2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (AF) OTHER TAXES Revenues, expenses and assets are recognised net of the amount of GST except: •  when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in  which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item  as applicable; and •  receivables and payables, which are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or  payables in the statement of financial position. Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows  arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are  classified as operating cash flows. Commitments and contingencies are disclosed net of amounts of GST recoverable from, or payable to, the  taxation authority. Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any  costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average  number of ordinary shares, adjusted for any bonus element. Diluted earnings per share is calculated as net profit attributable to members of the parent adjusted for: •  cost of servicing equity (other than dividends) and preference share dividends; •  the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been  recognised as expenses; and •  other non-discriminatory changes in revenues or expenses during the period that would result from the  dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for  any bonus element. The preparation of the financial statements requires management to make judgements, estimates and  assumptions that affect the reported amounts in the financial statements. Management continually evaluates  its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.  Management bases its judgements and estimates on historical experience and on other various factors it believes  to be reasonable under the circumstances, the result of which form the basis of the carrying values of assets and  liabilities that are not readily apparent from other sources. Management has identified the following critical accounting policies for which significant judgements, estimates  and assumptions are made. Actual results may differ from these estimates under different assumptions and  conditions and may materially affect financial results or the financial position reported in future periods. Further details of the nature of these assumptions and conditions may be found in the relevant notes to the  financial statements. 3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (AG) EARNINGS PER SHARE 71  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011