EY Good Group Australia Limited December 2017

Good Group
(Australia)
Limited
Illustrative Australian
company’s financial report
for 31 December 2017
(and 30 June 2018)
Foreword
Contents
As 1 January 2018 draws near, the changes to accounting standards impacting financial years ending 31
December 2017 and 30 June 2018 are minimal. Given the far reaching effects of implementing AASB 15
Revenue from Contracts with Customers and AASB 9 Financial Instruments for years beginning from 1 January
2018, management should be finalising their changes to systems and processes in transitioning to the new
Standards.
This new edition of Good Group (Australia) Limited, formerly Endeavour (International) Limited, provides
illustrative financial statements prepared in accordance with Australian Accounting Standards and is designed to
assist you when preparing your own financial reports. It continues to be closely aligned with Good Group
Introduction
(International) Limited – the EY global illustrative financial statements prepared in accordance with International
Financial Reporting Standards (IFRS).
Good Group provides illustrative examples of the types of disclosures which may be required (where material),
and therefore the systematic ordering of the notes largely follows one possible grouping suggested by
AASB 101. An alternate grouping according to nature and perceived importance may permit users of the
financial statements to more effectively understand and compare the information provided. Further discussion
on this and an example of such a grouping can be found on pages iv-v.
The amendments to Australian tax law which requires significant global entities (SGEs) to lodge general purpose
financial statements (GPFS) to the Australian Taxation Office (ATO), unless already lodged with the Australian
Directors’ report
Securities & Investments Commission, are now in effect. The ATO has recently issued guidance on the
application of the requirements, which will result in some entities transitioning from special purpose financial
statements to GPFS. Our publication, Accounting update: ATO guidance on the provision of GPFS by SGEs, sum
marises the ATO’s guidance. These illustrative financial statements can be used to assist in preparing a Tier 1
GPFS.
I trust this publication will prove useful when preparing your financial statements for the next reporting season.
Consolidated financial statements

Frank Palmer
Partner and EY Oceania IFRS Services Leader
Ernst & Young Australia
Notes
Appendices
Good Group (Australia) Limited i

Contents
Contents
Abbreviations and key...................................................................................................................................................iii
Introduction .................................................................................................................................................................iv
Contents to annual report ............................................................................................................................................. 1
Corporate information .................................................................................................................................................. 3
Directors' report ........................................................................................................................................................... 5
Corporate governance ................................................................................................................................................ 33
Consolidated statement of profit or loss ....................................................................................................................... 36
Introduction
Consolidated statement of comprehensive income ........................................................................................................ 38
Consolidated statement of financial position................................................................................................................. 39
Consolidated statement of changes in equity ................................................................................................................ 41
Consolidated statement of cash flows .......................................................................................................................... 43
Notes to the consolidated financial statements ............................................................................................................. 45
Directors' declaration ............................................................................................................................................... 162
ASX additional information ........................................................................................................................................ 164
Appendix A – Consolidated statement of profit or loss (example of expenses disclosed by nature) ........................... 167
Appendix B – Consolidated statement of profit or loss and other comprehensive income (example of a single statement) 169
Directors’ report
Appendix C — Closed Group disclosures ...................................................................................................................... 172
Appendix D — Australian reporting requirements......................................................................................................... 175

Notes
Appendices
Good Group (Australia) Limited ii

Abbreviations and key
Contents
The following styles of abbreviation are used in this set of Illustrative Financial Statements:
IAS 33.41 International Accounting Standard No. 33, paragraph 41
IAS 1.BC13 International Accounting Standard No. 1, Basis for Conclusions, paragraph 13
IFRS 2.44 International Financial Reporting Standard No. 2, paragraph 44
SIC 29.6 Standing Interpretations Committee Interpretation No. 29, paragraph 6
IFRIC 4.6 IFRS Interpretations Committee (formerly IFRIC) Interpretation No. 4, paragraph 6
Introduction
IAS 39.IG.G.2 International Accounting Standard No. 39 — Guidance on Implementing IAS 39 Section G: Other,
paragraph G.2
IAS 39.AG71 International Accounting Standard No. 39 — Appendix A — Application Guidance, paragraph AG71
Commentary The commentary explains how the requirements of IFRS have been implemented in arriving at the
illustrative disclosure
GAAP Generally Accepted Accounting Principles/Practice
IASB International Accounting Standards Board
Interpretations IFRS Interpretations Committee
Directors’ report
Committee (formerly International Financial Reporting Interpretations Committee (IFRIC))
SIC Standing Interpretations Committee
AASB Australian Accounting Standards that are issued by the Australian Accounting Standards Board
(AASB). The numbering convention is as follows:
► AASB 1 – AASB 17 represents Australian Accounting Standards issued by the AASB that are
equivalent to the IFRS issued by the IASB. For example, AASB 15 is the equivalent of IFRS 15.
► AASB 101 – AASB 141 represents Australian Accounting Standards issued by the AASB that are
equivalent to the IAS issued by the IASB. For example, AASB 108 is the equivalent of IAS 8.

► AASB 1004 – AASB 1059 represents Australian Accounting Standards issued by the AASB that
have no equivalent in IFRS. That is, they are Australian-specific reporting requirements.
AASB Int Australian Interpretations that are issued by the AASB. The numbering convention is as follows:
► AASB Interpretations 1 – 23 represents Australian Interpretations issued by the AASB that are
equivalent to the Interpretations issued by the IFRS Interpretations Committee. For example,
AASB Interpretation 14 is the equivalent to Interpretation 14.
► AASB Interpretations 107 – 132 represents Australian Interpretations issued by the AASB that
are equivalent to the Interpretations issued by the SIC. For example, AASB Interpretation 115 is
the equivalent of SIC 15.
► AASB Interpretations 1003 – AASB 1055 represents Australian Interpretations issued by the
AASB that have no equivalent international Interpretation. That is, they are Australian-specific
reporting requirements.
CA 300A Corporations Act 2001, section 300A
Reg 2M.3.03(1) Corporations Regulations 2001, Chapter 2M, Regulation 3.03, paragraph 1
Notes
ASIC CI Australian Securities & Investments Commission Corporations Instrument
RG Australian Securities & Investments Commission Regulatory Guide
ASX 4.10.5 Australian Stock Exchange Listing Rules Chapter 4, Rule 10.5
Appendices
Good Group (Australia) Limited iii

Introduction
Contents
This publication contains an illustrative set of consolidated financial statements for Good Group (Australia) Limited (the parent) and
its subsidiaries (the Group) that is prepared in accordance with Australian Accounting Standards. The Group is a fictitious, large
publicly listed manufacturing company. The parent is incorporated in Australia. The presentation currency of the Group is the
Australian dollar ($).
Objective
This set of illustrative financial statements is one of many prepared by EY to assist you in preparing your own financial statements.
The illustrative financial statements are intended to reflect transactions, events and circumstances that we consider to be most
common for a broad range of companies across a wide variety of industries. Certain disclosures are included in these financial
Introduction
statements merely for illustrative purposes, even though they may be regarded as items or transactions that are not material for
the Group.
How to use these illustrative financial statements to prepare entity-specific disclosures

Users of this publication are encouraged to prepare entity-specific disclosures. Transactions and arrangements other
than those applicable to the Group may require additional disclosures. It should be noted that the illustrative financial
statements of the Group are not designed to reflect disclosure requirements that apply mainly to regulated or
specialised industries. For a more detailed list of disclosures, please refer to EY's Financial reporting standards disclosure
checklist. Enquiries regarding specialised industries and areas of accounting (e.g., insurance, US GAAP)
Directors’ report
should be directed to an EY professional.
Notations shown in the right-hand margin of each page are references to accounting standards or other pronouncements that
describe the specific disclosures. References made to International Financial Reporting Standards should be read as the Australian
equivalent standard as set out in the ‘Abbreviations and key’ section above. Where amending standards are referred to, the local
standard title is used. Disclosures arising from Australian-specific accounting standards are captured within dashed boxes.
Commentary is provided to explain the basis for the disclosure or to address alternative disclosures not included in the illustrative
financial statements. In case of doubt, it is essential to refer to the relevant source material and, where necessary, to seek
appropriate professional advice.
Improving disclosure effectiveness

Terms such as ’disclosure overload’, ‘cutting the clutter’, and ‘disclosure effectiveness’, relate to a problem in financial reporting
that has become a priority for the International Accounting Standards Board (IASB), local standard setters including the Australian
Accounting Standards Board (AASB), and regulatory bodies. The growth and complexity of financial statement disclosure is also
drawing significant attention from financial statement preparers, and more importantly, the users of financial statements.
Considering the purpose of the Good Group (Australia) Limited – Illustrative consolidated financial statements for the year ended 31
December 2017, the notes largely follow the order in which items are presented in the primary financial statements. Paragraph
113 of AASB 101 Presentation of Financial Statements requires the notes to be presented in a systematic manner and paragraph
144 provides examples of different systematic orderings and groupings that preparers may consider. An alternative structure that
some may find more effective in permitting the users to understand and compare the information provided, involves reorganising
the notes according to their nature and perceived importance.
An illustrative ordering of the alternative structure that is based on grouping into sections is summarised in the table below:
Sections For example, comprising:

Corporate and Group information • Corporate and Group information
Notes
Basis of preparation and other • Basis of preparation

significant accounting policies • Other significant accounting policies not covered in other sections (below)
• Changes in accounting policies and disclosures
• Fair value measurement and related fair value disclosures
• Impact of standards issued but not yet effective
Appendices
Good Group (Australia) Limited iv

Introduction (continued)
Sections For example, comprising:
Contents
Group business, operations, and • Financial instruments risk management objectives and policies
management • Hedging activities and derivatives
• Capital management
• Distributions made and proposed
• Segment information
• Basis of consolidation and information on material partly-owned subsidiaries
• Interest in joint ventures and investment in associates
Significant transactions and events • Business combinations and acquisitions of non-controlling interests
• Discontinued operations
Introduction
• Impairment of goodwill and intangible assets with indefinite lives
• Correction of an error
• Related party disclosures
• Events after the reporting period
Detailed information on statement of • Other operating income and expenses
profit or loss and other • Finance income and costs
comprehensive income items • Depreciation, amortisation, foreign exchange differences and costs of inventories
• Detailed breakdown of administrative, employee benefits and research &
development expenses
Directors’ report
• Share-based payments
• Components of other comprehensive income
• Earnings per share
Detailed information on statement of • Income tax
financial position items • Property, plant & equipment, investment properties and intangible assets
• Financial assets and liabilities
• Inventories
• Trade and other receivables and payables

• Cash and short-term deposits
• Issued capital and reserves
• Provisions
• Government grants
• Deferred revenue
• Pensions and other post-employment benefits
Commitments and contingencies • Leases
• Other commitments
• Legal claim contingency
• Guarantees
• Other contingent liabilities
By structuring the notes according to their nature and perceived importance, users may find it easier to extract the relevant
information. In addition, the significant accounting policies, judgements, key estimates and assumptions could alternatively be
placed within the same note as the related qualitative and quantitative disclosures to provide a more holistic discussion to users of
the financial statements. 1
Notes
Effective reporting – A practical guide for financial reporters provides examples, based on the disclosures within this illustrative set
of financial statements, of how an entity might structure, apply materiality and group their disclosures to improve communication
effectiveness. Such judgments are entity-specific – that is, they must be tailored to meet the needs of an entity’s stakeholders – and
therefore the alternative disclosures provided in Effective reporting – A practical guide for financial reporters should be used as
guidance only.
Appendices
1
For an illustrative set of disclosures grouped in accordance with the sections discussed above, see Good Group (International) Limited – Alternative
Format.
Good Group (Australia) Limited v

Entities should carefully assess their specific circumstances and the preferences of the primary users before deciding
Contents
on how to prepare disclosures. Engagement of key stakeholders will be a critical part of any process to make significant
changes to the financial statements.
Applying the concept of materiality requires judgement, in particular, in relation to matters of presentation and disclosure, and an
overly cautious approach may be another cause of the perceived disclosure overload. Australian Accounting Standards set out
minimum disclosures that, in practice, too often are provided without considering the information’s relevance for the specific
entity. That is, if the transaction or item is immaterial to the entity, then Australian Accounting Standards do not require the item
to be disclosed. If immaterial information is included in the financial statements, the amount of information may reduce the
transparency and usefulness of the financial statements as the material and, thus, relevant information, loses prominence. In
September 2017, the IASB issued Practice Statement 2 Making Materiality Judgements. The Practice Statement provides guidance
Introduction
and examples that companies may find helpful in making materiality judgements. The Practice Statement is not mandatory and
neither changes existing requirements nor introduces new ones.
As explained above, the primary purpose of these financial statements is to illustrate the most commonly applicable
disclosure requirements. Therefore, they include disclosures that may, in practice, be deemed not material to Good
Group. It is essential that entities consider their own specific circumstances when determining which disclosures to
include and how they should be tailored. These financial statements are not intended to act as guidance for making the
materiality assessments; they must always be tailored to ensure that an entity’s financial statements reflect and
portray its specific circumstances and its own materiality considerations. Only then will the financial statements provide
decision-useful financial information.
Directors’ report
For more guidance on how to improve disclosure effectiveness, please refer to our publication Applying IFRS: Enhancing
communication effectiveness (February 2017).
Australian Accounting Standards as at 30 September 2017
As a general approach, these illustrative financial statements do not early adopt standards or amendments before their effective
date.
The standards applied in these illustrative financial statements are those that were on issue as at 30 September 2017 and effective
for annual periods beginning on or after 1 January 2017. Standards issued, but not yet effective, as at 1 January 2017, have not
been early adopted. It is important to note that these illustrative financial statements will require continual updating as standards

are issued and/or revised.
Users of this publication are cautioned to check that there has been no change in requirements of Australian Accounting Standards
between 30 September 2017 and the date on which their financial statements are authorised for issue. In accordance with
paragraph 30 of AASB 108, specific disclosure requirements apply for standards and interpretations issued but not yet effective
(see Note 34 of these illustrative financial statements). Furthermore, if the financial year of an entity is other than the calendar
year, new and revised standards applied in these illustrative financial statements may not be applicable. For example, the Group
has applied AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107 for
the first time in its 2017 illustrative financial statements. An entity with a financial year that commences from, for example, 1
October and ends on 30 September would not have applied this amendment in financial statements for the year-end 30 September
2017, unless it voluntarily chose to early adopt the amendment.
The disclosure requirements of the following Australian Accounting Standards are not applicable to the Group or have not been
early adopted and have therefore not been illustrated in these financial statements:
AASB 1 First Time Adoption of Australian Equivalents to International Financial Reporting Standards
AASB 4 Insurance Contracts
AASB 6 Exploration for and Evaluation of Mineral Resources
AASB 9 Financial Instruments
AASB 14 Regulatory Deferral Accounts
AASB 15 Revenue from Contracts with Customers
Notes
AASB 16 Leases
AASB 111 Construction Contracts
AASB 127 Separate Financial Statements
AASB 129 Financial Reporting in Hyperinflationary Economies
AASB 134 Interim Financial Reporting
AASB 141 Agriculture
AASB 1004 Contributions
AASB 1023 General Insurance Contracts
AASB 1038 Life Insurance Contracts
AASB 1039 Concise Financial Reports
Appendices
AASB 1049 Whole of Government and General Government Sector Financial Reporting
AASB 1050 Administered Items
AASB 1051 Land Under Roads
Good Group (Australia) Limited vi

AASB 1052 Disaggregated Disclosures
Contents
AASB 1053 Application of Tiers of Accounting Standards
AASB 1055 Budgetary Reporting
AASB 1056 Superannuation Entities
AASB 1057 Application of Australian Accounting Standards
AASB 1058 Income of Not-for-Profit Entities
AASB 1059 Service Concession Arrangements: Grantors
AAS 25 Financial Reporting by Superannuation Plans
Interpretation 2 Members’ Shares in Co—operative Entities and Similar Instruments
Interpretation 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
Interpretation 7 Applying the Restatement Approach under AASB 129 Financial Reporting in Hyperinflationary Economies
Interpretation 12 Service Concession Arrangements
Interpretation 14 AASB 19 — The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
Introduction
Interpretation 15 Agreements for the Construction of Real Estate
Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments
Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine
Interpretation 21 Levies
Interpretation 22 Foreign Currency Transactions and Advance Consideration
Interpretation 23 Uncertainty over Income Tax Treatments
Interpretation 107 Introduction of the Euro
Interpretation 110 Government Assistance — No Specific Relation to Operating Activities
Interpretation 125 Income Taxes – Changes in the Tax Status of an Entity or its Shareholders
Interpretation 129 Service Concession Arrangements: Disclosures
Interpretation 131 Revenue — Barter Transactions Involving Advertising Services
Directors’ report
Interpretation 132 Intangible Assets — Web Site Costs
Interpretation 1003 Australian Petroleum Resource Rent Tax
Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities
Interpretation 1042 Subscriber Acquisition Costs in the Telecommunications Industry
Interpretation 1047 Professional Indemnity Claims Liabilities in Medical Defence Organisations
Interpretation 1055 Accounting for Road Earthworks
Accounting policy choices

Accounting policies are broadly defined in AASB 108 and include not just the explicit elections available in some standards, but also

other conventions and practices that are adopted in applying principle-based standards.
In some cases, Australian Accounting Standards permit more than one accounting treatment for a transaction or event. Preparers
of financial statements should select the treatment that is most relevant to their business and circumstances as their accounting
policy.
AASB 108 requires an entity to select and apply its accounting policies consistently for similar transactions, events and/or
conditions, unless an Australian Accounting Standard specifically requires or permits categorisation of items for which different
policies may be appropriate. Where an Australian Accounting Standard requires or permits such categorisation, an appropriate
accounting policy is selected and applied consistently to each category. Therefore, once a choice of one of the alternative
treatments has been made, it becomes the entity’s accounting policy and must be applied consistently. Changes in accounting
policy should only be made if required by a standard or interpretation, or if the change results in the financial statements providing
reliable and more relevant information.
In this publication, when a choice is available in Australian Accounting Standards, the Group has adopted one of the treatments as
appropriate to the circumstances of the Group. In these cases, the commentary provides details of which policy has been selected,
the reasons for this policy selection, and, where appropriate, summarises the difference in the disclosure requirements.
Financial review by management
Many entities present a financial review by management that is outside the financial statements. Australian Accounting Standards
Notes
do not require the presentation of such information, although paragraph 13 of AASB 101 gives a brief outline of what may be
included in an annual report. The IASB’s IFRS Practice Statement, Management Commentary, provides a broad non-binding
framework for presenting management commentary that relates to financial statements prepared in accordance with IFRS. If a
company decides to follow the guidance in the Practice Statement, management is encouraged to explain the extent to which the
Practice Statement has been followed. A statement of compliance with the Practice Statement is only permitted if it is followed in
its entirety.
Preparers of financial statements that comply with Australian Accounting Standards should note that other guidance on
management commentary already exists in Australia (for example, ASIC Regulatory Guide 230 Disclosing non-IFRS financial
information) which may take precedence over the IFRS Practice Statement. Further, the content of a financial review by
management in relation to the financial statements is often determined by the requirements of the Corporations Act 2001.
Appendices
Good Group (Australia) Limited vii

Changes in the 2017 edition of Good Group (Australia) Limited annual financial statements
Contents
The standards and interpretations listed below have become effective since 31 October 2016 for annual periods beginning on 1
January 2017. While the list of new standards is provided below, not all of these new standards will have an impact on these
illustrative financial statements. To the extent these illustrative financial statements have changed since the 2016 edition due to
changes in standards and interpretations, we have disclosed the impact of those changes in Note 2.4.
Other changes from the 2016 edition have been made in order to reflect practice developments and to improve the overall quality
of the illustrative financial statements.
Changes to Australian Accounting Standards
The following new standards and amendments (excluding those that apply only to not-for-profit entities) became effective as of 1
January 2017:
Introduction
• AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses
• AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107
• AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014-2016 Cycle
Independent auditor’s report

Good Group (Australia) Limited is a limited company incorporated and domiciled in Australia and whose shares are publicly traded.
Financial statements of such an entity are usually subject to mandatory audit under Australian Standards on Auditing (ASA) and an
auditor’s report should be disclosed together with the annual financial statements. However, this publication is not intended to
provide guidance on the application of ASA 700 (Revised) Forming an Opinion and Reporting of Financial statements or the specific
Directors’ report
requirements of individual jurisdictions. Hence, an illustrative auditor’s report on the consolidated financial statements of the Good
Group (Australia) Limited has not been included.
Caveat
The names of people and corporations included in these illustrative financial statements are fictitious and have been
created for the purpose of illustration only. Any resemblance to any person or business is purely coincidental.
These financial statements are illustrative only and do not attempt to show all possible accounting and disclosure
requirements. In case of doubt as to the requirements, it is essential to refer to the relevant source and, where necessary,
seek appropriate professional advice. Although the illustrative financial statements attempt to show the most likely

disclosure requirements for industrial entities, it should not be regarded as a comprehensive checklist of disclosure
requirements.
Notes
Appendices
Good Group (Australia) Limited viii

Good Group (Australia) Limited
ABN 00 000 000 000
Illustrative Australian financial report for
the year ended 31 December 2017
(also applicable for 30 June 2018)
Contents to annual report
Contents
Corporate information .................................................................................................................................................. 3
Directors' report ........................................................................................................................................................... 5
Corporate governance ................................................................................................................................................ 33
Consolidated statement of profit or loss ....................................................................................................................... 36
Consolidated statement of comprehensive income ........................................................................................................ 38
Consolidated statement of financial position................................................................................................................. 39
Consolidated statement of changes in equity ................................................................................................................ 41
Introduction
Consolidated statement of cash flows .......................................................................................................................... 43
Notes to the consolidated financial statements ............................................................................................................. 45
1. Corporate information ................................................................................................................................... 45
2. Significant accounting policies ........................................................................................................................ 45
2.1 Basis of preparation ....................................................................................................................................... 45
2.2 Basis of consolidation .................................................................................................................................... 46
2.3 Summary of significant accounting policies ..................................................................................................... 46
2.4 Changes in accounting policies and disclosures ................................................................................................ 67
Directors’ report
2.5 Correction of an error .................................................................................................................................... 68
3. Significant accounting judgements, estimates and assumptions ........................................................................ 69
4. Segment information ..................................................................................................................................... 74
5. Capital management ...................................................................................................................................... 77
6. Group information ......................................................................................................................................... 78
7. Business combinations and acquisition of non-controlling interests ................................................................... 79
8. Material partly-owned subsidiaries .................................................................................................................. 83
9. Interest in a joint venture ............................................................................................................................... 86

10. Investment in an associate ............................................................................................................................. 87
11. Fair value measurement ................................................................................................................................. 88
12. Other income/expenses ................................................................................................................................. 92
12.1 Other operating income ................................................................................................................................. 92
12.2 Other operating expenses .............................................................................................................................. 92
12.3 Finance costs ................................................................................................................................................ 93
12.4 Finance income.............................................................................................................................................. 93
12.5 Depreciation, amortisation, foreign exchange differences and costs of inventories included in the consolidated
statement of profit or loss .............................................................................................................................. 93
12.6 Employee benefits expense ............................................................................................................................ 94
12.7 Research and development costs .................................................................................................................... 94
12.8 Components of OCI ........................................................................................................................................ 95
12.9 Administrative expenses ................................................................................................................................ 95
13. Discontinued operations ................................................................................................................................. 96
Notes
14. Income tax .................................................................................................................................................... 99

15. Earnings per share (EPS) .............................................................................................................................. 104
16. Property, plant and equipment ..................................................................................................................... 105
17. Investment properties .................................................................................................................................. 108
18. Intangible assets .......................................................................................................................................... 110
19. Goodwill and intangible assets with indefinite lives ......................................................................................... 110
20. Financial assets and financial liabilities .......................................................................................................... 113
20.1 Financial assets ........................................................................................................................................... 113
Appendices
20.2 Financial liabilities: Interest-bearing loans and borrowings .............................................................................. 114

20.3 Hedging activities and derivatives ................................................................................................................. 116
20.4 Fair values................................................................................................................................................... 118
Good Group (Australia) Limited 1

Contents to annual report (continued)
20.5 Financial instruments risk management objectives and policies ....................................................................... 123
Contents
21. Inventories .................................................................................................................................................. 131
22. Trade and other receivables ......................................................................................................................... 131
23. Cash and short-term deposits ....................................................................................................................... 132
24. Issued capital and reserves ........................................................................................................................... 134
25. Distributions made and proposed .................................................................................................................. 136
26. Provisions ................................................................................................................................................... 137
27. Government grants ...................................................................................................................................... 138
28. Deferred revenue......................................................................................................................................... 138
Introduction
28.1 GoodPoints transactions............................................................................................................................... 138
29. Pension and other post employment benefit plans ......................................................................................... 139
30. Share-based payments ................................................................................................................................. 143
31. Trade and other payables ............................................................................................................................. 145
32. Commitments and contingencies .................................................................................................................. 145
33. Related party disclosures ............................................................................................................................. 147
34. Standards issued but not yet effective .......................................................................................................... 149
35. Events after the reporting period .................................................................................................................. 160
36. Auditors' remuneration ................................................................................................................................ 160
Directors’ report
37. Information relating to Good Group (Australia) Limited (the Parent) ................................................................ 161
Directors' declaration ............................................................................................................................................... 162
ASX additional information ........................................................................................................................................ 164

Notes
Appendices

Contents
Corporate information
ABN 00 000 000 000 CA 153(2)
Directors
V. Sheen, Chair
F. Canuck, Managing Director
P.G. Gerherns
M. Smith
C. Feens
C. Buffy
Introduction
J. Vargo
K. Chopper
M.A. Pryce
Company Secretary ASX 4.10.10

G.K. Dellas
Registered office
Fire House ASX 4.10.11
Ashdown Square AASB 101.138(a)
Australia
Directors’ report
Principal place of business AASB 101.138(a)
Bush Avenue
Mulberry Park
Australia
Phone: 61 3 9876 5432
Share register ASX 4.10.12

Everest Registry Services
23rd Floor
43 Terry Street

Australia
Phone: 61 2 9876 5431
Good Group (Australia) Limited shares are listed on the Australian Stock Exchange (ASX) ASX 4.10.13
Solicitors
Solicitors & Co
7 George Street
Australia
Bankers
Bank Limited
Martin Place
Australia
Auditors
Ernst & Young
Australia
Notes
Appendices

Directors’ report
Directors' report
Contents
Your directors submit their report for the year ended 31 December 2017. CA 298(1)
Directors
The names and details of the Company's directors in office during the financial year and until the date of this CA 300(1)(c)
report are set out below. Directors were in office for this entire period unless otherwise stated.
Names, qualifications, experience and special responsibilities CA 300(10)(a)
V. Sheen (Non-executive Chair)
V. Sheen joined Good Group (Australia) Limited in 2011 as the Group Chair. He also serves on the Group’s
Introduction
audit committee and is chair of the remuneration and nomination committees. During the past three years,
Mr Sheen has also served as a director of the following other listed companies:
D.A. Bank Ltd* — appointed 30 June 2012

The Oil Company Ltd* — appointed 15 July 2013
Spartan Ltd — appointed 30 October 2010; resigned 29 October 2017 CA 300(11)(e)
* Denotes current directorship
F. Canuck, B.Sc (Managing Director)
Directors’ report
F. Canuck joined Good Group (Australia) Limited as part of the acquisition of the fire prevention business in
1998, becoming Production Manager in 2009 and a director in 2013. He now combines the role of
Production Director with that of Managing Director while also serving as chair of the Group's finance and
treasury committees.
P.G. Gerherns, B.Com., F.C.A. (Finance Director)
P.G. Gerherns joined Good Group (Australia) Limited as Finance Director in 2007. Prior to joining the Group,
he was a senior partner in an accounting firm. Mr Gerherns also serves on the Group's finance and treasury
committees.

M. Smith, LL.B.
M. Smith has combined her work as a practising solicitor with her role as a non-executive director of the
Company since 2007. She resigned as a non-executive director of the board on 31 January 2018. M. Smith
served as chair of the Group’s audit committee and was a member of the Group’s remuneration and
nomination committees. During the past three years she has also served as a director of the following listed
companies:
Castle Ltd* — appointed 15 July 2011

Carrington Ltd — appointed 30 June 2008; resigned 29 June 2017 CA300(11)(e)
* Denotes current directorship
C. Feens, M. Eng.
C. Feens joined the board of Good Group (Australia) Limited as a non-executive director in 2011. He is an
engineer with significant expertise in the electronics and aviation industries and also serves on the
nomination and remuneration committees of the Group.
C. Buffy
Notes
C. Buffy is an American citizen and served as the President of the Australasian operations of S.J. Limited,
the ultimate holding company of Good Group (Australia) Limited, from 1987 to 1991. She retired as a non-
executive director of the board on 28 January 2017. During the past three years Ms Won has held the
following listed company directorships:
DE Manufacturing Ltd — appointed 31 December 2007; resigned 30 June 2016

Appendices

Directors’ report (continued)
Directors (continued)
Contents
J. Vargo, B.Com., C.A.
J. Vargo joined the board of Good Group (Australia) Limited as a non-executive director in 2012. He is a
practising chartered accountant and tax practitioner and is a member of the audit committee and
remuneration committee of the Group.
K. Chopper, M. Sc.
K. Chopper joined the board of Good Group (Australia) Limited as a non-executive director on 1 August
2016. She has extensive knowledge of the chemical industry and has a Masters degree in chemical
engineering from the University of Melbourne.
Introduction
M.A. Pryce, B.Com., C.A.
M.A. Pryce is a practising chartered accountant and joined the board of Good Group (Australia) Limited in
2011.
Interests in the shares and options of the Company and related bodies corporate CA 300(11)(a),(c)
As at the date of this report, the interests of the directors in the shares and options of Good Group
(Australia) Limited were:
Number of ordinary Number of Number of options
shares preference shares over ordinary shares
V. Sheen 321,940 20,000 -
Directors’ report
F. Canuck 702,000 6,000 110,000
P.G. Gerherns 117,500 5,000 98,500
C. Feens 59,000 - -
J. Vargo 37,000 - -
K. Chopper 15,000 - -
M.A. Pryce 10,000 - -
Company Secretary
G.K. Dellas B.Comm. (Hons) F.C.A CA 300(10)(d)

G.K. Dellas has been the Company Secretary of Good Group (Australia) Limited for eight years. She has been
a chartered accountant for over 15 years.
Dividends
Cents $000 CA 300(1)(b)
Final dividends recommended:
ordinary shares 5.01 1,087
Dividends paid in the year: CA 300(1)(a)

Interim for the year
on ordinary shares 4.66 877
on preference shares 0.46 13
890
Final for 2016 shown as recommended

in the 2016 financial report
on ordinary shares 5.66 1,069
Notes
on preference shares 0.46 13

1,082
Commentary
Dividend information presented above includes dividends on preference shares in addition to dividends on ordinary shares for illustrative
purposes. In the notes to the financial statements, it is assumed that dividends were only paid on ordinary shares.
Appendices

Principal activities
Contents
The principal activities during the year of entities within the consolidated group were: CA 299(1)(c)
► Supply and servicing of electronic equipment for defence, aviation and electrical safety markets
► Production, installation and servicing of extinguishers, fire prevention equipment and fire retardant
fabrics
► Production of rubber hosepipes for commercial applications
► Leasing of offices and manufacturing sites that are surplus to the Group's requirements
Other than the discontinuance of the rubber equipment segment which came about through the decision to
distribute Hose Limited to the shareholders of the Company, there have been no other significant changes in
Introduction
the nature of these activities during the year.
Operating and financial review CA 299(1)(a)

CA 299A(1)
ASX 4.10.17
Commentary
The appropriate information to disclose in the operating and financial review will depend upon the entity’s business
operations and the sector in which it operates.
The requirements of the Corporations Act 2001 are:
For all entities, a review of operations and the results of those operations
For listed entities, information that members of the listed entity would reasonably require to make an informed
Directors’ report
assessment of:
► The operations
► Financial position
► The business strategies, and prospects for future financial years
Please also note that for listed entities, ASIC RG 247 Effective disclosures in an operating and financial review
(OFR) assists directors of listed entities in preparing useful and meaningful operating and financial reviews.
The purpose of this section is to:

► Provide an overview of our business model

► Discuss our strategy (including the risks associated with our strategy)
► Outline the significant changes in the state of affairs
► Provide a review of our financial condition
Good Group – keeping the world safe from fire
Good Group has a long and proud history of protecting people and property from fire and other safety risks.
From our beginnings in 1977, as a local manufacturer of fire extinguishers serving the Victorian market, we
have expanded to supply a range of innovative safety products to customers around the globe. Today, we
have operations in eight countries and employ 500 people, supplying the defence, aviation, property and
manufacturing sectors with safety solutions.
Our business is divided into two key areas. The fire prevention equipment business produces and installs
extinguishers, fire prevention equipment and fire retardant fabrics. Our electronic safety products business
produces and supplies electronic equipment, including electronics, safety, thermal and electrical architecture,
for electrical safety applications.
All of our activities are driven by the same vision: to keep the world safe from fire.
Notes
Appendices

Realising the Good Group vision
Contents
Introduction
Market drivers RG 247.51
Technological change: drives demand for new and improved safety technology and creates the possibility for
lower cost mass market safety solutions. There is the potential for disruptive market entrants from
technology sector.
Increased safety expectations: new regulatory requirements in domestic and overseas markets drive demand
for mass market solutions. Requirement for aviation and defence to maintain best practice solutions drive
demand for innovative tailored products. This also means that existing solutions become obsolete more
Directors’ report
quickly and innovation and speed to market are now necessities, while price pressures continue to grow.
Globalisation: allows access to new, high growth markets. There is the potential for competition from new
market entrants from developing countries, with lower cost base.
Strategic pillars
Innovation
We need to stay at the forefront of technology if we are to find new ways of keeping the world safe from fire,
and to meet emerging risks to the safety of people and property. To help us meet this challenge, Good Group
has a world-leading research and development program that creates innovative solutions to safety issues.

For the value of that innovation to be realised for our customers and our shareholders, solutions need to be
developed and brought to market as quickly as possible. Our business is focused on building a pipeline of
solutions from our leading edge, tailored offerings to affordable, mass market products.
Client focus
Good Group has a proud history of collaboration with our clients in aviation and defence to create cutting-
edge solutions. Through our involvement in industry sector associations, including our support of the
International Aviation Safety Solutions Network, we continue to build strong relationships across these
sectors; backed by our own Good Group Touch client relationship program.
Efficiency
To meet the challenges of a rapidly changing market, last year the Board announced the investment of
$300,000 in a five-year Good Group Agility plan. Good Group Agility is a set of initiatives focusing our
business on continuous improvement and enabling us to adapt to the changing needs of our customers for
new, lower cost products. Key initiatives are:
► Engagement with external consultants to develop more effective management of our working capital
► Improving our product development processes to increase our speed to market for new mass market
products
Notes
► Better integration of management reporting systems across the business, with particular focus on the
newly acquired operations.
Enablers
People
Our people, their experience, enthusiasm and dedication, are the foundation of our business.
Technology
We ensure our people have the tools they need to deliver value.
Appendices
Relationships
Strong relationships with regulators, suppliers and business partners help us to deliver on our promise of
keeping the world safe from fire.

The Good Group value chain
Contents
Introduction
Directors’ report
The market opportunity
Safety continues to be a growing market globally, driven by rapidly changing technology, increasingly
stringent regulation, and continuing expectation from our clients and their stakeholders that they will be safe
in everything they do. In particular, we see great opportunities in emerging markets as community
expectations of safety increase in line with economic growth.
At the same time, safety is a highly competitive business. We now compete on a global basis with
manufacturers from emerging markets such as China and India. We also face the potential of disruptive
market entrants from the technology sector, building on their existing customer base and technology
platforms to deliver electronic safety services.

CA 299A(1)(c)
Our strategy RG 247.51
RG 247.58
In order to respond to these challenges, we are focusing our business on the development of market-ready
products, rather than components. To that end we are divesting our component manufacturing operations
as and when market conditions are favourable, and building our future product pipeline through a
combination of strategic acquisitions and a strong research and development program.
We consider our strategy to be sufficiently agile to deal with the increasing demand for sophisticated fire
detection and prevention products. Our R&D programs are set to deliver customised and mass market
products to our customers on a timely basis.
As we begin to recognise revenue from products developed in previous years, we are confident that our
ongoing investment in R&D will continue to deliver sustainable returns in the future.
CA 299A(1)(c)
Managing the risks to our growth strategy RG 247.60
In developing our strategy, the Board undertook a comprehensive risk review to identify the key risks to
our business. The review included an internal and external stakeholder analysis that identified the diverse
needs of our various stakeholders and the potential risks to our business if those needs are not met. This
Notes
analysis is updated annually.

Appendices

Risk Response RG 247.61
Contents
Supply chain for components less The group has made additional investment in its
certain since rubber hose division procurement division to ensure ongoing and competitive
divestment sources of components. In addition, the terms of sale of
Pipe Ltd included long-term guarantees of supply.
Development of new R&D and Good Group Agility is improving our product development
products is more expensive than processes, resulting in an increase in our speed to market for
forecast new mass market products.
RG 247.63
Supply chain – environmental and The Group is highly aware of managing risk in the supply
human rights impacts chain, particularly as it moves away from manufacturing.
Key issues relate to the environmental impacts associated
Introduction
with the manufacturing process and human rights risks in
developing countries where we, or our supplier, have a
presence. The Group is preparing a supply chain strategy
that will include supplier screening against environmental
and social criteria.
Increased competition from new The Group is particularly focused on maintaining strong
market entrants relationships with its clients and ensuring we continue to
innovate to meet their needs. Our Good Group Agility
program will enable us to be agile in our response to new
competitive threats as they emerge, particularly through the
Directors’ report
development of innovative products.
Significant changes in the state of affairs CA 299(1)(b)

RG 247.42
Divestments, acquisitions and formations RG 247.43(a)
Having successfully defended the takeover bid by Fire Products Limited for Good Group (Australia) Limited
at the start of the year, strong foundations have been laid for the future growth of the Group.
Distribution of shares held in Hose Limited

During October 2017, the Group announced the decision to distribute the shares of Hose Limited, a wholly

owned subsidiary, to the shareholders of Good Group (Australia) Limited. The distribution was approved by
shareholders and completed during February 2018. Hose Limited represented the entire Rubber
Equipment segment of the Group. To continue to meet the supply demands of rubber, during August 2017,
Good Group (Australia) Limited engaged the services of K. Chopper as a non-executive director due to her
extensive knowledge of the chemical industry.
Acquisition of Extinguishers Limited

The fire prevention division of our business was substantially strengthened by the acquisition of
Extinguishers Limited, a company that has been established in Australia for many years. As well as a strong
customer base and quality product line, Extinguishers Limited has a world-leading research and
development program that is well placed to contribute to converting our tailored products for the mass
market. The acquisition also included a number of highly profitable fire prevention patents that will bring in
stable revenue streams for several years to come.
Formation of Fire Equipment Test Lab Limited

The Group has bolstered its ongoing R&D and quality control program with the establishment of Fire
Equipment Test Lab Limited. The Lab will provide us with a bespoke facility for testing potential new mass
market products, and to support our ongoing quality control program for existing products. Construction of
the new facility is due for completion in 2020.
Notes
Capital structure
Long-term borrowings
The Group obtained additional funding of $3,000,000 during the course of the year at the rate of 11%, due RG 247.43(a)
for repayment in 2020. This funding was provided by a third party investor and will be to finance the start-up
of a new entity, the Fire Equipment Test Lab Limited. This entity will test new and existing fire safety
products to ensure quality control.
The Group also borrowed USD3,600,000 to hedge the Group’s exposure to changes in foreign exchange
rates arising from the investment in the two US subsidiaries, Wireworks Inc. and Sprinklers Inc.
Issued shares
Appendices
The acquisition of Extinguishers Limited was funded by the issue of 2,500,000 ordinary shares with a quoted
price of $2.881 per share. Transaction costs of $600,000 and share issuance costs of $32,000 were incurred.

