IMF Bentham Limited Annual Report 2019

About this Report The financial report of IMF Bentham Limited (“IMF”,“the Company” or “the Parent”) and its subsidiaries (“the Group” or “consolidated entity”) for the year ended 30 June 2019 was authorised for issue in accordance with a resolution of the directors on 21 August 2019. 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 the respective notes to the Financial Statements. This section also shows information on new or amended accounting standards and interpretations 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 Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. b. Compliance with IFRS The financial report also complies with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board. c. New and amended accounting standards and interpretations adopted during the year Except for the effect of adopting new and amended accounting standards and interpretations effective from 1 July 2018, described below, the accounting policies adopted are consistent with those of the previous financial year. The Group applied AASB 15 Revenue from Contracts with Customers (“AASB 15”) and AASB 9 Financial Instruments (“AASB 9”) for the first time. The nature and effect of the changes resulting from the adoption of these new accounting standards are described below. Several other amendments and interpretations were applied for the first time in 2019 but did not have a significant impact on the consolidated financial statements of the Group. The Group has not early adopted any new or amended accounting standard or interpretation issued but not yet effective. AASB 9 and consequential amendments to other Australian Accounting Standards AASB 9 replaces AASB 139 Financial Instruments: Recognition and Measurement (“AASB 139”) for annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting. The Group has applied AASB 9 retrospectively from 1 July 2018 and elected not to restate comparative information. In applying AASB 9 the Group concluded the following: –– The Group’s financial assets consist of cash, short term deposits, litigation receivables and other short- term receivables. The Group classified its receivables and other financial assets as loans and receivables under AASB 139 and measured these financial assets at amortised cost. Under AASB 9, the financial assets are classified as financial assets at amortised cost. This classification reflects the Group’s business model, of which its objective is holding financial assets is to collect contractual cash flows and those cash flows give rise on specified dates and are solely payments of interest and principal outstanding. The change in classification did not result in any measurement adjustments on transition to AASB 9; –– The Group’s financial liabilities include short term accounts payable and interest-bearing debt. No changes to the carrying values or classification were made on transition to AASB 9; –– The Group does not apply hedge accounting and has no hedges in place; –– The Group has no financial instruments measured at fair value through the profit or loss and has not elected to classify any financial instruments at fair value through the profit or loss; –– The Group held its receivables and other financial assets at amortised cost under AASB 139 and these were classified as loans and receivables. Under AASB 9, the financial assets are classified as financial assets at amortised cost. This classification reflects the Group’s business model, of which its objective in holding financial assets is to collect contractual cash flows and those cash flows give rise on specified dates and are solely payments of interest and principal outstanding; and Notes to the Financial Statements for the year ended 30 June 2019 Overview Directors’ Report Financial Report Shareholder Information 85 IMF Bentham Limited Annual Report 2019