WEST AFRICA’S NEWEST LARGE GOLD PRODUCER Notes to the Consolidated Financial Statements For the year ended 30 June 2011 The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with  equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of  controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the  amount of the adjustment to non-controlling interest and any consideration paid or received is recognised within equity  attributable to owners of the parent entity. When the Group ceases to have control, joint control or significant influence, any retained interest in the entity is remeasured  to its fair value with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for  the purposes of subsequently accounting for the retained interest as an associate, joint controlled entity or financial asset. In  addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if  the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other  comprehensive income are reclassified to profit or loss. If the ownership interest in a jointly-controlled entity or an associate is reduced but joint control or significant influence  is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are  reclassified to profit or loss where appropriate. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision  maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the  operating segments, has been identified as the executive management team and board of directors of the parent entity. Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary  economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are  presented in Australian dollars, which is Perseus Mining Limited’s functional and presentation currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates  of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the  translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised  in profit or loss, except when they are deferred in equity as qualifying cash flow hedges and qualifying net investment  hedges or are attributable to part of the net investment in a foreign operation.  Foreign exchange gains and losses that relate to borrowings are presented in the statement of comprehensive income,  within finance costs. All other foreign exchange gains and losses are presented in the statement of comprehensive  income on a net basis. 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 rate at the date the fair value was determined. Translation differences on non-monetary assets and  liabilities, such as equity held at fair value through profit or loss, are reported in profit or loss as part of the fair value gain  or loss. Translation differences on non-monetary assets, such as equities classified as available-for-sale financial assets,  are recognised in other comprehensive income. 48 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued  (b)  Principles of consolidation (continued) (c) Segment reporting (d) Foreign currency transactions and balances (ii) Transactions and balances (iv)  Changes in ownership interests (i)  Functional and presentation currency