Notes to the Financial Statements (continued)  Provision for Dividends  Employee Benefits AASB 1044  (z) Comparative Amounts  (y) Changes in Accounting Policies  1.  Statement of Significant Accounting Policies (continued)  The accounting policies adopted are consistent with  those of the previous year except for the accounting  policies with respect to the provision for dividends and  employee benefits.  The consolidated entity has adopted the new Accounting Standard AASB 1044 “Provisions, Contingent Liabilities and Contingent Assets” which  has resulted in a change in the accounting for the  provision of dividends. Previously, the consolidated  entity recognised a provision for dividend based on  the amount that was proposed or declared after the  reporting date. In accordance with the requirements  of the new Standard, a provision for dividends will only  be recognised at the reporting date where the  dividends have been declared, determined or publicly  recommended prior to the reporting date. The effect  of the adoption of AASB 1044 has been to increase  consolidated retained profits and decrease provisions  at the beginning of the year by $26,397,336 (refer to  Note 28). In accordance with AASB 1044, no  provision for dividend has been recognised for the  year ended 30 June 2003. The consolidated entity has adopted the revised  Accounting Standard AASB 1028 “Employee Benefits”, which has resulted in a change in the  accounting policy for the measurement of employee  benefit liabilities. Previously, the consolidated entity  measured the provision for employee benefits based  on remuneration rates at the date of recognition of the  liability. In accordance with the requirements of the  revised standard AASB 1028, the provision for  employee benefits is now measured based on the  remuneration rates expected to be paid when the  liability is settled. By applying the revised standard, there has been no  adjustment to the consolidated retained profits or to  the employee benefit liabilities at the beginning of the  year. Where necessary, comparatives have been reclassified and repositioned for consistency with  current year disclosures.  As a result of the first time application of AASB 1044  “Provisions, Contingent Liabilities and Contingent  Assets”, comparatives for provisions, as set out in  Note 20, have been repositioned to be consistent with  current year disclosures.  33  HARVEY NORMAN HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES – ANNUAL REPORT 2003