Contingent consideration liability
Contents
As part of the agreement with the previous owner of Extinguishers Limited, an amount of contingent
consideration has been agreed. There will be additional cash payments to the previous owner of
Extinguishers Limited of:
► $675,000, if the entity generates up to $1,000,000 of profit before tax in a 12-month period after the
acquisition date
Or
► $1,125,000, if the entity generates $1,500,000 or more of profit before tax in a 12-month period after
the acquisition date
At 31 December 2017, the key performance indicators of Extinguishers Limited indicated that it was highly
probable it would generate a profit before tax in excess of $1,500,000. Accordingly, that probability, when
Introduction
considered in combination with the time value of money, resulted in a contingent consideration liability at
balance date of $1,072,000 associated with the acquisition of Extinguishers Limited. The contingent
consideration liability is due to be settled on 30 September 2018.
Review of financial condition CA 299A(1)(a)
CA 299A(1)(b)
Profit from continuing operations RG 247.45
The Group reported a profit before tax from continuing operations of $11.1 million for the year ended 30
June 2017, an increase of 25.1% from the prior year. The increase in profit before tax from continuing
operations was substantially driven from the contribution of Lightbulbs Limited in its first full year post
acquisition ($506,000) and the acquisition of Extinguishers Limited ($750,000).
Liquidity and capital resources
Directors’ report
The consolidated cash flow statement illustrates that there was an increase in cash and cash equivalents in
the year ended 31 December 2017 of $4,834,000 (2016: $3,624,000). Operating activities generated
$11,462,000 (2016: $12,011,000) of net cash flows.
The increase in cash inflow in comparison with the prior year is largely due to the improved working capital
management strategies implemented by the Board. It is also consistent with the current phase of Good
Group’s capital cycle, with revenues resulting from the development of products in previous years now
beginning to be realised. This primarily includes revenues from the sale of state of the art fire detection and
sprinkler systems (fire prevention equipment segment) and internet-enabled safety equipment (electronics
segment).
This net increase in the cash flows from operating activities has been offset by a net increase in cash used for

investing activities to $9,848,000 (2016: $7,823,000). This again reflects our position at the mid-point of
the capital cycle, where we continue to invest in plant and equipment to equip us to manufacture new
product lines. There was also a $1,382,000 cash inflow (2016: $904,000 cash outflow) from financing
activities, largely due to proceeds from borrowings during the year.
Business divisions
Fire prevention equipment
The fire prevention equipment business produces and installs extinguishers, fire prevention equipment and
fire retardant fabrics for industrial markets.
The Group has been an assertive player in the fire prevention market over the last 12 months. Revenue in
the fire prevention segment was $139,842,000 for the year compared to $121,905,000 in the previous
year. The focus on cost efficiencies as part of Good Group Agility has contributed to segment profit
increasing by 118% to $9,576,000.
The growth in revenue includes revenue generated by the newly acquired subsidiary, Extinguishers Limited,
of $17,857,000. Extinguishers Limited was acquired on 1 May 2017, and therefore these results include
eight months of sales from that business. We expect a further increase in revenues in fire prevention for the
31 December 2018 year end, benefiting from a full year of trading by Extinguishers Limited.
The acquisition of Extinguishers Limited adds the area of fire retardant fabrics to the portfolio of products
Notes
offered by the Group, and we believe this puts the Group in a strong position in the market as it is now able to
offer a full range of fire prevention products to its customers. Similarly, the launch of the Wireworks business
in the US market will position us for future growth in this key market.
In our traditional market in Australia, the impending publication of the Fire Prevention Act (the Act) in the
next 12 months is likely to result in an increased demand for fire prevention equipment. The Act has come
about as a direct result of the severe fires that occurred in office buildings in the states of New South Wales
and Queensland during 2015 and will require all companies with more than 250 employees to replace their
fire prevention equipment every five years.
Wireworks Inc., was incorporated as a new business on 13 May 2010 with a view to expanding the Group's
activities in the fire prevention segment in the United States, a key growth market for the Group. Wireworks
Appendices
Inc. is still very much in the growth stage and, as expected, is currently running at a loss. However
management anticipates this business will begin to show a return on our investment in 2018, and that
revenue streams will stabilise by 2022.

Business divisions (continued)
Contents
Electronics
Good Group produces and supplies electronic equipment for electrical safety application, with particular
focus on the defence, aviation, property and industrial sectors. Our products include electronics, safety,
thermal and electrical architecture.
The electronics business continues to perform strongly in a difficult market with sales increasing by 3.8% to
$76,728,000 (2016: $73,940,000).
Significant events after the balance date CA 299(1)(d)
On 14 January 2018, a building with a net book value of $1,695,000 and inventory with a net book value of
$857,000 was severely damaged by flooding resulting in estimated impairment losses of $2,552,000. It is
Introduction
expected that insurance proceeds will fall short of the costs of rebuilding and the loss of inventories by
$750,000. The financial effects of these events have not been reflected in the 31 December 2017 financial
statements.
On 22 January 2018, the directors of Good Group (Australia) Limited declared a final dividend on ordinary
shares in respect of the 2017 financial year. The total amount of the dividend is $1,087,345 which
represents a fully franked dividend of 5.01 cents per share. The dividend has not been provided for in the
31 December 2017 financial statements.
Likely developments and expected results CA 299(1)(e)
Commentary
Directors’ report
These disclosures are unique to the business operations of the Company and the sector it operates in.
The requirements of the Corporations Act 2001 are:
For all entities
► The directors’ report must refer to likely developments in the entity’s operations in future years and
the expected results of those operations.
Please also note that for listed entities, RG 247 provides additional guidance relating to this.
CA 299(1)(f)
Environmental regulation and performance
The Group holds licences issued by the relevant environmental protection authorities of the various

countries in which the Group operates. These licences specify limits and regulate the management of
discharges to the air and storm water run-off associated with the fire prevention and rubber equipment
operations.
The Group is registered under the National Greenhouse and Energy Reporting Act, under which it is required
to report energy consumption and greenhouse gas emissions for its Australian facilities for the 12 months
ended 30 June and future periods. The Group has established a separate sustainability group and data
collection systems and processes are in place to meet the new requirements.
There have been no significant known breaches of the consolidated entity's licence conditions or
any environmental regulations to which it is subject.
Share options CA 300(1)(d)
Unissued shares CA 300(1)(e),(3),(6)
As at the date of this report, there were 723,875 unissued ordinary shares under options (725,000 at the
reporting date). Refer to the remuneration report for further details of the options outstanding for Key
Management Personnel (KMP).
Option holders do not have any right, by virtue of the option, to participate in any share issue of the
Company or any related body corporate.
Notes
Shares issued as a result of the exercise of options CA 300(1)(f),(3),(7)
During the financial year, employees and executives have exercised options to acquire 75,000 fully paid
ordinary shares in Good Group (Australia) Limited at a weighted average exercise price of $2.33 per share.
Indemnification and insurance of directors and officers CA 300(1)(g)
During the financial year, the Company indemnified Ms Smith against a liability for costs and expenses CA 300(8)(a),(9)
incurred in defending proceedings brought against her for a breach of employment regulations by Bright
Sparks Ltd. Ms Smith was acquitted. The amount of the indemnity was $8,000.
The Company has agreed to indemnify all the directors and executive officers for any breach of CA 300(8)(a),(9)
environmental or discrimination laws by the Company for which they may be held personally liable.
Appendices
The agreement provides for the Company to pay an amount not exceeding $200,000 provided that:

Indemnification and insurance of directors and officers (continued) CA 300(1)(g)
Contents
(a) The liability does not arise out of conduct involving a lack of good faith
(b) The liability is for costs and expenses incurred by the director or officer in defending proceedings in
which judgement is given in their favour or in which they are acquitted
During or since the financial year, the Company has paid premiums in respect of a contract insuring all the CA 300(8)(b),(9)(f)
directors of Good Group (Australia) Limited against legal costs incurred in defending proceedings for conduct
other than:
(a) A wilful breach of duty
(b) A contravention of sections 182 or 183 of the Corporations Act 2001, as permitted by section 199B of
the Corporations Act 2001
Introduction
The total amount of insurance contract premiums paid was $12,800.
Indemnification of auditors
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, CA 300(8)(a)
CA 300(9)(b),(c),(e)
as part of the terms of its audit engagement agreement against claims by third parties arising from the audit CA 300(9)(d)
(for an unspecified amount). No payment has been made to indemnify Ernst & Young Australia during or since the
financial year.
Directors' meetings CA 300(10)(b)
Directors’ report
The number of meetings of directors (including meetings of committees of directors) held during the year
and the number of meetings attended by each director were as follows:
Meetings of committees
Directors' Remun-
meetings Audit eration Nomination Finance Treasury
Number of meetings held: 12 4 2 2 2 2

Number of meetings
attended:
V. Sheen 12 4 2 2 - -

F. Canuck 12 - - - 2 2
P.G. Gerherns 12 - - - 2 2
M. Smith 10 4 2 2 - -
K. Chopper 12 - - - - -
C. Feens 11 - 2 2 - -
C. Buffy 7 - - - - -
J. Vargo 12 4 2 - - -
M.A. Pryce 12 - - - - -
All directors were eligible to attend all meetings held, except C. Buffy, who was eligible to attend seven
directors' meetings.
Committee membership CA 300(10)(c)
As at the date of this report, the Company had an audit committee, a remuneration committee, a nomination
committee, a finance committee and a treasury committee of the board of directors.
Members acting on the committees of the board during the year were:
Audit Remuneration Nomination Finance Treasury
M. Smith (c) V. Sheen (c) V. Sheen (c) F. Canuck (c) F. Canuck (c)
Notes
J. Vargo M. Smith M. Smith P.G. Gerherns P.G. Gerherns

V. Sheen J. Vargo L.E. Ertz @
C. Feens C. Feens
Notes
(c) Designates the chair of the committee
@ Ms L.E. Ertz is an independent consultant and not a director
Rounding
The amounts contained in the financial report have been rounded to the nearest $1,000 (where rounding is ASIC CI 2016/191
applicable) where noted ($000) under the option available to the Company under ASIC Corporations
Appendices
(Rounding in Financial/Directors’ Reports) Instrument 2016/191. The Company is an entity to which this
legislative instrument applies.

Auditor independence and non-audit services
Contents
The directors received the following declaration from the auditor of Good Group (Australia) Limited. CA 298(1)(c)
Ernst & Young Tel: +61 2 9248 5555

200 George Street Fax: +61 2 9248 5959
Sydney NSW 2000 Australia ey.com/au
GPO Box 2646 Sydney NSW 2001
Introduction
Auditor's Independence Declaration to the Directors of Good Group (Australia)
Limited
As lead auditor for the audit of Good Group (Australia) Limited for the financial year ended 31 December 2017,
I declare to the best of my knowledge and belief, there have been:
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation
to the audit; and
b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Good Group (Australia) Limited and the entities it controlled during the financial
year.
Directors’ report
Ernst & Young Australia

D.G. Brown
Partner
Sydney
29 February 2018
Liability limited by a scheme approved under
Professional Standards Legislation.
Non-audit services
The following non-audit services were provided by the entity's auditor, Ernst & Young Australia. The directors CA 300(11B)
are satisfied that the provision of non-audit services is compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001. The nature and scope of each type of non-audit service
provided means that auditor independence was not compromised.
Ernst & Young Australia received or are due to receive the following amounts for the provision of non-audit
services:
$
Tax compliance services 37,000
Notes
Assurance related 50,300

Special audits as required by jurisdictional regulators 38,500
125,800
Appendices

Letter from the Chairman of the Remuneration Committee
Contents
Dear shareholders
The past year has been one of sound performance in a competitive market and delivery of several key
initiatives to support future shareholder value.
We achieved 25.1% growth in profit before tax and delivered strong results for shareholders, with our Total
Shareholder Return (TSR) continuing to outperform our market peers. Sales were down 16%, largely driven
by the timing of our R&D cycle, however building market share will be a focus for 2017 to ensure this trend
does not continue. Our executive team were also successful in refocusing our business for future growth,
Introduction
with the acquisition of Extinguishers Ltd and distribution of the shares in Hose Limited. The implementation
of our Good Group Agility program is also delivering returns.
The safety of our people is always our primary concern and is a key measure of performance for everyone
at Good Group. The reduction of our Lost Time Injury Frequency Rate by 20% was a very pleasing result.
For more detail on these initiatives, please refer to our Operating and Financial Review on page 7.
Remuneration outcomes
Our achievements above are reflected in the executive remuneration outcomes for this year. Executives
received an average of 82% of their Short Term Incentive (STI) target for performance against a balance
scorecard of measures (see page 21 for more information). The sustained long-term performance of the
Directors’ report
Group was also reflected in the vesting of Long-Term Incentives (LTI), with 100% of the award granted in
2014 vesting based on Good Group’s relative TSR result.
Changes to remuneration
The Board regularly reviews our executive remuneration structure to ensure it continues to drive
shareholder value and enables us to attract and retain the talent we need. As we consolidate our newly
focused Group, the Board has decided to adopt changes to our remuneration structure to ensure a focus
on long-term sustainability of returns. These changes are being introduced as outlined below.
FY17 – Introduction of STI deferral

From FY17 onwards, executives will receive any STI awards as 75% cash and 25% in Good Group shares.
The shares will be deferred for a further two years and will vest subject to the executive’s continued
employment. This change ensures greater alignment with shareholder interests through executive share
ownership and encourages retention.
FY17 – Introduction of return on equity performance measure for LTI
LTI awards granted during the year and all future awards will be subject to equally weighted relative TSR
and Return On Equity (ROE) performance measures. ROE was introduced as a second measure in FY17 as
it focuses executives on generating earnings that efficiently use shareholder capital and the reinvestment of
earnings.
FY18 – Introduction of performance rights

The Board has determined that performance rights, rather than share options, will be granted under the
LTI plan for awards from FY18 onwards. Performance rights are more aligned with the Group’s growth
profile, the challenging market conditions and prevailing Australian market practice.
The Board is confident that Good Group’s remuneration policies continue to support the Group’s financial
and strategic goals. We are committed to transparency and an ongoing dialogue with shareholders on
Notes
remuneration and to this end we have made changes to the remuneration report to improve the overall
format and flow of information. We have also added voluntary disclosure around the actual remuneration
received by executives.
On behalf of the Board, I invite you to review the full report and thank you for your continued interest.
Your sincerely
Vincent Sheen
Remuneration Committee Chair
Appendices

Remuneration report (audited)
Contents CA 300A(1)
Contents
CA 300A(1A)
1. Remuneration report overview
2. Overview of executive remuneration
3. Performance and executive remuneration outcomes in FY17
4. How remuneration is governed
5. Overview of non-executive director remuneration
6. Statutory and share based reporting
7. Actual remuneration of executives
1. Remuneration report overview

The Directors of Good Group (Australia) Limited present the Remuneration Report (the Report) for the CA 308 (3C)
Introduction
Company and its controlled entities for the year ended 31 December 2017 (FY17). This Report forms part
of the Directors’ Report and has been audited in accordance with section 300A of the Corporations Act
2001. The Report details the remuneration arrangements for Good Group’s key management personnel
(KMP):
 Non-executive directors (NEDs)

 Executive directors and senior executives (collectively the executives).
KMP are those persons who, directly or indirectly, have authority and responsibility for planning, directing
and controlling the major activities of the Company and Group. AASB 124.9
The table below outlines the KMP of the Group and their movements during FY17:
Directors’ report
Reg 2M.3.03(1)
Items1-3
Name Position Term as KMP
Non-executive directors
V. Sheen Non-Executive Chair Full financial year
M. Smith Non-Executive Director Full financial year
C. Feens Non-Executive Director Full financial year
J. Vargo Non-Executive Director Full financial year
M.A. Pryce Non-Executive Director Full financial year

K. Chopper Non-Executive Director Full financial year
C. Buffy Non-Executive Director Ceased 28 January 2017
Executive directors
F. Canuck Managing Director (MD) Full financial year
P.G. Gerherns Finance Director Full financial year
Senior executives
R.J. Ferns General Manager US Operations Appointed 3 January 2017
G.K. Dellas Company Secretary and Chief of Treasury Full financial year
Operations
G. Braddy Chief Human Resources Officer Full financial year
A.M. John General Manager (GM) — Mergers and Acquisitions Appointed 2 January 2017
S. Moran GM — Electronics Sales Full financial year
M.X. Vo Chief Operations Officer (COO) Ceased 30 May 2017
L.P. Lyn GM — Fire Prevention Equipment Sales Ceased 31 December 2017
Notes
M. Smith resigned on 31 January 2018, after the reporting date and before the date the financial report Reg 2M.3.03(1)
Items4-5
was authorised for issue. There were no other changes to KMP in this time.
2. Overview of executive remuneration

2A. How we determine executive remuneration policies and structures
Four principles guide our decisions about executive remuneration at Good Group: CA 300A(1)(a)
► Fairness: provide a fair level of reward to all employees

► Transparency: build a culture of achievement by transparent links between reward and performance
► Alignment: promote mutually beneficial outcomes by aligning employee, customer and shareholder
interests
Appendices
► The Good Group Culture: drive leadership performance and behaviours that create a culture that
promotes safety, diversity and employee satisfaction.

Remuneration report (audited) (continued)
2B. Our executive remuneration policies and structures
Contents
We reward executives with a level and mix of remuneration appropriate to their position, responsibilities CA 300A(1)(a),(b)
and performance, in a way that aligns with the business strategy.
Executives receive fixed remuneration and variable remuneration consisting of short and long term
incentive opportunities. Executive remuneration levels are reviewed annually by the Remuneration
Committee with reference to the remuneration guiding principles and market movements.
The chart below provides a summary of the structure of executive remuneration in FY17:
Fixed remuneration
Base salary + superannuation + benefits
Introduction
Variable remuneration
STI plan LTI plan
Cash Deferred shares Options

(2 years) (3 years)
60% financial performance
Directors’ report
40% non-financial performance 50% relative TSR
(50% financial and 50% non-financial for 50% ROE
functional executives)
2C. Remuneration mix- target

CA 300A(1)(a),(b)
CA 300A(1)(e)(i)
25% 30% Fixed remuneration

30%
Other STI

50% CEO 60% 10%
executives LTI *
60%
10%
25%
*based on the value granted during the year, determined using the fair value of share options at grant
date.
Notes
Appendices

2D. Elements of remuneration
Contents
Fixed remuneration
Fixed remuneration consists of base salary, superannuation and other non-monetary benefits and is
designed to reward for:
► The scope of the executive’s role
► The executive’s skills, experience and qualifications
► Individual performance
It is set with reference to comparable roles in similar companies.
STI CA 300A(1)(ba)
Under the STI, all executives have the opportunity to earn an annual incentive award which is delivered in Reg. 2M.3.03(1)
Introduction
Item 12(b)-(c)
cash and deferred shares. The STI recognises and rewards annual performance.
How is it paid? 75% of any STI award is paid in cash after the assessment of annual
performance. 25% is deferred into Good Group shares for a further two year
period.
The deferred component was introduced in FY17 to align with prevalent
Australian market practice and to encourage executive share ownership.
How much can Executives have a target STI opportunity of 50% of fixed remuneration, and a
executives earn? maximum STI opportunity of 100% of fixed remuneration.
Directors’ report
Target STI is awarded for achieving the challenging objectives set prior to the
beginning of each year. Participants have the opportunity to earn up to two
times target for achieving stretch performance (i.e., significant out-performance
against performance measures).
How is performance The STI performance measures were chosen as they reflect the core drivers of CA 300A(1)(ba)(i)
measured? short term performance and also provide a framework for delivering sustainable CA 300A(1)(ba)(ii)
value to the Group, its shareholders and customers.

We measure seven key performance indicators (KPIs) covering financial and
non-financial, Group and business unit measures of performance. For each KPI,
a target and stretch objective is set. A summary of the measures and

weightings are set out in the table below:
Financial Non-financial
Group or
Business
Group EPS business unit
unit PBT
KPIs
MD 60% 0% 40%
Other functional executives 50% 0% 50%
Business unit leaders 30% 30% 40%
Group earnings per share (EPS) and business unit profit before tax (PBT) are the
measures against which management and the Board assess the short-term
financial performance of the Group.
The non-financial measures in the STI plan are:
► Market share
Customer satisfaction score
Notes
► Implementation of key growth initiatives

► Safety
► Leadership / team contribution
When is it paid? The STI award is determined after the end of the financial year following a CA 300A(1)(ba)(iii)
review of performance over the year against the STI performance measures by
the MD (and in the case of the MD, by the Board). The Board approves the final
STI award based on this assessment of performance. The 75% is paid in cash
three months after the end of the performance period.
Appendices

Deferral terms 25% of the STI is deferred into shares, with the number of shares calculated
Contents
based on Good Group’s weighted average share price during the five trading
days immediately preceding the allocation date of the shares. The shares are
subject to a further two year service period.
What happens if an If an executive resigns or is terminated for cause before the end of the financial
executive leaves? year, no STI is awarded for that year. Similarly any deferred STI awards are
forfeited, unless otherwise determined by the Board.
If an executive ceases employment during the performance period by reason of
redundancy, ill health, death, or other circumstances approved by the Board,
the executive will be entitled to a pro-rata cash payment based on assessment of
performance up to the date of ceasing employment for that year and any
Introduction
deferred STI awards will be retained (subject to Board discretion).
What happens if there is In the event of a change of control, a pro-rata cash payment will be made based
a change of control? on assessment of performance up to the date of the change of control and any
deferred STI awards will vest (subject to Board discretion).
Are executives eligible Executives receive dividends on deferred STI awards.
for dividends?
LTI CA 300A(1)(ba)
Under the LTI for FY17, annual grants of share options were made to executives to align remuneration with
Directors’ report
the creation of shareholder value over the long-term.
How is it paid? Executives are eligible to receive share options (being an option to acquire an
ordinary share in Good Group upon payment of a pre-determined exercise
price).
How much can The MD has a target LTI opportunity of 50% of fixed remuneration and
executives earn? executives have a target opportunity of 17% of fixed remuneration.
The number of options granted is determined using the fair value at the date of
grant using a Monte-Carlo simulation model, taking into account the terms and
conditions upon which the share options were granted.

How is performance Awards are subject to two measures, weighted equally: relative Total CA 300A(1)(a),(b)
CA 300A(1)(ba)(i)
measured? Shareholder Return (TSR) and Return on Equity (ROE). CA 300A(1)(ba) (ii)
Relative TSR was selected as it focuses executives on shareholder value creation Reg 2M.3.03(1)
Item 15(b)(vi)
and is widely accepted and understood by shareholders.
ROE was introduced as a second measure in FY17 as it focuses executives on
generating earnings that efficiently use shareholder capital and the reinvestment
of earnings.
Relative TSR
TSR measures the percentage change in a company’s share price, plus the value
of dividends received during the period, assuming that all those dividends are re-
invested into new shares.
Good Group’s TSR is measured relative to a comparator group of ASX-listed
companies ranked 100 to 200 on the ASX200 Index (excluding companies in the
mining and financial services sectors). These companies were chosen as they
are of a similar size and reflect the Group's competitors for capital. CA 300A(1)(ba)(iv)
The TSR for Good Group and comparator companies is measured over three
Notes
financial years (e.g., 1 January 2017 to 30 December 2018 for the FY17
grant).
Appendices

The proportion of options that may vest based on TSR performance is
Contents
determined based on the following vesting schedule:
Relative TSR performance Percentage vesting
th
Below the 50 percentile 0%
th
At the 50 percentile 50%
Between the 50th and 75th percentile Straight-line vesting between 50 -100%
At or above the 75th percentile 100%
ROE
ROE measures how well the Group has used shareholder funds and reinvested
Introduction
earnings to generate additional earnings. ROE is defined as the net profit after
tax (NPAT) divided by average shareholders’’ equity, as determined by the Board
from the Company’s financial reports.
The Board calculates the ROE performance hurdle by setting annual ROE targets
over each of three financial years (e.g., 1 January 2017 to 30 December 2019
for the FY17 grant) which are then averaged to determine the target ROE hurdle.
Due to their sensitive nature, annual ROE targets are disclosed retrospectively.
The proportion of Options that may vest based on ROE performance across the
performance period is determined by the Board based on the following vesting
schedule:
Directors’ report
ROE performance Percentage vesting
Below minimum of target range 0%
At minimum of target range 50%
Within target range Straight-line vesting between 50 -100%
At maximum of target range and above 100%
When is performance The performance measures are tested at the end of the three year performance CA 300A(1)(ba)(iii)

measured? period to determine the number of options that vest. There is no opportunity
for re-testing. Options will lapse if the performance measures are not met at the
end of the performance period.
What happens if an If an executive resigns or is terminated for cause, any unvested LTI awards are
executive leaves? forfeited, unless otherwise determined by the Board.
If an executive ceases employment during the performance period by reason of
redundancy, ill health, death, or other circumstances approved by the Board,
the executive will generally be entitled to a pro-rata number of unvested options
based on achievement of the performance measures over the performance
period up to the date of ceasing employment (subject to Board discretion).
The treatment of vested and unexercised awards will be determined by the
Board with reference to the circumstances of cessation.
What happens if there is In the event of a change of control, the performance period end date will be
a change of control? brought forward to the date of the change of control and awards will vest based
on performance over this shortened period (subject to Board discretion).
Are executives eligible Executives are not eligible to receive dividends on unvested options. Executives
Notes
for dividends? will receive dividends on vested and unexercised options.
Sign on payments
In addition to fixed remuneration, STI and LTI, the Board may determine, from time to time, to award sign on
payments to new executives.
Ms. Ferns received a sign on payment of $50,000 on commencement of employment in lieu of foregone
benefits and incentives in her previous employment. Ms. Ferns received the full award in ordinary shares in
Good Group. In addition, she is entitled to receive a cash payment of $100,000 if she remains employed for
three years from the date of his appointment (i.e., 3 January 2020).
Appendices

2E. Changes for FY18
Contents
The Board has determined that Performance Rights, rather than share options, will be granted under the LTI
plan for awards from FY18 onwards. Performance Rights are more aligned with the Group’s growth profile
and the challenging market conditions.
Further details will be provided in the FY18 remuneration report.
3. Performance and executive remuneration outcomes in FY17

3A. Actual remuneration earned by executives in FY17
The actual remuneration earned by executives in FY17 is set out in section 7 below. This provides
shareholders with a view of the remuneration actually paid to executives for performance in FY17 and the
Introduction
value of LTIs that vested during the period.
3B. Performance against STI measures
A combination of financial and non-financial measures is used to measure performance for STI awards.
Group and business unit performance against those measures is as follows for FY17:
Financial measures Non-financial measures

Business Unit
Group EPS Market share Customer Growth Safety People
NPAT
Group l - l l l l ▲
Investment Properties - ▲ ▲ u l l l
Directors’ report
Electronics - ▲ ▲ l l l l
Fire Prevention Equipment - u ▲ ▲ l l l
Below threshold hurdle O

At target l
Between threshold and target u
Between target and stretch ▲
Based on this assessment, the average STI award as a percent of target was 82%.

3C. Performance against LTI measures
CA 300A(1)(b)
LTI vesting is based on TSR performance relative to the companies within the peer group. Good Group has CA
outperformed the median of the peer group for the past five years to 31 December 2017, as outlined below. 300A(1AA),(1AB)
Notes
LTI vesting outcomes

LTI awards granted in 2014 were tested against the relative TSR performance measure. Good Group achieved
a TSR of 252% over the three-year performance period ended 31 December 2017, which positioned it above
the 75th percentile relative to companies in the peer group. Consequently, 100% of options with a
performance period ended 31 December 2017 vested and became exercisable.
Appendices

3D. Overview of company performance CA 300A(1)(b)
Contents
CA 300A(1AA),(1AB)
The table below sets out information about Good Group’s earnings and movements in shareholder wealth for
the past five years up to and including the current financial year.
2017 2016 2015 2014 2013

NPAT ($’m) 8.2 6.5 5.8 5.2 4.7
Share price at year end ($) 4.2 3.7 3.4 3.2 2.9
Basic EPS (cents) 38 33 30.7 37.5 35
Total dividends (cents per share) 10.32 8.4 8.46 8.98 8.43
4. How remuneration is governed
Introduction
4A. Remuneration decision making
The following diagram represents the Group’s remuneration decision making framework:
Board
Review and approval
Remuneration Committee
Directors’ report
Company-wide remuneration framework and policy
Executive & NED remuneration outcomes
CEO Remuneration advisors

Recommendations on remuneration outcomes External and independent remuneration advice
for executive team and information
Management
Implementing remuneration policies

The composition of the Remuneration Committee is set out on page 13 of this annual report. Further
information on the Remuneration Committee’s role, responsibilities and membership can be seen at
www.goodgroupaustralialtd.com.au
CA 300A(1)(h)
4B. Use of remuneration advisors

The Remuneration Committee approved the engagement of Company ABC to provide remuneration
recommendations regarding the remuneration mix and quantum for executives.
Both Company ABC and the Committee are satisfied the advice received from Company ABC is free from
undue influence from the KMP to whom the remuneration recommendations apply.
The remuneration recommendations were provided to the Committee as an input into decision making only.
The Remuneration Committee considered the recommendations, along with other factors, in making its
remuneration decisions.
The fees paid to Company ABC for the remuneration recommendations were $35,000. In addition to providing
Notes
remuneration recommendations, Company ABC provided advice on other aspects of the remuneration of the
Group’s employees and various other advisory services and was paid a total of $85,000 for these services.
4C. Clawback of remuneration

In the event of serious misconduct or a material misstatement in the Group’s financial statements, the Board
has the discretion to reduce, cancel or clawback any unvested STI or LTI.
Appendices

4D. Share trading policy
Contents
The Group securities trading policy applies to all NEDs and executives. The policy prohibits employees from
dealing in Good Group (Australia) Limited securities while in possession of material non-public information
relevant to the Group.
Executives must not enter into any hedging arrangements over unvested options under the Group’s options
plan. The Group would consider a breach of this policy as gross misconduct, which may lead to disciplinary
action and potentially dismissal.
4E. Executive employment agreements

Remuneration arrangements for executives are formalised in employment agreements. The following CA 300A(1)(e)(vii)
Reg 2M.3.03(1) Item 13
outlines the details of contracts with executives:
Introduction
Managing Director
The MD is employed under a three year contract which can be terminated with notice by either the Group
or the MD.
Under the terms of the present contract, as disclosed to the ASX on 14 September 2016:
► The MD receives fixed remuneration of $490,000 per annum.
► The MD’s target STI opportunity is 50% of fixed remuneration and maximum STI opportunity is 100% of
fixed remuneration.
► The MD is eligible to participate in the LTI plan on terms determined by the Board, subject to receiving
any required or appropriate shareholder approval.
Directors’ report
All other executives are employed on individual open ended employment contracts that set out the terms
of their employment.
Termination provisions
The MD and executives’ termination provisions are as follows:
Resignation Termination Termination in case of Termination
for cause death, disablement, payment
redundancy or notice

without cause
MD notice period (by 6 months None 12 months 6 months
company or executive)
Other executives notice 3 months None 6 months 3 months
period (by company or
executive)
Termination payments
The following arrangements applied to outgoing executives in office during FY17:
L.P. Lyn
► Due to health reasons, Ms. Lyn resigned from her position on 31 December 2017. As a result, Ms Lyn
received a termination payment of $110,725, in accordance with the terms of her employment
contract.
► Ms Lyn will receive her STI payment for the financial year ending 31 December 2017.
► Additionally, the Board permitted Ms Lyn to retain a pro-rated (based on time) portion of the awards
made under the LTI plan in 2014. These awards will vest subject to meeting the relevant performance
Notes
hurdles set for each award grant. The number of unvested options held by Ms Lyn is 27,000.
M.X. Vo
► M.X. Vo resigned from the Group on 30 May 2017. Ms Vo received $50,301 in respect of outstanding
remuneration owed to her.
► Ms Vo forfeited her STI payment for the financial year ending 31 December 2017, and forfeited her
unvested and unexercised share options.
Appendices

5. Overview of non-executive director remuneration CA 300A(1)(a),(b)
Contents
ASX Listing Rule 10.17
Good Group’s NED fee policy is designed to attract and retain high calibre directors who can discharge the
roles and responsibilities required in terms of good governance, strong oversight, independence and
objectivity. NEDs receive fees only and do not participate in any performance-related incentive awards.
NED fees reflect the demands and responsibilities of the directors.
The Remuneration Committee reviews NED remuneration annually against comparable companies. The
Board also considers advice from external advisors when undertaking the review process.
NED fees consist of base fees and committee fees. The payment of committee fees recognises the
additional time commitment required by NEDs who serve on Board committees. The chair of the Board
Introduction
attends all committee meetings but does not receive any additional committee fees in addition to base
fees.
The table below summarises Board and Committee fees payable to NEDs for FY17 (inclusive of
superannuation):
Board fees $
Chair 280,000
NED 120,000
Committee fees
Directors’ report
Audit Chair 35,000
Member 17,500
Remuneration Chair 30,000
Member 15,000
Nomination^ Chair N/A
Member N/A
^ NEDs do not receive additional fees for participation in the Nomination Committee.

NEDs may be reimbursed for expenses reasonably incurred in attending to the Group’s affairs. They do not
receive retirement benefits.
The Board has confirmed there will be no increases in Board or committee fees for FY18.
Maximum aggregate NED fee pool

NED fees are determined within an aggregate NED fee pool limit, which is periodically approved by
shareholders. The maximum aggregate amount that may be paid to NEDs for their services is $1,500,000
during any financial year, as approved by shareholders at the 2015 AGM held on 30 March 2016.
The Board will not seek an increase to the aggregate NED fee pool limit at the 2017 AGM.
Notes
Appendices

6. Statutory and share-based reporting CA 300A(1)(b)
CA 300A(1AA),(1AB)
6A. Executive KMP remuneration for the years ended 31 December 2017 and 31 December 2016
CA 300(A)(1)(c)
Post- Long-term Share-based CA 300A(1)(e)(i)
Short-term benefits employment benefits payments
Reg 2M.3.03(1)
Items 6-11
Long Total Perform- Reg 2M.3.03(2)
Salary & Cash Non Super- service Share Termination Remunera- ance
fees bonus monetary2 Other annuation leave options Shares3 payments tion related
$ $ $ $ $ $ $ $ $ $ %
F. Canuck 2017 470,710 141,213 16,000 850 44,717 1,200 46,640 15,690 - 737,020 28%
2016 457,000 182,800 15,225 824 43,415 1,000 32,560 - - 732,824 29%
P.G. Gerherns 2017 343,608 103,083 6,050 - 32,643 2,200 44,000 11,454 - 543,038 29%
2016 333,600 133,440 6,000 - 31,692 2,000 22,000 - - 528,732 29%
R.J. Ferns4 2017 305,100 124,863 10,000 1,600 28,985 - 10,560 60,170 - 541,278 36%
2016 - - - - - - - - - - -
G.K. Dellas 2017 222,789 66,837 8,700 735 21,165 1,200 22,880 7,426 - 351,732 28%
2016 216,300 86,520 8,496 721 20,549 1,000 26,400 - - 359,986 31%
G. Braddy 2017 266,000 79,800 5,000 - 25,270 1,200 7,480 8,867 - 393,617 24%
2016 266,000 106,400 4,520 - 25,270 1,000 440 - - 403,630 26%
M.X. Vo5 2017 80,301 - - - 7,629 1,000 - - 50,301 139,231 -

2016 192,000 76,800 5,200 - 18,240 800 - - - 293,040 26%
2 Non-monetary benefits include motor vehicle, travel and mobile phone allowances.
3
Includes the component of STI which is deferred in shares. The fair value of the deferred share component is amortised over the two year vesting period.
4 R.J. Ferns was appointed to the role General Manager US Operations on 3 January 2017. She received sign-on share awards of $50,000 on commencement of employment (in lieu of foregone benefits and incentives in her previous employment) which vested immediately on grant. In
addition, Ms Ferns will receive a cash incentive of $100,000 to the extent she remains in employment for three years from the date of her appointment (i.e., 3 January 2020).
5 M.X. Vo ceased employment on 30 May 2017 and forfeited her share options and STI. Any share based payment expense previously recognised under AASB 2 in respect of the options has been reversed.
25 Good Group (Australia) Limited

CA 300(A)(1)(c)
Post- Long-term Share-based CA 300A(1)(e)(i)
Short-term benefits employment benefits payments
Reg 2M.3.03(1)
Items 6-11
Long Total Perform- Reg 2M.3.03(2)
Salary & Cash Non Super- service Share Termination Remunera- ance
fees bonus monetary2 Other annuation leave options Shares3 payments tion related
$ $ $ $ $ $ $ $ $ $ %
A.M. John6 2017 192,540 57,762 700 - 18,291 - 10,560 6,418 - 286,271 26%
2016 - - - - - - - - - - -
S. Moran 2017 248,024 74,408 6,000 - 23,562 700 6,820 8,268 - 367,781 24%
2016 240,800 96,320 4,480 - 22,876 500 220 - - 365,196 26%
L.P. Lyn7 2017 228,094 68,429 - - 21,669 2,200 10,120 7,603 110,725 488,840 19%
2016 221,450 88,580 - - 21,038 2,000 13,640 - - 346,708 29%
Total executive 2017 2,357,116 716,394 52,450 3,185 223,931 9,700 159,060 125,896 161,026 3,808,808
KMP
2016 1,927,150 770,860 43,921 1,545 183,080 8,300 95,260 - - 3,030,116
6 A.M. John was appointed to the role General Manager – Mergers and Acquisitions on 2 January 2017.
7 L.P. Lyn ceased employment on 31 December 2017. The Board determined Ms. Lyn could retain a proportion of the awards made under the STI and LTI plan.

The following table outlines the proportion of maximum STI earned in relation to the FY17 financial Reg 2M.3.03(1)
Contents
Item 12
year.
Maximum STI % of maximum
opportunity (% of earned
fixed
remuneration)
F. Canuck 100% 43%
P.G. Gerherns 100% 42%
R.J. Ferns 100% 34%
G.K. Dellas 100% 38%
G. Braddy 100% 44%
Introduction
M.X. Vo 100% 0%
A.M. John 100% 44%
S. Moran 100% 54%
L.P. Lyn 100% 32%
The proportion of STI forfeited is derived by subtracting the actual % of maximum received from the
maximum STI opportunity and was 55% on average for FY17.
6B. NED remuneration for the years ended 31 December 2017 and 31 December 2016
Directors’ report
CA 300(A)(1)(c)
Short-term Post- Reg 2M.3.03(1)
benefits employment Items 6-11
Financial
year Board and
committee fees Superannuation Total
$ $ $
V. Sheen 2017 260,954 19,046 280,000
2016 261,721 18,279 280,000

M. Smith 2017 159,817 15,183 175,000
2016 159,817 15,183 175,000
C. Feens 2017 109,589 10,411 120,000
2016 109,589 10,411 120,000
C. Buffy* 2017 8,406 799 9,205
2016 109,589 10,411 120,000
J. Vargo 2017 134,703 12,797 147,500
2016 134,703 12,797 147,500
K. Chopper 2017 45,037 4,278 49,315
2016 109,589 10,411 120,000
M.A. Pryce 2017 109,589 10,411 120,000
2016 109,589 10,411 120,000
Total 2017 828,096 72,924 901,020
2016 994,598 87,902 1,082,500
* C. Buffy ceased employment on 28 January 2017.

