NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011 Note 1. Summary of Significant Accounting Policies  (continued) (v) Parent Company Financial Information  (continued) Tax Consolidation (w) New Australian Accounting Standards and Interpretations for Application in Future Financial Years (iv) IFRS 10 ‘Consolidated Financial Statements’, IFRS 11 ‘Joint Arrangements’, IFRS 12 ‘Disclosure of Interests in Other  Entities’ and revised IAS 27 ‘Separate Financial Statements’ and IAS 28 ‘Investments in Associates and Joint Ventures’  (effective 1 January 2013) (ii) Revised AASB 124 ‘Related Party Disclosures’ and AASB 2009-12 ‘Amendments to Australian Accounting Standards’  (effective for annual reporting periods beginning on or after 1 January 2011) (i) AASB 9 ‘Financial Instruments’, AASB 2009-11 ‘Amendments to Australian Accounting Standards arising from AASB 9’  and AASB 2010-7 ‘Amendments to Australian Accounting Standards arising from AASB 9’ (December 2010) (effective for  annual reporting periods beginning on or after 1 January 2013)  46 Karoon Gas Australia Ltd  Annual Report 2011 The Parent Company and its wholly owned Australian subsidiaries are part of an income tax-consolidated group under Australian  taxation law. Karoon Gas Australia Ltd is the head entity in the income tax-consolidated group. Tax expense/income, deferred  liabilities and deferred assets arising from temporary tax differences of the members of the income tax-consolidated group are  recognised in the separate financial statements of the members of the income tax-consolidated group using the ‘stand alone  taxpayer’ approach by reference to the carrying amounts in the separate financial statements of each company and the tax values  applying under tax consolidation. Current tax liabilities and tax assets and deferred tax assets arising from unused tax losses and  tax credits of members of the income tax-consolidated group are recognised by the Parent Company (as head entity of the income tax-consolidated group). Due to the existence of a tax funding agreement between the companies in the income tax-consolidated group, each company  contributes to the income tax payable or receivable in proportion to their contribution to the income tax-consolidated group’s  taxable income. Differences between the amounts of net tax assets and tax liabilities derecognised and the net amounts  recognised pursuant to the funding agreement are recognised as either a contribution by, or distribution to, the head entity. Certain new Australian Accounting Standards and Interpretations have been published that are not mandatory for this financial year.  The Group’s assessment of the impact of the relevant new Australian Accounting Standards and Interpretations is set out below: AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial  liabilities. The standard is not applicable until 1 January 2013 but is available for early adoption. The Group is yet to assess AASB  9’s full impact. The Group has not yet decided when to adopt AASB 9. During December 2009, the AASB issued a revised  AASB 124 ‘Related Party Disclosures’ . It is effective for accounting periods  beginning on or after 1 January 2011 and must be applied retrospectively. The amendment clarifies and simplifies the definition  of a related party. The Group will apply the amended standard from 1 July 2011. When the amendments are applied, the Group  will need to disclose all transactions between its subsidiaries, including commitments. The Group is yet to assess its full impact.  However, initial indications are that it will have limited impact. On 30 June 2010, the AASB officially introduced a revised differential reporting framework in Australia. Under this framework, a  two-tier differential reporting regime applies to all entities that prepare general purpose financial statements. Karoon Gas Australia  Ltd is listed on the ASX; as such it is ineligible to adopt these two new Australian Accounting Standards. As a consequence, there  will be no impact on the financial statements. During May 2011, the IASB issued a suite of five new and amended standards which address the accounting for joint arrangements,  consolidated financial statements and associated disclosures. The AASB is expected to issue equivalent Australian Accounting  Standards shortly. (iii) AASB 1053 ‘Application of Tiers of Australian Accounting Standards’ and AASB 2010-2 ‘Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements’ (effective 1 July 2013)