Notes to the Consolidated Financial Statements for the Year Ended 30 June 2014 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Preparation (b) Principles of Consolidation (c) Accounting Standards New and revised standards that are effective for these financial  statements AASB 10 Consolidated Financial Statements Accounting Standards issued but not yet effective and not been  adopted early by the Group Amendments to AASB 119 Employee Benefits AASB 13 Fair Value Measurement AASB 11 Joint Arrangements The financial report covers Benitec Biopharma Limited and its controlled  entities as a consolidated entity (“Group”). Benitec Biopharma Limited is  a listed public company, incorporated and domiciled in Australia. The consolidated general purpose financial statements of the Group  have 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. Compliance with Australian Accounting Standards results in full  compliance with the International Financial Reporting Standards (IFRS) as  issued by the International Accounting Standards Board (IASB). Benitec  Biopharma Limited is a for-profit entity for the purpose of preparing  financial statements. The consolidated financial statements for the  year ended 30 June 2014 (including comparatives) were approved and  authorised for issue by the board of directors on 22 August 2014. The consolidated financial statements have been prepared using the  measurement bases specified by Australian Accounting Standards for  each type of asset, liability, income and expense. The measurement  bases are more fully described in the accounting policies below. A controlled entity is any entity controlled by Benitec Biopharma Limited  whereby Benitec Biopharma Limited has the power to control the  financial and operating policies of an entity so as to obtain benefits from  its activities. All inter-company balances and transactions between entities in the  consolidated entity, including any unrealised profits or losses, have been  eliminated on consolidation. Accounting policies of controlled entities  have been changed where necessary to ensure consistencies with those  policies applied by the parent entity. Where controlled entities have entered or left the consolidated entity  during the year, their operating results have been included/excluded from  the date control was obtained or until the date control ceased. A list of controlled entities is contained in note 11 to the financial  statements. All controlled entities have a June financial year-end except  for Benitec Ltd (UK) which has a December year-end. A number of new and revised standards are effective for annual periods  beginning on or after 1 July 2013. Information on these new standards is  presented below. Management has reviewed its control assessments in accordance with  AASB 10 and has concluded that there is no effect on the classification  (as subsidiaries or otherwise) of any of the Group’s investees held during  the period or comparative periods covered by these financial statements. AASB 11 supersedes AASB 131  Interests in Joint Ventures  (AAS 131)  and AASB Interpretation 113 J ointly Controlled Entities- Non-Monetary- Contributions by Venturers . AASB 11 revises the categories of joint  arrangement, and the criteria for classification into the categories, with  the objective of more closely aligning the accounting with the investor’s  rights and obligations relating to the arrangement. In addition, AASB  131’s option of using proportionate consolidation for arrangements  classified as jointly controlled entities under that Standard has been  eliminated. AASB 11 now requires the use of the equity method  for arrangements classified as joint ventures (as for investments in  associates). AASB 13 clarifies the definition of fair value and provides related  guidance and enhanced disclosures about fair value measurements. It  does not affect which items are required to be fair-valued. The scope  of AASB 13 is broad and it applies for both financial and non-financial  items for which other Australian Accounting Standards require or permit  fair value measurements or disclosures about fair value measurements,  except in certain circumstances. AASB 13 applies prospectively for annual periods beginning on or after  1 January 2013. Its disclosure requirements need not be applied to  comparative information in the first year of application. The Group has  however included as comparative information the AASB 13 disclosures  that were required previously by AASB  7 Financial Instruments:  Disclosures. The 2011 amendments to AASB 119 made a number of changes to the  accounting for employee benefits. The amendments which impact the  Group related to the following: Management have assessed the impact of this change and noted that it  is not material to the Group for the year ended 30 June 2013 and 30 June 2014. At the date of authorisation of these financial statements, certain new  standards, amendments and interpretations to existing standards have  been published but are not yet effective, and have not been adopted  early by the Group. Management anticipates that all of the relevant  pronouncements will be adopted in the Group’s accounting policies for  the first period beginning after the effective date of the pronouncement.  AASB 10 supersedes AASB 127  Consolidated and Separate Financial  Statements  (AASB 127) and AASB Interpretation 112  Consolidation  - Special Purpose Entities . AASB 10 revises the definition of control  and provides extensive new guidance on its application. These new  requirements have the potential to affect which of the Group’s investees  are considered to be subsidiaries and therefore to change the scope of  consolidation. The requirements on consolidation procedures, accounting  for changes in non-controlling interests and accounting for loss of control  of a subsidiary are unchanged. Benitec Biopharma Ltd  Annual Report 2014 Page 23 -  Under the amendments, employee benefits ‘expected to be settled  wholly’ (as opposed to ‘due to be settled’ under the superseded  version of AASB 119) within 12 months after the end of the reporting  period are short-term benefits, and are therefore not discounted  when calculating leave liabilities. As the Group does not expect all  annual leave for all employees to be used wholly within 12 months  of the end of reporting period, annual leave is included in ‘other long- term benefit’ and discounted when calculating the leave liability.  This change has had no impact on the presentation of annual leave  as a current liability in accordance with AASB 101 Presentation of  Financial Statements. 