62 NOTEs TO THE FINANCIAL sTATEMENTs  1. sUMMARY OF sIGNIFICANT ACCOUNTING POLICIEs FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 The principal accounting policies adopted in the preparation  of the financial report are set out below. These policies  have been consistently applied to all the years presented,  unless otherwise stated. The financial report includes the  consolidated entity consisting of Fairfax Media Limited and its  controlled entities. The financial report is for the period 25 June 2012 to  30 June 2013 (2012: the period 27 June 2011 to 24 June  2012). Reference in this report to ‘a year’ is to the period  ended 30 June 2013 or 24 June 2012 respectively, unless  otherwise stated. Fairfax Media Limited is a for profit company limited by  ordinary shares incorporated in Australia whose shares are  publicly traded on the Australian Securities Exchange. The  nature of the operations and principal activities of the Group  are described in the Directors’ Report. The financial report is a general-purpose financial report, which  has been prepared in accordance with the requirements  of the  Corporations Act 2001 , Australian Accounting  Standards and other authoritative pronouncements of  the Australian Accounting Standards Board. The financial  report also complies with International Financial Reporting  Standards (IFRS) as issued by the International Accounting  Standards Board.  The Group has prepared the financial statements in  compliance with amendments to the  Corporations Act 2001 in June 2010 which removed the requirement for the Group  to lodge parent entity financial statements. Parent entity  financial statements have been replaced by the specific  parent entity disclosures in Note 38. (A) BASIS OF PREPARATION HiSToRiCAl CoST ConVenTion (C) ACCOUNTING FOR ACQUISITIONS (ii) ASSoCiATeS And JoinT VenTuReS (B) PRINCIPLES OF CONSOLIDATION (i) ConTRolled enTiTieS These financial statements have been prepared on a going  concern basis and on the basis of historical cost principles  except for derivative financial instruments and certain  financial assets which are measured at fair value. The carrying  values of recognised assets and liabilities that are hedged with  fair value hedges are adjusted to record changes in the fair  values attributable to the risks that are being hedged. The consolidated financial statements incorporate the assets  and liabilities of the Company, Fairfax Media Limited, and its  controlled entities. Fairfax Media Limited and its controlled  entities together are referred to in this financial report as the  Group or the consolidated entity.  Controlled entities are fully consolidated from the date  on which control is transferred to the Group. They are  de-consolidated from the date that control ceases. The acquisition method of accounting is used to account for the  acquisition of controlled entities by the Group (refer to Note 1(C)).  All inter-entity transactions, balances and unrealised gains on  transactions between Group entities have been eliminated in full.  Non-controlling interests in the earnings and equity of  controlled entities are shown separately in the income  statement, statement of comprehensive income, statement of  changes in equity and balance sheet respectively. Investments in associates and joint ventures are accounted  for in the consolidated financial statements using the equity  method. Associates are entities over which the Group  has significant influence and are neither subsidiaries or  joint ventures. The Group’s share of its associates’ and joint ventures’ post- acquisition profits or losses are recognised in the income  statement, and its share of post-acquisition movements in  reserves is recognised in reserves. The cumulative post- acquisition movements are adjusted against the carrying  amount of the investment. Dividends received from associates  and joint ventures are recognised in the consolidated  financial statements as a reduction in the carrying amount of  the investment. When the Group’s share of losses in an associate or joint  venture equals or exceeds its interest in the associate or joint  venture, the Group does not recognise further losses, unless  it has incurred obligations or made payments on behalf of the  associate or joint venture. Unrealised gains on transactions between the Group and its  associates and joint ventures are eliminated to the extent of  the Group’s interest in associates and joint ventures. Business combinations are accounted for using the  acquisition method. The consideration transferred in a  business combination is measured at fair value, which is  calculated as the sum of the acquisition-date fair values of the  assets transferred by the acquirer, the liabilities incurred by  the acquirer to former owners of the acquiree and the equity  issued by the acquirer, the amount of any non-controlling  interest in the acquiree. For each business combination, the  acquirer measures the non-controlling interest in the acquiree  either at fair value or at the proportionate share of the  acquiree’s identifiable net assets. Acquisition-related costs are  expensed as incurred and included in other expenses. When the Group acquires a business, it assesses the financial  assets and liabilities assumed for appropriate classification  and designation in accordance with the contractual terms,  economic conditions, the Group’s operating or accounting  policies and other pertinent conditions as at the acquisition  date. This includes the separation of embedded derivatives in  host contracts of the acquiree.