Notes
Appendices

6C. Options awarded, vested and lapsed during the year
The table below discloses the number of share options granted, vested or lapsed during the year.
Share options do not carry any voting or dividend rights, and can only be exercised once the vesting conditions have been met, until their expiry date.
Options Value of Value of Reg 2M.3.03(1) Item 12(e)

options Reg 2M.3.03(1) Item 15(a),(b)
awarded Fair value options CA 300(A)(1)(e)(iv)
during the per option at granted exercised CA 300A(1)(e)(ii)-(vi)
Financial year award date Expiry No. vested No. lapsed during the during the
year No. Award date ($) Vesting date Exercise price date during year during year year^ year#
F. Canuck 2017 50,000 1 January $1.32 31 December 0.35 31 December - - 66,000 8,800
2017 2020 2021
2014 - 1 January - 31 December - - 5,000 9,000
2014 2017
P.G. Gerherns 2017 50,000 1 January $1.32 31 December 0.35 31 December - - 66,000 2,640
2017 2020 2021
2014 - 1 January - 31 December - - 1,500 -
2014 2017
R.J. Ferns 2017 24,000 3 January $1.32 31 December 0.35 31 December - - 31,680 -
2017 2020 2021
G.K. Dellas 2014 1 January - 31 December - - - 4,000 -
2014 2017
G. Braddy 2017 24,000 1 January $1.32 31 December 0.35 31 December - - 31,680 40,480
2017 2020 2021
2014 - 1 January - 31 December - - 23,000 4,000
2014 2017
M.X. Vo 2017 8,000 1 January $1.32 31 December 0.35 31 December - 8,000 10,560 -
2017 2020 2021
A.M. John 2014 24,000 2 January $1.32 31 December 0.35 31 December - - 31,680 -
2017 2020 2021
S. Moran 2017 15,000 1 January $1.32 31 December 0.35 31 December - - -
19,800
2017 2020 2021
L.P. Lyn 2014 - 1 January - 31 December - - - 4,000 -
-
2014 2017
^ Determined at the time of grant per AASB 2. For details on the valuation of the options, including models and assumptions used, please refer to Note 30.
# Determined at the time of exercise at the intrinsic value.
There were no alterations to the terms and conditions of options awarded as remuneration since their award date. Reg. 2M.3.03(1) Item 14

6D. Shares issued on exercise of options
Contents
Shares issued Paid per share Reg 2M.3.03(1)
31 December 2017 No. cents Item 16
F. Canuck 5,000 2.33

P.G. Gerherns 1,500 2.33
G. Braddy 23,000 2.33
Total 29,500
6E. Option holdings of KMP*
Introduction
Vested at 31 December 2017
Balance Net Balance Reg 2M.3.03(1)
1 January Granted as Options change 31 December Item 17
2017 remuneration exercised other # 2017 Exercisable Not exercisable
Executive
directors
F. Canuck 74,000 50,000 (5,000) (9,000) 110,000 34,000 76,000
P.G. Gerherns 50,000 50,000 (1,500) - 98,500 48,500 50,000
Senior
executives
Directors’ report
R.J. Ferns - 24,000 - - 24,000 - 24,000
G.K. Dellas 60,000 - - (4,000) 56,000 12,000 44,000
G. Braddy 1,000 24,000 (23,000) - 2,000 - 2,000
M.X. Vo - 8,000 - (8,000) - - -
A.M. John - 24,000 - - 24,000 - 24,000
S. Moran 500 15,000 - - 15,500 - 15,500
L.P. Lyn 31,000 - - (4,000) 27,000 20,800 6,200
Total 216,500 195,000 (29,500) (25,000) 357,000 115,300 241,700
6F. Shareholdings of KMP* Reg 2M.3.03(1)

Item 18

Shares held in Good Group (Australia) Limited (number)
Balance Granted as On exercise of Balance Held nominally

1 January 2017 remuneration options Net change other # 31 December 2017 31 December 2017
Ord Pref Ord Pref Ord Pref Ord Pref Ord Pref Ord Pref
NEDs
V. Sheen 310,940 20,000 - - - - 11,000 - 321,940 20,000 - -
M. Smith 112,000 - - - - - 10,000 - 122,000 - - -
C. Feens 49,000 - - - - - 10,000 - 59,000 - - -
C. Buffy 35,000 - - - - - 5,000 - 40,000 - - -
J. Vargo 37,000 - - - - - - - 37,000 - - -
K. Chopper 15,000 - - - - - - - 15,000 - - -
M.A. Pryce 10,000 - - - - - - - 10,000 - - -
Executive
directors
F. Canuck 699,000 6,000 - - 5,000 - (2,000) - 702,000 6,000 100,000 -
P.G. Gerherns 101,000 5,000 1,500 15,000 117,500 5,000 - -
Senior executives
Notes
R.J. Ferns - - 50,000 - - - - - 50,000 - - -

G.K. Dellas 510,000 - - - - - (2,000) - 508,000 - 200,000 -
G. Braddy - - - - 23,000 - - - 23,000 - - -
M.X. Vo 400,000 - - - - - - - 400,000 - - -
A.M. John - - - - - - - - - - - -
S. Moran - - - - - - 49,000 - 49,000 - - -
L.P. Lyn 34,000 - - - - - 10,000 - 44,000 - - -
Total 2,297,940 31,000 50,000 - 29,500 - 121,000 - 2,498,440 31,000 300,000 -
* Includes shares and options held directly, indirectly and beneficially by KMP.
# All equity transactions with KMP other than those arising from the exercise of remuneration options have been entered into under terms and Reg
conditions no more favourable than those the Group would have adopted if dealing at arm's length 2M.3.03(1)
Appendices
Item 19

6G. Loans to KMP and their related parties
Contents
Reg. 2M.3.03 (1)
(i) Details of aggregate of loans to KMP and their related parties: Item 20
Write-off or
Balance at allowance Balance at
beginning of Interest Interest not for doubtful end Number of KMP in
period charged charged debt of period group
Total $000 $000 $000 $000 $000
2017 487 26 48 - 800 4
Introduction
(ii) Details of KMP and their related parties with aggregate of loans above $100,000 in the reporting period: Reg.2M.3.03 (1)
Item 21
Write-off or
Balance at allowance Balance at
beginning of Interest Interest not for doubtful end Highest balance
period charged charged debt of period during period
$000 $000 $000 $000 $000 $000
F. Canuck 200 - 16 - 170 200
P.G. Gerherns - - 6 - 150 150
R.J. Ferns - 12 12 - 290 350
Directors’ report
G.K. Dellas 225 9 9 - 190 225
Reg.2M.3.03(1)
(iii) Terms and conditions of loans to KMP and their related parties: Item 20(g)
Loans to directors are interest free. Senior executives are charged interest at the concessional rate of 4% per annum. The
average commercial rate of interest during the year was 8%.
During the year, Good Group (Australia) Limited provided a housing loan to P.G. Gerherns of $150,000 repayable within five
years on interest free terms, secured by a registered first mortgage over the property. No amount was repaid during the
year. The loan was approved by shareholders at the AGM.
A loan of $350,000 was also provided to Everest Pty Ltd, a company controlled by R.J. Ferns. The loan is repayable within
three years, on a concessional rate of 4.25% per annum. An amount of $60,000 was repaid during the year. The loan was

approved by shareholders at the AGM.
6H. Other transactions and balances with KMP and their related parties
Reg.2M.3.03(1)
(i) Details and terms and conditions of other transactions with KMP and their related parties: Item 22
Purchases
During the year, purchases totalling $310,000 at a 5% discount to market prices have been made by Group companies from
Gnome Industries Limited, of which M.A. Pryce’s wife is a director and controlling shareholder. $10,000 was outstanding at 31
December 2017.
Sales
C. Feens holds a 25% equity interest in Home Fires Limited. During the year the Group supplied extinguishers to Home Fires
Limited to the value of $225,000 at normal market prices. At 31 December 2017, Home Fires Limited owed $20,000 to the
Group.
Investments
During the year, Good Group (Australia) Limited acquired a 10% interest in the shares in Blister Limited, a company which is 50%
owned by F. Canuck at fair value at the date of acquisition.
Notes
Appendices

(ii) Amounts recognised at the reporting date in relation to other transactions: Reg.2M.3.03(1)
Contents
Items 23 & 24
2017
$000
Assets and liabilities Reg.2M.3.03(1)
Item 24(a), (b)
Current assets
Trade and other receivables 20
Non-current assets
Investment in unlisted entity 90
Total assets 110
Current liabilities
Trade and other payables 10
Introduction
Non-current liabilities -
Total liabilities 10
Reg. 2M.3.03(1)
Revenues and expenses Item 23(a), (b)
225 Reg. 2M.3.03(1)
Sale of goods Item 23(c)
Interest -
Doubtful debts -
Total revenue 225
Reg. 2M.3.03(1)
Directors’ report
Purchases / Cost of Goods Sold 310 Item 23(c)
Interest -
Dividends -
Total expenses 310
7. Actual remuneration earned by executives in FY17 (audited)

The actual remuneration earned by executives in FY17 is set out below. This information is considered to be relevant as it
provides shareholders with a view of the remuneration actually paid to executives for performance in FY17 and the value of LTIs
that vested during the period. This differs from the remuneration details prepared in accordance with statutory obligations and
accounting standards on page 25 of this report, as those details include the values of performance rights that have been

awarded, but which may or may not vest.
Fixed Termination Total actual

STI LTI vested
remuneration payments remuneration
(3) (4)
(1) (2) earned
$ $ $ $ $
F. Canuck 532,277 - 182,800 20,450 735,527
P.G. Gerherns 382,301 - 133,440 6,135 521,867
R.J. Ferns 336,685 - 33,333 50,000 420,018
G.K. Dellas 253,389 - 86,520 - 339,909
G. Braddy 296,270 - 106,400 94,070 496,740
M.X. Vo 87,930 50,301 76,800 - 215,031
A.M. John 210,831 - - - 210,831
S. Moran 271,586 - 96,320 - 367,906
L.P. Lyn 249,763 - 88,580 - 338,343
Notes
1) Base salary, superannuation and non-monetary benefits such as motor vehicle, travel and mobile phone allowances
2) Termination payments paid during the financial year.
3) STI paid during the financial year. For example, the amount disclosed for FY17 reflects the FY16 STI paid in March 2017 following the release
of the FY16 results of the Group.
4) Intrinsic value of LTI that vested during the financial year
Signed in accordance with a resolution of the directors.
Frank Canuck
F. Canuck
Director
Appendices
29 February 2018

Corporate
governance
Corporate governance
Contents
Commentary
The ASX Corporate Governance Council (CGC) has developed corporate governance principles and recommendations for listed entities
with the aim of promoting investor confidence and meeting stakeholder expectations. ASX Listing Rule 4.10.3 requires that listed
entities disclose the extent to which they have followed the CGC’s recommendations and, where a recommendation has not been
followed, the reasons why.
The ASX Listing Rule 4.10.3 requirements may be met by including in a listed entity’s annual report a corporate governance statement
or the address of a website where that corporate governance statement can be found. If an entity does not provide its corporate
governance statement in the annual report, it must lodge a copy of its corporate governance statement to the ASX (through the
Appendix 4G) at the same time it lodges its annual report.
Introduction
We have not illustrated a complete corporate governance statement for Good Group (Australia) Limited, rather an illustrative example
of the key changes in Good Group (Australia) Limited’s corporate governance practices is discussed below. The appropriate information
to disclose in the complete statement depends upon an entity’s corporate governance practices.
Introduction
Good Group (Australia) Limited is strongly committed to good corporate governance practices and fully complies with the ASX
Corporate Governance Council’s (CGC) Corporate Governance Principles and Recommendations (Third edition) (the Principles). The
board of directors guides and monitors the business and affairs of Good Group (Australia) Limited on behalf of the shareholders by
whom they are elected and to whom they are accountable.
The ASX CGC published the latest edition of the Principles on 27 March 2014. Below summarises the key changes to corporate
Directors’ report
governance practices since the issuance of the revised Principles. For a detailed analysis of Good Group (Australia) Limited’s
compliance with the Principles, visit the corporate governance section of our website (www.goodgroupaustralialtd.com.au).
Key changes to Corporate Governance practices
Good Group (Australia) Limited actively pursues enhancements to its corporate governance practices, while keeping up-to-date
with changes in regulatory requirements. As such, the below refinements to our Corporate Governance practices are a result of
internal developments and the recent changes to the Principles.
Board skills matrix
During the 2016 financial year, Good Group (Australia) Limited established a board skills matrix that sets out the desired set of

skills it aims to maintain at a board level. The skills matrix is an effective tool in short-term and succession planning for Good Group
(Australia) Limited. Prior to formalising the decision to discontinue the rubber equipment segment, consisting of Hose Limited, the
board recognised the forthcoming challenges in sourcing such materials in the future. Specifically, the board skills matrix
highlighted the need for expertise within the chemical industry and, accordingly, the board appointed K. Chopper during August
2016. K. Chopper’s extensive knowledge of the industry is considered to be of particular importance as Good Group (Australia)
Limited continues negotiations with suppliers.
The board considers it has the relevant mix of expertise and diversity to enable Good Group (Australia) Limited to continue to
prosper in the fire safety equipment market. For more information in relation to the skills matrix, including the sections within the
matrix, see our Corporate Governance Statement.
Director development program
Good Group (Australia) Limited recognises the need for diversity of thought and of skills at a board level. While the board maintains
the relevant industry expertise and experience to effectively monitor and plan for the future, the board is cognisant of the
underlying need for all directors to understand and question financial reporting information. We consider this task to be of vital
importance and will become even more onerous in the future due to the suite of new financial reporting requirements becoming
effective within the next three years, specifically in relation to financial instruments, leases and revenue recognition. Our
commitment to the financial literacy of our directors is consistent with ASIC’s continuing efforts for sound financial reporting
oversight – for example, evidenced through its ‘Financial reporting quiz for directors’. 8
Notes
To equip all directors with the skills necessary to effectively monitor and question the financial reports of Good Group (Australia)
Limited, during September 2017 the board received an update on the current and future financial reporting requirements from an
external consulting firm. For those directors from backgrounds other than financial related industries, additional materials and
sessions were provided. The board will continue to receive updates in relation to developments in financial reporting requirements
semi-annually or on an as-needed basis.
Notwithstanding our drive for excellence in financial reporting, we continue to monitor developments in respect of broader risk
management activities. During October 2017, we held our second annual ‘Risk identification day’ for directors in which emerging
economic, social and environmental risks were identified, and proactive measures for responding to such risks were developed. The
Appendices
8
http://asic.gov.au/regulatory-resources/financial-reporting-and-audit/directors-and-financial-reporting/financial-reporting-quiz-for-directors/
Corporate governance (continued)
‘Risk identification day’ noted the increasing pressure on the industry to source sustainable raw materials for manufacture. As a
Contents
result, the Board initiated the process of refining of our supply chain strategy to include supplier screening against environmental
and social criteria.
Diversity
Good Group (Australia) Limited considers diversity across all levels is crucial to creating value. This year has seen Good Group
(Australia) Limited meet its objective to achieve 40% of women in key executive positions. As at 31 December 2017, women
represented 41% of these positions. The board has set an objective to increase the representation of women at the key executive
level to 45% by the year ended 31 December 2019.
While Good Group (Australia) Limited particularly focuses on narrowing the gap in gender representation across all levels, it strives
for equal development opportunities for all employees, irrespective of gender, cultural, physical capabilities or other differences.
Introduction
During the year, Good Group (Australia) Limited refined the requirements for employees to attend its career development
workshop. Specifically, the criteria were amended to be more objective and more closely aligned to performance.
In today’s working world, we remain committed to providing flexible work arrangements for our staff. Reflective of this
commitment, was the hire of 75 staff on flexible work arrangements during 2017. As at 31 December 2017, 10% of our staff were
granted permission to ‘work from home’ at least one day per week.
Criteria for independence
Good Group (Australia) Limited recognises the value that independence of mind brings to the board. During the year, the board
updated the criteria it applies when determining the independence, or otherwise, of directors. Specifically, consistent with the
Principles, the criteria now includes further guidance in relation to the potential effects a director’s length of service will have on
Directors’ report
their independence. The assessment of each non-executive director against the criteria resulted in all non-executive directors being
considered independent.
In relation to the non-executive Chair, the board considered that despite V. Sheen’s length of service (7 years), the Chair is
considered independent. The board found that the Chair brings quality and independent judgement to all relevant issues falling
within the scope of his role on the Board and that the Group as a whole benefits from his long standing experience in the industry.
The criteria for independence are available through the Corporate Governance section of our website.

Notes
Appendices

Consolidated
financial statements
Consolidated statement of profit or loss
Contents
For the year ended 31 December
IAS 1.10(b)
2017 2016 IAS 1.51(c)

Restated*
Notes $000 $000 IAS 1.51(d),(e)
Continuing operations IAS 1.81A
Sale of goods 161,927 142,551 IAS 18.35(b)(i)
Consolidated statement of comprehensive income

Rendering of services 17,131 16,537 IAS 18.35(b)(ii)
Introduction
Rental income 17 1,404 1,377
Revenue 180,462 160,465 IAS 1.82(a)
Cost of sales (136,549) (128,386) IAS 1.103

Gross profit 43,913 32,079 IAS 1.85, IAS 1.103
Other operating income 12.1 2,435 2,548 IAS 1.103

Selling and distribution expenses (14,001) (12,964) IAS 1.99, IAS 1.103
Administrative expenses 12.9 (18,428) (12,156) IAS 1.99, IAS 1.103
Other operating expenses 12.2 (2,554) (353) IAS 1.99, IAS 1.103
Operating profit 11,365 9,154 IAS 1.85, IAS 1.BC55-56
Directors’ report
Finance costs 12.3 (1,264) (1,123) IAS 1.82(b), IFRS 7.20
Finance income 12.4 336 211 IAS 1.82(a)
Share of profit of an associate and a joint venture 9,10 671 638 IAS 1.82(c)
Profit before tax from continuing operations 11,108 8,880 IAS 1.85
Consolidated statement of financial position

Income tax expense 14 (3,098) (2,233) IAS 1.82(d), IAS 12.77
Profit for the year from continuing operations 8,010 6,647 IAS 1.85
Discontinued operations

Profit/(loss) after tax for the year from discontinued IAS 1.82 (ea)
operations 13 220 (188) IFRS 5.33(a)
Profit for the year 8,230 6,459 IAS 1.81A(a)
Attributable to:
Equity holders of the parent 7,942 6,220 IAS 1.81B (a) (ii)
Non-controlling interests 288 239 IAS 1.81B (a)(i)
8,230 6,459
Consolidated statement changes in equity

Earnings per share 15 IAS 33.66
Basic, profit for the year attributable to ordinary equity
holders of the parent $0.38 $0.33
Diluted, profit for the year attributable to ordinary
equity holders of the parent $0.38 $0.32
Earnings per share for continuing operations 15

Basic, profit from continuing operations attributable to
ordinary equity holders of the parent $0.37 $0.34
Notes
Diluted, profit from continuing operations attributable

jhj
to ordinary equity holders of the parent $0.37 $0.33

* Certain amounts shown here do not correspond to the 2016 financial statements and reflect adjustments made, refer to Note 2.5.
Consolidated statement of cash flows
Appendices

Consolidated statement of profit or loss (continued)
Contents
Commentary
IAS 1.10 suggests titles for the primary financial statements, such as ‘statement of profit or loss and other comprehensive income’ or
‘statement of financial position’. Entities are, however, permitted to use other titles, such as ‘income statement’ or ‘balance sheet’. The
Group applies the titles suggested in IAS 1.
There is no specific requirement to identify restatements to prior period financial statements on the face of the financial statements.
IAS 8 requires details to be provided only in the notes. The term ‘restatement’ is used here to refer to retrospective application of
accounting policies, correction of errors, and reclassifications collectively. The Group illustrates how an entity may supplement the
requirements of IAS 8 so that it is clear to the reader that amounts in the prior period financial statements have been adjusted in

comparative period(s) of the current period financial statements. It should be noted that the fact that the comparative information is
Introduction
restated does not necessarily mean that there were errors and omissions in the previous financial statements. Restatements may also
arise for other reasons, for example, retrospective application of a new accounting policy.
IAS 1.82(a) requires disclosure of total revenue as a line item on the face of the statement of profit or loss. The Group also presents
the various types of revenue on the face of the statement of profit or loss in accordance with IAS 1.85.
IAS 1.99 requires expenses to be analysed either by their nature or by their function within the statement of profit or loss, whichever
provides information that is reliable and more relevant. If expenses are analysed by function, information about the nature of expenses
must be disclosed in the notes. The Group has presented the analysis of expenses by function. In Appendix A, the consolidated
statement of profit or loss is presented with an analysis of expenses by nature.
The Group presents operating profit in the statement of profit or loss; this is not required by IAS 1. The terms ‘operating profit’ or
‘operating income’ are not defined in IFRS. IAS 1.BC56 states that the IASB recognises that an entity may elect to disclose the results
Directors’ report
of operating activities, or a similar line item, even though this term is not defined. The entity should ensure the amount disclosed is
representative of activities that would normally be considered to be ‘operating’. For instance, “it would be inappropriate to exclude
items clearly related to operations (such as inventory write-downs and restructuring and relocation expenses) because they occur
irregularly or infrequently or are unusual in amount. Similarly, it would be inappropriate to exclude items on the grounds that they do
not involve cash flows, such as depreciation and amortisation expenses” (IAS 1.BC56). In practice, other titles, such as earnings before

interest and tax (EBIT), are sometimes used to refer to an operating result. Such subtotals are subject to the new guidance included in
IAS 1.85A.
The Group has presented its share of profit of an associate and joint venture using the equity method under IAS 28 Investments in
Associates and Joint Ventures after the line-item ‘operating profit’. IAS 1.82(c) requires ‘share of the profit or loss of associates and
joint ventures accounted for using the equity method’ to be presented in a separate line item on the face of the statement profit or loss.

In complying with this requirement, the Group combines the share of profit or loss from associates and joint ventures in one line item.
Regulators or standard-setters in certain jurisdictions recommend or accept share of the profit/loss of equity method investees being
presented with reference to whether the operations of the investees are closely related to that of the reporting entity. This may result
in the share of profit/loss of certain equity method investees being included in the operating profit, while the share of profit/loss of
other equity method investees being excluded from operating profit. In other jurisdictions, regulators or standard-setters believe that
IAS 1.82(c) requires that share of profit/loss of equity method investees be presented as one line item (or, alternatively, as two or
more adjacent line items, with a separate line for the sub-total). This may cause diversity in practice.
IAS 33.68 requires presentation of basic and diluted earnings per share (EPS) for discontinued operations either on the face of the
statement of profit or loss or in the notes to the financial statements. The Group has elected to show this information with other
disclosures required for discontinued operations in Note 13 and to show the EPS information for continuing operations on the face of

the statement of profit or loss.
Notes
jhj
Appendices

Contents
IAS 1.49
IAS 1.51(c)
IAS 1.81A
2017 2016 IAS 1.10(b)
Restated* IAS 8.28
Notes $000 $000 IAS 1.51(d),(e)
IAS 1.90
IAS 12.61A
Profit for the year 8,230 6,459 IAS 1.81A (a)

Introduction
Other comprehensive income IAS 1.82A
Other comprehensive income to be reclassified to profit or loss in
subsequent periods (net of tax):
Net gain on hedge of a net investment 195  IAS 39.102(a)
IAS 21.32
Exchange differences on translation of foreign operations (246) (117) IAS 21.52(b)
Net (loss)/gain on cash flow hedges 24 (512) 24 IFRS 7.23(c)
Net (loss)/gain on available-for-sale financial assets 24 (40) 2 IFRS 7.20(a)(ii)
Share of other comprehensive income of an associate 10 (30)  IAS 1.82A(b)
Net other comprehensive loss to be reclassified to profit IAS 1.82A
or loss in subsequent periods (633) (91)
Directors’ report
Other comprehensive income not to be reclassified to profit or loss in
subsequent periods (net of tax): IAS 19.120(c)
Remeasurement gains (losses) on defined benefit plans 29 257 (273) IAS 19.122
Revaluation of office properties in Australia 16 592  IAS 16.39

30  IAS 1.82A(b)
Share of other comprehensive income of an associate 10
Net other comprehensive income/(loss) not to be reclassified to profit IAS 1.82A

or loss in subsequent periods 879 (273)
Other comprehensive income/(loss) for the year, net of tax 246 (364) IAS 1.81A(b)

Total comprehensive income for the year, net of tax 8,476 6,095 IAS 1.81A(c)
Attributable to:
Equity holders of the parent 8,188 5,856 IAS 1.81B (b) (ii)
288 239 IAS 1.81B (b) (i)

Non-controlling interests
8,476 6,095
Commentary

The Group has elected as an accounting policy to present two statements, a statement of profit or loss and a statement of comprehensive
income, rather than a single statement of profit or loss and other comprehensive income combining the two elements. If a two-statement
approach is adopted, the statement of profit or loss must be followed directly by the statement of comprehensive income. For illustrative
purposes, the disclosure of a single statement of profit or loss and other comprehensive income is presented in Appendix B.
The different components of other comprehensive income (OCI) are presented on a net basis in the statement above. Therefore, an additional
note is required to separately present the amount of reclassification adjustments and current year gains or losses (see Note 12.8). Alternatively,
the individual components could have been presented within the statement of comprehensive income.
The Group has elected to present the deferred tax effects net on an individual basis. Therefore, additional note disclosures are required and
Notes
jhj
provided in Note 14.

Remeasurement gains and losses on defined benefit plans are recognised in OCI and transferred immediately to retained earnings (see IAS 1.96
and IAS 19.122).
IAS 1.82A requires that items that will be reclassified subsequently to profit or loss, when specific conditions are met, must be grouped on the
face of the statement of comprehensive income. Similarly, items that will not be reclassified must also be grouped together. In order to make
these disclosures, an entity must analyse whether its OCI items are eligible to be subsequently reclassified to profit or loss under IFRS.
Under the requirements of IAS 1.82A and the Implementation Guidance to IAS 1, entities must present the share of the OCI items of equity
method investees (i.e., associates and joint ventures), in aggregate as single line items within the ’to be reclassified’ and the ‘not to be
reclassified’ groups. As at 31 December 2017 the Group’s associate has available-for sale financial assets and an office building located in
Australia that is accounted for under the revaluation model. Consequently, the Group presents items of other comprehensive income
Appendices
related to the associate in two separate line items in the consolidated statement of comprehensive income.

Contents
As at 31 December
IAS 1.10(a)
As at IAS 1.10(f)
2017 2016 1 January 2016 IAS 1.49, IAS 1.51(c)
Restated* Restated* IAS 8.28
Notes $000 $000 $000 IAS 1.51(d),(e)

Assets IAS 1.40A, IAS 1.40B
Current assets IAS 1.60, IAS 1.66
Cash and short-term deposits 23 17,112 14,916 11,066 IAS 1.54(i)

Inventories 21 23,762 24,585 26,063 IAS 1.54(g)
Introduction
Trade and other receivables 22 25,672 22,290 25,537 IAS 1.54(h)
Prepayments 244 165 226 IAS 1.55
Other current financial assets 20 551 153 137 IAS 1.54(d), IFRS 7.8
67,341 62,109 63,029
Assets held for sale 13 13,554 — — IAS 1.54(j), IFRS 5.38
80,895 62,109 63,029
Non-current assets IAS 1.60

Property, plant and equipment 16 32,979 24,329 18,940 IAS 1.54(a)
Investment properties 17 8,893 7,983 7,091 IAS 1.54(b)
Intangible assets 18 6,019 2,461 2,114 IAS 1.54(c)
Directors’ report
Investment in an associate and a joint venture 9,10 3,187 2,516 1,878 IAS 1.54(e), IAS 28.38
Non-current financial assets 20 6,425 3,491 3,269 IAS 1.54(d), IFRS 7.8
Deferred tax assets 14 383 365 321 IAS 1.54(o), IAS 1.56
57,886 41,145 33,613
Total assets 138,781 103,254 96,642

Liabilities and equity
Current liabilities IAS 1.60, IAS 1.69
Trade and other payables 31 19,076 20,417 19,537 IAS 1.54(k)
Interest-bearing loans and borrowings 20 2,460 2,775 4,555 IAS 1.54(m), IFRS 7.8(g)

Other current financial liabilities 20 3,040 303 303 IAS 1.54(m), IFRS 7.8
Government grants 27 149 151 150 IAS 1.55, IAS 20.24
Deferred revenue 28 588 513 503 IAS 1.55
Income tax payable 3,511 3,563 4,625 IAS 1.54(n)
Provisions 26 850 98 40 IAS 1.54(l)
Non-cash distribution liability 25 410 — —
30,084 27,820 29,713
Liabilities directly associated with the assets held for
sale 13 13,125 — — IAS 1.54(p), IFRS 5.38
43,209 27,820 29,713

Non-current liabilities IAS 1.60
Interest-bearing loans and borrowings 20 20,346 21,703 19,574 IAS 1.54(m)
Other non-current financial liabilities 20 806 — — IAS 1.54(m), IFRS 7.8
Provisions 26 1,950 77 60 IAS 1.54(l)
Government grants 27 3,300 1,400 795 IAS 20.24
Deferred revenue 28 459 397 386 IAS 1.55
Net employee defined benefit liabilities 29 3,050 2,977 2,549 IAS 1.55, IAS 1.78(d)
Deferred tax liabilities 14 2,931 1,089 1,083 IAS 1.54(o), IAS 1.56
Notes
32,842 27,643 24,424

jhj
Total liabilities 76,051 55,463 54,137

Appendices

Consolidated statement of financial position (continued)
Contents
As at 31 December
IAS 1.10(a)
As at IAS 1.10(f)
2017 2016 1 January 2016 IAS 1.49, IAS 1.51(c)
Restated* Restated* IAS 8.28
Notes $000 $000 $000 IAS 1.51(d),(e)

IAS 1.54(r) , IAS 1.78(e)
Equity
Issued capital 24 26,559 19,388 19,388

Treasury shares 24 (508) (654) (774)
Other capital reserves 24 1,280 944 646
Introduction
Retained earnings 33,592 27,885 23,538
Other components of equity (649) (512) (421)
Reserves of a disposal group held for sale 13 46 — —
Equity attributable to equity holders of the parent 60,320 47,051 42,297
Non-controlling interests 2,410 740 208 IAS 1.54(q)
Total equity 62,730 47,791 42,505
Total liabilities and equity 138,781 103,254 96,642
Directors’ report
Commentary
IAS 1 requires an entity to present a statement of financial position at the beginning of the earliest comparative period when: it applies
an accounting policy retrospectively; it makes a retrospective restatement of items in its financial statements; or when it reclassifies
items in its financial statements (IAS 1.10(f)), and the change has a material effect on the statement of financial position. In these
situations, IAS 1.40A states that an entity must present, at a minimum, three statements of financial position, two of each of the other

statements and the related notes. The three statements of financial position include the statement of financial position as at the current
annual period year end, the statement of financial position as at the previous annual period year end, and the statement of financial
position as at the beginning of the previous annual period (’the opening balance sheet’, often referred to as the ‘third balance sheet’). As
the Group has restated the financial statements to retrospectively correct an error, the Group has included a third balance sheet as at
1 January 2016. Such an additional balance sheet is only required if the adjustment to opening balances is considered to be material
(IAS 1.40A(b)). However, the notes related to the third balance sheet are not required, nor are additional statements of profit or loss and

other comprehensive income, changes in equity or cash flows (IAS 1.40C).
In accordance with IAS 1.60, the Group has presented current and non-current assets, and current and non-current liabilities, as
separate classifications in the statement of financial position. IAS 1 does not require a specific order of the two classifications. The Group
has elected to present current assets and liabilities before non-current assets and liabilities. IAS 1 requires entities to present assets and
liabilities in order of liquidity when this presentation is reliable and more relevant.

Notes
jhj
Appendices

Consolidated statement of changes in equity
For the year ended 31 December 2017
Attributable to the equity holders of the parent
Other Foreign Reserve IAS 1.10(c )
Issued Treasury capital Cash flow Available- currency Asset of disposal Non- IAS 1.49
capital shares reserves Retained hedge for-sale translation revaluation group held for controlling Total IAS 1.51(b),(c)
(Note 24) (Note 24) (Note 24) earnings reserve reserve reserve surplus sale Total interests equity IAS 1.106(d)
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 IAS 1.51(d),(e)
As at 1 January 2017 19,388 (654) 944 27,885 (70) 2 (444)   47,051 740 47,791
Profit for the period    7,942      7,942 288 8,230 IAS 1.106(d)(i)
Other comprehensive income (Note 24)    257 (512) (70) (51) 622  246  246 IAS 1.106(d)(ii)
Total comprehensive income    8,199 (512) (70) (51) 622  8,188 288 8,476 IAS 1.106(a)
Depreciation transfer for office proprerties in
Australia    80    (80)     IAS 1.96
Discontinued operations (Note 13)      (46)   46    IFRS 5.38
Issue of share capital (Note 24) 7,203         7,203  7,203 IAS 1.106(d)(iii)
Exercise of options (Note 24)  146 29       175  175 IAS 1.106(d)(iii),
IFRS 2.50
Share-based payments (Note 30)   307       307  307
IAS 32.39,
Transaction costs (Note 7) (32)         (32)  (32) IAS 1.109
Cash dividends (Note 25)    (2,382)      (2,382) (30) (2,412) IAS 1.107
Acquisition of a subsidiary (Note 7)           1,547 1,547 IAS 1.106(d)(iii)
Acquisition of non-controlling interests (Note 7)    (190)      (190) (135) (325) IAS 1.106(d)(iii)
At 31 December 2017 26,559 (508) 1,280 33,592 (582) (114) (495) 542 46 60,320 2,410 62,730
Commentary
For equity-settled share-based payment transactions, IFRS 2.7 requires entities to recognise an increase in equity when goods or services are received. However, IFRS 2 Share-based Payment does not
specify where in equity this should be recognised. The Group has chosen to recognise the credit in other capital reserves.
The acquisition of an additional ownership interest in a subsidiary without a change of control is accounted for as an equity transaction in accordance with IFRS 10 Consolidated Financial Statements. Any
excess or deficit of consideration paid over the carrying amount of the non-controlling interests is recognised in equity of the parent in transactions where the non-controlling interests are acquired or sold
without loss of control. The Group has elected to recognise this effect in retained earnings. With respect to the subsidiary to which these non-controlling interests relate, there were no accumulated
components recognised in OCI. If there had been such components, those would have been reallocated within equity of the parent (e.g., foreign currency translation reserve or available-for-sale reserve).
IFRS 5.38 requires that items recognised in OCI related to discontinued operations must be separately disclosed. The Group presents this effect in the statement of changes in equity above. However,
presentation of such items within discontinued operations does not change the nature of the reserve. Generally, reclassification to profit or loss will only occur if and when required by IFRS.
The Group recognises remeasurement gains and losses arising on defined benefit pension plans in OCI in accordance with IAS 19 Employee Benefits. As they will never be reclassified into profit or loss, they
are immediately recorded in retained earnings (refer to the statement of comprehensive income). IAS 19 does not require separate presentation of those components in the statement of changes in equity
but an entity may choose to present the remeasurement gains and losses in a separate reserve within the statement of changes in equity.
The amounts presented as changes in the asset revaluation surplus and the available-for-sale reserve include a share of other comprehensive income of the associate, which relates to the revaluation of an
office building in Australia and the remeasurement of available-for-sale financial assets. IAS 1 specifically requires that entities must present the share of other comprehensive income items of their equity
method investees, in aggregate, as a single line items within the ’to be reclassified’ and the ‘not to be reclassified’ groups. IAS 28 Investments in Associates and Joint Ventures, IAS 1 and IFRS 12 do not
provide specific guidance on how the investor should present its accumulated share of other comprehensive income of equity-accounted investees. The Guidance on implementing IAS 1 contains an example
in which the accumulated property, plant and equipment revaluation gain is included into the revaluation surplus of the investor. Good Group applies a similar presentation of accumulated items of other
comprehensive income of its associate. However, as current IFRS do not contain specific requirements on this issue, other presentation approaches may also be acceptable.

Consolidated statement of changes in equity (continued)
For the year ended 31 December 2016 (restated*)
Attributable to the equity holders of the parent
IAS 1.10(c )
Foreign IAS 1.49
Issued Treasury Other capital Cash flow Available- currency Non- IAS 1.51(b),(c)
capital shares reserves Retained hedge for-sale translation controlling Total IAS 8.28
(Note 24) (Note 24) (Note 24) earnings reserve reserve reserve Total interests equity IAS 1.106(d)
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 IAS 1.51(d),(e)
As at 1 January 2016 19,388 (774) 566 24,238 (94)  (327) 42,997 208 43,205
Adjustment on correction of error (net of tax) IAS 1.106(b)

(Note 2.5)    (700)    (700)  (700) IAS 1.110
As at 1 January 2016 (restated*) 19,388 (774) 566 23,538 (94)  (327) 42,297 208 42,505
Profit for the period as reported in the 2016
financial statements    7,270    7,270 239 7,509
Adjustment on correction of error (net of tax)
(Note 2.5)    (1,050)    (1,050)  (1,050)
Restated profit for the period    6,220    6,220 239 6,459 IAS 1.106(d)(i)
Other comprehensive income (Note 24)    (273) 24 2 (117) (364)  (364) IAS 1.106(d)(ii)
Total comprehensive income    5,947 24 2 (117) 5,856 239 6,095 IAS 1.106(a)
Exercise of options (Note 24)  120 80     200  200 IAS 1.106(d)(iii),
Share-based payments (Note 30)   298     298  298 IFRS 2.50
Dividends (Note 25)    (1,600)    (1,600) (49) (1,649) IAS 1.107
Non-controlling interests arising on a business
combination (Note 7)         342 342 IAS 1.106(d)(iii)
At 31 December 2016 (restated*) 19,388 (654) 944 27,885 (70) 2 (444) 47,051 740 47,791
Commentary
There is no specific requirement to identify adjustments made retrospectively on the face of the financial statements, except for the effect of a retrospective application or restatement on each component
of equity (IAS 1.106(b)). IAS 8 requires details to be given only in the notes. By labelling the comparatives ‘Restated’, the Group illustrates how an entity may supplement the requirements of IAS 8 so that
it is clear to the user that adjustments to the amounts in prior financial statements have been reflected in the comparative periods as presented in the current period financial statements. It should be noted
that the fact that the comparative information is restated does not necessarily mean that there were errors and material omissions in the previous financial statements. Restatements may also arise for
other reasons, for example, retrospective application of a new accounting policy (IAS 1.40A(a)).

