amending Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any material impact on the financial performance or position of the consolidated entity. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the AASB and the Corporations Act, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). Historical cost convention The financial statements have been prepared under the historical cost convention, except for the revaluation of financial assets and liabilities at fair value through profit or loss and derivative financial instruments. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity’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 2. Presentation of the statement of cash flows The consolidated entity has changed its policy to present gaming receipts from customers and payments to junket operators on a net basis in the Statement of Cash Flows. Previously, the receipts and payments were reported on a gross basis based on cash received and paid out. The restated presentation is considered more appropriate as it is consistent with the recognition of income and expenses on a net basis in the profit and loss statement. The comparative figures have been restated. Additionally, the comparative figures have been restated using the average foreign currency rate instead of the closing rate which was used previously. A summary of the effect of the change in presentation is provided below. Consolidated Note 2017 2016 $ $ Cash flow from operating activities Receipts from customers 142,484,849 132,729,587 Payments to suppliers and employees (78,700,882) (59,945,137) 63,783,967 72,784,450 Interest received 100,011 72,805 Other revenue – 11,058 Interest and other finance costs paid (11,878,988) (14,947,469) Government levies, gaming taxes and GST (4,649,592) (7,920,049) Net cash flows from operating activities 36 47,355,398 50,000,795 Cash flow from investing activities Payments for property, plant and equipment (5,727,117) (1,851,232) Cash investment in subsidiary, net of cash retained 40 – (322,655,000) Payment of expenses relating to acquisitions 40 – (11,819,338) Net cash flows from investing activities (5,727,117) (336,325,570) Cash flow from financing activities Repayment of borrowings (69,817,576) (3,218,668) Drawdown of borrowings 25,603,177 150,276,599 Payments of dividends (8,246,843) – Payments for acquisition of employee shares (999,484) – Share issue transaction costs – (442,613) Net cash flows from financing activities (53,460,726) 146,615,318 Net (decrease) in cash and cash equivalents (11,832,445) (139,709,457) Cash and cash equivalents, beginning of the financial year 78,221,019 210,175,119 Effects of exchange rate changes on cash and cash equivalents (365,825) 7,755,357 Cash and cash equivalents at the end of the financial year 8 66,022,749 78,221,019 The above statement of cash flows should be read in conjunction with the accompanying notes. Statement of Cash Flows for the year ended 30 June 2017 Restated Previously Variance $ $ $ Receipts from customers 132,729,587 447,352,472 (314,622,885) Payments to suppliers and employees (59,945,137) (376,237,266) 316,292,129 72,784,450 71,115,206 1,669,244 Cash flow from operating activities 50,000,795 48,657,537 1,343,258 Cash flow from investing activities (336,325,570) (330,085,975) (6,239,595) Cash flow from financing activities 146,615,318 144,301,206 2,314,112 Effects of exchange rate changes on cash and cash equivalents 7,755,357 5,173,132 2,582,225 Parent entity information In accordance with the Corporations Act, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 33. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Donaco International Limited (‘the Company’ or ‘parent entity’) as at 30 June 2017 and the results of all subsidiaries