Page 15 - Directors' report and accounts 2019-20

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Notes to and forming part of the Consolidated Financial Statements for the year ended 30 June 2020
The financial statements of Independent Purchasing Company Company (Australasia) Limited (the Company) for the the year ended 30 June 2020
2020
were authorised for issue in accordance with a a a a a resolution of the directors on on 16 October 2020
2020
and covers the consolidated entity consisting of Independent Purchasing Company (Australasia) Limited and its subsidiaries ('the Group') as required by the the Corporations Act 2001 Independent Purchasing Company (Australasia) Limited is a a a a a a a a a a a company limited by guarantee incorporated and domiciled in Australia The Group is a a a for-profit entity Basis of Preparation
In the the the opinion of the the the directors the the the Group is not publicly accountable These consolidated financial statements are Tier 2
general purpose consolidated financial statements that have been prepared in in in accordance with Australian Accounting Standard Standard - Reduced Disclosure Requirements adopted by the the Australian Accounting Standards Board and and and the the Corporations Act 2001 These consolidated financial statements comply with Australian Accounting Standards - Reduced Disclosure Requirements This is is the the first set of the the Group's annual financial statements in in which AASB 16 Leases has been applied Changes to significant accounting policies are described in in Note E8 These financial statements have been prepared on on an an an accruals basis and are are based on on historical costs as as as modified where applicable by derivative derivative and and non-derivative financial instruments at at at fair value through profit and and loss Going Concern
The COVID-19 pandemic has presented uncertainties across the the Asia Pacific region including the the impact of enforced lockdown and and continued border closures and and the the extent of the the deterioration in in general economic conditions Accordingly the the Directors have taken a a a a a a a a pragmatic approach in in in in forecasting the the long term effects on on IPCA's business The Directors are of the the the the view that these factors will continue to to to have a a a a a a a a negative impact on on the the the the Group’s earnings in in in the the the the near term compared to previous expectations however expect expect recovery in in most markets within the next 12
months In response to to to the the the uncertainties the the the Group took certain certain measures to to to ensure the the the business has adequate liquidity available and and and and to to ensure IPCA continues to to be a a a a a a a a a a going concern including applying for and and and and receiving the New Zealand and and and and Singapore Government wage subsidies and and the Australian JobKeeper payment and and cost cutting measures to reduce discretionary expenditure Notwithstanding the the the uncertainties around forecasting earnings in in in in in the the the COVID-19 environment the the the directors have concluded there are no no material uncertainties related to to IPCA being a a a a a a a going concern The directors note that the the Group has has net current assets of $18 9m as as as as as at 30 June 2020
and has has the the ability to fully pay all all debts as as as as as they fall due Accordingly the the directors have concluded that that it is appropriate that that these financial statements continue to to be prepared on on a a a going concern basis Foreign Currency Translation
The individual financial statements of of each group entity are presented in in in the the currency of of the the primary economic environment in in which the the the entity operates (its functional currency) For the the the purpose of the the the consolidated financial statements the the results and financial position of each group entity are expressed in in Australian dollars (‘$’) which is the the functional currency of the Group In preparing the the the financial statements of each individual group entity entity transactions in in in in currencies other than the the the entity’s functional currency (foreign currencies) are recognised at at at at the the the rates of of exchange prevailing at at at at the the the dates of of the the the transactions At the end of each reporting period monetary items denominated in in in foreign currencies are retranslated at at at at at at at at the rates prevailing at at at at at at at at that that date Non-monetary items carried at at at at at at at at fair value that that are denominated in in in foreign currencies are retranslated at at at at at the the the rates prevailing at at at at at the the the date when the the the fair value was determined Non-monetary items that are are measured in in terms of historical cost in in a a a a a a a a foreign currency are are not retranslated