Contents
IAS 1.10(d)
2017 2016 Restated* IAS 1.51(c)
Note $000 $000 IAS 1.51(d),(e)
IAS 7.10,
Operating activities
IAS 7.18(a)
Receipts from customers 227,113 235,776
Payments to suppliers (174,719) (184,363)
Payments to employees (35,815) (35,048)

Interest received 336 211 IAS 7.31
Introduction
Interest paid (484) (1,025) IAS 7.31
Income tax paid (3,131) (3,200) IAS 7.35
Net cash flows from operating activities 13,330 12,351

IAS 7.10,
Investing activities IAS 7.21
Proceeds from sale of property, plant and equipment 1,990 2,319 IAS 7.16(b)
Purchase of property, plant and equipment 16 (10,162) (7,672) IAS 7.16(a)
Purchase of investment properties 17 (1,216) (1,192) IAS 7.16(a)
Purchase of financial instruments (3,054) (225) IAS 7.16(c)
Proceeds from sale of financial instruments  145 IAS 7.16(d)
Development expenditures 18 (587) (390) IAS 7.16(a)
Directors’ report
Acquisition of a subsidiary, net of cash acquired 7 230 (1,450) IAS 7.39
Receipt of government grants 27 2,951 642
Net cash flows used in investing activities (9,848) (7,823)
Financing activities IAS 7.10, IAS 7.21
Proceeds from exercise of share options 175 200 IAS 7.17(a)


Acquisition of non-controlling interests 7 (325) IAS 7.42A
Transaction costs on issue of shares 24 (32)  IAS 7.17(a)
Payment of finance lease liabilities (51) (76) IAS 7.17(e)
Proceeds from borrowings 6,341 4,871 IAS 7.17(c)
Repayment of borrowings (2,724) (4,250) IAS 7.17(d)
Dividends paid to equity holders of the parent 25 (1,972) (1,600) IAS 7.31

Dividends paid to non-controlling interests (30) (49) IFRS 12.B10(a)
Net cash flows from/(used in) financing activities 1,382 (904)

Net increase in cash and cash equivalents 4,834 3,624
Net foreign exchange difference 340 326 IAS 7.28
Cash and cash equivalents at 1 January 12,266 8,316
Cash and cash equivalents at 31 December 23 17,440 12,266 IAS 7.45

Commentary
IAS 7.18 allows entities to report cash flows from operating activities using either the direct method or the indirect method. The Group
presents its cash flows using the direct method.
There is no specific requirement to identify adjustments made retrospectively on the face of the financial statements, except for the
effect of a retrospective application or restatement on each component of equity (IAS 1.106(b)). IAS 8 requires details to be given only
in the notes. By labelling the comparatives ‘Restated’, the Group illustrates how an entity may supplement the requirements of IAS 8 so
that it is clear to the user that adjustments to the amounts in prior financial statements have been reflected in the comparative periods
as presented in the current period financial statements.
Notes
jhj
IAS 7.33 permits interest paid to be shown as operating or financing activities and interest received to be shown as operating or
investing activities, as deemed relevant for the entity. The Group has elected to classify interest received and interest paid as cash flows
from operating activities.
Appendices

Notes to the
consolidated
financial statements
1
2
Notes to the consolidated financial statements
Contents
3
4
1. Corporate information
5
IAS 1.10(e)
The consolidated financial statements of Good Group (Australia) Limited and its subsidiaries (collectively, the IAS 1.49
6
IAS 1.113
Group) for the year ended 31 December 2017 were authorised for issue in accordance with a resolution of the
IAS 1.51(a)
directors on 29 February 2018. Good Group (Australia) Limited (the Company or the parent) is a for profit
7
IAS 1.51(b)
company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Stock AASB 1054.8(b)
Exchange. The ultimate parent of Good Group (Australia) Limited is S.J Limited which owns 52.85% of the ordinary
8
Introduction
shares.
9
IAS 1.138(c)
The Group is principally engaged in the provision of fire prevention and electronics equipment and services
IAS 1.51(c)
and the management of investment property (see Note 4). The Group’s principal place of business is Bush
10
IAS 1.138(a)
Avenue, Mulberry Park, Australia. Further information on the nature of the operations and principal activities IAS 10.17
of the Group is provided in the directors’ report. Information on the Group’s structure is provided in Note 6. IAS 1.138(b)
11
Information on other related party relationships of the Group is provided in Note 33.
12
2. Significant accounting policies
13
Commentary
Directors’ report
14
The identification of an entity’s significant accounting policies is an important aspect of the financial statements.
15
IAS 1.117 requires the significant accounting policies disclosures to summarise the measurement basis (or bases) used in
preparing the financial statements, and the other accounting policies used that are relevant to an understanding of the
financial statements. The significant accounting policies disclosed in this note illustrate some of the more commonly
16
applicable disclosures. However, it is essential that entities consider their specific circumstances when determining which
accounting policies are significant and relevant and therefore need to be disclosed.
17
18
2.1 Basis of preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the IAS 1.16
19
AASB 1054.8(a)

requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative AASB 1054.9
pronouncements of the Australian Accounting Standards Board.
20
The financial report has been prepared on a historical cost basis, except for investment properties, certain IAS 1.112(a)
IAS 1.117(a)
21
office properties (classified as property, plant and equipment), derivative financial instruments, available-for-
sale (AFS) financial assets, and contingent consideration that have been measured at fair value. The carrying
22
values of recognised assets and liabilities that are designated as hedged items in fair value hedges that would
otherwise be carried at amortised cost are adjusted to record changes in the fair values attributable to the
23
risks that are being hedged in effective hedge relationships.
The financial report is presented in Australian dollars and all values are rounded to the nearest thousand
24
IAS 1.51(d),(e)
($000), except when otherwise indicated. ASIC CI 2016/191
25
The consolidated financial statements provide comparative information in respect of the previous period. In IAS 1.40A
addition, the Group presents an additional statement of financial position at the beginning of the preceding 26
period when there is a retrospective application of an accounting policy, a retrospective restatement, or a IAS 1.10 (f)
27
reclassification of items in financial statements. An additional statement of financial position as at IAS 1.38
1 January 2016 is presented in these consolidated financial statements due to the correction of an error
28
retrospectively. See Note 2.5. IAS 1.38A

Notes
jhj
Compliance with International Financial Reporting Standards (IFRS)

29
The financial report also complies with International Financial Reporting Standards (IFRS) as issued by the IAS 1.16
30
International Accounting Standards Board.

31
32
33
Appendices
34
35
36

37
1
Notes to the consolidated financial statements (continued)
2
Contents
3
2.2 Basis of consolidation
4
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as
IFRS 10.7
at 31 December 2017. Control is achieved when the Group is exposed, or has rights, to variable returns from its
5
involvement with the investee and has the ability to affect those returns through its power over the investee.
Specifically, the Group controls an investee if, and only if, the Group has:
6
► Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of
the investee)
7
► Exposure, or rights, to variable returns from its involvement with the investee
8
The ability to use its power over the investee to affect its returns
Introduction
►
Generally, there is a presumption that a majority of voting rights results in control. To support this presumption IFRS 10.B38
9
and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers
10
all relevant facts and circumstances in assessing whether it has power over an investee, including:
► The contractual arrangement(s) with the other vote holders of the investee
11
► Rights arising from other contractual arrangements
The Group’s voting rights and potential voting rights
12
►
IFRS 10.B80
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
13
IFRS 10.B86
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group IFRS 10.B99
Directors’ report
14
obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated
15
financial statements from the date the Group gains control until the date the Group ceases to control the
subsidiary.
16
Profit or loss and each component of OCI are attributed to the equity holders of the parent of the Group and to IFRS 10.B94
IFRS 10.B87
the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When
17
IFRS 10.B86
necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies
into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and
18
cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
19
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
IFRS 10.B96
transaction.
20
IFRS 10.B98
IFRS10.B99
If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities,
21
non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit
or loss. Any investment retained is recognised at fair value.
22
IAS 1.112
2.3 Summary of significant accounting policies IAS 1.117(b)
23
a) Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured
24
IFRS 3.4
as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the IFRS 3.18
amount of any non-controlling interests in the acquiree. For each business combination, the Group elects
25
IFRS 3.19
whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of
IFRS 3.53
the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in IFRS 3.B64(m) 26
administrative expenses.
27
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
IFRS 3.15
classification and designation in accordance with the contractual terms, economic circumstances and pertinent
28
IFRS 3.16
conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by
Notes
jhj
the acquiree.
29
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition
30
IFRS 3.39
date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is IFRS 3.58
accounted for within equity. Contingent consideration classified as an asset or liability that is a financial
31
instrument and within the scope of IAS 39 Financial Instruments: Recognition and Measurement, is measured at
fair value with the changes in fair value recognised in the statement of profit or loss in accordance with IAS 39.
32
Other contingent consideration that is not within the scope of IAS 39 is measured at fair value at each reporting
date with changes in fair value recognised in profit or loss.
33
Appendices
34
35
36

37
1
2
Contents
3
2.3 Summary of significant accounting policies (continued)
4
Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the
amount recognised for non-controlling interests and any previous interest held over the net identifiable assets IFRS 3.32
5
acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate
consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired
6
IFRS 3.36
and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at
the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the
7
aggregate consideration transferred, then the gain is recognised in profit or loss.
8
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose
Introduction
IFRS 3.B63(a)
of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to IAS 36.80
9
each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of
whether other assets or liabilities of the acquiree are assigned to those units.
10
Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is IAS 36.86
11
disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the
operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured
12
based on the relative values of the disposed operation and the portion of the cash-generating unit retained.
b) Investment in associates and joint ventures
13
An associate is an entity over which the Group has significant influence. Significant influence is the power to
Directors’ report
IAS 28.3
14
participate in the financial and operating policy decisions of the investee, but is not control or joint control over
those policies.
15
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement
IFRS 11.16
have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of
16
IFRS 11.7
an arrangement, which exists only when decisions about the relevant activities require the unanimous consent
17
of the parties sharing control.
Commentary
18
The Group does not have an interest in a joint operation. If the Group had an interest in a joint operation, as per IFRS 11.20,
19
it would recognise in relation to its interest its:

► Assets, including its share of any assets held jointly
20
► Liabilities, including its share of any liabilities incurred jointly
Revenue from the sale of its share of the output arising from the joint operation
21
►
► Share of the revenue from the sale of the output by the joint operation
22
► Expenses, including its share of any expenses incurred jointly
The considerations made in determining significant influence or joint control are similar to those necessary to
23
determine control over subsidiaries.
24
The Group’s investments in its associate and joint venture are accounted for using the equity method. IAS 28.10
Under the equity method, the investment in an associate or a joint venture is initially recognised at cost. The
25
IAS 28.26-29
carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the
associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is 26
included in the carrying amount of the investment and is not tested for impairment separately.
27
The statement of profit or loss reflects the Group’s share of the results of operations of the associate or joint IAS 1.82(c)
venture. Any change in OCI of those investees is presented as part of the Group’s OCI. In addition, when there
28
Notes
has been a change recognised directly in the equity of the associate or joint venture, the Group recognises its
jhj
29
share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses
resulting from transactions between the Group and the associate or joint venture are eliminated to the extent of
30
the interest in the associate or joint venture.
The aggregate of the Group’s share of profit or loss of an associate and a joint venture is shown on the face of
31
the statement of profit or loss outside operating profit and represents profit or loss after tax and non-controlling
interests in the subsidiaries of the associate or joint venture.
32
The financial statements of the associate or joint venture are prepared for the same reporting period as the
33
Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.
Appendices
34
35
36

37
1
2
Contents
3
4
After application of the equity method, the Group determines whether it is necessary to recognise an
impairment loss on its investment in its associate or joint venture. At each reporting date, the Group determines IAS 28.40-43
5
whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is
such evidence, the Group calculates the amount of impairment as the difference between the recoverable
6
amount of the associate or joint venture and its carrying value, and then recognises the loss as ‘Share of profit
of an associate and a joint venture’ in the statement of profit or loss.
7
Upon loss of significant influence over the associate or joint control over the joint venture, the Group measures IAS 28.22(b)
8
and recognises any retained investment at its fair value. Any difference between the carrying amount of the
Introduction
associate or joint venture upon loss of significant influence or joint control and the fair value of the retained
9
investment and proceeds from disposal is recognised in profit or loss.
10
c) Current versus non-current classification
The Group presents assets and liabilities in the statement of financial position based on current/non-current IAS 1.60
11
classification. An asset is current when it is:
IAS 1.66
► Expected to be realised or intended to be sold or consumed in the normal operating cycle
12
► Held primarily for the purpose of trading
13
► Expected to be realised within twelve months after the reporting period
Or
Directors’ report
14
► Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
15
months after the reporting period
All other assets are classified as non-current.
16
A liability is current when: IAS 1.69
17
► It is expected to be settled in the normal operating cycle
► It is held primarily for the purpose of trading
18
► It is due to be settled within twelve months after the reporting period
19
Or
► There is no unconditional right to defer the settlement of the liability for at least twelve months after the
20
reporting period
The Group classifies all other liabilities as non-current.
21
IAS 1.56
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
22
d) Fair value measurement
23
The Group measures financial instruments such as derivatives, and non-financial assets such as investment
properties, at fair value at each balance sheet date.
24
25
26
27
28
Notes
jhj
29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly IFRS13.9
transaction between market participants at the measurement date. The fair value measurement is based on the
5
presumption that the transaction to sell the asset or transfer the liability takes place either:
In the principal market for the asset or liability
6
►
IFRS 13.16
Or
7
► In the absence of a principal market, in the most advantageous market for the asset or liability
8
The principal or the most advantageous market must be accessible by the Group.
Introduction
The fair value of an asset or a liability is measured using the assumptions that market participants would use
9
IFRS 13.22
when pricing the asset or liability, assuming that market participants act in their economic best interest.
10
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate
IFRS 13.27
economic benefits by using the asset in its highest and best use or by selling it to another market participant
11
that would use the asset in its highest and best use.
12
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of IFRS 13.61
13
unobservable inputs.
Directors’ report
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised IFRS 13.73
14
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
15
value measurement as a whole:
► Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
16
► Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
17
► Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
18
measurement is unobservable IFRS 13.95
For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis,
19
the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a whole)
20
at the end of each reporting period.
21
The Group’s Valuation Committee determines the policies and procedures for both recurring fair value IFRS 13.93(g)
measurement, such as investment properties and unquoted AFS financial assets, and for non-recurring
22
measurement, such as assets held for sale in discontinued operations. The Valuation Committee is comprised of
the head of the investment properties segment, heads of the Group’s internal mergers and acquisitions team,
23
the head of the risk management department, chief finance officers and the managers of each property.
External valuers are involved for valuation of significant assets, such as properties and AFS financial assets, and
24
significant liabilities, such as contingent consideration. Involvement of external valuers is determined annually
25
by the Valuation Committee after discussion with and approval by the Company’s Audit Committee. Selection
criteria include market knowledge, reputation, independence and whether professional standards are
maintained. Valuers are normally rotated every three years. The Valuation Committee decides, after discussions 26
with the Group’s external valuers, which valuation techniques and inputs to use for each case.
27
At each reporting date, the Valuation Committee analyses the movements in the values of assets and liabilities
which are required to be remeasured or re-assessed as per the Group’s accounting policies. For this analysis, the
28
Notes
Valuation Committee verifies the major inputs applied in the latest valuation by agreeing the information in the
jhj
29
valuation computation to contracts and other relevant documents.
The Valuation Committee, in conjunction with the Group’s external valuers, also compares the change in the fair
30
value of each asset and liability with relevant external sources to determine whether the change is reasonable.
31
On an interim basis, the Valuation Committee and the Group’s external valuers present the valuation results to
the Audit Committee and the Group’s independent auditors. This includes a discussion of the major assumptions
32
used in the valuations.

33
Appendices
34
35
36

37
1
2
Contents
3
4
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis IFRS 13.94
of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as
5
explained above.
Fair-value related disclosures for financial instruments and non-financial assets that are measured at fair value
6
or where fair values are disclosed, are summarised in the following notes:
7
► Disclosures for valuation methods, significant estimates and assumptions Notes 3, 16, 17 and 20.4
► Quantitative disclosures of fair value measurement hierarchy Note 11
8
Introduction
► Investment in unquoted equity shares (discontinued operations) Note 13
9
► Property, plant and equipment under revaluation model Note 16
► Investment properties Note 17
10
► Financial instruments (including those carried at amortised cost) Note 20.4
Contingent consideration Note 20.4
11
►
Commentary
12
The Group has not elected to apply the portfolio exception under IFRS 13.48. If an entity makes an accounting policy
decision to use the exception, this fact is required to be disclosed, as per IFRS 13.96.
13
e) Revenue recognition
Directors’ report
14
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and IAS 18.35(a)
IAS 18.9
the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the
15
fair value of the consideration received or receivable, taking into account contractually defined terms of
16
payment and excluding taxes or duty. The Group has concluded that it is the principal in all of its revenue
arrangements since it is the primary obligor in all the revenue arrangements, has pricing latitude, and is also
17
exposed to inventory and credit risks.
The specific recognition criteria described below must also be met before revenue is recognised.
18
Sale of goods
19
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the IAS 18.14(a)

goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is
20
measured at the fair value of the consideration received or receivable, net of returns and allowances, trade
discounts and volume rebates. The Group provides normal warranty provisions for general repairs for two years
21
on all its products sold, in line with industry practice. A liability for potential warranty claims is recognised at the
time the product is sold – see Note 26 for more information. The Group, generally, does not provide any
22
extended warranties or maintenance contracts to its customers.
Within its electronics segment, the Group operates a loyalty points programme, GoodPoints, which allows
23
IFRIC 13.5
customers to accumulate points when they purchase products in the Group’s retail stores. The points can be IFRIC 13.7
24
redeemed for free products, subject to a minimum number of points being obtained.
Consideration received is allocated between the electronic products sold and the points issued, with the
25
consideration allocated to the points equal to their fair value. Fair value of the points is determined by applying
a statistical analysis. The fair value of the points issued is deferred and recognised as revenue when the points
26
are redeemed.
27
Commentary
IAS 18 Revenue does not prescribe an allocation method for multiple component sales. IFRIC 13 Customer Loyalty
28
Programmes mentions two allocation methodologies; allocation based on relative fair value and allocation using the
Notes
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residual method. The Group’s revenue recognition policy for sales, which includes the issuance of GoodPoints, is based on
29
the fair value of the points issued. The Group could have based its revenue recognition policy on the relative fair values of
the goods sold and the points issued.
30
IFRIC 13 does not set out any disclosure requirements. The Group has not included extensive disclosures for the loyalty
programme as the amounts are not significant. If the deferred revenue and revenue related to the GoodPoints programme
31
were significant, additional disclosure items might include:

32
► The number of outstanding points

► The period over which the revenue is expected to be recognised
33
► The key assumptions used to determine the period over which revenue is recognised
Appendices
The effect of any changes in redemption rates

34
►
35
36

37
1
2
Contents
3
4
Rendering of services IAS 18.20
Revenue from the installation of fire extinguishers, fire prevention equipment and fire-retardant fabrics is
5
recognised by reference to the stage of completion. Stage of completion is measured by reference to labour IAS 18.26
hours incurred to date as a percentage of total estimated labour hours for each contract. When the contract IAS 18.20(c)
6
outcome cannot be measured reliably, revenue is recognised only to the extent that the expenses incurred are
eligible to be recovered. This is generally during the early stages of installation where the equipment and fabrics
7
need to pass through the customer’s quality testing procedures as part of the installation.
8
Interest income
Introduction
For all financial instruments measured at amortised cost and interest-bearing financial assets classified as AFS, IAS 18.30(a)
9
interest income is recorded using the effective interest rate (EIR) method. The EIR is the rate that exactly
discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter
10
period, where appropriate, to the net carrying amount of the financial asset. Interest income is included in
finance income in the statement of profit or loss.
11
Dividends
12
Revenue is recognised when the Group’s right to receive the payment is established, which is generally when IAS 18.30(c)
shareholders approve the dividend.
13
Rental income
Directors’ report
Rental income arising from operating leases on investment properties is accounted for on a straight-line basis IAS 17.50
14
over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature.
15
Equipment received from customers IFRIC 18.9
The Group receives transfers of moulds and other tools for its manufacturing process from customers. The IFRIC 18.11
16
IFRIC 18.13
Group assesses whether each transferred item meets the definition of an asset, and if so, recognises the
transferred asset as property, plant and equipment. At initial recognition, its cost is measured at fair value,
17
and a corresponding amount is recognised as revenue as the Group has no future performance obligations.
18
f) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all IAS 20.7
19
IAS 20.12
attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income IAS 20.26
on a systematic basis over the periods that the related costs, for which it is intended to compensate, are
20
expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the expected
useful life of the related asset.
21
When the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal IAS 20.23
22
IAS 20.10A
amounts and released to profit or loss over the expected useful life of the asset, based on the pattern of
consumption of the benefits of the underlying asset by equal annual instalments.
23
Commentary
24
IAS 20.24 permits two alternative ways of presenting a government grant relating to assets. The Group has elected to
present the grant in the statement of financial position as deferred income, which is recognised in profit or loss on a
25
systematic and rational basis over the useful life of the asset. Alternatively, it may choose to reduce the carrying amount
of the asset. The grant is then recognised in profit or loss over the useful life of the depreciable asset by way of a reduced
depreciation charge. Whichever method is applied, no further disclosures are required. 26
The Group has chosen to present grants related to an expense item as other operating income in the statement of profit or
27
loss. Alternatively, IAS 20.29 permits grants related to income to be deducted in reporting the related expense.
28
IAS 20.23 permits grant of a non-monetary asset to be accounted for in two alternative ways. The asset and the grant
Notes
can be accounted for using a nominal amount. Alternatively, the asset and the grant can be accounted for at the fair value
jhj
29
of the non-monetary asset. The Group accounts for grants of non-monetary assets at nominal value.
g) Taxes
30
Current income tax

31
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid IAS 12.46
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
32
or substantively enacted at the reporting date in the countries where the Group operates and generates
taxable income.
33
Current income tax relating to items recognised directly in equity is recognised in equity and not in the IAS 12.61A(b)
Appendices
34
statement of profit or loss. Management periodically evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are subject to interpretation and establishes provisions
35
where appropriate.
36

37
1
2
Contents
3
4
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and
5
liabilities and their carrying amounts for financial reporting purposes at the reporting date.
IAS 12.22(c)
Deferred tax liabilities are recognised for all taxable temporary differences, except:
6
► When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
7
transaction that is not a business combination and, at the time of the transaction, affects neither the IAS 12.39
accounting profit nor taxable profit or loss
8
Introduction
► In respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint arrangements, when the timing of the reversal of the temporary differences can be
9
controlled and it is probable that the temporary differences will not reverse in the foreseeable future
10
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax IAS 12.34
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
11
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:
12
► When the deferred tax asset relating to the deductible temporary difference arises from the initial IAS 12.24
13
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 nor taxable profit or loss
Directors’ report
14
IAS 12.44
► In respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that
15
the temporary differences will reverse in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilised
16
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
17
IAS 12.56
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to IAS 12.37
be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the
18
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
19
IAS 12.47
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.
20
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax
21
items are recognised in correlation to the underlying transaction either in OCI or directly in equity. IAS 12.61A
Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition IAS 12.68
22
at that date, are recognised subsequently if new information about facts and circumstances change. The
adjustment is either treated as a reduction in goodwill (as long as it does not exceed goodwill) if it was incurred
23
during the measurement period or recognised in profit or loss.
24
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to IAS 12.74
set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate
25
to income taxes levied by the same taxation authority on either the same taxable entity or different taxable
entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and
settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities 26
or assets are expected to be settled or recovered.
27
Australian Tax consolidation legislation AASB Int 1052.16(a)

28
Good Group (Australia) Limited and its wholly-owned Australian controlled entities implemented the tax
Notes
consolidation legislation as of 1 July 2005.

jhj
29
The head entity, Good Group (Australia) Limited and the controlled entities in the tax consolidated group AASB Int 1052.7,
9(a),16(a),(b)
continue to account for their own current and deferred tax amounts. The Group has applied the Group
30
allocation approach in determining the appropriate amount of current taxes and deferred taxes to allocate
to members of the tax consolidated group.
31
In addition to its own current and deferred tax amounts, Good Group (Australia) Limited also recognises the AASB Int 1052.12(a)
32
current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax
credits assumed from controlled entities in the tax consolidated group.
33
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised AASB Int 1052.12(b)
as amounts receivable from or payable to other entities in the Group. Details of the tax funding agreement
Appendices
34
are disclosed in Note 14.

Any difference between the amounts assumed and amounts receivable or payable under the tax funding AASB Int 1052.12(c)
35
agreement are recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities.
36

37
1
2
Contents
3
4
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except: AASB Int 1031.7
5
 When the GST incurred on a sale or purchase of assets or services is not payable to or recoverable from
the taxation authority, in which case the GST is recognised as part of the revenue or the expense item
6
or as part of the cost of acquisition of the asset, as applicable
AASB Int 1031.8
7
 When receivables and payables are stated with the amount of GST included
AASB Int 1031.9
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
8
Introduction
receivables or payables in the statement of financial position. Commitments and contingencies are disclosed
net of the amount of GST recoverable from, or payable to, the taxation authority.
9
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash AASB Int 1031.10-11
10
flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation
authority is classified as part of operating cash flows.
11
h) Foreign currencies
12
The Group’s consolidated financial statements are presented in Australian dollars, which is also the parent IAS 1.51(d)
IAS 21.9
company’s functional currency. For each entity, the Group determines the functional currency and items
13
included in the financial statements of each entity are measured using that functional currency. The Group uses
Directors’ report
the direct method of consolidation and on disposal of a foreign operation, the gain or loss that is reclassified to
14
profit or loss reflects the amount that arises from using this method.
15
i) Transactions and balances IAS 21.21
Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional
16
currency spot rates at the date the transaction first qualifies for recognition.
17
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot IAS 21.23(a)
rates of exchange at the reporting date.
18
Differences arising on settlement or translation of monetary items are recognised in profit or loss with the
IAS 21.28
exception of monetary items that are designated as part of the hedge of the Group’s net investment in a foreign IAS 21.32
19
operation. These are recognised in OCI until the net investment is disposed of, at which time, the cumulative
amount is reclassified to profit or loss. Tax charges and credits attributable to exchange differences on those
20
monetary items are also recorded in OCI.
21
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in IAS 21.23(b)
22
a foreign currency are translated using the exchange rates at the date when the fair value is determined. IAS 21.23(c)
The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the
23
recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items IAS 21.30
whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or
24
loss, respectively).
25
26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
ii) Group companies IAS 21.39(a)
On consolidation, the assets and liabilities of foreign operations are translated into Australian dollars at the rate IAS 21.39(b)
5
IAS 21.39(c)
of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange IAS 21.48
rates prevailing at the dates of the transactions. The exchange differences arising on translation for
6
consolidation are recognised in OCI. On disposal of a foreign operation, the component of OCI relating to that
particular foreign operation is reclassified to profit or loss.
7
Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying
IAS 21.47
8
amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign
Introduction
operation and translated at the spot rate of exchange at the reporting date.
9
i) Non-current assets held sale and discontinued operations
10
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be IFRS 5.6
IFRS 5.7
recovered principally through a sale transaction rather than through continuing use. Non-current assets and IFRS 5.8
11
disposal groups classified as held for are measured at the lower of their carrying amount and fair value less IFRS 5.15
costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal IFRS 5.15A
12
group), excluding finance costs and income tax expense.
13
The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset
or disposal group is available for immediate sale in its present condition. Actions required to complete the sale
Directors’ report
14
should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will IFRS 5.12A
be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be
15
completed within one year from the date of the classification.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held
16
IFRS 5.25
for sale.
17
Assets and liabilities classified as held for sale are presented separately as current items in the statement of IAS 1.54(j)
IAS 1.54(p)
financial position.
18
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been IFRS 5.32
19
disposed of, or is classified as held for sale, and:
Represents a separate major line of business or geographical area of operations
20
►
► Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of
21
operations
Or
22
► Is a subsidiary acquired exclusively with a view to resale IFRS 5.30
23
Discontinued operations are excluded from the results of continuing operations and are presented as a single IFRS 5.33
amount as profit or loss after tax from discontinued operations in the statement of profit or loss.
24
Additional disclosures are provided in Note 13. All other notes to the financial statements include amounts for
continuing operations, unless indicated otherwise.
25
j) Cash dividend
26
The Company recognises a liability to pay a dividend when the distribution is authorised and the distribution is IFRIC 17.10
no longer at the discretion of the Company. As per the corporate laws of Australia, a distribution is authorised
27
when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
k) Property, plant and equipment
Construction in progress is stated at cost, net of accumulated impairment losses, if any. Plant and equipment is
5
IAS 16.73(a)
stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes IAS 16.30
the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if IAS 16.15
6
the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at IAS 16.16
intervals, the Group depreciates them separately based on their specific useful lives. Likewise, when a major
7
inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in
8
Introduction
profit or loss as incurred. The present value of the expected cost for the decommissioning of an asset after its
use is included in the cost of the respective asset if the recognition criteria for a provision are met. Refer to
9
significant accounting judgements, estimates and assumptions (Note 3) and provisions (Note 26) for further
10
information about the recognised decommissioning provision.
Property, plant and equipment transferred from customers are initially measured at fair value at the date on
11
which control is obtained.
12
Office properties in Australia are measured at fair value less accumulated depreciation and impairment losses IFRIC 18.11
IAS 16.24
recognised after the date of revaluation. Valuations are performed with sufficient frequency to ensur that the
13
carrying amount of a revalued asset does not differ materially from its fair value. IAS 16.73(a)
IAS 16.31
Directors’ report
14
A revaluation surplus is recorded in OCI and credited to the asset revaluation surplus in equity. However,
IAS 16.39
to the extent that it reverses a revaluation deficit of the same asset previously recognised in profit or loss, IAS 16.40
15
the increase is recognised in profit and loss. A revaluation deficit is recognised in the statement of profit or
loss, except to the extent that it offsets an existing surplus on the same asset recognised in the asset
16
revaluationsurplus.
17
An annual transfer from the asset revaluation surplus to retained earnings is made for the difference between IAS 16.41
depreciation based on the revalued carrying amount of the asset and depreciation based on the asset’s original
18
cost. Additionally, accumulated depreciation as at the revaluation date is eliminated against the gross carrying
amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any
19
revaluation surplus relating to the particular asset being sold is transferred to retained earnings.
Commentary
20
Under IAS 16 an entity has a policy choice for the measurement of property, plant and equipment after initial recognition.
21
An entity may choose either the cost model or the revaluation model for entire classes of property, plant and equipment.
The Group has elected to use the revaluation model for office properties in Australia, while other classes of property, plant
22
and equipment are measured using the cost model. The Group has also elected to transfer the revaluation surplus to
retained earnings as the asset is being used. Alternatively, the amount could have been transferred, in full, upon disposal
23
of the asset.
IAS 16.73(b)
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:
24
IAS 16.73(c)
Buildings 15 to 20 years
25
Plant, machinery and equipment 5 to 15 years
Office properties in Australia 15 to 20 years 26
An item of property, plant and equipment and any significant part initially recognised is derecognised upon IAS 16.67
27
IAS 16.68
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on IAS 16.71
derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
28
amount of the asset) is included in the statement of profit or loss when the asset is derecognised.
Notes
jhj
29
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at IAS 16.51
each financial year end and adjusted prospectively, if appropriate.

30
l) Leases
31
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
IFRIC 4.6
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the IFRIC 4.7
32
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use
the asset (or assets), even if that asset is (or those assets are) not explicitly specified in an arrangement.
33
Appendices
34
35
36

37
1
2
Contents
3
4
Group as a lessee
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers IAS 17.8
5
IAS 17.20
substantially all the risks and rewards incidental to ownership to the Group is classified as a finance lease. IAS 17.25
Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased
6
property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between
7
finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining
balance of the liability. Finance charges are recognised in finance costs in the statement of profit or loss.
8
Introduction
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that IAS 17.27
the Group will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the
9
estimated useful life of the asset and the lease term. IAS 17.33
10
An operating lease is a lease other than a finance lease. Operating lease payments are recognised as an
operating expense in the statement of profit or loss on a straight-line basis over the lease term.
11
Group as a lessor
12
Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are IAS 17.8
IAS 17.52
classified as operating leases. Initial direct costs incurred in negotiating and arranging an operating lease are
13
added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental
income. Contingent rents are recognised as revenue in the period in which they are earned.
Directors’ report
14
m) Borrowing costs
15
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
IAS 23.8
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of IAS 23.5
16
the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the borrowing of funds.
17
n) Investment properties
18
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial IAS 40.20
IAS 40.33
recognition, investment properties are stated at fair value, which reflects market conditions at the reporting IAS 40.75(a)
19
date. Gains or losses arising from changes in the fair values of investment properties are included in profit or IAS 40.35
loss in the period in which they arise, including the corresponding tax effect. Fair values are determined based IAS 40.75(e)
20
on an annual valuation performed by an accredited external independent valuer applying a valuation model
recommended by the International Valuation Standards Committee.
21
Investment properties are derecognised either when they have been disposed of or when they are permanently IAS 40.66
22
IAS 40.69
withdrawn from use and no future economic benefit is expected from their disposal. The difference between the
net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of
23
derecognition.
Transfers are made to (or from) investment property only when there is a change in use. For a transfer from IAS 40.57
24
IAS 40.60
investment property to owner-occupied property, the deemed cost for subsequent accounting is the fair value at IAS 40.61
the date of change in use. If owner-occupied property becomes an investment property, the Group accounts for
25
such property in accordance with the policy stated under property, plant and equipment up to the date of
change in use. 26
Commentary
27
The Group has elected to state investment properties at fair value in accordance with IAS 40. As an alternative IAS 40
28
permits investment properties to be carried at historical cost less accumulated depreciation and impairment. IAS 40
Notes
requires note disclosure of the fair value of any investment property recorded at cost. Therefore, companies would still
jhj
29
need to determine the fair value.
o) Intangible assets
30
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets IAS 38.24
IAS 38.74
31
acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, IAS 38.54
intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. IAS 38.57
32
Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related
expenditure is reflected in profit or loss in the period in which the expenditure is incurred.
33
IAS 38.88
The useful lives of intangible assets are assessed as either finite or indefinite.
Appendices
34
35
36

37
1
2
Contents
3
4
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment
IAS 38.97
whenever there is an indication that the intangible asset may be impaired. The amortisation period and the IAS 36.9
5
amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each IAS 38.104
reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic
6
benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is
7
recognised in the statement of profit or loss in the expense category that is consistent with the function of the
intangible assets.
8
Introduction
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either IAS 38.107
IAS 38.108
9
individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to IAS 38.109
determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite
10
to finite is made on a prospective basis.
11
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the
IAS 38.113
net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss
12
when the asset is derecognised.
Research and development costs
13
Research costs are expensed as incurred. Development expenditures on an individual project are recognised IAS 38.54
IAS 38.57
Directors’ report
as an intangible asset when the Group can demonstrate:
14
► The technical feasibility of completing the intangible asset so that the asset will be available for use or sale
15
► Its intention to complete and its ability and intention to use or sell the asset
How the asset will generate future economic benefits
16
►
► The availability of resources to complete the asset
17
► The ability to measure reliably the expenditure during development
Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any IAS 38.74
18
IAS 36.10(a)
accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when
development is complete and the asset is available for use. It is amortised over the period of expected future
19
benefit. Amortisation is recorded in cost of sales. During the period of development, the asset is tested for
20
impairment annually.
Patents and licences
21
The Group made upfront payments to purchase patents and licences. The patents have been granted for a IAS 38.122(a)
period of 10 years by the relevant government agency with the option of renewal at the end of this period.
22
Licences for the use of intellectual property are granted for periods ranging between five and ten years
depending on the specific licences. The licences may be renewed at little or no cost to the Group. As a result,
23
those licences are assessed as having an indefinite useful life.
24
A summary of the policies applied to the Group’s intangible assets is, as follows:
25
IAS 38.118
Licences Patents Development costs (a),(b)
Useful lives Indefinite Finite (10 years) Finite (20 years)
26
Amortisation method No amortisation Amortised on a straight- Amortised on a straight-line
27
used line basis over the period basis over the period of
of the patent expected future sales from
28
the related project

Notes
jhj
Internally generated Acquired Acquired Internally generated

29
or acquired
30
p) Financial instruments – initial recognition and subsequent measurement

31
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or IAS 39.9
equity instrument of another entity.

