NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. CORPORATE INFORMATION 2. BASIS OF PREPARATION (a) Terminology used in the financial statements (b) Historical cost convention (c) Compliance with IFRS (d) Critical accounting estimates (e) Rounding For the three months ended 31 March 2013 Australian Agricultural Company Limited is a company limited by shares, incorporated and domiciled in Australia� The Company’s shares are  publicly traded on the Australian Securities Exchange (ASX)� The consolidated financial statements of Australian Agricultural Company Limited (the Company or parent Company) for the three months to 31  March 2013 were authorised for issue in accordance with a resolution of the Directors on 24 May 2013�  The Australian Securities and Investments Commission (ASIC) acknowledged the Company’s year-end change from 31 December to 31 March� This  change more closely aligns the Company’s reporting period with its sale cycles, assisting with forecasting, cash flow management and investment  decisions� The Board determined this change was in the best interests of the Company� The results for the three months to 31 March 2013 are  therefore not directly comparable with the results for 31 December 2012� As a result we have also included comparative information for the three  months to 31 March 2012, which has been reviewed (not audited) by the Company’s auditor�  We recommend the financial statements be considered together with any public announcements made by the Company during the three months to  31 March 2013 in accordance with the Company’s continuous disclosure obligations arising under the  Corporations Act 2001  and ASX listing rules� The nature of the operations and principal activities of Australian Agricultural Company Limited are described in the Directors’ Report� The financial statements are general purpose financial statements, prepared by a for-profit entity, in accordance with the requirements of the  Corporations Act 2001 , Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board�  In these financial statements, any references to we, us, our, AACo, the Group and consolidated, all refer to Australian Agricultural Company Limited  and the entities it controlled at the financial year end or from time to time during the financial year�  Any references to subsidiaries or controlled entities in these financial statements refer to those entities that are controlled and consolidated by  Australian Agricultural Company Limited�  The Company has a 31 March financial year end� The Company changed its financial year end date from 31 December to 31 March which means  that the financial year of the Company is a transitional one from 1 January 2013 to 31 March 2013 (three months)� Hereafter the Company will  report its results as normal with respect to a 31 March financial year end� Where we refer to the reporting date, this means 31 March�  The financial statements have been prepared on a historical cost basis, except for land and buildings, livestock, crops and derivative financial  instruments, which have been measured at fair value� Under the historical cost basis, assets are recorded at the amount of cash or cash  equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition� Liabilities are recorded at the amount  of proceeds received in exchange for the obligation, or in some circumstances, at the amounts of cash and cash equivalents expected to be paid to  satisfy the liability in the normal course of business� The financial statements also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards  Board (IASB)�  The preparation of financial statements requires the use of certain critical accounting estimates� It also requires management to exercise its  judgement in the process of applying the group’s accounting policies� The areas involving a higher degree of judgement or complexity, or areas  where assumptions and estimates are significant to the financial statements are disclosed in note 5� The financial statements are presented in Australian dollars and all dollar amounts in the financial statements (except where indicated) have been  rounded to the nearest thousand dollars ($’000) for presentation� This has been done in accordance with Australian Securities and Investments  Commission (ASIC) Class Order 98/100, dated 10 July 1998, issued under section 341(1) of the  Corporations Act 2001 � AACo is an entity to which  this class order applies�  56 Australian Agricultural Company Limited