CLOSE FILE X NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED) For the year ended 30 June 2014 1 CORPORATE INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (continued) (c) Summary of significant accounting policies  (continued) (x) Impairment of financial assets  (continued) (c) Available-for-sale investments at fair value (xiv) Interests in joint arrangements (xi) Foreign currency translation (xv) Income tax (xii) Discontinued operations and assets held for sale (xiii) Investments in associates Tax Consolidation 40 VILLAGE ROADSHOW LIMITED carrying amount and the present value of estimated future cash flows,  discounted at the current market rate of return for a similar financial asset. If there is objective evidence that an available-for-sale investment at fair  value is impaired, an amount comprising the difference between its cost  and its current fair value, less any impairment loss previously recognised in  profit or loss, is transferred from equity to profit or loss. Reversals of  impairment losses for equity instruments classified as available-for-sale  are not recognised in profit. Where there has been a change recognised directly in the associate’s  equity, the Group recognises its share of any changes and discloses this in  the consolidated statement of changes in equity. Adjustments are made to  bring into line any dissimilar reporting dates or accounting policies that  may exist. When the Group’s share of losses in an associate equals or exceeds its  interest in the associate, including any unsecured long-term receivables  and loans, the Group does not recognise further losses, unless it has  incurred obligations or made payments on behalf of the associate. A joint venture is a contractual arrangement whereby two or more parties  undertake an economic activity that is subject to joint control. A joint  operation involves the use of assets and other resources of the venturers  rather than establishment of a separate entity. The Group recognises its  interests in joint venture entities by using the equity method of accounting  (refer Note 1(c)(xiii)). The Group recognises its interest in joint operations by  recognising its share of the assets that the operations control and the  liabilities incurred. The Group also recognises its share of the expenses  incurred and the income that the operations earn from the sale of goods or  services. Both the functional and presentation currency of the Company and the  majority of its Australian subsidiaries is Australian dollars ($). Each entity  in the Group determines its own functional currency and items included  in the financial statements of each entity are measured using that  functional currency. Transactions in foreign currencies are initially recorded in the functional  currency by applying the exchange rates ruling at the date of the transaction.  Monetary assets and liabilities denominated in foreign currencies are  retranslated at the rate of exchange ruling at the reporting date. Non-monetary items that are measured in terms of historical cost in a  foreign currency are translated using the exchange rate as at the date of  the initial transaction. Non-monetary items measured at fair value in a  foreign currency are translated using the exchange rates at the date when  the fair value was determined. As at the reporting date the assets and liabilities of subsidiaries with  functional currencies other than Australian dollars are translated into the  presentation currency of the Company at the rate of exchange ruling at the  reporting date and their profit or loss items are translated at the weighted  average exchange rate for the year. The exchange differences arising on the  translation are taken directly to other comprehensive income. On disposal  of a foreign entity, the deferred cumulative amount recognised in other  comprehensive income relating to that particular foreign operation is  recognised in profit or loss. A discontinued operation is a component of an entity that has been disposed  of or is classified as held for sale and that represents a separate major line  of business or geographical area of operations, is part of a single  coordinated plan to dispose of such a line of business or area of operations,  or is a subsidiary acquired exclusively with a view to resale. The results of  discontinued operations are presented separately on the face of the  statement of comprehensive income. Non-current assets and disposal groups are classified as held for sale and  measured at the lower of their carrying amount and fair value less costs of  disposal if the carrying amount will be recovered principally through a sale  transaction. These assets are not depreciated or amortised following  classification as held for sale. For an asset or disposal group to be  classified as held for sale, it must be available for sale in its present  condition and its sale must be highly probable. All exchange differences in the consolidated financial report are taken to  profit or loss with the exception of differences on foreign currency  borrowings that provide a hedge against a net investment in a foreign entity.  These are taken directly to other comprehensive income until the disposal  of the net investment, at which time they are recognised in profit or loss.  Tax charges and credits attributable to exchange differences on those  borrowings are also recognised in other comprehensive income. The Group’s investments in associates are accounted for using the equity  method of accounting in the consolidated financial statements. An  associate is an entity in which the Group has significant influence and which  is neither a subsidiary nor a joint arrangement. Under the equity method, an investment in an associate is carried in the  consolidated statement of financial position at cost plus post-acquisition  changes in the Group’s share of net assets of the associate. Goodwill  relating to an associate is included in the carrying amount of the investment  and is not amortised. After application of the equity method, the Group  determines whether it is necessary to recognise any additional impairment  loss with respect to the Group’s net investment in the associate. The  consolidated statement of comprehensive income reflects the Group’s  share of the results of operations of the associate. For Australian income tax purposes, various entities in the Group have  formed a Tax Consolidated group, and have executed a combined Tax  The carrying amount of deferred income tax assets is reviewed at each  reporting date and reduced to the extent that it is no longer probable that  sufficient taxable profit will be available to allow all or part of the deferred  income tax asset to be utilised. Unrecognised deferred income tax assets  are reassessed at each reporting date and are recognised to the extent that  it has become probable that future taxable profit will allow the deferred tax  asset to be recovered. Deferred income tax assets and liabilities are  measured at the tax rates that are expected to apply to the year when the  asset is realised or the liability is settled, based on tax rates (and tax laws)  that have been enacted or substantively enacted at the reporting date.  Income taxes relating to items recognised directly in other comprehensive  income are recognised in other comprehensive income, and not in profit or  loss. Deferred tax assets and deferred tax liabilities are offset only if a  legally enforceable right exists to set off current tax assets against current  tax liabilities and the deferred tax assets and liabilities relate to the same  taxable entity and the same taxation authority. Current tax assets and liabilities for the current and prior periods are  measured at the amount expected to be recovered from or paid to the  taxation authorities. The tax rates and tax laws used to compute the amount  are those that are enacted or substantively enacted by the reporting date. Deferred income tax is provided on all temporary differences at the  reporting date between the tax bases of assets and liabilities and their  carrying amounts for financial reporting purposes. Deferred income tax  liabilities are recognised for all taxable temporary differences except: – when the deferred income tax liability arises from the initial recognition  of goodwill or of an asset or liability in a transaction that is not a business  combination and that, at the time of the transaction, affects neither the  accounting profit or loss nor taxable profit or loss; or – when the taxable temporary difference is associated with investments in  subsidiaries, associates or interests in joint ventures, and the timing of  the reversal of the temporary difference can be controlled and it is  probable that the temporary difference will not reverse in the  foreseeable future. – when the deferred income tax asset relating to the deductible temporary  difference arises from the initial recognition of an asset or liability in a  transaction that is not a business combination and, at the time of the  transaction, affects neither the accounting profit or loss nor taxable  profit or loss; or – when the deductible temporary difference is associated with investments  in subsidiaries, associates or interests in joint ventures, in which case a  deferred tax asset is only recognised to the extent that it is probable that  the temporary difference will reverse in the foreseeable future and  taxable profit will be available against which the temporary difference  can be utilised. Deferred income tax assets are recognised for all deductible temporary  differences, carry-forward of unused tax credits and unused tax losses, to  the extent that it is probable that taxable profit will be available against  which the deductible temporary differences and the carry-forward of  unused tax credits and unused tax losses can be utilised, except: