Notes to the Consolidated Financial Statements for the Year Ended 30 June 2014 In valuing equity-settled transactions, no account is taken of any  performance conditions, other than conditions linked to the price of the  shares of Benitec Biopharma Limited (‘market conditions’). The cost of equity-settled transactions is recognised, together with  a corresponding increase in equity, over the period in which the  performance conditions are fulfilled, ending on the date on which the  relevant employees become fully entitled to the award (‘vesting date’). The cumulative expense recognised for equity-settled transactions at  each reporting date until vesting date reflects (i) the extent to which  the vesting period has expired and (ii) the number of awards that, in  the opinion of the directors of the group, will ultimately vest. This  opinion is formed based on the best available information at reporting  date. No adjustment is made for the likelihood of market performance  conditions being met as the effect of these conditions is included in the  determination of fair value at grant date. Australian dollars which is the parent entity’s functional and presentation  currency. Foreign currency transactions are translated into functional currency  using the exchange rates prevailing at the date of the transaction.  Foreign currency monetary items are translated at the year-end exchange  rate. Non-monetary items measured at historical cost continue to be  carried at the exchange rate at the date of the transaction. Non-monetary  items measured at fair value are reported at the exchange rate at the  date when fair values were determined. Exchange differences arising on the translation of monetary items are  recognised in the statement of comprehensive income, except where  deferred in equity as a qualifying cash flow or net investment hedge.  Exchange differences arising on the translation of non-monetary items  are recognised directly in equity to the extent that the gain or loss is  directly recognised in equity, otherwise the exchange difference is  recognised in the statement of comprehensive income. No expense is recognised for awards that do not ultimately vest, except  for awards where vesting is conditional upon a market condition. Where the terms of an equity-settled award are modified, as a minimum  an expense is recognised as if the terms had not been modified. In  addition, an expense is recognised for any increase in the value of the  transaction as a result of the modification, as measured at the date of  modification. Where an equity-settled award is cancelled, it is treated  as if it had vested on the date of cancellation, and any expense not  yet recognised for the award is recognised immediately. However, if a  new award is substituted for the cancelled award, and designated as a  replacement award on the date that it is granted, the cancelled and new  award are treated as if they were a modification of the original award, as  described in the previous paragraph. The financial results and position of foreign operations whose functional  currency is different from the Group’s presentation currency are  translated as follows: The dilutive effect, if any, of outstanding options is reflected as additional  share dilution in the computation of earnings per share. Basic earnings per share is calculated as net profit attributable to  members of the parent, adjusted to exclude any costs of servicing equity  (other than dividends) and preference share dividends, divided by the  weighted average number of ordinary shares, adjusted for any bonus  element. Diluted earnings per share is calculated as net profit attributable to  members of the parent, adjusted for: Revenues, expenses and assets are recognised net of the amount of  GST, except where the amount of GST incurred is not recoverable from  the Australian Tax Office. In these circumstances the GST is recognised  as part of the cost of acquisition of the asset or as part of an item of the  expense. Receivables and payables in the statement of financial position  are shown inclusive of GST.  Cash flows are presented in the statement of cash flows on a gross  basis, except for the GST component of investing and financing activities,  which are disclosed as operating cash flows. divided by the weighted average number of ordinary shares and dilutive  potential ordinary shares, adjusted for any bonus element. The directors have prepared the financial statements on a going  concern basis after taking into consideration the net loss for the year of  $7,039,109 and the cash and cash equivalents balance of $31,359,199,  The directors have recognised the capital raisings in 2013 and 2014,  performed a review of the cash flow forecasts, considered the cash  flow needs of the Group, and believe that the strategies in place are  appropriate to generate funding which will be sufficient to maintain the  going concern status of the Group. If these strategies are unsuccessful  then the Group may need to realise its assets and extinguish liabilities  other than in the ordinary course of business and at amounts different to  those disclosed in the financial report. When required by Accounting Standards, comparative figures have  been adjusted to conform to changes in presentation for the current  financial year.  Benitec Biopharma Ltd  Annual Report 2014 Page 27 Functional and presentation currency The functional currency of each of the Group’s entities is measured  using the currency of the primary economic environment in which that  entity operates. The consolidated financial statements are presented in  (t) Foreign Currency Transactions and Balances (w) Going Concern (v) Comparative Figures (u) Goods and Services Tax (GST) (s) Earnings per Share •  costs of servicing equity (other than dividends) and preference share dividends; •  the after tax effect of dividends and interest associated with dilutive  potential ordinary shares that have been recognised as expenses;  and •  other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential  ordinary shares; •  Retained profits are translated at the exchange rates prevailing at  the date of the transaction. •  Income and expenses are translated at average exchange rates for  the period.  •  Assets and liabilities are translated at year-end exchange rates  prevailing at that reporting date. Group companies Transaction and balances