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ACCOUNTING POLICIES
Parent company
The statement of financial position, profit after tax and total
comprehensive income for the Parent company, have been
prepared on the same basis as the consolidated financial
statements except for Investments in controlled entities
(subsidiaries) and Investments in associates.
In the Parent company, investments in subsidiaries and
associates are carried at the lower of cost or impaired cost.
Dividends from these entities are recognised as income
within profit. This approach reflects Washington H. Soul
Pattinson and Company Limited's activities as an investor.
The consolidated financial statements recognises the
individual assets, liabilities, income and expenses of the
controlled entities. Associates are equity accounted, with the
initial investment being increased/(decreased) by profits/
(losses) recognised in the income statement, movements in
other comprehensive income and decreased by dividends
received. Dividends from both controlled entities and
associates are not recognised in the consolidated financial
income statement.
Washington H. Soul Pattinson and Company Limited
Annual Report 2016
58
Parent Company Information
NOTE 1
PARENT COMPANY
FINANCIAL
INFORMATION
Source of shareholders
dividends
The Board declares dividends having
regard to regular operating cash flows
before non-regular items. The following
information has been provided to
demonstrate the underlying value of
the Parent company’s investments
and the regular profit and cash flows
generated by them.
Regular profit after tax is a measure of
the Parent company's performance.
This measurement excludes the effects
of non-regular items of income and
expense which by nature are outside
the ordinary course of business or are
part of ordinary operations but are
unusual due to their size.
The classification of income and
expenses as regular or non-regular
is consistent with the Consolidated
entity’s measurement of segment
results.
1
Statement of Financial Position
2016
2015
As at 31 July 2016
$'000
$'000
Current assets
Cash and term deposits
72,453
165,855
Other current assets
36,585
46,300
Total current assets
109,038
212,155
Non-current assets
Long term equity investments –
measured at market value
581,432
608,030
Other financial assets
– Listed controlled and associated
entities – measured at the lower
of cost or impaired value
562,309
526,002
– Unlisted entities – measured at the
lower of cost or impaired value
265,259
297,410
Other non-current assets
147,318
97,062
Total non-current assets
1,556,318
1,528,504
Total assets
1,665,356
1,740,659
Total current liabilities
52,134
48,676
Total non-current liabilities
72,866
89,112
Total liabilities
125,000
137,788
Net assets
1,540,356
1,602,871
Equity
Share capital
43,232
43,232
Reserves
571,178
610,339
Retained profits
925,946
949,300
Total equity
1,540,356
1,602,871
Income Statement
Profit after tax
98,737
165,200
Less:
Non-regular items after tax
Special dividends received from
New Hope Corporation Limited
(17,349)
(17,349)
Net gain on disposal of investments
(11,713)
(1,595)
Net impairment expense/(reversal)
on investments
67,320
(14,837)
Other expenses
441
229
Regular profit after tax
137,436
131,648
Other comprehensive income
Net movement in the fair value of the
listed investment portfolio
(39,363)
(776)
L
Notes to the Financial Statements