Home' Huon Aquaculture : 2015 Annual Report Contents Notes to the financial statements
Huon Aquaculture Group Limited
20. Parent information continued
Parent entity financial information
The financial information for the parent entity, Huon Aquaculture Group Limited, disclosed above has been prepared on the same basis
as the consolidated financial statements.
Transactions with related entities
The loss of the parent entity shown above is due to the recognition of expenditure that as incurred by a related entity as par t of the listing
process and has been recharged to the parent.
Investments in subsidiaries, associates, and joint venture entities
Investments in subsidiaries, associates, and joint venture entities are accounted for at cost in the financial statements of Huon Aquaculture
Group Limited. Dividends received from associates are recognised in the parent entity’s consolidated income statement when its right
to receive the dividend is established.
Tax consolidation legislation
Huon Aquaculture Group Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation.
The head entity, Huon Aquaculture Group Limited, and the controlled entities in the tax consolidated group account for their own current
and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a stand alone
taxpayer in its own right.
In addition to its own current and deferred tax amounts, Huon Aquaculture Group Limited also recognises the current tax liabilities (or
assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax
consolidated group. In the current year tax losses of $1,695,219 (tax effected at 30%) (2014: $121,251( tax effected at 30%)) have been
assumed from controlled entities in the tax consolidated group.
The entities have also entered a tax funding agreement under which the wholly-owned entities fully compensate Huon Aquaculture Group
Limited for any current tax payable assumed and are compensated by Huon Aquaculture Group Limited for any current tax receivable and
deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Huon Aquaculture Group Limited under the
tax consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entities’
The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice from the head entity, which
is issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts
to assist with its obligations to pay tax instalments.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current amounts receivable
from or payable to other entities in the consolidated group.
Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised
as a contribution to (or distribution from) wholly-owned tax consolidated entities.
21. Deed of cross guarantee
Huon Aquaculture Group Limited and Huon Aquaculture Company Pty Ltd are par ties to a deed of cross guarantee under which each
company guarantees the debts of the others. By entering into the deed, the wholly-owned entities have been relieved from the requirement
to prepare a financial repor t and directors’ repor t under Class Order 98/1418 (as amended) issued by the Australian Securities and
Investments Commission. Huon Aquaculture Company Pty Ltd became a par ty to the deed of cross guarantee that was entered into
on 24 June 2015.
(a) Consolidated income statement, statement of comprehensive income and summar y of movements in consolidated
The above companies represent a ‘closed group’ for the purposes of the Class Order, and as there are no other par ties to the deed
of cross guarantee that are controlled by Huon Aquaculture Group Limited, they also represent the ‘extended closed group’.
Set out below is a consolidated income statement, a consolidated statement of comprehensive income and a summar y of movements
in consolidated retained earnings for the year ended 30 June 2015 of the closed group consisting of Huon Aquaculture Group Limited
and Huon Aquaculture Company Pty Ltd.
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