32
33
Appendices
34
35
36

37
1
2
Contents
3
4
i) Financial assets
Initial recognition and measurement
5
Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, loans IFRS 7.21
IAS 39.9
and receivables, held-to-maturity investments, AFS financial assets, or as derivatives designated as hedging
6
IAS 39.43
instruments in an effective hedge, as appropriate. All financial assets are recognised initially at fair value plus, in
the case of financial assets not recorded at fair value through profit or loss, transaction costs that are
7
attributable to the acquisition of the financial asset.
8
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation IAS 39.9
Introduction
IAS 39.38
or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the
9
Group commits to purchase or sell the asset.
10
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
11
► Financial assets at fair value through profit or loss
Loans and receivables
12
►
► Held-to-maturity investments
13
► AFS financial assets
Directors’ report
14
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and financial assets IAS 39.9
15
IAS 39.46
designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for
trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including
16
separated embedded derivatives, are also classified as held for trading unless they are designated as effective
hedging instruments as defined by IAS 39. The Group has not designated any financial assets at fair value
17
through profit or loss. Financial assets at fair value through profit or loss are carried in the statement of IAS 39.AG14
financial position at fair value with net changes in fair value presented as finance costs (negative net changes in IAS 39.55(a)
18
fair value) or finance income (positive net changes in fair value) in the statement of profit or loss.
19
Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value
IAS 39.10
if their economic characteristics and risks are not closely related to those of the host contracts and the host IAS 39.11
20
contracts are not held for trading or designated at fair value through profit or loss. These embedded derivatives
are measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if
21
there is either a change in the terms of the contract that significantly modifies the cash flows that would IFRIC 9.7
otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss
22
category.
23
Loans and receivables
This category is the most relevant to the Group. Loans and receivables are non-derivative financial assets with
IAS 39.9
24
fixed or determinable payments that are not quoted in an active market. After initial measurement, such IAS 39.46(a)
financial assets are subsequently measured at amortised cost using the EIR method, less impairment. Amortised IAS 39.56
25
cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit or loss. The
losses arising from impairment are recognised in the statement of profit or loss in finance costs for loans and in 26
cost of sales or other operating expenses for receivables.
27
This category generally applies to trade and other receivables. For more information on receivables, refer to
28
Note 22.
Notes
jhj
AFS financial assets

29
AFS financial assets include equity investments and debt securities. Equity investments classified as AFS are IAS 39.9
IAS 39.46
those that are neither classified as held for trading nor designated at fair value through profit or loss. Debt
30
IAS 39.55(b)
securities in this category are those that are intended to be held for an indefinite period of time and that may be IAS 39.67
31
sold in response to needs for liquidity or in response to changes in market conditions.
After initial measurement, AFS financial assets are subsequently measured at fair value with unrealised gains or IAS 39.46
32
IAS 39.55(b)
losses recognised in OCI and credited to the AFS reserve until the investment is derecognised, at which time, the IAS 39.67
cumulative gain or loss is recognised in other operating income, or the investment is determined to be impaired,
33
IAS 39.50E
when the cumulative loss is reclassified from the AFS reserve to the statement of profit or loss in finance costs. IAS 39.50F
Appendices
Interest earned whilst holding AFS financial assets is reported as interest income using the EIR method.
34
35
36

37
1
2
Contents
3
4
The Group evaluates whether the ability and intention to sell its AFS financial assets in the near term is still
appropriate. When, in rare circumstances, the Group is unable to trade these financial assets due to inactive
5
markets, the Group may elect to reclassify these financial assets if management has the ability and intention to
hold the assets for the foreseeable future or until maturity.
6
For a financial asset reclassified from the AFS category, the fair value at the date of reclassification becomes its IAS 39.50F
IAS 39.54
7
new amortised cost and any previous gain or loss on the asset that has been recognised in equity is amortised to
profit or loss over the remaining life of the investment using the EIR. Any difference between the new amortised
8
cost and the maturity amount is also amortised over the remaining life of the asset using the EIR. If the asset is
Introduction
subsequently determined to be impaired, then the amount recorded in equity is reclassified to the statement of
9
profit or loss.
10
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) IAS 39.17(a)
11
is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:
► The rights to receive cash flows from the asset have expired
12
Or IAS 39.18(a)
13
IAS 39.18(b)
► The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement;
Directors’ report
14
and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group
has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
15
control of the asset
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through IAS 39.20(a)
16
IAS 39.20(c)
arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has IAS 39.18(b)
17
neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of
the asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In
18
that case, the Group also recognises an associated liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the Group has retained.
19
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower IAS 39.30(a)
of the original carrying amount of the asset and the maximum amount of consideration that the Group could be
20
required to repay.
21
Impairment of financial assets
Further disclosures relating to impairment of financial assets are also provided in the following notes:
22
► Disclosures for significant assumptions Note 3
23
► Financial assets Note 20
► Trade receivables Note 22
24
The Group assesses, at each reporting date, whether there is objective evidence that a financial asset or a group
IAS 39.58
of financial assets is impaired. An impairment exists if one or more events that has occurred since the initial
25
IAS 39.59
recognition of the asset (an incurred ‘loss event’), has an impact on the estimated future cash flows of the IFRS 7.B5(f)
financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may 26
include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default
27
or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial
reorganisation and observable data indicating that there is a measurable decrease in the estimated future cash
28
flows, such as changes in arrears or economic conditions that correlate with defaults.
Notes
jhj
Financial assets carried at amortised cost

29
For financial assets carried at amortised cost, the Group first assesses whether impairment exists individually for IAS 39.63
IAS 39.64
financial assets that are individually significant, or collectively for financial assets that are not individually
30
significant. If the Group determines that no objective evidence of impairment exists for an individually assessed
31
financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit
risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for
32
impairment and for which an impairment loss is, or continues to be, recognised are not included in a collective
assessment of impairment.
33
Appendices
34
35
36

37
1
2
Contents
3
4
The amount of any impairment loss identified is measured as the difference between the asset’s carrying
IAS 39.AG84
amount and the present value of estimated future cash flows (excluding future expected credit losses that have IAS 39.65
5
not yet been incurred). The present value of the estimated future cash flows is discounted at the financial
asset’s original EIR.
6
The carrying amount of the asset is reduced through the use of an allowance account and the loss is recognised IFRS 7.16
IAS 39.AG93
7
in the statement of profit or loss. Interest income (recorded as finance income in the statement of profit or loss) IAS 39.65
continues to be accrued on the reduced carrying amount using the rate of interest used to discount the future IFRS 7.B5(d)(i)
8
cash flows for the purpose of measuring the impairment loss. Loans, together with the associated allowance are IFRS 7.B5(d)(ii)
Introduction
written off when there is no realistic prospect of future recovery and all collateral has been realised or has been
9
transferred to the Group. If, in a subsequent year, the amount of the estimated impairment loss increases or
decreases because of an event occurring after the impairment was recognised, the previously recognised
10
impairment loss is increased or reduced by adjusting the allowance account. If a write-off is later recovered, the
recovery is credited to finance costs in the statement of profit or loss.
11
AFS financial assets
12
For AFS financial assets, the Group assesses at each reporting date whether there is objective evidence that an
investment or a group of investments is impaired.
13
In the case of equity investments classified as AFS, objective evidence would include a significant or prolonged
IAS 39.58
Directors’ report
decline in the fair value of the investment below its cost. ‘Significant’ is evaluated against the original cost of the
14
IAS 39.61
investment and ‘prolonged’ against the period in which the fair value has been below its original cost. When IAS 39.67
15
there is evidence of impairment, the cumulative loss – measured as the difference between the acquisition cost IAS 39.68
IAS 39.69
and the current fair value, less any impairment loss on that investment previously recognised in the statement
16
of profit or loss – is removed from OCI and recognised in the statement of profit or loss. Impairment losses on
equity investments are not reversed through profit or loss; increases in their fair value after impairment are
17
recognised in OCI.
The determination of what is ‘significant’ or ‘prolonged’ requires judgement. In making this judgement, the
18
Group evaluates, among other factors, the duration or extent to which the fair value of an investment is less
than its cost.
19
In the case of debt instruments classified as AFS, the impairment is assessed based on the same criteria as IAS 39.68
20
financial assets carried at amortised cost. However, the amount recorded for impairment is the cumulative loss
measured as the difference between the amortised cost and the current fair value, less any impairment loss on
21
that investment previously recognised in the statement of profit or loss.
22
Future interest income continues to be accrued based on the reduced carrying amount of the asset, using the IAS 39.AG93
IAS 39.70
rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The
23
interest income is recorded as part of finance income. If, in a subsequent year, the fair value of a debt
instrument increases and the increase can be objectively related to an event occurring after the impairment loss
24
was recognised in the statement of profit or loss, the impairment loss is reversed through the statement of
profit or loss.
25
ii) Financial liabilities
Initial recognition and measurement 26
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, IFRS 7.6
27
IFRS 7.21
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
28
Notes
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables,
jhj
IAS 39.43
29
net of directly attributable transaction costs.
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts,
30
financial guarantee contracts and derivative financial instruments.

31
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
32
Financial liabilities at fair value through profit or loss

33
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial IAS 39.9
IAS 39.47(a)
liabilities designated upon initial recognition as at fair value through profit or loss.
Appendices
34
35
36

37
1
2
Contents
3
4
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the Group that are not
5
designated as hedging instruments in hedge relationships as defined by IAS 39. Separated embedded derivatives
are also classified as held for trading unless they are designated as effective hedging instruments.
6
Gains or losses on liabilities held for trading are recognised in the statement of profit or loss. IAS 39.55(a)
7
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the
initial date of recognition, and only if the criteria in IAS 39 are satisfied. The Group has not designated any
8
Introduction
financial liability as at fair value through profit or loss.
9
Loans and borrowings
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings IAS 39.47
10
IAS 39.56
are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or
loss when the liabilities are derecognised as well as through the EIR amortisation process.
11
IAS 39.9
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
12
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit
or loss.
13
This category generally applies to interest-bearing loans and borrowings. For more information, refer to
Directors’ report
Note 20.
14
Financial guarantee contracts
15
Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to IAS 39.47(c)
IAS 39.9
reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in
16
IAS 39.14
accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a IAS 39.43
liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the IAS 37.36
17
guarantee. Subsequently, the liability is measured at the higher of the best estimate of the expenditure required
to settle the present obligation at the reporting date and the amount recognised less cumulative amortisation.
18
Derecognition
19
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. IAS 39.39
When an existing financial liability is replaced by another from the same lender on substantially different terms,
20
IAS 39.41
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the IAS 39.40
derecognition of the original liability and the recognition of a new liability. The difference in the respective
21
carrying amounts is recognised in the statement of profit or loss.
22
iii) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement IAS 32.42
23
of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
24
q) Derivative financial instruments and hedge accounting
25
Initial recognition and subsequent measurement
The Group uses derivative financial instruments, such as forward currency contracts, interest rate swaps and IAS 39.43
26
IFRS 7.21
forward commodity contracts, to hedge its foreign currency risks, interest rate risks and commodity price risks,
27
respectively. Such derivative financial instruments are initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as
28
financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Notes
jhj
The purchase contracts that meet the definition of a derivative under IAS 39 are recognised in the statement of
29
profit or loss as cost of sales. Commodity contracts that are entered into and continue to be held for the purpose
of the receipt or delivery of a non-financial item in accordance with the Group’s expected purchase, sale or
30
usage requirements are held at cost.

31
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss,
except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to profit or
32
loss when the hedge item affects profit or loss.

33
Appendices
34
35
36

37
1
2
Contents
3
4
For the purpose of hedge accounting, hedges are classified as:
► Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or IAS 39.86(a)
5
an unrecognised firm commitment
Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a
6
► IAS 36.86(b)
particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the
7
foreign currency risk in an unrecognised firm commitment
► Hedges of a net investment in a foreign operation IAS 39.86(c)
8
Introduction
At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship IAS 39.88
to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking
9
the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction,
the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging
10
instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows
11
attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes
in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly
12
effective throughout the financial reporting periods for which they were designated.
Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:
13
Fair value hedges
Directors’ report
14
The change in the fair value of a hedging instrument is recognised in the statement of profit or loss as a finance IAS 39.89
cost. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the
15
carrying value of the hedged item and is also recognised in the statement of profit or loss as a finance cost.
16
For fair value hedges relating to items carried at amortised cost, any adjustment to carrying value is amortised IAS 39.92
through profit or loss over the remaining term of the hedge using the EIR method. EIR amortisation may begin
17
as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its
fair value attributable to the risk being hedged.
18
If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or loss.
19
When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in IAS 39.93
the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with
20
a corresponding gain or loss recognised in profit or loss.
21
Cash flow hedges
The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow hedge IAS 39.95
22
reserve, while any ineffective portion is recognised immediately in the statement of profit or loss.
The Group uses forward currency contracts as hedges of its exposure to foreign currency risk in forecast
23
transactions and firm commitments, as well as forward commodity contracts for its exposure to volatility in
the commodity prices. The ineffective portion relating to foreign currency contracts is recognised in finance
24
costs and the ineffective portion relating to commodity contracts is recognised in other operating income or
25
expenses. Refer to Note 20.3 for more details.
Amounts recognised as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, IAS 39.97
IAS 39.100 26
such as when the hedged financial income or financial expense is recognised or when a forecast sale occurs. IAS 39.98
When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognised as
27
OCI are transferred to the initial carrying amount of the non-financial asset or liability.
28
If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover (as part of IAS 39.101
Notes
jhj
the hedging strategy), or if its designation as a hedge is revoked, or when the hedge no longer meets the criteria
29
for hedge accounting, any cumulative gain or loss previously recognised in OCI remains separately in equity until
the forecast transaction occurs or the foreign currency firm commitment is met.
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Hedges of a net investment
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for IAS 39.102
5
as part of the net investment, are accounted for in a way similar to cash flow hedges. Gains or losses on the
hedging instrument relating to the effective portion of the hedge are recognised as OCI while any gains or losses
6
relating to the ineffective portion are recognised in the statement of profit or loss. On disposal of the foreign
operation, the cumulative value of any such gains or losses recorded in equity is transferred to the statement of
7
profit or loss.
8
The Group uses a loan as a hedge of its exposure to foreign exchange risk on its investments in foreign
Introduction
subsidiaries. Refer to Note 20.3 for more details.
9
r) Inventories
10
Inventories are valued at the lower of cost and net realisable value. IAS 2.36(a)
IAS 2.9
Costs incurred in bringing each product to its present location and condition are accounted for, as follows: IAS 2.10
11
► Raw materials: purchase cost on a first-in/first-out basis IAS 2.25
12
► Finished goods and work in progress: cost of direct materials and labour and a proportion of manufacturing IAS 2.12
overheads based on the normal operating capacity, but excluding borrowing costs IAS 2.13
13
Initial cost of inventories includes the transfer of gains and losses on qualifying cash flow hedges, recognised in IAS 39.98(b)
Directors’ report
14
OCI, in respect of the purchases of raw materials.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of
15
IAS 2.6
completion and the estimated costs necessary to make the sale.
16
s) Impairment of non-financial assets
Further disclosures relating to impairment of non-financial assets are also provided in the following notes:
17
► Disclosures for significant assumptions Note 3
18
► Property, plant and equipment Note 16
Intangible assets Note 18
19
►

► Goodwill and intangible assets with indefinite lives Note 19
20
The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
IAS 36.6
indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s IAS 36.9
21
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of IAS 36.66
disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does
22
not generate cash inflows that are largely independent of those from other assets or groups of assets. When the IAS 36.59
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
23
written down to its recoverable amount.
24
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
IAS 36.30
discount rate that reflects current market assessments of the time value of money and the risks specific to the IAS 36.55
25
asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no IAS 36.6
such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated
by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators. 26
27
The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared
IAS 36.33
separately for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast
28
calculations generally cover a period of five years. A long-term growth rate is calculated and applied to project
Notes
future cash flows after the fifth year.

jhj
29
Impairment losses of continuing operations are recognised in the statement of profit or loss in expense
categories consistent with the function of the impaired asset, except for properties previously revalued with the
30
IAS 36.60
revaluation taken to OCI. For such properties, the impairment is recognised in OCI up to the amount of any IAS 36.61
31
previous revaluation.
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an IAS 36.110
IAS 36.114
indication that previously recognised impairment losses no longer exist or have decreased. If such indication IAS 36.117
5
exists, the Group estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is IAS 36.119
reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount
6
since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net
7
of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised
in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is
8
Introduction
treated as a revaluation increase.
9
Goodwill is tested for impairment annually as at 31 October and when circumstances indicate that the carrying IAS 36.10(b)
value may be impaired.
10
IAS 36.104
Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to IAS 36.124
11
which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an
impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods.
12
Intangible assets with indefinite useful lives are tested for impairment annually as at 31 October at the CGU IAS 36.10(a)
level, as appropriate, and when circumstances indicate that the carrying value may be impaired.
13
Commentary
Directors’ report
14
IAS 36.96 permits the annual impairment test for a CGU to which goodwill has been allocated to be performed at any time
during the year, provided it is at the same time each year. Different CGUs and intangible assets may be tested at different
15
times.
16
t) Cash and short-term deposits
Cash and short-term deposits in the statement of financial position comprise cash at banks and on hand and
17
IAS 7.6
short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes IAS 7.7
in value.
18
For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and IAS 7.46
19
short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral
part of the Group’s cash management.
20
u) Convertible preference shares
21
Convertible preference shares are separated into liability and equity components based on the terms of IFRS 7.21
IAS 32.18
the contract.
22
IAS 32.28
On issuance of the convertible preference shares, the fair value of the liability component is determined using
23
a market rate for an equivalent non-convertible instrument. This amount is classified as a financial liability
measured at amortised cost (net of transaction costs) until it is extinguished on conversion or redemption.
24
The remainder of the proceeds is allocated to the conversion option that is recognised and included in equity. IAS 32.35
IAS 32.AG31(a)
Transaction costs are deducted from equity, net of associated income tax. The carrying amount of the
25
conversion option is not remeasured in subsequent years.
26
IAS 32.38
Transaction costs are apportioned between the liability and equity components of the convertible preference
shares, based on the allocation of proceeds to the liability and equity components when the instruments are
27
initially recognised.
28
v) Treasury shares
Notes
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Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. IAS 32.33
29
No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group’s own
equity instruments. Any difference between the carrying amount and the consideration, if reissued, is
30
recognised in the share-based payments reserve.

31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
w) Provisions
General
5
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
IAS 37.14
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
6
obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects some or IAS 37.53
all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised IAS 37.54
7
as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is
presented in the statement of profit or loss net of any reimbursement.
8
Introduction
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that IAS 37.45
9
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
10
Warranty provisions
11
Provisions for warranty-related costs are recognised when the product is sold or service provided to the
customer. Initial recognition is based on historical experience. The initial estimate of warranty-related costs is
12
revised annually.
13
Restructuring provisions
Restructuring provisions are recognised only when the Group has a constructive obligation, which is when a IAS 37.71
Directors’ report
IAS 37.72
14
detailed formal plan identifies the business or part of the business concerned, the location and number of
employees affected, a detailed estimate of the associated costs, and an appropriate timeline, and the employees
15
affected have been notified of the plan’s main features.
Decommissioning liability
16
The Group records a provision for decommissioning costs of a manufacturing facility for the production of fire IAS 16.16(c)
IAS 37.45
17
retardant materials. Decommissioning costs are provided for at the present value of expected costs to IAS 37.47
settle the obligation using estimated cash flows and are recognised as part of the cost of the relevant asset. The IFRIC 1.8
18
cash flows are discounted at a current pre-tax rate that reflects the risks specific to the decommissioning IAS 37.59
IFRIC 1.5
liability. The unwinding of the discount is expensed as incurred and recognised in the statement of profit or loss
19
as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as
appropriate. Changes in the estimated future costs, or in the discount rate applied, are added to or deducted
20
from the cost of the asset.
Long service leave and annual leave
21
The Group does not expect its long service leave or annual leave benefits to be settled wholly within 12 months IAS 19.153(a)
22
of each reporting date. The Group recognises a liability for long service leave and annual leave measured as the
present value of expected future payments to be made in respect of services provided by employees up to the
23
reporting date using the projected unit credit method. Consideration is given to expected future wage and salary
levels, experience of employee departures, and periods of service. Expected future payments are discounted
24
using market yields at the reporting date on high quality corporate bonds with terms to maturity and currencies
that match, as closely as possible, the estimated future cash outflows.
25
Greenhouse gas emissions
The Group receives free emission rights in certain European countries as a result of the European Emission IAS 8.10
26
Trading Schemes. The rights are received on an annual basis and, in return, the Group is required to remit
27
rights equal to its actual emissions. The Group has adopted the net liability approach to the emission rights
granted. Therefore, a provision is recognised only when actual emissions exceed the emission rights granted
28
and still held. The emission costs are recognised as other operating costs. Where emission rights are purchased
Notes
from other parties, they are recorded at cost, and treated as a reimbursement right, whereby they are matched
jhj
29
to the emission liabilities and remeasured to fair value. The changes in fair value are recognised in the statement
of profit or loss.
30
Commentary
31
IAS 37 provides a choice of presenting expenditures to settle a provision either net of any reimbursement or on a gross
basis. The Group has elected to present the expenses net of reimbursements.
32
IFRIC 3 Emission Rights was withdrawn in June 2005. In the absence of a specific standard, management must develop an
accounting policy that results in information that is relevant and reliable. The Group has applied the net liability approach
33
based on IAS 20.23. However, emission rights received could also be recognised as intangible assets at their fair value
Appendices
with all the disclosures required by IAS 38.

34
35
36

37
1
2
Contents
3
4
Waste Electrical and Electronic Equipment (WEEE)
The Group is a provider of electrical equipment that falls under the EU Directive on Waste Electrical and IFRIC 6
5
Electronic Equipment. The directive distinguishes between waste management of equipment sold to private
households prior to a date, as determined by each Member State (historical waste), and waste management
6
of equipment sold to private households after that date (new waste). A provision for the expected costs
of management of historical waste is recognised when the Group participates in the market during the
7
measurement period, as determined by each Member State, and the costs can be reliably measured. These
costs are recognised as other operating expenses in the statement of profit or loss.
8
Introduction
With respect to new waste, a provision for the expected costs is recognised when products that fall within
9
the directive are sold and the disposal costs can be reliably measured. Derecognition takes place when the
obligation expires, is settled or is transferred. These costs are recognised as part of costs of sales.
10
With respect to equipment sold to entities other than private households, a provision is recognised when the
Group becomes responsible for the costs of this waste management, with the costs recognised as other
11
operating expenses or cost of sales, as appropriate.
12
Contingent liabilities recognised in a business combination
A contingent liability recognised in a business combination is initially measured at its fair value. Subsequently, IFRS 3.56
13
IFRS 3.22
it is measured at the higher of the amount that would be recognised in accordance with the requirements for
IFRS 3.23
provisions above or the amount initially recognised less (when appropriate) cumulative amortisation recognised
Directors’ report
14
in accordance with the requirements for revenue recognition.
15
x) Pensions and other post-employment benefits
The Group operates a defined benefit pension plan in Australia, which requires contributions to be made to a IAS 19.135
16
separately administered fund. The Group also provides certain additional post employment healthcare benefits
to employees in the United States. These benefits are unfunded.
17
The cost of providing benefits under the defined benefit plan is determined using the projected unit credit IAS 19.67
18
method.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts IAS 19.120(c)
19
IAS 19.127
included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts IAS 19.122
included in net interest on the net defined benefit liability), are recognised immediately in the statement of
20
financial position with a corresponding debit or credit to retained earnings through OCI in the period in which
they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
21
Past service costs are recognised in profit or loss on the earlier of:
22
IAS 19.102
► The date of the plan amendment or curtailment IAS 19.103
23
► The date that the Group recognises related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group IAS 19.123
24
IAS 19.134
recognises the following changes in the net defined benefit obligation under ‘cost of sales’, ‘administration
expenses’ and ‘selling and distribution expenses’ in the consolidated statement of profit or loss (by function):
25
► Service costs comprising current service costs, past-service costs, gains and losses on curtailments and
non-routine settlements 26
► Net interest expense or income
27
Commentary
28
Entities are required to state their policy for termination benefits, employee benefit reimbursements and benefit risk
Notes
sharing. Since these are not applicable to the Group, the disclosures related to such benefits have not been made. Entities
jhj
29
need to assess the nature of their employee benefits and make the relevant disclosures.
IAS 19 does not specify where in the statement of profit or loss service costs or net interest should be presented. IAS 1
30
allows, but does not require, disaggregation of the employee benefits cost components in profit or loss. The net interest
cost component is different from the unwinding of interest component and return on asset component in the previous
31
version of IAS 19. Entities must apply the requirement in IAS 8.10 when developing a presentation policy for net interest
cost.
32
y) Share-based payments
33
Employees (including senior executives) of the Group receive remuneration in the form of share-based IFRS 2.44
Appendices
payments, whereby employees render services as consideration for equity instruments (equity-settled
34
transactions). Employees working in the business development group are granted share appreciation rights,
which are settled in cash (cash-settled transactions).
35
36

37
1
2
Contents
3
4
IFRS 2.19
Equity-settled transactions
IFRS 2.20
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using
5
IFRS 2.7
an appropriate valuation model, further details of which are given in Note 30. IFRS 2.10
6
That cost is recognised in employee benefits expense (Note 12.6), together with a corresponding increase in
equity (other capital reserves), over the period in which the service and, where applicable, the performance
7
conditions are fulfilled (the vesting period). The cumulative expense recognised for equity-settled transactions
at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the
8
Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the
Introduction
statement of profit or loss for a period represents the movement in cumulative expense recognised as at the
9
beginning and end of that period.
10
Service and non-market performance conditions are not taken into account when determining the grant date fair IFRS 2.21
value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate
11
of the number of equity instruments that will ultimately vest. Market performance conditions are reflected
within the grant date fair value. Any other conditions attached to an award, but without an associated service
12
requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value IFRS 2.21A
of an award and lead to an immediate expensing of an award unless there are also service and/or performance IFRS 2.27
13
conditions.
Directors’ report
No expense is recognised for awards that do not ultimately vest because non-market performance and/or
14
IFRS 2.28
service conditions have not been met. Where awards include a market or non-vesting condition, the transactions IFRS 2.B42-B44
15
are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all IAS 33.45
other performance and/or service conditions are satisfied.
16
When the terms of an equity-settled award are modified, the minimum expense recognised is the grant date fair
value of the unmodified award, provided the original terms of the award are met. An additional expense,
17
measured as at the date of modification, is recognised for any modification that increases the total fair value of
the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled
18
by the entity or by the counterparty, any remaining element of the fair value of the award is expensed
immediately through profit or loss.
19
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted
20
earnings per share (further details are given in Note 15).
Cash-settled transactions
21
A liability is recognised for the fair value of cash-settled transactions. The fair value is measured initially and at IFRS 2.30
22
IFRS 2.32
each reporting date up to and including the settlement date, with changes in fair value recognised in employee IFRS 2.33
benefits expense (see Note 12.6). The fair value is expensed over the period until the vesting date with
23
recognition of a corresponding liability. The fair value is determined using a binomial model, further details of
which are given in Note 30.
24
2.4 Changes in accounting policies and disclosures IAS 8.14
25
Revaluation of office properties in Australia (property, plant and equipment)
The Group re-assessed its accounting for property, plant and equipment with respect to measurement of a 26
certain class of property, plant and equipment after initial recognition. The Group had previously measured all IAS 16.30
27
property, plant and equipment using the cost model whereby, after initial recognition of the asset classified as
property, plant and equipment, the asset was carried at cost less accumulated depreciation and accumulated
28
impairment losses.
Notes
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29
On 1 January 2017, the Group elected to change the method of accounting for office properties in Australia
classified as property, plant and equipment, as the Group believes that the revaluation model provides more
30
relevant information to the users of its financial statements and is more aligned to practices adopted by its
competitors. In addition, available valuation techniques provide reliable estimates of the office properties’ fair
31
value. The Group applied the revaluation model prospectively.

After initial recognition, office properties in Australia are measured at fair value at the date of the revaluation
32
IAS 8.17
less any subsequent accumulated depreciation and subsequent accumulated impairment losses. For details IAS 8.18
refer to Note 16.
33
Appendices
Commentary
34
IAS 8.17 and IAS 8.18 exempt this change in accounting policy from the requirement to retrospectively apply the policy
and to provide detailed disclosure as outlined in IAS 8.28 to IAS 8.31. Hence, the Group has applied its change in
35
accounting policy for the measurement of office properties in Australia to the revaluation model prospectively.
36

37
1
2
Contents
3
2.4 Changes in accounting policies and disclosures (continued)
4
IAS 8.28
New and amended standards and interpretations
The Group applied for the first time certain amendments to the standards, which are effective for annual periods
5
beginning on or after 1 January 2017. The Group has not early adopted any standards, interpretations or
amendments that have been issued but are not yet effective.
6
The nature and the impact of each new standard or amendment is described below:
7
AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB
107
8
Introduction
The amendments require entities to provide disclosure of changes in their liabilities arising from financing
activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gains
9
or losses). The Group has provided the information for both the current and the comparative period in Note
10
20.6.
AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for
11
Unrealised Losses
12
The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits
against which it may make deductions on the reversal of deductible temporary difference related to unrealised
13
losses. Furthermore, the amendments provide guidance on how an entity should determine future taxable
profits and explain the circumstances in which taxable profit may include the recovery of some assets for more
Directors’ report
14
than their carrying amount.
15
The Group applied amendments retrospectively. However, their application has no effect on the Group’s
financial position and performance as the Group has no deductible temporary differences or assets that are in
16
the scope of the amendments.
AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014-2016
17
Cycle
18
The amendments clarify that the disclosure requirements in AASB 12, other than those in paragraphs B10–B16,
apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint
19
venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale.
20
As at 31 December 2017 the Group classified its interest in Hose Limited, a wholly-owned subsidiary, as held for
sale (see Note 13), but these amendments did not affect the Group’s financial statements.
21
Commentary
22
For illustrative purposes, the Group has listed all the disclosures of new and amended standards and interpretations that
are effective from 1 January 2017, regardless of whether these have any impact on the Group’s financial statements.
23
However, to improve the effectiveness of disclosures, entities are encouraged to only list and address those that have an
impact on the Group’s financial position, performance and/or disclosures.
24
In Australia, the adoption of each IFRS for Australian reporting purposes is subject to a specific legal process.
Nevertheless, all new standards and interpretations issued by the IASB must be considered for disclosure as standards
25
issued but not yet effective when an entity makes a statement of compliance with IFRS under AASB 101.16, irrespective
of whether the legal process referred to above has been completed.
26
2.5 Correction of an error

27
IAS 8.49
In July 2015, a subsidiary entered into a sales contract with a new customer to sell fire prevention equipment
28
for a two-year period. As part of the negotiations, a variation was made to the standard terms and conditions to
Notes
jhj
sell the equipment to this customer on consignment basis. However, the subsidiary continued to recognise
29
revenue at the point of delivery to the customer instead of deferring the revenue recognition until the customer
had sold the goods. As a consequence, revenue was overstated. In January 2017, the subsidiary conducted a
30
detailed review of the terms and conditions of its sales contracts and discovered the error.
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
2.5 Correction of an error (continued)
4
The error has been corrected by restating each of the affected financial statement line items for the prior
periods, as follows:
5
Impact on equity (increase/(decrease) in equity)
6
31 December 2016 1 January 2016
$000 $000
7
Inventories 1,000 500
Trade receivables (3,500) (1,500)
8
Introduction
Total assets (2,500) (1,000)
Income tax payable 750 300
9
Total liabilities 750 300
10
Net impact on equity (1,750) (700)
11
Impact on statement of profit or loss (increase/(decrease) in profit)
12
31 December 2016
$000
13
Sale of goods (2,000)
Cost of sales 500
Directors’ report
14
Income tax expense 450
(1,050)
15
Net impact on profit for the year
Attributable to:
16
Equity holders of the parent (1,050)
Non-controlling interests —
17
Impact on basic and diluted earnings per share (EPS) (increase/(decrease) in EPS)
18
31 December 2016
19
Earnings per share
Basic, profit for the year attributable to ordinary equity holders of
20
the parent ($0.06)
Diluted, profit for the year attributable to ordinary equity holders
21
of the parent ($0.05)
Earnings per share for continuing operations
22
Basic, profit from continuing operations attributable to ordinary
equity holders of the parent ($0.06)
23
Diluted, profit from continuing operations attributable to ordinary
equity holders of the parent ($0.05)
24
The change did not have an impact on OCI for the period or the Group’s operating, investing and financing
25
cash flows.
26
3. Significant accounting judgements, estimates and assumptions
27
The preparation of the Group’s consolidated financial statements requires management to make judgements,
28
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and
Notes
the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions
jhj
29
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
30
Other disclosures relating to the Group’s exposure to risks and uncertainties includes:
31
► Capital management Note 5

► Financial instruments risk management and policies Note 20.5
32
► Sensitivity analyses disclosures Notes 16, 17, 19, 20.4, 20.5 and 29.
33
Appendices
34
35
36

37
1
2
Contents
3
3. Significant accounting judgements, estimates and assumptions (continued)
4
Judgements
In the process of applying the Group’s accounting policies, management has made the following judgements, IAS 1.122
5
which have the most significant effect on the amounts recognised in the consolidated financial statements:
6
Property lease classification – Group as lessor
The Group has entered into commercial property leases on its investment property portfolio. The Group
7
has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease
term not constituting a major part of the economic life of the commercial property and the present value of the
8
minimum lease payments not amounting to substantially all of the fair value of the commercial property, that it
Introduction
retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as
9
operating leases.
10
Assets held for sale
On 1 October 2017, the Board of Directors announced its decision to discontinue the rubber segment consisting IFRS 5.7
11
IFRS 5.5A
of Hose Limited, a wholly owned subsidiary. Operations of Hose Limited are classified as a disposal group held IFRS 5.8
for sale. The Board considered the subsidiary to meet the criteria to be classified as held for sale at that date for IFRS 5.12A
12
the following reasons: IFRIC 17.10
13
► Hose Limited is available for immediate sale and can be sold to the buyer in its current condition
► The actions to complete the sale were initiated and expected to be completed within one year
Directors’ report
14
from the date of initial classification
A potential buyer has been identified and negotiations as at the reporting date are at an advance stage
15
►
► The shareholders approved the plan to sell on 14 November 2017
16
For more details on the discontinued operation, refer to Note 13.
17
Consolidation of a structured entity
In February 2017, the Group and a third party partner formed an entity, Fire Equipment Test Lab Limited, to IFRS 12.7(a)
IFRS 12.9
18
acquire land and construct and operate a fire equipment safety facility. The Group holds 20% of the voting IFRS 12.17
shares in this entity. The third-party partner contributed approximately $2,700,000 in 2017, representing 80% IFRS 12.8
19
of the voting shares, for the acquisition and construction of the fire safety test facility. The third-party partner IFRS12.9
IFRS 12.14
is committed to provide approximately $1,000,000 in each of the following two years to complete the project.
20
The construction is expected to be completed in 2020 at a total cost of approximately $4,700,000. The partner
is entitled to a 22% return on the outstanding capital upon the commencement of operations. Under the
21
contractual arrangement with the third party partner, the Group has a majority representation on the entity’s
board of directors and the Group’s approval is required for all major operational decisions. At the end of the
22
fourth annual period, the partner is entitled to a 100% capital return. The EIR is 11% and the interest
accumulated on the contributed amount totalled $303,000 at 31 December 2017. The Group is effectively
23
guaranteeing the returns to the third-party partner. On completion of the construction, the operations of Fire
Equipment Test Lab Limited will be solely carried out by the Group. Based on the contractual terms, the Group
24
assessed that the voting rights in Fire Equipment Test Lab Limited are not the dominant factor in deciding who
controls the entity. Also, it is assessed that there is insufficient equity financing ($200,000) to allow the entity
25
to finance its activities without the non-equity financial support of the Group. Therefore, the Group concluded
Fire Equipment Test Lab Limited is a structured entity under IFRS 10 and that the Group controls it with no non- 26
controlling interests. The voting shares of the third-party partner are accounted for as a financial liability.
27
Therefore, Fire Equipment Test Lab Limited is consolidated in the Group’s consolidated financial statements.
The shares of the third-party partner are recorded as a long-term loan and the return on investment is recorded
28
as interest expense.
Notes
jhj
29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Consolidation of entities in which the Group holds less than a majority of voting right (de facto control)
The Group considers that it controls Electronics Limited even though it owns less than 50% of the voting rights. IFRS 10.B41,
5
B42
This is because the Group is the single largest shareholder of Electronics Limited with a 48% equity interest. IFRS 12.7(a)
The remaining 52% of the equity shares in Electronics Limited are widely held by many other shareholders, none IFRS 12.8
6
of which individually hold more than 1% of the equity shares (as recorded in the company’s shareholders’ IFRS12.9
register from 1 October 2012 to 31 December 2017). Since 1 October 2012, which is the date of acquisition of
7
Electronics Limited, there is no history of the other shareholders collaborating to exercise their votes
collectively or to outvote the Group.
8
Introduction
Commentary
9
IAS 1 requires an entity to disclose the judgements that management has made in the process of applying the
10
entity's accounting policies and that have the most significant effect on the amounts recognised in the financial
statements.
11
IFRS 12 adds to those general requirements by specifically requiring an entity to disclose all significant
judgements and estimates made in determining the nature of its interest in another entity or arrangement, and
12
in determining the type of joint arrangement in which it has an interest.
IFRS 12.7 requires that an entity disclose information about significant judgements and assumptions it has
13
made (and changes to those judgements and assumptions) in determining:
Directors’ report
14
► That it has control of another entity
That is has joint control of an arrangement or significant influence over another entity
15
►
► The type of joint arrangement (i.e., joint operation or joint venture) when the arrangement has been
structured Through a separate vehicle
16
An entity must disclose, for example, significant judgements and assumptions made in determining that:
17
► It does not control another entity even though it holds more than half of the voting rights of the other
entity
18
► It controls another entity even though it holds less than half of the voting rights of the other entity
► It is an agent or principal as defined by IFRS 10
19
► It does not have significant influence even though it holds 20 per cent or more of the voting rights of
another entity
20
► It has significant influence even though it holds less than 20 per cent of the voting rights of another
entity
21
The Group does not have any interest in unconsolidated structured entities. Interests in such entities require the
disclosures under IFRS 12.24-31. These disclosures have been illustrated in our publication, Applying IFRS: IFRS
22
12 Example disclosures for interests in unconsolidated structured entities, (March 2013) available at
ey.com/ifrs.
23
Estimates and assumptions
24
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting IAS 1.125
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
25
liabilities within the next financial year, are described below. The Group based its assumptions and estimates on
parameters available when the consolidated financial statements were prepared. Existing circumstances and 26
assumptions about future developments, however, may change due to market changes or circumstances arising
27
that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.
Revaluation of property, plant and equipment and investment properties
28
The Group carries its investment properties at fair value, with changes in fair value being recognised in
Notes
jhj
the statement of profit or loss. For investment properties, a valuation methodology based on a discounted cash
29
flow (DCF) model was used, as there is a lack of comparable market data because of the nature of the
properties. In addition, it measures the office properties in Australia at revalued amounts, with changes in fair
30
value being recognised in OCI. In addition, it measures the office properties in Australia at revalued amounts,
with changes in fair value being recognised in OCI. The office properties were valued by reference to
31
transactions involving properties of a similar nature, location and condition. The Group engaged an independent
32
valuation specialist to assess the fair values as at 31 December 2017 for the investment properties and as at 1
January and 31 December 2017 for the office properties in Australia.
33
The key assumptions used to determine the fair value of the investment properties and office properties and
sensitivity analyses are provided in Notes 16 and 17.
Appendices
34
35
36

37
1
2
Contents
3
4
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, IAS 36.6
5
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar
6
assets or observable market prices less incremental costs of disposing of the asset. The value in use calculation
IAS 36.33(b)
is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include
7
restructuring activities that the Group is not yet committed to or significant future investments that will
enhance the performance of the assets of the CGU being tested. The recoverable amount is sensitive to the
8
Introduction
discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for
extrapolation purposes. These estimates are most relevant to goodwill and other intangibles with indefinite
9
useful lives recognised by the Group. The key assumptions used to determine the recoverable amount for the
different CGUs, including a sensitivity analysis, are disclosed and further explained in Note 19.
10
Share-based payments
11
Estimating fair value for share-based payment transactions requires determination of the most appropriate
valuation model, which depends on the terms and conditions of the grant. This estimate also requires
12
determination of the most appropriate inputs to the valuation model including the expected life of the share
option or appreciation right, volatility and dividend yield and making assumptions about them. The Group
13
initially measures the cost of cash-settled transactions with employees using a binomial model to determine the
Directors’ report
fair value of the liability incurred. For cash-settled share-based payment transactions, the liability needs to be
14
remeasured at the end of each reporting period up to the date of settlement, with any changes in fair value
15
recognised in profit or loss. This requires a reassessment of the estimates used at the end of each reporting
period. For the measurement of the fair value of equity-settled transactions with employees at the grant date,
16
the Group uses a binomial model for Senior Executive Plan (SEP) and a Monte-Carlo simulation model for
General Employee Share Option Plan (GESP). The assumptions and models used for estimating fair value for
17
share-based payment transactions are disclosed in Note 30.
Taxes
18
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit
will be available against which the losses can be utilised. Significant management judgement is required to
19
determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level
20
of future taxable profits, together with future tax planning strategies.
The Group has $427,000 (2016: $1,198,000) of tax losses carried forward. These losses relate to subsidiaries IAS 12.81(e)
21
that have a history of losses, do not expire, and may not be used to offset taxable income elsewhere in the
Group. The subsidiaries neither have any taxable temporary difference nor any tax planning opportunities
22
available that could partly support the recognition of these losses as deferred tax assets. On this basis, the
Group has determined that it cannot recognise deferred tax assets on the tax losses carried forward.
23
If the Group was able to recognise all unrecognised deferred tax assets, profit and equity would have increased
24
by $128,000. Further details on taxes are disclosed in Note 14.
25
Defined benefit plans (pension benefits)
The cost of the defined benefit pension plan and other post-employment medical benefits and the present value
of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making 26
various assumptions that may differ from actual developments in the future. These include the determination of
27
the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities
involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in
28
these assumptions. All assumptions are reviewed at each reporting date.

Notes
jhj
29
The parameter most subject to change is the discount rate. In determining the appropriate discount rate,
management considers the interest rates of corporate bonds in currencies consistent with the currencies of the
30
post-employment benefit obligation with at least an ‘AA’ rating or above, as set by an internationally
acknowledged rating agency, and extrapolated as needed along the yield curve to correspond with the expected
31
term of the defined benefit obligation. The underlying bonds are further reviewed for quality. Those having
excessive credit spreads are excluded from the analysis of bonds on which the discount rate is based, on the
32
basis that they do not represent high quality corporate bonds.

