Notes to the Consolidated Financial Statements for the year ended 30 September 2001 GrainCorp Limited and Controlled Entities  1. Summary of Significant Accounting Policies New Accounting Standards a) Change in Accounting Policies b) Principles of Consolidation The financial statements have been prepared  as a general purpose financial report which complies with the requirements of the Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Consensus Views and the Corporations Act 2001. The principal accounting policies adopted by GrainCorp Limited “GrainCorp” and the consolidated entity  (i.e. GrainCorp and its controlled entities GrainCorp Services Limited “Services”, GrainCorp Operations Limited “Operations”, GrainCorp Victoria Pty Limited “Victoria”, Sunprime Seeds Pty Limited “Sunprime”, Sunprime Research and Development Pty Limited “Sunprime R & D”, GrainCorp National Pty Limited “National”, GrainCorp Queensland Pty Limited “Queensland”, Victorian Grain Services Limited “VGS”, Vicgrain Limited “Vicgrain”, Vicgrain (Assets) Pty Limited “Assets”, Vicgrain (Finance) Pty Limited “Finance”) are stated to assist the general understanding of these statements. Unless otherwise noted, the accounting policies adopted are consistent with those of the previous  year. Comparative information is reclassified where appropriate to enhance comparability. The accounts  are drawn up on historical cost principles. Revised Australian Accounting Standard AASB 1041: Revaluation of Non-Current Assets was first adopted for the year ended 30 September 2001 resulting  in property, plant and equipment and other financial assets previously carried at valuation being reverted  to a cost basis of valuation. For the purposes of transitioning to a cost basis, the existing revalued carrying amounts at 1 October 2000 were deemed  to be their cost. This change in policy had no financial impact on profit.  As a result of applying the revised accounting standard AASB 1018 Statement of Financial Performance, revised AASB 1034 Financial Report Presentation  and Disclosures and AASB 1040 Statement of Financial Position, for the first time, a number of comparative amounts were represented or reclassified to ensure comparability with the current accounting period. 50 GrainCorp 2001 Annual Report In prior periods, silos and structural parts of terminal facilities were classified as structures in the accounts. As these structures are an integral part of storage  and handling equipment, they have been reclassified  as plant and equipment. Comparatives have also been reclassified on the same basis.  The consolidated financial statements incorporate  the assets and liabilities of all entities controlled  by GrainCorp as at 30 September 2001 and the results of all controlled entities for the year then ended. The effects of all transactions between entities in the consolidated entity are eliminated in full. Outside equity interests in the results and equity of controlled entities are shown separately in the consolidated statement of financial performance and statement  of financial position respectively. Where control of an entity is obtained during a financial year, its results are included in the consolidated statement of financial performance from the date on which control commenced. Where control of an entity ceases during a financial year its results are included for that part of the period during which control exists. Investments in associates are accounted for in the consolidated financial statements using the equity method. Under this method, the consolidated entity’s share of the profits or losses of associates is recognised as revenue in the consolidated statement  of financial performance, and its share of movements in reserves is recognised in consolidated reserves. Associates are those entities over which the consolidated entity exercises significant influence,  but not control. 