Available-for-sale financial assets (ii)  Assets relating to statutory funds (iii) Non-derivative financial liabilities Other financial liabilities (ii) Subsequent costs (i) Recognition and measurement (e) Property and equipment Repurchase, disposal and reissue of share capital  (treasury shares) Ordinary shares (iv) Share capital Available-for-sale financial assets are non-derivative assets  comprising principally marketable equity securities that are  either designated in this category or are not classified in any of  the other categories of financial instruments. Available-for-sale  financial assets are recognised initially at fair value plus any  directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair  value and changes therein, other than impairment losses, are  recognised in other comprehensive income and presented  within equity in the available-for-sale investment revaluation  reserve. When an investment is derecognised, the cumulative  gain or loss in equity is transferred to profit or loss. The Group has determined that all financial assets held within  its reported statutory funds (including the benefit funds which  are treated as statutory funds) represent the assets backing  policy liabilities and are measured at fair value through profit  or loss. Other than loans and receivables held by the Group  and its controlled entities, assets backing policy liabilities have  been designated at fair value through profit or loss as the  assets are managed on a fair value basis. The Group initially recognises financial liabilities on the date  at which the Group becomes a party to the contractual  provisions of the instrument. The Group derecognises  a financial liability when its contractual obligations are  discharged, cancelled or expire. Financial assets and liabilities  are offset and the net amount presented in the statement  of financial position when, and only when, the Group has a  legal right to offset the amounts and intends either to settle  on a net basis or to realise the asset and settle the liability  simultaneously. The Group has the following non-derivative financial liabilities: Such financial liabilities are recognised initially at fair value plus  any directly attributable transaction costs. Subsequent to initial  recognition these financial liabilities are measured at amortised  cost using the effective interest method. Purchase commitments to reacquire interests from non- controlling shareholders are accounted for in accordance with  AASB 132  Financial Instruments: Presentation  which specifies  that an obligation for an entity to purchase its own equity  Subsequent costs are included in the asset’s carrying amount  or recognised as a separate asset, as appropriate, only when it  is probable that future economic benefits associated with the  item will flow to the Group. Repairs and maintenance costs are  charged to profit or loss as they are incurred. The gain or loss on disposal of an item of property and  equipment is determined by comparing the proceeds from  disposal with the carrying amount of the property and  equipment and is recognised net within other income/other  expenses in profit or loss. When revalued assets are sold,  any related amount included in the revaluation reserve is  transferred to retained earnings. Cost includes expenditure that is directly attributable to the  acquisition of the asset. Property and equipment are measured at cost less any  accumulated depreciation and any accumulated impairment  losses. When share capital recognised as equity is repurchased, the  amount of the consideration paid, which includes directly  attributable costs, net of any tax effects, is recognised as a  deduction from equity. Repurchased shares are classified as  treasury shares and are presented as a deduction from total  equity. When treasury shares are sold or reissued subsequently,  the amount received is recognised as an increase in equity, and  the resulting surplus or deficit on the transaction is presented  in retained earnings. Ordinary shares are classified as equity. Incremental costs  directly attributable to the issue of new shares and share  options are shown in equity as a deduction, net of any tax  effects. The fair value of contingent consideration is calculated using  the income approach based on the expected payment  amounts and their associated probabilities. When appropriate,  it is discounted to present value. instruments for cash gives rise to a financial liability. The liability  is measured at the present value of the redemption amount  irrespective of the probability of the exercise of the right by  non-controlling shareholders. •  loans; •  borrowings; and •  payables and other financial liabilities. page 64 Notes to the financial statements (cont’d) For the year ended 30 June 2012