33
Appendices
34
35
36

37
1
2
Contents
3
4
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality
tables tend to change only at intervals in response to demographic changes. Future salary increases and
5
pension increases are based on expected future inflation rates for the respective countries.
Further details about pension obligations are provided in Note 29.
6
Fair value measurement of financial instruments
7
When the fair values of financial assets and financial liabilities recorded in the statement of financial position
cannot be measured based on quoted prices in active markets, their fair value is measured using valuation
8
Introduction
techniques including the discounted cash flow (DCF) model. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgement is required in
9
establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions relating to these factors could affect the reported fair value of financial
10
instruments. See Note 20.4 for further disclosures.
11
Contingent consideration, resulting from business combinations, is valued at fair value at the acquisition date
as part of the business combination. When the contingent consideration meets the definition of a financial
12
liability, it is subsequently remeasured to fair value at each reporting date. The determination of the fair value is
based on discounted cash flows. The key assumptions take into consideration the probability of meeting each
13
performance target and the discount factor (refer Notes 7 and 20.4 for details).
Directors’ report
14
As part of the accounting for the acquisition of Extinguishers Limited, contingent consideration with an estimated
fair value of $714,000 was recognised at the acquisition date and remeasured to $1,071,500 as at the reporting
15
date. Future developments may require further revisions to the estimate. The maximum consideration to be paid is
$1,125,000. The contingent consideration is classified as other financial liability (see Note 20.2).
16
Development costs
17
The Group capitalises costs for product development projects. Initial capitalisation of costs is based on
management’s judgement that technological and economic feasibility is confirmed, usually when a product
18
development project has reached a defined milestone according to an established project management model.
In determining the amounts to be capitalised, management makes assumptions regarding the expected future
19
cash generation of the project, discount rates to be applied and the expected period of benefits. At 31
December 2017, the carrying amount of capitalised development costs was $2,178,000 (2016: $1,686,000).
20
This amount includes significant investment in the development of an innovative fire prevention system. Prior to
21
being marketed, it will need to obtain a safety certificate issued by the relevant regulatory authorities. The
innovative nature of the product gives rise to some uncertainty as to whether the certificate will be obtained.
22
Provision for decommissioning
As part of the identification and measurement of assets and liabilities for the acquisition of Extinguishers
23
Limited in 2017, the Group has recognised a provision for decommissioning obligations associated with a
factory owned by Extinguishers Limited. In determining the fair value of the provision, assumptions and
24
estimates are made in relation to discount rates, the expected cost to dismantle and remove the plant from the
25
site and the expected timing of those costs. The carrying amount of the provision as at 31 December 2017 was
$1,221,000 (2016: $Nil). The Group estimates that the costs would be realised in 15 years’ time upon the
expiration of the lease and calculates the provision using the DCF method based on the following assumptions: 26
► Estimated range of cost per sqm - $10 - $25 ($20)
27
► Discount rate – 14%

28
If the estimated pre-tax discount rate used in the calculation had been 1% higher than management’s estimate,
Notes
the carrying amount of the provision would have been $94,000 lower.
jhj
29
Revenue recognition – GoodPoints for loyalty programme

The Group estimates the fair value of points awarded under the GoodPoints programme by applying statistical
30
techniques. Inputs to the model include assumptions about expected redemption rates, the mix of products that
31
will be available for redemption in the future and customer preferences. As points issued under the programme
do not expire, such estimates are subject to significant uncertainty. As at 31 December 2017, the estimated
32
liability for unredeemed points was approximately $416,000 (2016: $365,000).

33
Appendices
34
35
36

37
1
2
Contents
3
4
Commentary
IAS 1.125 requires an entity to disclose significant judgements applied in preparing the financial statements and
5
significant estimates that involve a high degree of estimation uncertainty. The disclosure requirements go beyond the
requirements that already exist in some other IFRS such as IAS 37.
6
These disclosures represent a very important source of information in the financial statements because they highlight the
areas in the financial statements that are most prone to change in the foreseeable future. Therefore, any information
7
given should be sufficiently detailed to help readers of the financial statements understand the impact of possible
significant changes.
8
Introduction
The Group has, for illustrative purposes, included disclosures about significant judgements and estimates beyond what is
9
normally required, and potentially also beyond what is decision-useful. That is, it is only those judgements that have the
most significant effect on the amounts recognised in the financial statements and those estimates that have a significant
10
risk of resulting in material adjustments in respect of assets and liabilities within the next financial year that should be
addressed in this section. It is important that entities carefully assesses which judgements and estimates are most
11
significant in this context, and make the disclosures accordingly, to allow the users of the financial statements to
appreciate the impact of the judgements and uncertainties. Disclosure of uncertainties that do not have a significant risk
12
of resulting in material adjustments may clutter the financial statements in a way that reduces the users’ ability to identify
the major uncertainties.
13
Directors’ report
14
4. Segment information
For management purposes, the Group is organised into business units based on its products and services and IAS 1.138(b)
15
IFRS 8.22(a)
has three reportable segments, as follows: IFRS 8.22(b)
16
► The fire prevention equipment segment, which produces and installs extinguishers, fire prevention
equipment and fire retardant fabrics
17
► The electronics segment, which is a supplier of electronic equipment for defence, aviation, electrical safety
markets and consumer electronic equipment for home use. It offers products and services in the areas of
18
electronics, safety, thermal and electrical architecture
The investment properties segment, which leases offices and manufacturing sites owned by the Group
19
►
No operating segments have been aggregated to form the above reportable operating segments.
20
Commentary
21
IFRS 8.22(a) requires entities to disclose factors used to identify the entity’s reportable segments, including the basis of
organisation, as well as factors considered in determining aggregation of operating segments. Operating segments often
22
exhibit similar long-term financial performance if they have similar economic characteristics. For example, similar long-
term average gross margins for two operating segments would be expected if their economic characteristics were similar.
23
Two or more operating segments may be aggregated into a single operating segment if the segments have similar
economic characteristics, and the segments are similar in each of the following respects:
24
(a) The nature of the products and services
(b) The nature of the production processes
25
(c) The type or class of customer for their products and services
(d) The methods used to distribute their products or provide their services 26
(e) If applicable, the nature of the regulatory environment, for example, banking, insurance or public utilities
27
This analysis requires significant judgement as to the circumstances of the entity. The Group does not have any operating
28
segments that are aggregated, but, if it had, disclosures about the basis for aggregation must be made.
Notes
jhj
The Executive Management Committee is the Chief Operating Decision Maker (CODM) and monitors the
29
IFRS 8.27(b)
operating results of its business units separately for the purpose of making decisions about resource allocation
30
and performance assessment. Segment performance is evaluated based on profit or loss and is measured
consistently with profit or loss in the consolidated financial statements. However, the performance of Showers
31
Limited, the Group’s joint venture is evaluated using proportionate consolidation. Also, the Group’s financing
(including finance costs and finance income) and income taxes are managed on a Group basis and are not
32
allocated to operating segments.

IFRS 8.27(a)
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions
33
with third parties.

Appendices
34
35
36

37
1
2
Contents
3
4. Segment information (continued)
4
Fire Adjustments
Year ended prevention Investment Total and
31 December 2017 equipment Electronics properties segments eliminations Consolidated
5
$000 $000 $000 $000 $000 $000
Revenue
6
External customers 139,842 69,263 1,404 210,509 (30,047) 180,462 IFRS 8.23(a)
7
Inter-segment  7,465  7,465 (7,465)  IFRS 8.23(b)
Total revenue 139,842 76,728 1,404 217,974 (37,512) 180,462
8
Introduction
Income/(expenses)
9
Cost of inventories recognised
as an expense (99,533) (65,193) (164,726) 33,619 (131,107)
10
IFRS 8.23(f)
Employee benefits expenses (27,149) (5,323) (777) (33,249) (500) (33,749) IFRS 8.23(f)
11
Depreciation and amortisation (3,533) (389)  (3,922)  (3,922) IFRS 8.23(e)
Goodwill impairment (Note 19)  (200)  (200)  (200) IFRS 8.23(i)
12
Share of profit of an associate
and a joint venture (Notes 9,10) 83   83 588 671 IFRS 8.23(g)
13
Segment profit 9,687 2,968 321 12,976 (1,868) 11,108 IFRS 8.23
Directors’ report
14
Total assets 56,574 44,814 18,467 119,855 18,926 138,781 IFRS 8.23
Total liabilities 19,035 7,252 4,704 30,991 45,060 76,051 IFRS 8.23
15
Fire Adjustments
16
17
$000 $000 $000 $000 $000 $000
Other disclosures
18
Investments in an associate and
a joint venture (Notes 9,10) 3,187   3,187  3,187 IFRS 8.24(a)
19
Capital expenditure 18,849 2,842 1,216 22,907  22,907 IFRS 8.24(b)
20
Inter-segment revenues are eliminated upon consolidation and reflected in the ‘adjustments and eliminations’
column. All other adjustments and eliminations are part of detailed reconciliations presented further below.
21
Fire Adjustments
22
23
Restated* Restated*
$000 $000 $000 $000 $000 $000
24
Revenue
External customers
25
121,905 66,621 1,377 189,903 (29,438) 160,465 IFRS 8.23(a)
Inter-segment  7,319  7,319 (7,319)  IFRS 8.23(b)
Total revenue 121,905 73,940 1,377 197,222 (36,757) 160,465 26

27
Income/(expenses)
Cost of inventories recognised
(95,642) (58,616)  (154,258) 32,960 (121,298)
28
as an expense IFRS 8.23(f)

Notes
Employee benefits expenses (19,199) (8,400) (702) (28,301) (850) (29,151) IFRS 8.23(f)
29
Depreciation and amortisation (2,460) (472)  (2,932) (324) (3,256) IFRS 8.23(e)
jhj
Impairment of property, plant IFRS 8.23(i)

30
and equipment (Note 16) (301)   (301)  (301) IAS 36.129

Share of profit of an associate
31
and a joint venture (Notes 9,10) 81   81 557 638 IFRS 8.23(g)

Segment profit 4,387 5,396 314 10,097 (1,217) 8,880 IFRS 8.23
32
Total assets 50,747 40,409 9,887 101,043 2,211 103,254 IFRS 8.23
33
Total liabilities 20,325 4,066 1,688 26,079 29,384 55,463 IFRS 8.23
Other disclosures
Appendices
34
Investments in an associate and IFRS 8.24(a)

a joint venture (Notes 9, 10) 2,516   2,516  2,516 IFRS 8.24(b)
35
Capital expenditure 5,260 4,363 1,192 10,815  10,815

36

1
2
Contents
3
4
Commentary
Additional disclosure may be required if the CODM, which is the Executive Management Committee of the Group in the
5
case of Good Group (Australia) Limited, regularly reviews certain other items recorded in the statement of profit or loss,
i.e., depreciation and amortisation, impairments and the share of profit in associates.
6
Paragraph 23(f) of IFRS 8 requires an entity in addition to the amounts disclosed under paragraphs 2 (a)-(e) to disclose
material items of income and expense disclosed in accordance with paragraph 97 of IAS 1 (as revised in 2007). Paragraph
7
97 of IAS 1 requires an entity to disclose separately the nature and amount of material items of income or expense. In
order to fulfil requirements of paragraph 23(f) of IFRS 8 the Group disclosed for each reportable segments the following
8
Introduction
items of income or expenses that are included in the measure of the segment profit or loss reviewed by CODM: cost of
inventories recognised as an expense; employee benefits expenses; and research and development costs.
9
Adjustments and eliminations
10
Finance income and costs, and fair value gains and losses on financial assets are not allocated to individual
segments as the underlying instruments are managed on a group basis.
11
Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as
12
they are also managed on a group basis. IFRS 8.28
Capital expenditure consists of additions of property, plant and equipment, intangible assets and investment
13
properties including assets from the acquisition of subsidiaries.
Directors’ report
14
Inter-segment revenues are eliminated on consolidation.
15
IFRS 8.28(b)
Reconciliation of profit 2017 2016
16
$000 $000
Segment profit 12,976 10,097
17
Finance income (Note 12.4) 336 211
Gain on financial instruments at fair value through profit or loss (Note 12.1) 850 —
18
Loss on financial instruments at fair value through profit or loss (Note 12.2) (1,502) —
19
Finance costs (Note 12.3) (1,264) (1,123)
Net realised gains from AFS financial assets (elimination) (2) —
20
Impairment of AFS financial assets (Note 20.1) (111) —
21
Inter-segment sales (elimination) (175) (305)
Profit before tax and discontinued operations 11,108 8,880
22
23
IFRS 8.28(c)
Reconciliation of assets 2017 2016
$000 $000
24
Segment operating assets 119,855 101,043
Deferred tax assets (Note 14) 383 365
25
Loans to an associate (Note 20.1) 200 —
Loans to directors (Note 20.1) 13 8 26
Loan notes (Note 20.1) 3,674 1,685
27
Derivatives 1,102 153

Assets held for sale (Note 13) 13,554 —
28
Total assets 138,781 103,254

Notes
jhj
29
IFRS 8.28(d)
Reconciliation of liabilities 2017 2016
30
$000 $000
31
Segment operating liabilities 30,991 26,079

Deferred tax liabilities (Note 14) 2,931 1,089
32
Current tax payable 3,511 3,563

Interest-bearing loans and borrowing 22,806 24,478
33
Derivatives 2,687 254

Appendices
Liabilities held for sale (Note 13) 13,125 —

34
Total liabilities 76,051 55,463 IFRS 8.33(a)

35
36

37
1
2
Contents
3
4
Geographic information
2017 2016
5
$000 $000
Revenue from external customers
6
Australia 128,238 112,584
United States 52,224 47,881
7
Total 180,462 160,465
8
Introduction
The revenue information above is based on the locations of the customers. IFRS 8.34
9
Revenue from one customer amounted to $25,521,000 (2016: $21,263,000), arising from sales in the fire
IFRS 8.33(b)
10
prevention equipment segment.
11
2017 2016
$000 $000
12
Non-current operating assets
13
Australia 38,591 27,522
United States 9,300 7,251
Directors’ report
14
Total 47,891 34,773
15
Non-current assets for this purpose consist of property, plant and equipment, investment properties and
intangible assets.
16
Commentary
17
Interest income and interest expense have not been disclosed by segment as these items are managed on a group basis,
and are not provided to the CODM at the operating segment level. Disclosure of operating segment assets and liabilities is
18
only required when such measures are provided to the CODM. The Group provides information about operating assets and
liabilities to the CODM. The other operations (e.g., treasury) do not constitute an individual operating segment and may be
19
presented under a separate category ‘all other segments’ (IFRS 8.16). The results of these operations are reflected in
‘Adjustments and eliminations’.
20
The Group’s internal reporting is set up to report in accordance with IFRS. The segment disclosures could be significantly
more extensive if internal reports had been prepared on a basis other than IFRS (e.g. national GAAP or tax basis). In this
21
case, a reconciliation between the internally reported items and the externally communicated items needs to be
presented.
22
The Group has classified an operating segment as a discontinued operation in 2017. IFRS 8 does not provide guidance as
23
to whether segment disclosures apply to discontinued operations. Although the disposed segment is material, the Group
has not disclosed the results within the segment disclosures under IFRS 8. IFRS 5.5B states that the requirements of other
24
standards do not apply to discontinued operations, unless they specify disclosures applicable to them. Since IFRS 8 does
not refer to discontinued operations, entities are not required to include them as a reportable segment. This would be the
case even if the CODM continued to monitor the discontinued operation until disposal. Nevertheless, an entity would not
25
be prohibited from disclosing such information, if desired.
The Group’s CODM regularly reviews the segment information related to the joint venture based on its proportionate 26
share of revenue, profits, assets and liabilities to make decisions about resources to be allocated to the segment and
27
assess its performance. However, as required by IFRS 11, the Group’s interest in the joint venture is accounted for in
consolidated financial statements using the equity method. The eliminations arising on account of differences between
28
proportionate consolidation and equity method are included under ‘Adjustments and eliminations’.
Notes
jhj
29
5. Capital management
30
For the purpose of the Group’s capital management, capital includes issued capital, convertible preference IAS 1.134
IAS 1.135
shares, and all other equity reserves attributable to the equity holders of the parent. The primary objective of
31
the Group’s capital management is to maximise the shareholder value.

32
The Group manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust
33
the dividend payment to shareholders, return capital to shareholders or issue new shares. The Group monitors
Appendices
capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group’s policy is to
34
keep the gearing ratio between 20% and 40%. The Group includes within net debt, interest bearing loans and
borrowings, trade and other payables, less cash and short-term deposits, excluding discontinued operations.
35
36

37
1
2
Contents
3
5. Capital management (continued)
4
2017 2016
5
$000 $000
Interest-bearing loans and borrowings other than convertible preference
6
shares (Note 20.2) 20,028 21,834
Trade and other payables (Note 31) 19,444 20,730
7
Less: cash and short-term deposits (Note 23) (17,112) (14,916)
Net debt 22,360 27,648
8
Introduction
Convertible preference shares (Note 20.2) 2,778 2,644
9
Equity 60,320 47,051
10
Total capital 63,098 49,695
Capital and net debt 85,458 77,343
11
Gearing ratio 26% 36%
12
In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to
13
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define
capital structure requirements. Breaches in meeting the financial covenants would permit the bank to
Directors’ report
14
immediately call loans and borrowings. There have been no breaches of the financial covenants of any interest-
bearing loans and borrowing in the current period.
15
No changes were made in the objectives, policies or processes for managing capital during the years ended
31 December 2017 and 2016.
16
Commentary
17
IAS 1.134 and IAS 1.135 require entities to make qualitative and quantitative disclosures regarding their objectives,
policies and processes for managing capital. The Group has disclosed its gearing ratio as this is the measure it uses to
18
monitor capital. The Group considers both capital and net debt as relevant components of funding, hence, part of its
capital management. However, other measures or a different type of gearing ratio may be more suitable for other
19
entities.
20
IFRS 7.18-19 requires disclosures in the event of a default or breaches as at the end of a reporting period and during the
year. Although there are no explicit requirements addressing the opposite situation, the Group has disclosed the
21
restriction on capital represented by financial covenants as it considers it relevant information to the users of the financial
statements.
22
6. Group information
23
IAS 24.13
Information about subsidiaries
IFRS12.10(a)
The consolidated financial statements of the Group include: IFRS12.12(a)
24
IFRS12.12(b)
25
Country of % equity interest
Name Principal activities incorporation 2017 2016
26
Extinguishers Limited Fire prevention equipment Australia 80 —
Fire prevention equipment
27
Bright Sparks Limited Australia 95 95

Fire Equipment Test Lab Limited Fire prevention equipment Australia 100* —
28
Wireworks Inc. Fire prevention equipment United States 98 98

Notes
Sprinklers Inc. Fire prevention equipment United States 100 100

29
jhj
Lightbulbs Limited*** Electronics Australia 87.4 80 IFRS 12.9

30
Hose Limited*** Rubber equipment Australia 100 100

Electronics Limited Electronics Australia 48** 48 IFRS 12.9
31
32
* Good Group (Australia) Limited holds 20% of the equity in Fire Equipment Test Lab Limited, but consolidates 100% of this
entity. See Note 3 for details on interest held in Fire Equipment Test Lab Limited.
33
** Good Group (Australia) Limited consolidates this entity based on de facto control. See Note 3 for more details.
*** Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 , relief has been granted to Light Bulbs
Appendices
34
Limited and Hose Limited from the Corporations Act 2001 requirements for the preparation, audit and lodgement of their
financial reports.
35
36

37
1
2
Contents
3
6. Group information (continued)
4
The holding company IAS 1.138(c)
IAS 24.13
The next senior and the ultimate holding company of the Good Group (Australia) Limited is S.J. Limited which is
5
based and listed in Australia.
Entity with significant influence over the Group
6
International Fires P.L.C. owns 31.48% of the ordinary shares in Good Group (Australia) Limited
7
(2016: 31.48%).
Associate
8
Introduction
The Group has a 25% interest in Power Works Limited (2016: 25%).
9
Joint arrangement in which the Group is a joint venturer
The Group has a 50% interest in Showers Limited (2016: 50%). For more details, refer to Note 9.
10
Commentary
11
IFRS 12.10(a) requires entities to disclose information about the composition of the group. The list above discloses
information about the Group’s subsidiaries. Companies need to note that this disclosure is required for material
12
subsidiaries only, rather than a full list of every subsidiary. The above illustrates one example as to how the requirements
set out in IFRS 12 can be met.
13
Directors’ report
14
7. Business combinations and acquisition of non-controlling interests
15
IFRS 3.59-60
Acquisitions in 2017
Acquisition of Extinguishers Limited
16
On 1 May 2017, the Group acquired 80% of the voting shares of Extinguishers Limited, an unlisted company
IFRS 3.B64(a)
based in Australia and specialising in the manufacture of fire retardant fabrics, in exchange for the Company’s
17
IFRS 3.B64(b)
shares. The Group acquired Extinguishers Limited because it significantly enlarges the range of products in the IFRS 3.B64(c)
fire prevention equipment segment that can be offered to its clients. IFRS 3.B64(d)
18
The Group has elected to measure the non-controlling interests in the acquiree at fair value. IFRS 3.B64(o)(i)
19
Assets acquired and liabilities assumed
20
The fair values of the identifiable assets and liabilities of Extinguishers Limited as at the date of acquisition were:
Fair value recognised
21
IFRS 3.B64(i)
on acquisition IAS 7.40(d)
22
Assets $000
Property, plant and equipment (Note 16) 7,042
Cash and cash equivalents 230
23
IAS 7.40(c)
Trade receivables 1,716
24
Inventories 3,578
Patents and licences (Note 18) 1,200
25
13,766
Liabilities
26
Trade payables (2,542)
Contingent liability (Note 26) (380)
27
Provision for onerous operating lease costs (Note 26) (400)

28
Provision for restructuring (Note 26) (500)

Notes
Provision for decommissioning costs (Note 26) (1,200)

jhj
29
Deferred tax liability (Note 14) (1,511)

(6,533)
30
Total identifiable net assets at fair value 7,233

31
Non-controlling interest measured at fair value (1,547) IFRS 3.B64(o)(i)
Goodwill arising on acquisition (Note 18) 2,231

32
Purchase consideration transferred 7,917 IAS 7.40(a)

33
Appendices
34
35
36

37
1
2
Contents
3
7. Business combinations and acquisition of non-controlling interests (continued)
4
The fair value of the trade receivables amounts to $1,716,000. The gross amount of trade receivables is IFRS 3.B64(h)
$1,754,000. However, none of the trade receivables have been impaired and it is expected that the full
5
contractual amounts can be collected.
Prior to the acquisition, Extinguishers Limited decided to eliminate certain product lines (further details are
6
given in Note 26). The restructuring provision recognised was a present obligation of Extinguishers Limited
7
immediately prior to the business combination. The execution of the restructuring plan was not conditional upon
it being acquired by the Group.
8
Introduction
The deferred tax liability mainly comprises the tax effect of the accelerated depreciation for tax purposes of
tangible and intangible assets.
9
The goodwill of $2,231,000 comprises the value of expected synergies arising from the acquisition and a IFRS 3.B64(e)
10
customer list, which is not separately recognised. Goodwill is allocated entirely to the fire prevention segment.
Due to the contractual terms imposed on acquisition, the customer list is not separable. Therefore, it does not
11
meet the criteria for recognition as an intangible asset under IAS 38. None of the goodwill recognised is IFRS 3.B64(k)
expected to be deductible for income tax purposes.
12
A contingent liability at fair value of $380,000 was recognised at the acquisition date resulting from a claim IFRS 3.B64(j)
13
IFRS 3.56(a)
of a supplier whose shipment was rejected and payment was refused by the Group due to deviations from the IAS 37.85
defined technical specifications of the goods. The claim is subject to legal arbitration and is only expected to
Directors’ report
14
be finalised in late 2018. As at the reporting date, the contingent liability was re-assessed and is determined to
be $400,000, based on the expected probable outcome (see Note 26). The charge to profit or loss has been
15
recognised.
16
The fair value of the non-controlling interest in Extinguishers Limited, an unlisted company, has been estimated IFRS 3.B64
(o)(ii)
by applying a discounted earnings technique. The fair value measurements are based on significant inputs that
17
are not observable in the market. The fair value estimate is based on:
► An assumed discount rate of 14%
18
► A terminal value, calculated based on long-term sustainable growth rates for the industry ranging from
2% to 4%, which has been used to determine income for the future years
19
► A reinvestment ratio of 60% of earnings
20
From the date of acquisition, Extinguishers Limited contributed $17,857,000 of revenue and $750,000 to
IFRS 3.B64
profit before tax from continuing operations of the Group. If the combination had taken place at the beginning
21
(q)(i)
of the year, revenue from continuing operations would have been $222,582,000 and profit before tax from IFRS 3.B64
continuing operations for the Group would have been $12,285,000. (q)(ii)
22
23
Purchase consideration $000
Shares issued, at fair value 7,203 IFRS 3.B64 (f)(iv)
24
Contingent consideration liability 714 IFRS 3.B64(f)(iii)
Total consideration 7,917 IAS 7.40(a)
Analysis of cash flows on acquisition: 25

26
Transaction costs of the acquisition (included in cash flows from operating activities) (600)
27
Net cash acquired with the subsidiary (included in cash flows from investing activities) 230 IAS 7.40(c)
Transaction costs attributable to issuance of shares (included in cash flows from

28
financing activities, net of tax) (32)

Notes
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Net cash flow on acquisition (402)

29
30
The Company issued 2,500,000 ordinary shares as consideration for the 80% interest in Extinguishers Limited.
IFRS 3.B64
The fair value of the shares is calculated with reference to the quoted price of the shares of the Company at the (f)(iv)
31
date of acquisition, which was $2.88 per share. The fair value of the consideration given was therefore
$7,203,000.
32
Transaction costs of $600,000 were expensed and are included in administrative expenses. The attributable IFRS 3.B64(m)
costs of the issuance of the shares of $32,000 have been charged directly to equity as a reduction in issued
33
capital.
Appendices
34
35
36

37
1
2
Contents
3
4
Contingent consideration
As part of the purchase agreement with the previous owner of Extinguishers Limited, an amount of contingent IFRS 3.B64
5
(g)(ii)
consideration has been agreed. There will be additional cash payments to the previous owners of Extinguishers IFRS
Limited of: 13.93(h)(ii)
6
a) $675,000, if the entity generates up to $1,500,000 of profit before tax in a 12-month period after the
acquisition date
7
IFRS 3.B64
Or (g)(iii)
8
b) $1,125,000, if the entity generates $1,500,000 or more of profit before tax in a 12-month period after the IFRS 3.B64
Introduction
(g)(i)
acquisition date
9
IFRS 3.58 (b)(i)
As at the acquisition date, the fair value of the contingent consideration was estimated to be $714,000.
10
IFRS 13.93(d)
As at 31 December 2017, the key performance indicators of Extinguishers Limited show that it is highly
11
probable that the target will be achieved due to a significant expansion of the business and the synergies
realised. The fair value of the contingent consideration determined at 31 December 2017 reflects this
12
development, amongst other factors and a remeasurement charge has been recognised through profit or loss.
13
The fair value is determined using a DCF method. The significant unobservable inputs used in the fair value
Directors’ report
14
measurements, together with a quantitative sensitivity analysis as at 31 December 2017 are provided in
Note 20.4. A reconciliation of fair value measurement of the contingent consideration liability is provided
15
below:
16
$000
IFRS 13.93(e)
As at 1 January 2017 
17
Liability arising on business combination 714
18
Unrealised fair value changes recognised in profit or loss 358 IFRS 13.93(f)
As at 31 December 2017 1,072
19
The fair value of the contingent consideration liability increased due to a significantly improved performance
20
of Extinguishers Limited compared with the budget. The contingent consideration liability is due for final
measurement and payment to the former shareholders on 30 September 2018.
21
Commentary
22
The classification of a contingent consideration requires an analysis of the individual facts and circumstances. It may be
classified as follows: equity or a financial liability in accordance with IAS 32 and IAS 39; a provision in accordance with
23
IAS 37; or in accordance with other standards, each resulting in different initial recognition and subsequent
measurement. The Group has determined that it has a contractual obligation to deliver cash to the seller and therefore it
24
has assessed it to be a financial liability (IAS 32.11). Consequently, the Group is required to remeasure that liability at fair
value at each reporting date with changes in fair value recognised in profit or loss in accordance with IAS 39 (IFRS
25
3.58(b)(i)).
As part of the business combination, contingent payments to employees or selling shareholders are common methods of
26
retention of key people for the combined entity. The nature of such contingent payments, however, needs to be evaluated
in each individual circumstance as not all such payments qualify as contingent consideration, but are accounted for as a
27
separate transaction. For example, contingent payments that are unrelated to the future service of the employee are
deemed contingent consideration, whereas contingent payments that are forfeited when the employment is terminated
28
are deemed remuneration. Paragraphs B54–B55 of IFRS 3 (in connection with IFRS 3.51, 52(b)) provide further guidance.
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Acquisition of additional interest in Lightbulbs Limited
On 1 October 2017, the Group acquired an additional 7.4% interest in the voting shares of Lightbulbs Limited, IFRS10.B96
5
IFRS12.18
increasing its ownership interest to 87.4%. Cash consideration of $325,000 was paid to the non-controlling IFRS12.10(b)(iii)
shareholders. The carrying value of the net assets of Lightbulbs Limited (excluding goodwill on the original
6
acquisition) was $1,824,000. Following is a schedule of additional interest acquired in Lightbulbs Limited:
7
$000
Cash consideration paid to non-controlling shareholders 325
8
Introduction
Carrying value of the additional interest in Lightbulbs Limited (135)
Difference recognised in retained earnings 190
9
10
Acquisitions in 2016
On 1 December 2016, the Group acquired 80% of the voting shares of Lightbulbs Limited, a company based in
11
Australia, specialising in the production and distribution of lightbulbs. The Group acquired this business to IFRS 3.59
enlarge the range of products in the electronics segment. IFRS 3.B64(a)
12
IFRS 3.B64(b)
The Group elected to measure the non-controlling interest in the acquiree at the proportionate share of its IFRS 3.B64(c)
13
interest in the acquiree’s identifiable net assets. IFRS 3.B64(d)
IFRS 3.B64(o)(i)
Directors’ report
The fair value of the identifiable assets and liabilities of Lightbulbs Limited as at the date of acquisition were:
14
Fair value recognised
15
IFRS 3.B64(i)
on acquisition IAS 7.40(d)
$000
16
Land and buildings (Note 16) 1,280
17
Cash and cash equivalents 50 IAS 7.40(c)
Trade receivables 853
18
Inventories 765
Total assets 2,948
19
20
Trade payables (807)
Deferred tax liability (Note 14) (380)
21
Provision for maintenance warranties (50)
Total liabilities (1,237)
22
Total identifiable net assets at fair value 1,711
23
Non-controlling interest (20% of net assets) (342)
Goodwill arising on acquisition (Note 18) 131
24
Purchase consideration transferred 1,500 IAS 7.40(a)
25
Cash flow
on acquisition 26
$000 IAS 7.40(b)
27
Net cash acquired with the subsidiary 50 IAS 7.40(c)
Cash paid (1,500) IFRS 3.B64(f)(i)

28
Net cash flow on acquisition (1,450)

Notes
jhj
29
The net assets recognised in the 31 December 2016 financial statements were based on a provisional IFRS 3.45
IFRS 3.B67(a)(i)
30
assessment of their fair value while the Group sought an independent valuation for the land and buildings owned IFRS
by Lightbulbs Limited. The valuation had not been completed by the date the 2016 financial statements were 3.B67(a)(ii)
31
approved for issue by the Board of Directors.

32
33
Appendices
34
35
36

37
1
2
Contents
3
4
In April 2017, the valuation was completed and the acquisition date fair value of the land and buildings was IFRS 3.49
IFRS3.B67(a)
$1,280,000, an increase of $200,000 over the provisional value. The 2016 comparative information was (iii)
5
restated to reflect the adjustment to the provisional amounts. As a result, there was an increase in the deferred
tax liability of $60,000 and an increase in the non-controlling interest of $28,000. There was also a
6
corresponding reduction in goodwill of $112,000, resulting in $131,000 of total goodwill arising on the
acquisition. The increased depreciation charge on the buildings from the acquisition date to 31 December 2016
7
was not material.
8
From the date of acquisition, Lightbulbs Limited contributed $476,000 of revenue and $20,000 to profit before IFRS 3.B64(q)
Introduction
tax from continuing operations of the Group. If the combination had taken place at the beginning of 2016, the
9
Groups revenue from continuing operations would have been $198,078,000 and the profit before tax from
continuing operations would have been $7,850,000.
10
The goodwill of $131,000 comprises the fair value of expected synergies arising from acquisition. IFRS 3.B64(e)
11
Commentary
12
In the 2016 business combination, the Group elected to value the non-controlling interest using its proportionate share of
the acquiree’s identifiable net assets. In the 2017 business combination, the Group elected to value the non-controlling
13
interest at fair value. This election can be made separately for each business combination, and is not a policy choice that
determines an accounting treatment for all business combinations the Group will carry out (IFRS 3.19).
Directors’ report
14
8. Material partly-owned subsidiaries
15
Financial information of subsidiaries that have material non-controlling interests is provided below: IFRS12.10(ii)
IFRS12.12
16
Proportion of equity interest held by non-controlling interests:
17
Name Country of incorporation and operation 2017 2016
Electronics Limited Australia 52% 52%
18
Extinguishers Limited Australia 20% —
Lightbulbs Limited Australia 12.6% 20%
19
20
2017 2016
IFRS 12.12(f)
$000 $000
21
Accumulated balances of material non-controlling interest: IFRS12.B10
Electronics Limited 490 277
22
Extinguishers Limited 1,696 —
Lightbulbs Limited 263 344
23
Profit allocated to material non-controlling interest:
Electronics Limited 243 192
24
Extinguishers Limited 149 —
Lightbulbs Limited 54 2
25
The summarised financial information of these subsidiaries is provided below. This information is based on IFRS 12.B11
IFRS 12.12(g) 26
amounts before inter-company eliminations. IFRS 12.B10
27
Summarised statement of profit or loss for 2017: Electronics Extinguishers Lightbulbs

Limited Limited Limited
28
$000 $000 $000

Notes
jhj
29
Revenue 2,546 17,857 5,748

Cost of sales (1,450) (15,678) (4,090)
30
Administrative expenses (354) (1,364) (1,020)

Finance costs (250) (65) (132)
31
Profit before tax 492 750 506

Income tax (25) (6) (80)
32
Profit for the year from continuing operations 467 744 426
33
Total comprehensive income 467 744 426

Appendices
Attributable to non-controlling interests 243 149 54

34
Dividends paid to non-controlling interests 30 — — 

35
36

37
1
2
Contents
3
8. Material partly-owned subsidiaries (continued)
4
IFRS 12.B11
Summarised statement of profit or loss for 2016:
IFRS 12.12(g)
Electronics Lightbulbs IFRS 12.B10
5
Limited Limited
$000 $000
6
Revenue 2,100 476
7
Cost of sales (1,250) (360)
Administrative expenses (150) (85)
8
Finance costs (350) (11)
Introduction
Profit before tax 350 20
9
Income tax 20 (8)
10
Profit for the year from continuing operations 370 12
Total comprehensive income 370 12
11
Attributable to non-controlling interests 192 2
Dividends paid to non-controlling interests 49 — 
12
13
Summarised statement of financial position as at 31 December 2017:
Directors’ report
14
Electronics Extinguishers Lightbulbs
15
$000 $000 $000
Inventories and cash and bank balances (current) 971 7,043 2,348
16
Property, plant and equipment and other non-current assets
(non-current) 1,408 10,273 1,409
17
Trade and other payables (current) (417) (5,822) (1,182)
18
Interest-bearing loans and borrowing and deferred tax
liabilities (non-current) (1,019) (3,106) (485)
19
Total equity 943 8,478 2,090

Attributable to:
20
Equity holders of parent 453 6,782 1,827 
Non-controlling interest 490 1,696 263 
21
22
Summarised statement of financial position as at 31 December 2016:
23
Electronics Lightbulbs
Limited Limited
24
$000 $000
Inventories and cash and bank balances (current) 698 1,668
25
Property, plant and equipment and other non-current assets
(non-current) 1,280 1,359
Trade and other payables (current) 26
(350) (822)
Interest-bearing loans and borrowing and deferred tax
27
liabilities (non-current) (1,095) (485)

Total equity 533 1,720
28
Notes
Attributable to:
jhj
29
Equity holders of parent 256 1,376 
Non-controlling interest 277 344 

30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
8. Material partly-owned subsidiaries (continued)
4
Summarised cash flow information for year ended 31 December 2017:
Electronics Extinguishers Lightbulbs
5
$000 $000 $000
6
Operating 507 809 558
7
Investing (15) (280) 6
Financing (250) (65) (132)
8
Net increase/(decrease) in cash and cash equivalents 242 464 432
Introduction
9
Summarised cash flow information for year ended 31 December 2016:
10
Electronics Lightbulbs
Limited Limited
11
$000 $000
Operating 460 23
12
Investing (10) (20)
13
Financing (350) (11)
Net increase/(decrease) in cash and cash equivalents 100 (8)
Directors’ report
14
Commentary
15
IFRS 12.12 requires the above information only in respect of subsidiaries that have non-controlling interests that are
16
material to the reporting entity (i.e., the Group). A subsidiary may have significant non-controlling interest per se but
disclosure is not required if that interest is not material at the Group level. Similarly, these disclosures do not apply to the
non-controlling interests that are material in aggregate but not individually. Also, it should be noted that the above
17
information should be provided separately for each individual subsidiary with a material non-controlling interest. The
Group has concluded that Extinguishers Limited, Lightbulb Limited and Electronics Limited are the only subsidiaries with
18
non-controlling interests that are material to the Group.
19
When there is a change in the ownership of a subsidiary, IFRS 12.18 requires disclosure of a schedule that shows the
effects on equity of any changes in its ownership interest in the subsidiary that did not result in a loss of control. When
20
there are significant restrictions on the Group’s or its subsidiaries' ability to access or use the assets and settle the
liabilities of the Group, IFRS 12.13 requires disclosure of the nature and extent of significant restrictions. The Group did
21
not have any such restrictions.
IFRS 12.10 (b) (iv) requires disclosure of information to enable the users to evaluate the consequences of losing control of
22
a subsidiary during the period. The Group did not lose control over a subsidiary during the period.
23
24
25
26
27
28
Notes
jhj
29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
9. Interest in a joint venture
4
The Group has a 50% interest in Showers Limited, a joint venture involved in the manufacture of some of the IFRS 12.20
IFRS 12.21
Group’s main product lines in fire prevention equipment in Australia. The Group’s interest in Showers Limited is IFRS 12.B14
5
accounted for using the equity method in the consolidated financial statements. Summarised financial
information of the joint venture, based on its IFRS financial statements, and reconciliation with the carrying
6
amount of the investment in the consolidated financial statements are set out below:
7
Summarised statement of financial position of Showers Limited:
2017 2016
8
$000 $000
Introduction
IFRS 12.B12
Current assets, including cash and cash equivalents $989,000 IFRS 12.B13
9
(2016: $743,000) and prepayments $1,030,000 (2016: NIL) 3,226 2,808
Non-current assets 2,864 2,964
10
Current liabilities, including tax payable $89,000 (2016: $143,000) (224) (1,102)
Non-current liabilities, including deferred tax liabilities $278,000
11
(2016: $325,000) and long-term borrowing $500,000 (2016: $500,000) (1,020) (1,000)
12
Equity 4,846 3,670
Group’s share in equity - 50% (2016: 50%) 2,423 1,835
13
Goodwill - -
Directors’ report
2,423 1,835 IFRS 12.B14(b)
14
Group’s carrying amount of the investment
15
Summarised statement of profit or loss of Showers Limited:
2017 2016
16
$000 $000
Revenue 60,094 58,876
17
Cost of sales (54,488) (53,420)
Administrative expenses, including depreciation $1,236,000 IFRS 12.B13
18
(2016: $1,235,000) (2,638) (2,586)
Finance costs, including interest expense $204,000 (2016: $150,000) (204) (200) IFRS 12.B13
19
Profit before tax 2,764 2,670
20
Income tax expense (1,588) (1,556) IFRS 12.B13
Profit for the year (continuing operations) 1,176 1,114
21
Total comprehensive income for the year (continuing operations) 1,176 1,114 IFRS 12.B12(b)
588 557
22
Group’s share of profit for the year
23
The joint venture had no other contingent liabilities or commitments as at 31 December 2017 and 2016, except IFRS 12.22 (a)
IFRS 12.23(a)
trade purchase commitments of $620,000 (2016: $1,032,000), for which the Group has a corresponding IFRS 12.B18-
24
commitment, as disclosed in Note 32. Showers Limited cannot distribute its profits without the consent from B19
the two venture partners.
25
Commentary
IFRS 12.B14 requires separate presentation of goodwill and other adjustments to the investments in joint ventures and 26
associates in the above reconciliation. The Group does not have goodwill or other adjustments.
27
IFRS 12.21(a) requires the separate disclosure of information for joint operations, as it relates to all types of joint
arrangements. The Group does not have any joint operations.
28
Notes
The Group has presented the summarised financial information of the joint venture based on its IFRS financial statements.
jhj
29
IFRS 12.B15 allows this information to be provided using alternative bases, if the entity measures its interest in the joint
venture or associate at fair value, and if the joint venture or associate does not prepare IFRS financial statements and
30
preparation on that basis would be impracticable or cause undue cost. Applying both the impracticable and undue cost
thresholds involves significant judgement and must be carefully considered in the context of the specific facts and
circumstances. In either case, the entity is required to disclose the basis on which the information is provided.
31
IFRS 12.22(b) requires additional disclosures when the financial statements of the joint venture or associate used in
32
applying equity method are as of a different date or for a different period from that of the entity. This is not applicable to
the Group.
33
IFRS 12.22(c) requires disclosure of unrecognised share of losses of a joint venture and associate. This is not applicable to
the Group.
Appendices
34
35
36

37
1
2
Contents
3
10. Investment in an associate
4
The Group has a 25% interest in Power Works Limited, which is involved in the manufacture of fire prevention IFRS 12.20
IFRS 12.21(a)
equipment for power stations in Australia. Power Works Limited is a private entity that is not listed on any
5
public exchange. The Group’s interest in Power Works Limited is accounted for using the equity method in the
consolidated financial statements. The following table illustrates the summarised financial information of the
6
Group’s investment in Power Works Limited:
7
2017 2016
$000 $000
8
IFRS 12.B12
Introduction
Current assets 6,524 6,324
9
Non-current assets 13,664 12,828
Current liabilities (4,488) (3,904)
10
Non-current liabilities (12,644) (12,524)
11
Equity 3,056 2,724
Group’s share in equity – 25% (2016: 25%) 764 681
12
Goodwill - -
Group’s carrying amount of the investment 764 681
13
Directors’ report
14
2017 2016
$000 $000
15
Revenue 33,292 32,640
Cost of sales (27,299) (26,765)
16
Administrative expenses (1,665) (1,632)
17
Finance costs (2,996) (2,938)
18
Income tax expense (1,000) (981)
332 324
19
Profit for the year (continuing operations)

20
subsequent periods, net of tax (120) -
Other comprehensive income not to be reclassified to profit or loss in the
21
subsequent periods, net of tax 120 -
Total comprehensive income for the year (continuing operations) 332 324 IFRS 12.B12(b)
22
Group’s share of profit for the year 83 81
23
The associate requires the Group’s consent to distribute its profits. The Group does not foresee giving such IFRS12.22(a)
consent at the reporting date.
24
The associate had no contingent liabilities or capital commitments as at 31 December 2016 or 2017. IFRS 12.23
25
Commentary
IFRS 12.21(c) and IFRS 12.B16 require disclosure of the aggregated information of associates and joint ventures that are 26
accounted using the equity method and are not individually material. The Group did not have any immaterial associates or
27
joint ventures.
The Group has presented the summarised financial information of the associate based on its IFRS financial statements.
28
IFRS 12.B15 allows this information to be provided using alternative bases.

