IMF Bentham Limited Annual Report 2018

About this Report The financial report of IMF Bentham Limited (“IMF”, “the Company” or “the Parent”) for the year ended 30 June 2018 and its subsidiaries (“the Group” or “consolidated entity”) was authorised for issue in accordance with a resolution of the directors on 22 August 2018. IMF Bentham Limited (ABN 45 067 298 088) is a for profit company incorporated and domiciled in Australia and limited by shares that are publicly traded on the Australian Securities Exchange (ASX code: IMF). IMF Bentham Limited is not economically dependent on any other entity. This section sets out the basis upon which the Group’s Financial Statements are prepared. Specific accounting policies are described in their respective notes to the Financial Statements. This section also shows information on new or amended accounting standards and their impact on the financial position and performance of the Group. a. Basis of preparation The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis. The financial report is presented in Australian dollars, being the functional currency of the Parent. The amounts contained within this report have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the Company under ASIC Corporate Instrument 2016/191. b. Compliance with IFRS The financial report complies with Australian Accounting Standards and International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board. c. New accounting standards and interpretations The accounting policies adopted are consistent with those of the previous financial year. The following accounting standards relevant to the Company and/or the Group have been issued but are not yet effective and have not been applied in these financial statements. AASB 9 Financial Instruments (‘AASB 9’) The AASB issued the final version of AASB 9 in December 2014. When operative, this standard will replace AASB 139. Financial Instruments: Recognition and Measurement. AASB 9 addresses recognition and measurement requirements for financial assets and financial liabilities, impairment requirements that introduce an expected credit loss impairment model and general hedge accounting requirements which more closely align with risk management activities undertaken when hedging financial and non-financial risks. AASB 9 is not mandatorily effective for the Group until 1 July 2018. The Group has assessed the impact of AASB 9 and does not envisage it will have a material impact on the Group’s current financial assets and liabilities as at 30 June 2018. AASB 15 Revenue from Contracts with Customers (‘AASB 15’) The AASB issued AASB 15 in October 2015. The standard is not mandatorily effective for the Group until 1 July 2018. AASB 15 contains new requirements for the recognition of revenue and additional disclosures about revenue. AASB 138 Intangible Assets has been amended to ensure that for reporting periods beginning on or after 1 January 2018, the derecognition of intangible assets are subject to the principles of AASB 15. It is expected that this standard will not materially change the revenue recognition of the Group, except where cases have become under appeal. AASB 15 may disallow the recognition of revenue where cases are under appeal due to the more prescriptive requirements within the standard for recognition of revenue. Refer to Note 15 for details of revenue receivable at 30 June 2018 where cases are still under appeal. AASB 16 Leases (‘AASB 16’) The AASB issued the final version of AASB 16 in February 2016. The standard is not mandatorily effective for the Group until 1 July 2019. AASB 16 requires a lessee to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. AASB 16 substantially carries forward the lessor accounting requirements in AASB 117 Leases. The Group is in the process of assessing the impact of AASB 16 and is not yet able to reasonably estimate the impact on its financial statements. AASB Interpretation 23 Uncertainty over Income Tax Treatments (“Interpretation 23”) Interpretation 23 is applicable for reporting periods beginning on or after 1 January 2019 and therefore will be effective for the Group for its reporting period beginning 1 July 2019. Interpretation 23 clarifies the application of the recognition and measurement criteria in AASB 112 Income Taxes where there is uncertainty over income tax treatments. It requires assessment of each uncertain tax position as to whether it is probable that a taxation authority will accept the position. Notes to the Financial Statements for the year ended 30 June 2018 66