69 Consolidated  Notes to the  Financial  Statements Note 1 – Summary of significant accounting policies > AASB 1054  Australian Additional Disclosures  and AASB 2011-1  Amendments to Australian Accounting Standards arising from the  Trans-Tasman Convergence Project  [AASB 1, 5, 101, 107, 108,  121, 128, 132 & 134 and Interpretations 2, 112 & 113] > AASB 124  Related Party Disclosures  (2009) and AASB 2009- 12  Amendments to Australian Accounting Standards  [AASB 5,  8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and  Interpretations 2, 4, 16, 1039 & 1052] (a) Statement of compliance (b) Basis of preparation (e) Basis of consolidation > AASB 2010-5  Amendments to Australian Accounting Standards [AASB 1, 3, 4, 5, 101, 107, 112, 118, 119, 121, 132, 133, 134,  137, 139, 140, 1023 & 1038 and Interpretations 112, 115, 127,  132 & 1042] > AASB 2010-6  Amendments to Australian Accounting Standards  – Disclosures on Transfers of Financial Assets  [AASB 1 & AASB 7] > AASB 2010-4  Further Amendments to Australian Accounting  Standards arising from the Annual Improvements Project  [AASB 1, 7, 101 & 134 and Interpretation 13] > AASB 2009-14  Amendments to Australian Interpretation  – Prepayments of a Minimum Funding Requirement [AASB Interpretation 14]  (d) Adoption of new and revised accounting standards (c) Significant accounting judgements, estimates  and assumptions or performance of the consolidated entity, or on presentation  or disclosure in the consolidated financial statements. AGL Energy Limited (the Parent Entity) is a company limited by  shares incorporated in Australia whose shares are publicly traded  on the Australian Securities Exchange (ASX). The address of its  registered office is Level 22, 101 Miller Street North Sydney NSW  2060 Australia.  The consolidated financial statements comprise the Parent Entity  and its subsidiaries (together referred to as the consolidated  entity). For the purposes of preparing the consolidated financial  statements, the Parent Entity is a for-profit entity. The principal activities of the consolidated entity are described  in Note 4. These consolidated financial statements are general purpose  financial statements which have been prepared in accordance  with Australian Accounting Standards and Interpretations as  issued by the Australian Accounting Standards Board (AASB)  and the  Corporations Act 2001 . The consolidated financial statements also comply with  International Financial Reporting Standards (IFRS) as issued  by the International Accounting Standards Board (IASB). The consolidated financial statements were authorised for issue  by the Directors on 22 August 2012. The consolidated financial statements have been prepared on the  basis of historical cost, except for derivative financial instruments  and available-for-sale financial assets, which are measured at fair  value. Historical cost is generally based on the fair values of the  consideration given in exchange for assets. All amounts are  presented in Australian dollars, unless otherwise noted. The Parent Entity is a company of the kind referred to in ASIC Class  Order 98/0100, dated 10 July 1998, and in accordance with that  Class Order, amounts in the financial statements are rounded off  to the nearest tenth of a million dollars, unless otherwise indicated.  The significant accounting policies that have been adopted in the  preparation and presentation of the consolidated financial  statements are set out below. In the application of the consolidated entity’s accounting policies,  management is required to make judgements, estimates and  assumptions about the carrying amounts of assets and liabilities  that are not readily apparent from other sources. The estimates  and associated assumptions are based on historical experience  and other factors that are considered to be relevant. Actual results  may differ from these estimates.  The estimates and underlying assumptions are reviewed on an  ongoing basis. Revisions to accounting estimates are recognised in  the period in which the estimate is revised if the revision affects only  that period, or in the period of the revision and future periods if the  revision affects both current and future periods. Refer to Note 2 for  a discussion of critical judgements in applying the entity’s accounting  policies, and key sources of estimation uncertainty. The consolidated entity has adopted the following new and revised  Standards and Interpretations that are relevant to its operations  and effective for the current reporting period. These new and revised Standards and Interpretations have  not impacted on the accounting policies, financial position  In addition, any amounts previously recognised in other  comprehensive income in respect of that subsidiary are accounted  for as if the consolidated entity had directly disposed of the  relevant assets (i.e. reclassified to profit or loss or transferred  directly to retained earnings as specified by applicable Standards).  The fair value of any investment retained in the former subsidiary  at the date when control is lost is regarded as the fair value on  initial recognition for subsequent accounting under AASB 139  Financial Instruments: Recognition and Measurement  or, when  applicable, the cost on initial recognition of an investment in an  associate or jointly controlled entity. When the consolidated entity loses control of a subsidiary, a gain or  loss is recognised in profit or loss and is calculated as the difference  between (i) the aggregate of the fair value of the consideration  received and the fair value of any retained interest and (ii) the  previous carrying amount of the assets (including goodwill), and  liabilities of the subsidiary and any non-controlling interests. Changes in the consolidated entity’s interests in subsidiaries that  do not result in a loss of control are accounted for as equity  transactions. All intra-group transactions, balances, income and expenses are  eliminated in full on consolidation. Where necessary, adjustments are made to the financial statements  of subsidiaries to bring their accounting policies into line with those  used by other members of the consolidated entity.  Income and expense of subsidiaries acquired or disposed of during  the year are included in the consolidated income statement from  the effective date of acquisition and up to the effective date of  disposal, as appropriate.  The consolidated financial statements incorporate the financial  statements of the Parent Entity and entities (including special  purpose entities) controlled by the Parent Entity (its subsidiaries).  Control is achieved where the Parent Entity has the power to  govern the financial and operating policies of an entity so as  to obtain benefits from its activities.