Notes
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29
30
31
32
33
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34
35
36

37
1
2
Contents
3
11. Fair value measurement
4
The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities.
IFRS 13.91(a)
5
Fair value measurement hierarchy for assets as at 31 December 2017: IFRS 13.93(a)
IFRS 13.93(b)
6
Fair value measurement using IFRS 13.97
Quoted
7
prices Significant Significant
in active observable unobservable
8
markets inputs inputs
Introduction
Date of valuation Total (Level 1) (Level 2) (Level 3)
9
$000 $000 $000 $000
Assets measured at fair value:
10
Investment properties (Note 17):
11
Office properties 31 December 2017 4,260 — — 4,260
Retail properties 31 December 2017 4,633 — — 4,633
12
Derivative financial assets (Note 20.4):
13
Foreign exchange forward
contracts  US dollars 31 December 2017 492 — 492 —
Directors’ report
14
contracts GB pounds sterling 31 December 2017 400 — 400 —
15
Embedded foreign exchange
derivatives Canadian dollars 31 December 2017 210 — — 210
16
AFS financial assets (Note 20.4):
17
Quoted equity shares
Power sector 31 December 2017 219 219 — —
18
Telecommunications sector 31 December 2017 118 118 — —
Unquoted equity shares
19
Power sector 31 December 2017 675 — — 675
20
Electronics sector 31 December 2017 363 — — 363
Quoted debt securities
21
Australian government bonds 31 December 2017 368 368 — —
Corporate bonds consumer
22
products sector 31 December 2017 92 92 — —
23
Corporate bonds technology
sector 31 December 2017 152 152 — —
24
Revalued property, plant and equipment (Note 16)*:
Office properties in Australia 31 January 2017 1,749 — — 1,749
25
Discontinued operations (Note 13) 1 October 2017 2,751 — — 2,751
Assets for which fair values are disclosed (Note 20.4): 26
Loan and receivables
27
Loan notes (Australia) 31 December 2017 1,528 — 1,528 —

Loan notes (US) 31 December 2017 2,000 — 2,000 —
28
Notes
Loan to an associate 31 December 2017 200 — — 200

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29
Loan to an director 31 December 2017 13 — — 13

30
There were no transfers between Level 1 and Level 2 during 2017. IFRS 13.9(c)
* Due to a change in accounting policy, revaluations of property, plant and equipment were recognised in Level 3 for the first
31
time. Refer to Note 16 for more information.

32
33
Appendices
34
35
36

37
1
2
Contents
3
11. Fair value measurement (continued)
4
Fair value measurement hierarchy for liabilities as at 31 December 2017:
5
Fair value measurement using
Quoted
6
7
$000 $000 $000 $000
8
Introduction
Liabilities measured at fair value:
9
Derivative financial liabilities (Note 20.4):
Interest rate swaps 31 December 2017 35 — 35 —
10
contracts (GB pounds sterling) 31 December 2017 800 — 800 —
11
Embedded commodity
12
derivatives (brass) 31 December 2017 600 — — 600
Embedded commodity
13
derivatives (chrome) 31 December 2017 182 — — 182
Directors’ report
14
contracts – US dollars 31 December 2017 90 — 90 —
Commodity derivative (copper) 31 December 2017 980 — 980 —
15
Contingent consideration liability
(Note 7) 31 December 2017 1,072 — — 1,072
16
Liabilities for which fair values are disclosed (Note 20.4):
17
Interest-bearing loans and
borrowings:
18
Obligations under finance lease
and hire purchase contracts
19
(Australia) 31 December 2017 800 — 800 —
20
(US) 31 December 2017 263 — 263 —
21
Floating rate borrowings
(Australia) 31 December 2017 10,420 — 10,420 —
22
Floating rate borrowings (US) 31 December 2017 2,246 — 2,246 — IFRS 13.93(a)
23
Convertible preference shares 31 December 2017 2,766 — 2,766 — IFRS 13.93(b)
Fixed rate borrowing 31 December 2017 6,321 — 6,321 — IFRS 13.97
24
Financial guarantees 31 December 2017 83 — — 83
25
There were no transfers between Level 1 and Level 2 during 2017.
26
27
28
Notes
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29
30
31
32
33
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34
35
36

37
1
2
Contents
3
4
Fair value measurement hierarchy for assets as at 31 December 2016:
5
Quoted
6
7
$000 $000 $000 $000
8
Introduction
Assets measured at fair value:
9
Investment properties (Note 17):
Office properties 31 December 2016 3,824 — — 3,824
10
Retail properties 31 December 2016 4,159 — — 4,159
11
Derivative financial assets (Note 20.4):
12
contracts  US dollars 31 December 2016 100 — 100 —
13
contracts GB pounds sterling 31 December 2016 53 — 53 —
Directors’ report
AFS financial assets (Note 20.4):
14
Quoted equity shares
15
Power sector 31 December 2016 200 200 — —
Telecommunications sector 31 December 2016 100 100 — —
16
Unquoted equity shares
Power sector 31 December 2016 390 — — 390
17
Electronics sector 31 December 2016 508 — — 508
18
Quoted debt securities
Australian government bonds 31 December 2016 200 200 — —
19
Corporate bonds consumer
products sector 31 December 2016 400 400 — —
20
Assets for which fair values are disclosed (Note 20.4):
21
Loan and receivables
Loan notes (Australia) 31 December 2016 1,646 — 1,646 —
22
Loan to an director 31 December 2016 8 — — 8
23
24
25
26
27
28
Notes
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29
30
31
32
33
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34
35
36

37
1
2
Contents
3
4
Fair value measurement hierarchy for liabilities as at 31 December 2016:
5
Quoted
6
7
$000 $000 $000 $000
8
Introduction
Liabilities measured at fair value:
9
Derivative financial liabilities (Note 20.4):
10
contracts - US dollars 31 December 2016 254 — 254 —
Liabilities for which fair values are disclosed (Note 20.4):
11
Interest-bearing loans and
12
borrowings:
13
(Australia) 31 December 2016 915 — 915 —
Directors’ report
14
15
(US) 31 December 2016 301 — 301 —
Floating rate borrowings
16
(Australia) 31 December 2016 10,367 — 10,367 —
Floating rate borrowings (US) 31 December 2016 2,234 — 2,234 —
17
Convertible preference shares 31 December 2016 2,621 — 2,621 —
18
Fixed rate borrowing 31 December 2016 8,944 — 8,944 —
Financial guarantees 31 December 2016 45 — — 45
19
20
Commentary
21
IFRS 13.94 requires appropriate determination of classes of assets and liabilities on the basis of:
22
► The nature, characteristics and risks of the asset or liability
► The level of the fair value hierarchy within which the fair value measurement in categorised
23
The Group has applied the factors and disclosed the quantitative information under IFRS 13 based on the classes of assets
and liabilities determined as per IFRS 13.94. As judgement is required to determine the classes of properties, other criteria
24
and aggregation levels for classes of assets may also be appropriate, provided they are based on the risk profile of the
assets (e.g., the risk profile of properties in an emerging market may differ from that of properties in a mature market).
25
Inputs used in a valuation technique may fall into different levels of the fair value hierarchy. However, for disclosure
purposes, the fair value measurement must be categorised in its entirety (i.e., depending on the unit of account) within
the hierarchy. That categorisation may not be so obvious when there are multiple inputs used. IFRS 13.73 clarifies that
26
the hierarchy categorisation of a fair value measurement, in its entirety, is determined based on the lowest level input
27
that is significant to the entire measurement. Assessing the significance of a particular input to the entire measurement
requires judgement and consideration of factors specific to the asset or liability (or group of assets and/or liabilities) being
28
measured and any adjustments made to the significant inputs in arriving at the fair value. These considerations have a
Notes
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follow-on impact on the disclosures of valuation techniques, processes and significant inputs and entities should tailor
29
their disclosures to the specific facts and circumstances.

For assets and liabilities held at the end of the reporting period measured at fair value on a recurring basis, IFRS 13.93(c)
30
requires disclosure of the amounts of transfers between Level 1 and Level 2 of the hierarchy, the reasons for those
transfers and the entity’s policy for determining when the transfers are deemed to have occurred. Transfers into each
31
level must be disclosed and discussed separately from transfers out of each level.
32
The Group has also provided IFRS 13 disclosures on obligations under finance lease and hire purchase contracts where
fair values are required to be disclosed under IFRS 7.25 as the Group took the view that IFRS 13 applies to the disclosure
33
of fair value required under IFRS 7 Financial Instruments: Disclosures, including finance lease obligations.
Appendices
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35
36

37
1
2
Contents
3
12. Other income/expenses
4
12.1 Other operating income
5
2017 2016
$000 $000
6
Government grants (Note 27) 1,053 541 IAS 20.39(b)
Net gain on financial instruments at fair value through profit or loss 850 — IFRS 7.20(a)(i)
7
Net gain on disposal of property, plant and equipment 532 2,007 IAS 1.97
2,435 2,548
8
Total other operating income IAS 1.98
Introduction
9
The net gain on financial instruments at fair value through profit or loss relates to foreign exchange forward
contracts that did not qualify for hedge accounting and embedded derivatives which have been separated.
10
11
12.2 Other operating expenses
12
2017 2016
13
$000 $000
Directors’ report
Bid defence costs (579) (31)
14
IAS 1.97
Cost of WEEE (Note 26) (102) (22) IAS 1.97
15
Change in fair value of investment properties (Note 17) (306) (300) IAS 1.97
Net loss on financial instruments at fair value through profit or loss (1,502)  IFRS 7.20(a)
16
Ineffectiveness on forward commodity contracts designated as
cash flow hedges (Note 20.3) (65)  IFRS 7.24(b)
17
Total other operating expenses (2,554) (353)
18
Bid defence costs were incurred in respect of obtaining advice in defending a hostile takeover bid by a
competitor. The competitor did not proceed with the bid.
19
Net loss on financial instruments at fair value through profit or loss relates to foreign exchange forward
20
contracts that did not qualify for hedge accounting and embedded derivatives which have been separated.
21
Commentary
22
IAS 1 does not require an entity to disclose the results of operating activities as a line item in the income statement. If an
23
entity elects to do so, it must ensure that the disclosed amount is representative of activities that would normally be
regarded as ’operating’ (IAS 1.BC56). As IAS 1 does not provide any further guidance on operating profits, an entity
24
needs to apply judgement in developing its own accounting policy under IAS 8.10.
The Group has taken the view that presenting the gains and losses on foreign exchange forward contracts and embedded
25
derivatives in operating income and expenses reflects the economic substance of those transactions as they are entered
into to hedge forecast sales and purchases and are, therefore, clearly associated with transactions which are part of the
operating income and expenses (IAS 8.10(b)(ii)). Other entities may take alternative views and, hence, there is diversity 26
in practice.
27
28
Notes
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29
30
31
32
33
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35
36

37
1
2
Contents
3
12. Other income/expenses (continued)
4
12.3 Finance costs
5
2017 2016
$000 $000
6
Interest on debts and borrowings (1,070) (1,082)
Finance charges payable under finance leases and hire purchase contracts (40) (40)
7
Total interest expense (1,087) (1,122) IFRS 7.20(b)
Impairment loss on quoted AFS equity investments (Note 20.1) (111) 
8
IFRS 7.20(e)
Introduction
Unwinding of discount and effect of changes in discount rate on provisions IAS 37.60
9
(Note 26) (43) (1)
Change in fair value of the forward points in commodity forward contracts
10
(Note 20.3) (23) 
Total finance costs (1,264) (1,123)
11
12.4 Finance income
12
2017 2016
13
$000 $000
Directors’ report
Interest income on a loan to an associate 20 
14
Interest income from AFS financial assets 259 144 IAS 18.35(b)(iii)
15
Foreign exchange gains on interest-bearing loans and borrowings 57 67
Total finance income 336 211 IFRS 7.20(b)
16
Commentary
17
Finance income and finance cost are not defined terms in IFRS. Some regulators limit the inclusion of certain income and
18
expense within those items (e.g., restricted to interest income and expense), while other jurisdictions allow additional
items to be included.
19
12.5 Depreciation, amortisation, foreign exchange differences and costs of inventories
20
included in the consolidated statement of profit or loss
21
2017 2016 IAS 1.104
$000 $000
22
Included in cost of sales:
Depreciation 3,520 2,800
23
Impairment of property, plant and equipment (Note 16) — 301 IAS 36.126(a)
24
Amortisation and impairment of intangible assets (Note 18) 325 174 IAS 38.118(d)
Net foreign exchange differences (65) (40) IAS 21.52(a)
25
Warranty provision (Note 26) 106 52
Costs of inventories recognised as an expense 131,107 121,298 IAS 2.36(d)
26
Included in administrative expenses:
27
Depreciation 277 282

Impairment of goodwill (Note 19) 200 — IAS 36.126(a)
28
Minimum lease payments recognised as an operating lease expense 250 175 IAS 17.35(c)
Notes
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Remeasurement of contingent consideration (Note 7) 357 —

29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
12.6 Employee benefits expense
5
2017 2016 IAS 1.104
$000 $000
6
Included in cost of sales:
Wages and salaries 7,215 7,172
7
Pension costs 350 305
Post-employment benefits other than pensions 38 28
8
Introduction
Share-based payment expense 103 123
Included in selling and distribution expenses:
9
10
11
12
Included in cost of administrative expenses:
13
Directors’ report
14
Share-based payment expense 144 172 IFRS 2.51(a)
15
Total employee benefits expense 33,749 29,151
16
12.7 Research and development costs
The Group’s fire prevention equipment business’s research and development concentrates on the development IAS 38.126
17
of sophisticated fire detection systems and fire-retardant fabrics. Research and development costs that are not
eligible for capitalisation have been expensed in the period incurred (in 2017, this was $2,235,000 (2016:
18
$1,034,000)), and they are recognised in administrative expenses.
19
Commentary
In accordance with the Research and Development Tax Incentive, eligible entities may be entitled to claim a tax offset
20
related to R&D activities conducted in Australia.
21
In the case of Good Group (Australia) Limited, the R&D activities that were not eligible for capitalisation were conducted in
the United States of America and, therefore, the Group is not eligible to receive the Australian tax offset.
22
23
24
25
26
27
28
Notes
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29
30
31
32
33
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34
35
36

37
1
2
Contents
3
4
12.8 Components of OCI
5
2017 2016
Cash flow hedges: $000 $000
6
Gains/(losses) arising during the year
Currency forward contracts* IAS 1.92
7
Reclassification during the year to profit or loss 401 412 IFRS 7.23(d)
Net loss during the year (except not-yet matured contracts) (300) (278)
8
IFRS 7.23(c)
Introduction
Net gain/(loss) during the year of the not-yet matured contracts 82 (101)
9
Commodity forward contracts
Loss of the not-yet matured commodity forward contracts (915) 
10
(732) 33
11
* This includes $183,000 that was removed from OCI during the year and included in the carrying amount of the hedged
items as a basis adjustment (2016: $33,000).
12
Commentary
13
This analysis does not include the remaining items of OCI, as those are either never reclassified to profit or loss or
reclassification adjustments did not occur.
Directors’ report
14
The total comprehensive balance of the cash flow hedge (net of tax) is provided for illustrative purposes in Note 24, where
the split among the different equity reserves is shown. In addition, the balance of the AFS financial assets (net of tax)
15
cannot be obtained directly or indirectly from the notes to these financial statements because IFRS does not require the
disclosure of the movements. Note 20.4 include the movements of those AFS financial assets classified as Level 3 in the
16
fair value hierarchy, which are mandatory disclosures.
17
12.9 Administrative expenses
18
2017 2016 IAS 1.104
$000 $000
19
Acquisition-related transaction costs 600 —
Research and development costs 2,235 1,034
20
Depreciation 277 282
21
Impairment of goodwill (Note 19) 200 —
Minimum lease payments recognised as an operating lease expense 250 175
22
Remeasurement of contingent consideration (Note 7) 357 —
23
24
25
Other administrative expenses 1,236 1,235
Total administrative expenses 18,428 12,156 26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
13. Discontinued operations
4
On 1 October 2017, the Group publicly announced the decision of its Board of Directors to sell Hose Limited, a IFRS 5.30
IFRS 5.41
wholly owned subsidiaryGood Group (Australia) Limited. On 14 November 2017, the shareholders of the
5
Company approved the plan to sell. The sale of Hose Limited is expected to be completed by within a year from
the reporting date. At 31 December 2017, Hose Limited was classified as a disposal group held for sale and as a
6
discontinued operation. The business of Hose Limited represented the entirety of the Group’s Rubber
Equipment operating segment until 1 October 2017. With Hose Limited being classified as discontinued
7
operations, the Rubber Equipment segment is no longer presented in the segment note. The results of Hose
Limited for the year are presented below:
8
Introduction
2017 2016 IFRS 5.33(b)(i)
9
$000 $000 IFRS 5.34
Revenue 42,809 45,206
10
Expenses (41,961) (44,880)
11
Operating income 848 326
12
Impairment loss recognised on the remeasurement to fair value less costs
to sell (110) — IFRS 5.33 (b)(iii)
13
Profit/(loss) before tax from a discontinued operations 213 (193)
Tax benefit/(expense):
Directors’ report
14
IFRS 5.33(b)(ii)
Related to pre-tax profit/(loss) from the ordinary activities for the period (26) 5 IAS 12.81(h)(ii)
15
IFRS 5.33(b)(iv)
Related to remeasurement to fair value less costs to distribute (deferred tax) 33 — IAS 12.81(h)(i)
16
Profit/(loss) for the year from discontinued operations 220 (188)
17
18
19
20
21
22
23
24
25
26
27
28
Notes
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29
30
31
32
33
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34
35
36

37
1
2
Contents
3
13. Discontinued operations (continued) 00
4
The major classes of assets and liabilities of Hose Limited classified as held for sale as at 31 December are, as IFRS 5.38
follows:
5
2017 IFRS 5.38
$000 IFRS 5.40
6
Assets
7
Intangible assets (Note 18) 135
Property, plant and equipment (Note 16) 4,637
8
Debtors 6,980
Introduction
Equity shares – unquoted 508
9
Cash and short-term deposits (Note 23) 1,294
Assets held for sale 13,554
10
Liabilities
11
Creditors (7,241)
Deferred tax liability (75)
12
Interest-bearing liabilities (Note 20.2) (5,809)
13
Liabilities directly associated with assets held for sale (13,125)
Net assets directly associated with disposal group 429
Directors’ report
14
Amounts included in accumulated OCI:
15
AFS reserve 66 IFRS 5.38
Deferred tax on AFS reserve (20)
16
Reserve of disposal group classified as held for sale 46
17
The net cash flows incurred by Hose Limited are, as follows: IFRS 5.33(c)
2017 2016
18
$000 $000
Operating (1,999) 3,293
19
Investing — —
20
Financing (436) (436)
Net cash (outflow)/inflow (2,435) 2,857
21
Earnings per share 2017 2016
22
Basic, profit/(loss) for the year from discontinued operations $0.01 ($0.01) IAS 33.68
Diluted, profit/(loss) for the year from discontinued operations $0.01 ($0.01)
23
Interest-bearing liabilities comprise a fixed rate bank loan of $5,809,000 having an EIR of 7.5% that is repayable IFRS 7.7
24
in full on 1 January 2019.
25
Commentary
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations specifies certain disclosures required in respect of 26
discontinued operations and non-current assets held for sale. IFRS 5.5B states that the requirements of other standards
27
do not apply to discontinued operations, unless the other standards specify disclosures that are applicable
to them.
28
In paragraph B17 of IFRS 12, the standard further clarified that disclosures of summarised information specified in
Notes
paragraphs B10-B16 of IFRS 12 are not required when an entity’s interest in a subsidiary, joint venture or associate (or a
jhj
29
portion of its interest in a joint venture or an associate) is classified as held for sale in accordance with IFRS 5. However, it
was silent about disclosures other than in paragraphs B10-B16 of IFRS12. The AASB 2017-2 Amendments to Australian
30
Accounting Standards – Further Annual Improvements 2014–2016 Cycle clarified that the disclosure requirements in IFRS
12, other than those in paragraphs B10-B16, apply to an entity’s held-for-sale interests and required retrospective
31
application of these amendments. The Group concluded that there is no additional information that it needs to disclose
about its wholly-owned subsidiary, Hose limited, which is classified as disposal group held for sale as at 31 December
32
2017, as a result of these amendments.

IAS 33.68A provides an option to present the earnings per share from discontinued operations either on the face of the
33
statement of profit or loss or in the notes. The Group has opted to present the earnings per share from discontinued
operations in the notes.
Appendices
34
35
36

37
1
2
Contents
3
13. Discontinued operations (continued)
4
Write-down of property, plant and equipment
Immediately before the classification of Hose Limited as discontinued operations, the recoverable amount was
5
estimated for certain items of property, plant and equipment and no impairment loss was identified. Following
the classification, a write-down of $110,000 (net of tax $77,000) was recognised on 1 October 2017 to reduce IFRS 5.33
6
the carrying amount of the assets in the disposal group to their fair value less costs to sell. This was recognised (b)(iii)
IFRS 5.33(b)(iv)
in discontinued operations in the statement of profit or loss. Fair value measurement disclosures are provided in
7
Note 11.
8
As at 31 December 2017, there was no further write-down as the carrying amount of the disposal group did not
Introduction
fall below its fair value less costs to sell.
9
Investment in unquoted equity shares
The discontinued operation includes an investment in unquoted equity shares (Level 3 in the fair value IFRS 7.8(d)
10
IFRS 7.14
hierarchy) of Test Ltd with a carrying amount of $508,000. The collaboration with Test Ltd is closely related to IFRS 7.15
11
the discontinued operation of Hose Limited and is therefore reclassified as part of the discontinued operations. IFRS 7.25
This investment is classified as an AFS financial asset and carried at fair value through OCI. The Group did not
12
pledge the financial asset nor receive any collateral for it. As at the reporting date, the carrying amount equals
the fair value of the instrument. For details on the recognition, measurement valuation techniques and inputs
13
used for this investment, refer Note 20.4.
Directors’ report
IFRS 13.93(e)
14
Reconciliation of fair value measurement of the investment in unquoted equity shares:
$000
15
As at 1 January 2016 502
16
Sales —
Purchases —
17
Total gains and losses recognised in OCI 6
As at 1 January 2017 and 1 October 2017 508
18
Sales —
Purchases —
19
Total gains and losses recognised in OCI —
As at 31 December 2017 508
20
21
There were no gains or losses recognised in profit or loss or in OCI with respect to these assets. IFRS 13.93(f)
Refer to Note 20.5 for details on the nature and extent of risks arising from financial instruments.
22
Commentary
23
IFRS 5.5B clarifies that disclosure requirements in other standards do not apply to non-current assets (or disposal groups)
held for sale unless those standards explicitly refer to these assets and disposal groups. However, IFRS 5.5B(b) states that
24
disclosure requirements continue to apply for assets and liabilities that are included in the disposal group, but are not
within the scope of the measurement requirements of IFRS 5. The illustration above reflects this circumstance, as the
25
unquoted AFS equity instrument is a financial instrument as defined in IAS 39 and is, therefore, scoped out of the
measurement requirements of IFRS 5.
26
Whilst, the assets of discontinued operations are non-recurring fair value measurements under IFRS 13.93(a), AFS
27
financial assets of the discontinued operations are recurring fair value measurements since they are required to be
measured at fair value at the end of each reporting period.
28
Notes
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29
30
31
32
33
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34
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36

37
1
2
Contents
3
14. Income tax
4
The major components of income tax expense for the years ended 31 December 2017 and 2016 are: IAS 12.79
5
Consolidated profit or loss 2017 2016
$000 $000
6
Current income tax:
Current income tax charge 2,938 3,038
7
Tax effect of error correction (see Note 2.5) — (450)
8
Adjustments in respect of current income tax of previous year (18) (44) IAS 12.80(a)
Introduction
Deferred tax: IAS 12.80(b)
9
Relating to origination and reversal of temporary differences 178 (311) IAS 12.80(c)
10
Income tax expense reported in the statement of profit or loss 3,098 2,233
11
Consolidated statement of other comprehensive income 2017 2016 IAS 12.81(ab)
$000 $000
12
Deferred tax related to items recognised in OCI during in the year:
13
Net (gain)/loss on revaluation of cash flow hedges 219 (9)
Unrealised (gain)/loss on AFS financial assets 18 (1)
Directors’ report
14
Net gain on revaluation of office properties in Australia (254) —
Net gain on hedge of net investment (83) —
15
Net loss/(gain) on actuarial gains and losses (112) 116
16
Deferred tax charged to OCI (212) 106
17
Commentary
18
Deferred taxes related to the revaluation of office properties in Australia have been at the tax rate of the jurisdiction in
which they are located (30% of the total revaluation of $846,000, see Note 16).
19
The tax effect of cash flow hedge instruments reflects the change in balances from 2016 to 2017 only for the effective
portion (ineffectiveness has been accounted for directly in profit or loss). The reconciliation of these changes to the notes
20
is difficult to directly observe. For illustrative purposes, a reconciliation is provided below (please note that the net change
is also included in the statement of comprehensive income):
21
Assets Liabilities
2017 2016 2017 2016
22
$000 $000 $000 $000
Foreign exchange forward contract assets (Note
23
20.1) 252 153 — —
Foreign exchange forward contract liabilities
24
(Note 20.2) — — 170 254
Commodity forward contract (Note 20.2) — — 980 —
25
Ineffectiveness of commodity contract (Note — — (65) —
12.2)
Total balances 252 153 1,085 254 26
Net variation in OCI 99 831
27
Net increase of cash flow hedge balances during 732

2017 (net liability and net loss)
28
Notes
Tax rate 30%

jhj
Tax gain 220

29
30
31
32
33
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34
35
36

37
1
2
Contents
3
14. Income tax (continued)
4
Reconciliation of tax expense and the accounting profit multiplied by Australia’s domestic tax rate for 2016 and IAS 12.81 (c)(i)
2017:
5
2017 2016
6
$000 $000
7
Accounting profit before tax from continuing operations 11,108 8,880
Profit/(loss) before tax from a discontinued operation 213 (193)
8
Introduction
Accounting profit before income tax 11,321 8,687
At Australia’s statutory income tax rate of 30% (2016: 30%) 3,396 2,606
9
Adjustments in respect of current income tax of previous years (18) (44)
10
Government grants exempted from tax (316) (162)
Utilisation of previously unrecognised tax losses (231) (89)
11
Share of results of associates and joint ventures (201) (191)
Non-deductible expenses for tax purposes:
12
Impairment of goodwill 60 —
13
Contingent consideration remeasurement (Note 7) 107 —
Other non-deductible expenses 10 —
Directors’ report
14
Effect of higher tax rates in the United States 284 108
15
At the effective income tax rate of 27% (2016: 26%) 3,091 2,228
Income tax expense reported in the statement of profit or loss 3,098 2,233
16
Income tax attributable to a discontinued operation (7) (5)
3,091 2,228
17
18
Commentary
The tax effects above can be reconciled using a 30% tax rate applied to the amounts in the following notes:
19
► Government grants (Note 27) upon recognition in the income statement
20
► Unrecognised tax losses using the change in the amount mentioned in Note 3 under the section headed Taxes
► Impairment of goodwill in Note 19 and contingent consideration expense in Note 7
21
22
23
24
25
26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Deferred tax
Deferred tax relates to the following:
5
6
Consolidated statement Consolidated statement
of financial position of profit or loss
2017 2016 2017 2016
7
IAS 12.81(g)(i)
$000 $000 $000 $000 IAS 12.81(g)(ii)
8
Accelerated depreciation for tax purposes (2,762) (811) 442 (157)
Introduction
Revaluations of investment properties to fair value (1,330) (1,422) (92) (90)
9
Revaluations of office properties in Australia to fair
value (254) — — —
10
Revaluations of AFS financial assets to fair value 17 (1) — —
11
Revaluation of a hedged loan to fair value (11) — 11 —
Net gain on hedge of a net investment (83) — — —
12
Share based payments 51 100 49 —
13
Post-employment medical benefits 102 59 (43) (33)
Pension 813 835 (90) 55
Directors’ report
14
Revaluation of an interest rate swap (fair value hedge)
to fair value 11 — (11) —
15
Revaluation of cash flow hedges 250 31 — —
Impairment on AFS unquoted debt instruments 27 — (27) —
16
Deferred revenue on customer loyalty programmes 72 65 (7) (12)
17
Convertible preference shares 91 55 (36) (31)
Losses available for offsetting against future
18
taxable income 383 365 (18) (44)
Deferred tax expense/(benefit) 178 (312)
19
Net deferred tax assets/(liabilities) (2,623) (724)
20
Reflected in the statement of financial position as
follows:
21
Deferred tax assets 383 365
Deferred tax liabilities:
22
Continuing operations (2,931) (1,089)
23
Discontinued operations (75) —
Deferred tax liabilities, net (2,623) (724)
24
Reconciliation of deferred tax liabilities, net 2017 2016
25
$000 $000
As of 1 January (724) (762) 26
Tax income/(expense) during the period
27
recognised in profit or loss (178) 312

Tax income/(expense) during the period
28
recognised in OCI (212) 106

Notes
jhj
Discontinued operation 2 —
29
Deferred taxes acquired in business combinations (1,511) (380)

30
As at 31 December (2,623) (724)

31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Commentary
Although not specifically required by IAS 1 or IAS 12 Income Taxes, the reconciliation of the net deferred tax liability may
5
be helpful.
As in some other disclosures included in this note, the cross reference with the amounts from which they are derived is
6
not direct. Nevertheless, the reasonableness of each balance may be obtained from the respective notes by applying a
30% tax rate. The exception being the accelerated depreciation for tax purposes whose change during the year is mainly
7
explained by the acquisition of Extinguishers Limited (see Note 7).
8
Introduction
The Group has tax losses that arose in Australia of $427,000 (2016: $1,198,000) that are available indefinitely IAS 12.81(e)
for offsetting against future taxable profits of the companies in which the losses arose.
9
Deferred tax assets have not been recognised in respect of these losses as they may not be used to offset IAS 12.37
10
IAS 12.81(e)
taxable profits elsewhere in the Group, they have arisen in subsidiaries that have been loss-making for some
time, and there are no other tax planning opportunities or other evidence of recoverability in the near future. If
11
the Group were able to recognise all unrecognised deferred tax assets, the profit would increase by $128,000
(2016: $359,400).
12
The temporary differences associated with investments in the Group’s subsidiaries, associate and joint venture,
13
for which a deferred tax liability has not been recognised in the periods presented, aggregate to $1,745,000
(2016: $1,458,000). The Group has determined that the undistributed profits of its subsidiaries, joint venture
Directors’ report
IAS 12.81(f)
14
or associate will not be distributed in the foreseeable future. The Group has an agreement with its associate that
the profits of the associate will not be distributed until it obtains the consent of the Group. The Group does not
15
anticipate giving such consent at the reporting date. Furthermore, the Group’s joint venture will not distribute
its profits until it obtains the consent of all venture partners.
16
There are no income tax consequences attached to the payment of dividends in either 2017 or 2016 by the IAS 12.82A
17
Group to its shareholders.
18
Commentary
IAS 1.61 requires an entity to separately disclose the line items that are included in the amounts expected to be recovered
19
or settled within 12 months and more than 12 months after the reporting date. Deferred tax assets and liabilities may be
considered one example, for items combining such amounts. However, IAS 1.56, in contrast, does not permit presentation
20
of those items as current, which suggests that providing the disclosures required by IAS 1.61 does not apply to deferred
tax assets and liabilities.
21
Tax consolidation
22
(i) Members of the tax consolidated group and the tax sharing arrangement AASB Int 1052.16(a)
AASB Int 1052.16(c)
23
Good Group (Australia) Limited and its 100% owned Australian resident subsidiaries formed a tax AASB Int 1052.53
consolidated group with effect from 1 July 2005. Good Group (Australia) Limited is the head entity of the
24
tax consolidated group. Members of the tax consolidated group have entered into a tax sharing agreement
that provides for the allocation of income tax liabilities between the entities should the head entity default
25
on its tax payment obligations. No amounts have been recognised in the financial statements in respect of
this agreement on the basis that the possibility of default is remote.
26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
(ii) Tax effect accounting by members of the tax consolidated group
Measurement method adopted under AASB Interpretation 1052 Tax Consolidation Accounting
5
AASB Int 1052.8
The head entity and the controlled entities in the tax consolidated group continue to account for their own
AASB Int 1052.9(c)
current and deferred tax amounts. The Group has applied the group allocation approach in determining the
6
AASB Int 1052.16(b)
appropriate amount of current taxes and deferred taxes to allocate to members of the tax consolidated
group. The current and deferred tax amounts are measured in a systematic manner that is consistent with
7
the broad principles in AASB 112 Income Taxes. The nature of the tax funding agreement is discussed
8
further below.
Introduction
In addition to its own current and deferred tax amounts, the head entity also recognises current tax
9
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits
assumed from controlled entities in the tax consolidated group.
10
Nature of the tax funding agreement
11
Members of the tax consolidated group have entered into a tax funding agreement. Under the funding
AASB Int 1052.16(c)
agreement, the funding of tax within the Group is based on accounting profit, which is not an acceptable
12
method of allocation under AASB Interpretation 1052. The tax funding agreement requires payments
to/from the head entity to be recognised via an inter-entity receivable (payable) which is at call. To the
13
extent that there is a difference between the amount charged under the tax funding agreement and the
Directors’ report
allocation under AASB Interpretation 1052, the head entity accounts for these as equity transactions with
14
the subsidiaries.
15
The amounts receivable or payable under the tax funding agreement are due upon receipt of the funding AASB Int 1052.52
advice from the head entity, which is issued as soon as practicable after the end of each financial year.
16
The head entity may also require payment of interim funding amounts to assist with its obligations to pay
tax instalments.
17
(iii) Tax related contingencies
18
All tax related contingencies are disclosed in Note 32.
19
20
21
22
23
24
25
26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
15. Earnings per share (EPS)
4
Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by
the weighted average number of ordinary shares outstanding during the year.
5
Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent (after
adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares
6
outstanding during the year plus the weighted average number of ordinary shares that would be issued on
7
conversion of all the dilutive potential ordinary shares into ordinary shares.
The following table reflects the income and share data used in the basic and diluted EPS computations:
8
Introduction
2017 2016
9
$000 $000
10
Profit attributable to ordinary equity holders of the parent:
Continuing operations 7,722 6,408
11
Discontinued operations 220 (188)
Profit attributable to ordinary equity holders of the parent
12
for basic earnings 7,942 6,220 IAS 33.70(a)
Interest on convertible preference shares
13
247 238
Profit attributable to ordinary equity holders of the parent adjusted
Directors’ report
14
for the effect of dilution 8,189 6,458 IAS 33.70(a)
15
2017 2016
Thousands Thousands IAS 33.70(b)
16
Weighted average number of ordinary shares for basic EPS* 20,797 19,064
Effects of dilution from:
17
Share options 112 177
Convertible preference shares 833 833
18
Weighted average number of ordinary shares adjusted for the effect
IAS 33.70(b)
21,742 20,074
19
of dilution*
20
IAS 33.70(d)
* The weighted average number of shares takes into account the weighted average effect of changes in treasury shares during
the year.
21
There have been no other transactions involving ordinary shares or potential ordinary shares between the
reporting date and the date of authorisation of these financial statements.
22
To calculate the EPS for discontinued operations (Note 13), the weighted average number of ordinary shares
23
for both the basic and diluted EPS is as per the table above. The following table provides the profit/(loss)
amount used:
24
2017 2016
25
$000 $000
Profit/(loss) attributable to ordinary equity holders of the parent from
220 (188) 26
discontinued operations for the basic and diluted EPS calculations
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
16. Property, plant and equipment
4
Office Const-
Freehold properties ruction Plant and Other
5
land and in in machi- equip- IAS 1.78(a)
buildings Australia progress nery ment Total IAS 16.73(e)
6
$000 $000 $000 $000 $000 IAS 16.73(d)
Cost or valuation
7
At 1 January 2016 10,765 1,122 — 17,657 5,500 35,044
Additions 1,587 — — 6,048 150 7,785
8
Introduction
Acquisition of a subsidiary (Note 7) 1,280 — — — — 1,280
Disposals (3,381) — — (49) — (3,430)
9
Exchange differences 10 — — 26 — 36
10
At 31 December 2016 10,261 1,122 — 23,682 5,650 40,715
Additions 1,612 — 4,500 4,403 190 10,705
11
Acquisition of a subsidiary (Note 7) 2,897 — — 4,145 — 7,042
Disposals — — — (4,908) — (4,908)
12
Assets held for sale (Note 13) (4,144) — — (3,980) — (8,124)
Revaluation adjustment — 846 — — — 846 IFRS13.93(e)(ii)
13
Transfer* — (219) — — — (219) IAS 16.35(b)
Directors’ report
14
At 31 December 2017 10,656 1,749 4,500 23,421 5,840 46,166
15
Depreciation and impairment
16
At 1 January 2014 4,160 99 — 11,044 900 16,104
Depreciation charge for the year 354 3 — 2,278 450 3,082
17
Impairment (Note 19) — — — 301 — 301
Disposals (3,069) — — (49) — (3,118)
18
At 31 December 2016 1,450 102 — 13,586 1,350 16,386
19
Depreciation charge for the year** 500 117 — 2,827 470 3,797
Disposals — — — (3,450) — (3,450)
20
Assets held for sale (Note 13) (1,283) — — (2,094) — (3,377)
Transfer* (102) (219) — — — (219)
21
22
At 31 December 2017 585 — — 10,899 1,820 13,187
23
Net book value
At 31 December 2017 11,937 1,749 4,500 12,522 4,020 32,979
24
At 31 December 2016 9,933 1,020 — 10,096 4,300 24,329
25
* This transfer relates to the accumulated depreciation as at the revaluation date that was eliminated against the gross
carrying amount of the revalued asset.
26
** Depreciation for the year excludes an impairment loss of $110,000 (see Note 13).
27
In 2016, the impairment loss of $301,000 represented the write-down of certain property, plant and equipment IAS 36.126(a)
IAS 36.130
in the fire prevention segment to the recoverable amount as a result of technological obsolescence. This was
28
Notes
recognised in the statement of profit or loss as cost of sales. The recoverable amount of $5,679,000 as at
jhj
29
31 December 2016 was based on value in use and was determined at the level of the CGU. The CGU consisted of
the Australian-based assets of Sprinklers Limited, a subsidiary. In determining value in use for the CGU, the cash
30
flows were discounted at a rate of 12.4% on a pre-tax basis.
Capitalised borrowing costs

31
The Group started the construction of a new fire safety facility in February 2017. This project is expected to IAS 23.26(a)
IAS 23.26(b)
be completed in February 2018. The carrying amount of the fire safety facility at 31 December 2017 was
32
$3,000,000 (2016: Nil). The fire safety facility is financed by a third party in a common arrangement.
33
The amount of borrowing costs capitalised during the year ended 31 December 2017 was $303,000
(2016: Nil). The rate used to determine the amount of borrowing costs eligible for capitalisation was 11%,
Appendices
34
which is the EIR of the specific borrowing.

35
36

37
1
2
Contents
3
16. Property, plant and equipment (continued)
4
Finance leases
The carrying value of plant and machinery held under finance leases and hire purchase contracts at IAS 17.31(a)
5
IAS 7.43
31 December 2017 was $1,178,000 (2016: $1,486,000). Additions during the year include $45,000
(2016: $54,000) of plant and machinery under finance leases and hire purchase contracts. Leased assets and
6
assets under hire purchase contracts are pledged as security for the related finance lease and hire purchase IAS 16.74(a)
liabilities.
7
Land and buildings
8
Land and buildings with a carrying amount of $7,400,000 (2016: $5,000,000) are subject to a first charge to IAS 16.74(a)
Introduction
secure two of the Group’s bank loans.
9
Assets under construction
Included in property, plant and equipment at 31 December 2017 was an amount of $1,500,000 (2016: Nil) IAS 16.74(b)
10
relating to expenditure for a plant in the course of construction.
11
Equipment contributed by customers
In 2017, the Group recognised $190,000 (2016: $150,000) as revenue and equipment contributed by its IFRIC 18.11
12
IAS 16.73(a)
customers to be utilised in the production process. The initial gross amount was estimated at fair value by
reference to the market price of these assets on the date on which control is obtained.
13
Revaluation of office properties in Australia
Directors’ report
14
Management determined that the office properties in Australia constitute a separate class of property, plant IFRS 13.94
and equipment, based on the nature, characteristics and risks of the property.
15
Fair value of the properties was determined using the market comparable method. The valuations have been IAS 16.77(b)
IFRS 13.93(d)
16
performed by the valuer and are based on proprietary databases of active market prices of transactions for
properties of similar nature, location and condition. As at the dates of revaluation, on 1 January and 31
17
December 2017, the properties’ fair values are based on valuations performed by Chartered Surveyors & Co.,
an accredited independent valuer who has valuation experience for similar office properties in Australia since
18
2011. A net gain from the revaluation of the office properties in Australia of $846,000 in 2017 was recognised
in OCI.
19
Fair value measurement disclosures for the revalued office properties are provided in Note 11.
20
Significant unobservable valuation input: Range IFRS 13.93(h)(i)
Price per square metre $325 - $350
21
Significant increases (decreases) in estimated price per square metre in isolation would result in a significantly
22
higher (lower) fair value on a linear basis.
23
Reconciliation of fair value
$000
24
Carrying amount as at 1 January 2017* 1,020
25
Level 3 revaluation gain recognised due to change in accounting policy to revaluation model as
at 1 January 2017 1,210
Carrying amount and fair value as at 1 January 2017 2,230 26
Depreciation for the year (117)
27
Level 3 revaluation loss on revaluation as at 31 December 2017 (364)

Carrying amount and fair value as at 31 December 2017 1,749
28
Notes
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* The Group changed the accounting policy with respect to the measurement of office properties in Australia as
29
at 1 January 2017 on a prospective basis. Therefore, the fair value of the office properties in Australia was
not measured at 1 January 2016.
30
If the office properties in Australia were measured using the cost model, the carrying amounts would be, as IAS 16.77(a),(e)
31
follows:
32
2017
$000
33
Cost 1,122
Appendices
Accumulated depreciation and impairment (105)

34
Net carrying amount 1,017

35
36

37
1
2
Contents
3
Commentary
4
The Group has changed its accounting policy to measure the office properties in Australia at the revalued amount in accordance with
IAS 16. Under IAS 16.36, if an item of property, plant and equipment is revalued, the entire class of property, plant and equipment to
5
which that asset belongs should be revalued. IAS 16.37 defines a class of property, plant and equipment as a grouping of assets of
similar nature and use in an entity’s operations. The Group determined that office properties in Australia constitute separate class of
6
property, plant and equipment, based on their nature, characteristics and risks.
Under IAS 16.31, the revalued amount of an item of property, plant and equipment is its fair value at the date of revaluation less any
7
subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations shall be made with sufficient
regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end
8
of reporting period. Due to significant volatility of the fair value of office properties in Australia during 2017 the Group performed a
Introduction
revaluation as at 31 December 2017.
9
Fair value was determined using the market comparable method. This means that valuations performed by the valuer are based on prices
of transactions involving properties of a similar nature, location and condition. Since this valuation was performed using a significant
10
non-observable input, the fair value was classified as a Level 3 measurement.
Since revaluations of property, plant and equipment in accordance with IAS 16 represent a recurring fair value measurement, the Group
11
disclosed the information required by IFRS 13.93 for recurring fair value measurements. The disclosures provided are based on
Example 17 from the Illustrative examples to IFRS 13 Fair Value Measurement. It is assumed in these illustrative financial statements
12
that only one unobservable input, price per square metre, was used by the valuers. In practice, the market comparable method may
require the use more than one unobservable input. In such cases, the disclosures would cover the additional significant unobservable
13
inputs,
Directors’ report
14
IFRS 13.99 requires an entity to present the quantitative disclosures of IFRS 13 in a tabular format, unless another format is more
appropriate. The Group included the quantitative disclosures in a tabular format.
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
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Contents
3
17. Investment properties
4
2017 2016 IAS 40.76
$000 $000
5
Opening balance at 1 January 7,983 7,091
Additions (subsequent expenditure)
6
1,216 1,192
Net loss from fair value remeasurement (306) (300)
7
Closing balance at 31 December 8,893 7,983
8
The Group’s investment properties consist of two commercial properties in Australia. Management determined
Introduction
that the investment properties consist of two classes of assets − office and retail − based on the nature,
9
characteristics and risks of each property.
10
As at 31 December 2017 and 2016, the fair values of the properties are based on valuations performed by
IAS 40.75(e)
Chartered Surveyors & Co., an accredited independent valuer. Chartered Surveyors & Co. is a specialist in
11
valuing these types of investment properties. A valuation model in accordance with that recommended by the
International Valuation Standards Committee has been applied.
12
2017 2016 IAS 40.75(f)
13
$000 $000
Directors’ report
Rental income derived from investment properties 1,404 1,377
14
Direct operating expenses (including repairs and maintenance) generating
15
rental income (included in cost of sales) (101) (353) IAS 40.75(f)(ii)
Direct operating expenses (including repairs and maintenance) that did not
16
generate rental income (included in cost of sales) (37) (127) IAS 40.75(f)(iii)
Profit arising from investment properties carried at fair value 1,266 897
17
The Group has no restrictions on the realisability of its investment properties and no contractual obligations to IAS 40.75(g)
18
IAS 40.75(h)
purchase, construct or develop investment properties or for repairs, maintenance and enhancements.
19
Fair value hierarchy disclosures for investment properties are in Note 11.
Reconciliation of fair value:
20
Investment properties
21
Office Retail
properties properties
22
$000 $000
As at 1 January 2016 3,397 3,694
23
Remeasurement recognised in profit or loss (144) (156) IFRS 13.93(e)(i)
24
Purchases 571 621 IFRS 13.93(e)(iii)
As at 31 December 2016 3,824 4,159
25
Remeasurement recognised in profit or loss (in other operating expenses) (147) (159) IFRS 13.93(f)
Purchases 582 634

26
As at 31 December 2017 4,260 4,633
27
Description of valuation techniques used and key inputs to valuation of investment properties:
28
Valuation IFRS 13.93(d)

Notes
technique Significant unobservable inputs Range (weighted average)

jhj
29
2017 2016
Office DCF method Estimated rental value per sqm per month $10 - $25 ($20) $9 - $23 ($16)
30
properties (refer below) Rent growth p.a. 1.75% 1.76%

Long-term vacancy rate 3% - 10% (5%) 3% - 9% (4%)
31
Discount rate 6.5% 6.3%

32
Retail DCF method Estimated rental value per sqm per month $15 - $35 ($22) $14 - $33 ($21)
properties (refer below) Rent growth p.a. 1% 1.2%
33
Long-term vacancy rate 4% - 12% (7%) 4% - 13% (8.5%)

Discount rate 6.5% 6.3%
Appendices
34
35
36

37
1
2
Contents
3
17. Investment properties (continued)
4
Using the DCF method, fair value is estimated using assumptions regarding the benefits and liabilities of
ownership over the asset’s life including an exit or terminal value. This method involves the projection of a
5
series of cash flows on a real property interest. To this projected cash flow series, a market-derived discount
rate is applied to establish the present value of the income stream associated with the asset. The exit yield is
6
normally separately determined and differs from the discount rate.
7
The duration of the cash flows and the specific timing of inflows and outflows are determined by events such as
rent reviews, lease renewal and related re-letting, redevelopment, or refurbishment. The appropriate duration is
8
typically driven by market behaviour that is a characteristic of the class of real property. Periodic cash flow is
Introduction
typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives,
9
maintenance cost, agent and commission costs and other operating and management expenses. The series of
periodic net operating income, along with an estimate of the terminal value anticipated at the end of the
10
projection period, is then discounted.
11
Significant increases (decreases) in estimated rental value and rent growth per annum in isolation would result
in a significantly higher (lower) fair value of the properties. Significant increases (decreases) in the long-term
12
vacancy rate and discount rate (and exit yield) in isolation would result in a significantly lower (higher) fair
value.
13
IFRS13.93(h)(i)
Generally, a change in the assumption made for the estimated rental value is accompanied by a directionally
Directors’ report
similar change in the rent growth per annum and discount rate (and exit yield), and an opposite change in the
14
long term vacancy rate.
15
Commentary
16
The Group has elected to value investment properties at fair value in accordance with IAS 40.
If, for recurring and non-recurring fair value measurements, the highest and best use of a non-financial asset differs from
17
its current use, an entity must disclose that fact and the reason why the asset is being used in a manner that differs from
its highest and best use (IFRS 13.93(i)). The Group has assessed that the highest and best use of its properties does not
18
differ from their current use. An example of what might be disclosed if the highest and best use is determined to be other
than its current use is, as follows:
19
► The Group has determined that the highest and best use of the property used for office space is its current use.
► The highest and best use of the retail property at the measurement date would be to convert the property for
20
residential use. For strategic reasons, the property is not being used in this manner.
In addition to the disclosure requirements in IFRS 13, IAS 1 requires disclosure of the significant judgements management
21
has made about the future and sources of estimation uncertainty. IAS 1.129(b) includes, as an example of such a
disclosure, the sensitivity of carrying amounts to the methods, assumptions and estimates underlying their calculation,
22
including the reasons for the sensitivity. As such, information beyond that required by IFRS 13.93(h) may be needed in
some circumstances.
23
IAS 40 permits investment properties to be carried at historical cost less accumulated depreciation and any accumulated
impairment losses. If the Group accounted for investment properties at cost, information about the cost basis and
24
depreciation rates (similar to the requirement under IAS 16 for property, plant and equipment) would be required.
IAS 40.79(e) requires disclosure of fair value of the properties. For the purpose of this disclosure, the fair value is
25
required to be determined in accordance with IFRS 13. Also, in addition to the disclosures under IAS 40, IFRS 13.97
requires disclosure of:
26
► The level at which fair value measurement is categorised i.e., Level 1, Level 2 or Level 3
27
► A description of valuation technique and inputs, for Level 2 or Level 3 fair value measurement
► If the highest and best use differs from the current use of the asset, that fact and the reason
28
IFRS 13.99 requires an entity to present the quantitative disclosures of IFRS 13 in a tabular format, unless another
Notes
jhj
format is more appropriate. The Group included the quantitative disclosures in tabular format, above.
29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
18. Intangible assets
4
Patents and Licences
licences with
5
Development with definite indefinite
costs useful life useful life Goodwill Total IAS 38.118(c)
6
$000 $000 $000 $000 $000 IAS 38.118(e)
Cost
7
At 1 January 2016 1,585 395 240 119 2,339
Additions – internally developed 390 — — — 390
8
Acquisition of a subsidiary (restated*) — — — 131 131
Introduction
At 31 December 2016 1,975 395 240 250 2,860
9
Additions – internally developed 587 — — — 587
10
Acquisition of a subsidiary — 30 1,170 2,231 3,431
Assets held for sale — (138) — — (138)
11
At 31 December 2017 2,562 287 1,410 2,481 6,740
12
Amortisation and impairment
At 1 January 2016 165 60 — — 225
13
Amortisation 124 50 — — 174
Directors’ report
14
At 31 December 2016 289 110 — — 399
Amortisation 95 30 — — 125
15
Impairment (Note 19) — — — 200 200
Assets held for sale — (3) — — (3)
16
At 31 December 2017 384 137 — 200 721
17
Net book value
At 31 December 2017 2,178 150 1,410 2,281 6,019
18
At 31 December 2016 (restated*) 1,686 285 240 250 2,461
19
* The amount of goodwill is restated and does not correspond to the figures in 2016 financial statements since adjustments
to the final valuation of acquisition of Lightbulbs Limited were made, as detailed in Note 7.
20
There are two fire prevention research and development projects: one is to improve fire detection and sprinkler
21
systems and the other is related to fire-retardant fabrics for motor vehicles and aircraft.
Acquisition during the year
22
Patents and licences include intangible assets acquired through business combinations. The patents have been
granted for a minimum of 10 years by the relevant government agency, while licences have been acquired
23
with the option to renew at the end of the period at little or no cost to the Group. Previous licences acquired
have been renewed and have allowed the Group to determine that these assets have indefinite useful lives.
24
As at 31 December 2017, these assets were tested for impairment (Note 19).
19. Goodwill and intangible assets with indefinite lives 25

26
For impairment testing, goodwill acquired through business combinations and licences with indefinite useful
27
lives are allocated to the electronics and fire prevention equipment CGUs, which are also operating and
reportable segments.
28
Notes
Carrying amount of goodwill and licences allocated to each of the CGUs:

jhj
29
Fire prevention
30
Electronics unit equipment unit Total

2017 2016 2017 2016 2017 2016
31
$000 $000 $000 $000 $000 $000

Goodwill 50 250 2,231 — 2,281 250 IAS 36.134(a)
32
Licences with indefinite useful lives 360 — 1,050 240 1,410 240 IAS 36.134(b)
33
Appendices
34
35
36

37
1
2
Contents
3
19. Goodwill and intangible assets with indefinite lives (continued)
4
The Group performed its annual impairment test in December 2017 and 2016. The Group considers the
relationship between its market capitalisation and its book value, among other factors, when reviewing for
5
indicators of impairment. As at 31 December 2017, the market capitalisation of the Group was below the book
value of its equity, indicating a potential impairment of goodwill and impairment of the assets of the operating
6
segments. In addition, the overall decline in construction and development activities around the world, as well
as the ongoing economic uncertainty, have led to a decreased demand in both the fire prevention equipment
7
and electronics CGUs.
8
Electronics CGU
Introduction
The recoverable amount of the electronics CGU, $37,562,000 as at 31 December 2017, has been determined IAS 36.130(e)
IAS 36.134 (d)(iii)
9
based on a value in use calculation using cash flow projections from financial budgets approved by senior IAS 36.134 (d)(iv)
management covering a five-year period. The projected cash flows have been updated to reflect the decreased IAS 36.134 (d)(v)
10
demand for products and services. The pre-tax discount rate applied to cash flow projections is 15.5% (2016: IAS 36.126(a)
12.1%) and cash flows beyond the five-year period are extrapolated using a 3.0% growth rate (2016: 5.0%) that
11
is the same as the long-term average growth rate for the electronics industry. It was concluded that the fair
value less costs of disposal did not exceed the value in use. As a result of this analysis, management has
12
recognised an impairment charge of $200,000 in the current year against goodwill with a carrying amount of
$250,000 as at 31 December 2016. The impairment charge is recorded within administrative expenses in the
13
statement of profit or loss.
Directors’ report
14
Fire prevention equipment CGU
The recoverable amount of the fire prevention equipment CGU is also determined based on a value in use IAS 36.130(e)
15
IAS 36.134(c)
calculation using cash flow projections from financial budgets approved by senior management covering a five- IAS 36.134 (d)(iii)
year period. The projected cash flows have been updated to reflect the decreased demand for products and IAS 36.134 (d)(iv)
16
services. The pre-tax discount rate applied to the cash flow projections is 14.4% (2016: 12.8%). The growth rate IAS 36.134 (d)(v)
used to extrapolate the cash flows of the unit beyond the five-year period is 4.1% (2016: 3.8%). This growth rate
17
exceeds the industry average growth rate by 0.75%. Management of the fire prevention equipment unit believes
this growth rate is justified based on the acquisition of Extinguishers Limited. This acquisition has resulted in the
18
Group obtaining control of an industry patent, thereby preventing other entities from manufacturing a
specialised product for a period of 10 years. The Group has an option to renew the patent after the 10 years
19
have expired. As a result of the analysis, there is headroom of $5,674,000 and management did not identify an IAS 36.134(f)(i)
20
impairment for this CGU.
Key assumptions used in value in use calculations and sensitivity to changes in assumptions
21
The calculation of value in use for both electronics and fire prevention equipment units is most sensitive to the IAS 36.134 (d)(i)
IAS 36.134 (d)(ii)
22
following assumptions: IAS 36.134(f)
► Gross margins IAS 36.134 (f)(ii)
23
IAS 36.134 (f)(iii)
► Discount rates
► Raw materials price inflation
24
► Market share during the forecast period
► Growth rate estimates used to extrapolate cash flows beyond the forecast period
25
Gross margins  Gross margins are based on average values achieved in the three years preceding the beginning
of the budget period. The gross margins for the electronics CGU and the fire prevention equipment CGU were 26
21.17% and 26.03%, respectively These are increased over the budget period for anticipated efficiency
27
improvements. An increase of 1.5% per annum was applied for the electronics unit and 2% per annum for the
fire prevention equipment unit.
28
Notes
Decreased demand can lead to a decline in the gross margin. A decrease in the gross margin by 1.0% would
jhj
29
result in a further impairment in the electronics unit. A decrease in the gross margin by 5.0% would result in
impairment in the fire prevention equipment unit.
30
Discount rates  Discount rates represent the current market assessment of the risks specific to each CGU,
taking into consideration the time value of money and individual risks of the underlying assets that have not been
31
incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of
the Group and its operating segments and is derived from its weighted average cost of capital (WACC). The
32
WACC takes into account both debt and equity. The cost of equity is derived from the expected return on
investment by the Group’s investors. The cost of debt is based on the interest-bearing borrowings the Group is
33
obliged to service. Segment-specific risk is incorporated by applying individual beta factors. The beta factors are
Appendices
34
evaluated annually based on publicly available market data. Adjustments to the discount rate are made to factor
in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
35
36

37
1
2
Contents
3
19. Goodwill and intangible assets with indefinite lives (continued)
4
A rise in the pre-tax discount rate to 16.0% (i.e. +0.5%) in the electronics unit would result in a further
impairment. A rise in the pre-tax discount rate to 15.6% (i.e. +1.2%) in the fire prevention equipment unit would
5
result in impairment.
Raw materials price inflation Estimates are obtained from published indices for the countries from which
6
materials are sourced, as well as data relating to specific commodities. Forecast figures are used if data is
7
publicly available (principally for Australia and the United States), otherwise past actual raw material price
movements are used as an indicator of future price movements.
8
Introduction
Management has considered the possibility of greater-than-forecast increases in raw material price inflation.
This may occur if anticipated regulatory changes result in an increase in demand that cannot be met by
9
suppliers. Forecast price inflation lies within a range of 1.9% to 2.6% for the electronics unit and 2.1% to 4.5%
for the fire prevention equipment unit, depending on the country from which materials are purchased. If prices
10
of raw materials increase on average by 0.5% more than the forecast price inflation, the Group will have a
11
further impairment.
Market share assumptions  When using industry data for growth rates (as noted below), these assumptions are
12
important because management assesses how the unit’s position, relative to its competitors, might change over
the forecast period. Management expects the Group’s share of the electronics market (20%) to be stable over
13
the forecast period. Management expects the Group’s position in the fire prevention equipment market relative
Directors’ report
to its competitors to strengthen following the acquisition of Extinguishers Limited. The Group’s market shares in
14
the fire prevention equipment market is currently 37%.
15
Although management expects the Group’s market share of the electronics market to be stable over the
forecast period, a decline in the market share by 8% would result in a further impairment in the electronics unit.
16
Similarly, a decline in market share in the fire prevention equipment market by 20% would result in impairment
in the fire prevention equipment unit.
17
Growth rate estimates  Rates are based on published industry research. For the reasons explained above, the
18
long-term rate used to extrapolate the budget for the fire prevention equipment unit includes an adjustment on
account of the acquisition of a significant industry patent.
19
Management recognises that the speed of technological change and the possibility of new entrants can have a
20
significant impact on growth rate assumptions. The effect of new entrants is not expected to have an adverse
impact on the forecasts, but could yield a reasonably possible alternative to the estimated long-term growth
21
rate of 5.2% for the electronics unit and 8.4% for the fire prevention equipment unit. A reduction by 0.8% in the
long-term growth rate in the electronics unit would result in a further impairment. For the fire prevention
22
equipment unit, a reduction by 0.3% in the long-term growth rate would result in impairment.
Commentary
23
The Group has determined recoverable amounts of its cash generating units (CGUs) based on value in use under IAS 36. If
24
the recoverable amounts are determined using fair value less costs of disposal, IAS 36.134(e) requires disclosure of the
valuation technique(s) and other information including: the key assumptions used; a description of management’s
25
approach to each key assumption; the level of fair value hierarchy and the reason(s) for changing valuation techniques, if
there is any change. Furthermore, if fair value less cost of disposal is determined using discounted cash flow projections,
additional information such as the period of cash flow projections, growth rate used to extrapolate cash flow projections 26
and the discount rate(s) applied to the cash flow projections are required to be disclosed. An entity is not required to
27
provide disclosures required under IFRS 13, these disclosures under IAS 36.134(e) are similar to those under IFRS 13.
IAS 36.134(d)(i) requires disclosure of key assumptions made for each CGU for which the carrying amount of goodwill or
28
intangible assets with indefinite useful lives allocated is significant in comparison with the entity’s total carrying amount of
Notes
goodwill or intangible assets with indefinite useful lives. While the disclosures above have been provided for illustrative
jhj
29
purposes, companies need to evaluate the significance of each assumption used for the purpose of this disclosure.
IAS 36.134(f) requires disclosures of sensitivity analysis for each CGU for which the carrying amount of goodwill or
30
intangible assets with indefinite useful lives allocated to that CGU is significant in comparison with the entity’s total
carrying amount of goodwill or intangible assets with indefinite useful lives. These disclosures are made if a reasonably
31
possible change in a key assumption used to determine the CGU’s recoverable amount would cause the CGU’s carrying
amount to exceed its recoverable amount. The Group has made these disclosures for all the key assumptions for the
32
electronics unit, since there is an impairment charge during the year and the carrying amount equals recoverable amount,
and for the fire prevention equipment unit, as it is believed that a reasonably possible change in the key assumptions may
33
cause impairment. Entities need to also take into account the consequential effect of a change in one assumption on other
assumptions, as part of the sensitivity analyses when determining the point at which the recoverable amount equals the
Appendices
34
carrying amount (IAS 36.134(f)(iii)). The Group has considered this in the disclosures herein.
35
36

37
1
2
Contents
3
20. Financial assets and financial liabilities
4
20.1 Financial assets
5
IFRS 7.6
2017 2016 IFRS 7.8
$000 $000 IFRS 39.9
6
Derivatives not designated as hedging instruments
Foreign exchange forward contracts 640 —
7
Embedded derivatives 210 —
8
Introduction
Derivatives designated as hedging instruments
9
Foreign exchange forward contracts 252 153
10
AFS financial assets at fair value through OCI
Unquoted equity shares 1,038 898
11
Quoted equity shares 337 300
12
Quoted debt securities 612 600
Total financial instruments at fair value 3,089 1,951
13
Financial assets at amortised cost
Directors’ report
14
Trade and other receivables (Note 22) 25,672 22,290
Loan notes 3,674 1,685
15
Loan to an associate 200 —
Loan to directors 13 8
16
Total financial assets 32,648 25,934
17
Total current 26,223 22,443
18
Total non-current 6,425 3,491
19
Derivatives designated as hedging instruments reflect the positive change in fair value of foreign exchange IFRS 7.32A
forward contracts, designated as cash flow hedges to hedge highly probable forecast sales in US dollars (USD)
20
and purchases in GB pounds sterling (GBP).
21
Derivatives not designated as hedging instruments reflect the positive change in fair value of those foreign
exchange forward contracts that are not designated in hedge relationships, but are, nevertheless, intended to
22
reduce the level of foreign currency risk for expected sales and purchases.
AFS financial assets at fair value through OCI include a significant portion of the AFS financial assets that are
23
invested in equity shares of non-listed companies. The Group holds non-controlling interests (between 2% and
24
9%) in the entities. The Group considers these investments to be strategic in nature and has entered into a
research collaboration in the power and electronics sectors. The Group also has investments in listed equity and
25
debt securities. Fair values of these quoted debt securities and equity shares are determined by reference to
published price quotations in an active market.
26
The Company identified an impairment of $
$23,000 on AFS quoted equity securities. The impairment on AFS financial assets is recognised within finance
27
costs in the statement of profit or loss.

28
Loans and receivables are non-derivative financial assets carried at amortised cost which generate a fixed
Notes
jhj
or variable interest income for the Group. The carrying value may be affected by changes in the credit risk of
29
the counterparties.
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
20. Financial assets and financial liabilities (continued)
4
20.2 Financial liabilities: Interest-bearing loans and borrowings
5
Interest rate Maturity 2017 2016 IFRS 7.7
% $000 $000
6
Current interest-bearing loans
and borrowings
7
Obligations under finance leases and hire
purchase contracts (Note 32) 7.8 2017/2018 83 51
8
Introduction
Bank overdrafts BBSW+1.0 On demand 966 2,650
$1,500,000 bank loan BBSW+0.5 1 Nov 2018 1,411 —
9
$2,200,000 bank loan BBSW+0.5 31 Mar 2017 — 74
10
Total current interest-bearing loans
and borrowings 2,460 2,775
11
Non-current interest-bearing loans
12
and borrowings
13
purchase contracts (Note 32) 7.8 2019-2020 905 943
Directors’ report
14
8% debentures 8.2 2019-2025 3,374 3,154
8.25% secured loan of USD3,600,000 *LIBOR+0.2 31 May 2023 2,246 —
15
Secured bank loan LIBOR+2.0 31 Jul 2023 3,479 3,489
$1,500,000 bank loan (2016: $1,400,000) BBSW+0.5 1 Nov 2018 — 1,357
16
$2,750,000 bank loan (2016: $2,500,000) BBSW+1.1 2020-2022 2,486 2,229
$2,200,000 bank loan BBSW+0.5 31 Mar 2021 2,078 2,078
17
$5,809,000 bank loan 7.5 1 Jan 2022 — 5,809
18
Loan from a third-party investor in Fire
Equipment Test Lab Limited 11.0 2020 3,000 —
19
Convertible preference shares 11.6 2022 2,778 2,644
Total non-current interest-bearing
20
loans and borrowings 20,346 21,703
21
Total interest-bearing loans
and borrowings 22,806 24,478
22
* Includes the effects of related interest rate swaps.
23
Commentary
24
IFRS 7.7 only requires disclosure of information that enables users of the financial statements to evaluate the significance
of financial instruments for its financial position and performance. As the Group has a significant amount of interest-
25
bearing loans and borrowings on its statement of financial position, it has decided to provide detailed information to the
users of the financial statements about the EIR as well as the maturity of the loans.
26
Bank overdrafts IFRS 7.7
27
The bank overdrafts are secured by a portion of the Group’s short-term deposits.
$1,500,000 bank loan

28
This loan is unsecured and is repayable in full on 1 November 2018.

Notes
jhj
29
8% debentures
The 8% debentures are repayable in equal annual instalments of $350,000 commencing on 1 January 2019.
30
8.25% secured loan

The loan is secured by a first charge over certain of the Group’s land and buildings with a carrying value of
31
$2,400,000 (2016: Nil).

32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Secured bank loan
IAS 1.73
This loan has been drawn down under a six-year multi-option facility (MOF). The loan is repayable within
5
12 months after the reporting date, but has been classified as long term because the Group expects, and has
the discretion, to exercise its rights under the MOF to refinance this funding. Such immediate replacement
6
funding is available until 31 July 2023. The total amount repayable on maturity is $3,500,000. The facility is
secured by a first charge over certain of the Group’s land and buildings, with a carrying value of $5,000,000
7
(2016: $5,000,000).
8
Introduction
The Group increased its borrowings under this loan contract by $250,000 during the reporting period.
9
This loan is repayable in two instalments of $1,250,000 due on 31 December 2020 and $1,500,000 due
on 31 December 2022.
10
11
This loan is unsecured and is repayable in full on 31 March 2021. As of 31 December 2016, $74,000 was
repayable on 31 March 2017.
12
This loan has been transferred to the net balance of the liabilities held for sale.
13
Convertible preference shares
Directors’ report
14
At 31 December 2017 and 2016, there were 2,500,000 convertible preference shares in issue. Each share has
a par value of $1 and is convertible at the option of the shareholders into ordinary shares of the parent of the
15
Group on 1 January 2019 on the basis of one ordinary share for every three preference shares held.
Any preference shares not converted will be redeemed on 31 December 2022 at a price of $1.20 per share.
16
The preference shares carry a dividend of 7% per annum, payable half-yearly in arrears on 30 June and
31 December. The dividend rights are non-cumulative. The preference shares rank ahead of the ordinary
17
shares in the event of a liquidation. The presentation of the equity portion of these shares is explained in IAS 1.79(a)(v)
Note 24 below.
18
Other financial liabilities
19
2017 2016
20
$000 $000
21
Foreign exchange forward contracts 720 —
Embedded derivatives 782 —
22
Derivatives designated as hedging instruments
23
Foreign exchange forward contracts 170 254
24
Commodity forward contracts 980 —
Interest rate swaps 35 —
25
Financial liabilities at fair value through profit or loss
Contingent consideration (Note 7) 1,072 — 26
Total financial instruments at fair value 3,759 254
27
Other financial liabilities at amortised cost, other than interest-bearing

28
loans and borrowings

Notes
jhj
Trade and other payables (Note 31) 19,444 20,730

29
Financial guarantee contracts 87 49

30
Total other financial liabilities 23,290 21,033

Total current 22,484 21,033
31
Total non-current 806 —

32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Derivatives designated as hedging instruments reflect the change in fair value of foreign exchange forward IFRS 7.32A
contracts, designated as cash flow hedges to hedge highly probable future purchases in GBP.
5
Derivatives designated as hedging instruments also include the change in fair value of commodity forward
contracts entered into during 2017. The Group is exposed to changes in the price of copper on its forecast
6
copper purchases. The forward contracts do not result in physical delivery of copper, but are designated as cash
7
flow hedges to offset the effect of price changes in copper. The Group hedges approximately 45% of its
expected copper purchases in the next reporting period. The remaining volume of copper purchases is exposed
8
to price volatility.
Introduction
Contingent consideration
9
IFRS 3.B64(g)
As part of the purchase agreement with the previous owner of Extinguishers Limited, a contingent consideration
has been agreed. This consideration is dependent on the profit before tax of Extinguishers Limited during a
10
12 month period. The fair value of the contingent consideration at the acquisition date was $714,000. The fair
11
value increased to $1,071,500 as at 31 December 2017 due to a significantly enhanced performance compared
to budget. The contingent consideration is due for final measurement and payment to the former shareholders
12
on 30 September 2018.
Commentary
13
IFRS 7 requires an entity to disclose information about rights to set off financial instruments and related arrangements
Directors’ report
14
(e.g., collateral agreements) and to provide users with information that is useful in evaluating the effect of netting
arrangements on an entity’s financial position.
15
The Group is not setting off financial instruments in accordance with IAS 32 and does not have relevant offsetting
arrangements. But if an entity has recognised financial instruments that are set off in accordance with IAS 32 or are
16
subject to an enforceable master netting arrangement or similar agreement, even if the financial instruments are not set
off in accordance with IAS 32, then the disclosures in IFRS 7.13A-13E will be required.
17
18
20.3 Hedging activities and derivatives
19
The Group uses foreign currency-denominated borrowings and foreign exchange forward contracts to manage IFRS 7.22
20
some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow
hedges and are entered into for periods consistent with foreign currency exposure of the underlying
21
transactions, generally from one to 24 months.
Cash flow hedges
22
Foreign currency risk
23
Foreign exchange forward contracts measured at fair value through OCI are designated as hedging instruments IFRS 7.23(a)
in cash flow hedges of forecast sales in US dollar and forecast purchases in GBP. These forecast transactions
24
are highly probable, and they comprise about 25% of the Group’s total expected sales in US dollars and about
65% of its total expected purchases in GBP.
25
While the Group also enters into other foreign exchange forward contracts with the intention of reducing the
foreign exchange risk of expected sales and purchases, these other contracts are not designated in hedge 26
relationships and are measured at fair value through profit or loss.
27
The foreign exchange forward contract balances vary with the level of expected foreign currency sales and
purchases and changes in foreign exchange forward rates.
28
Notes
jhj
2017 2016
29
Assets Liabilities Assets Liabilities

$000 $000 $000 $000
30
Foreign currency forward contracts

designated as hedging instruments
31
Fair value 252 (170) 153 (254)

32
The terms of the foreign currency forward contracts match the terms of the expected highly probable forecast IFRS 7.24(b)
transactions. As a result, there is no hedge ineffectiveness to be recognised in the statement of profit or loss.
33
Notional amounts are as provided in Note 20.2.

Appendices
34
35
36

37
1
2
Contents
3
4
The cash flow hedges of the expected future sales in 2017 were assessed to be highly effective and a net IFRS 7.23(c)
unrealised gain of $252,000, with a deferred tax liability of $76,000 relating to the hedging instruments, is
5
included in OCI. Comparatively, the cash flow hedges of the expected future sales in 2017 were assessed to be
highly effective and an unrealised gain of $153,000 with a deferred tax liability of $46,000 was included in OCI
6
in respect of these contracts.
7
The cash flow hedges of the expected future purchases in 2018 were assessed to be highly effective, and as IFRS 7.23(c)
at 31 December 2017, a net unrealised loss of $170,000, with a related deferred tax asset of $51,000 was
8
included in OCI in respect of these contracts. Comparatively, the cash flow hedges of the expected future
Introduction
purchases in 2017 were also assessed to be highly effective and an unrealised loss of $254,000, with a
9
deferred tax asset of $76,000, was included in OCI in respect of these contracts.
The amount removed from OCI during the year and included in the carrying amount of the hedged items as a IFRS 7.23(d)
10
IFRS 7.23(e)
basis adjustment for 2017 is detailed in Note 12.8, totalling $183,000 (2016: $33,000). The amounts retained IFRS 7.23(a)
11
in OCI at 31 December 2017 are expected to mature and affect the statement of profit or loss in 2018.
Reclassifications of gains or losses to profit or loss during the year included in OCI are shown in Note 12.8.
12
Commodity price risk
The Group purchases copper on an ongoing basis as its operating activities in the electronic division require a
13
continuous supply of copper for the production of its electronic devices. The increased volatility in copper price
Directors’ report
over the past 12 months has led to the decision to enter into commodity forward contracts.
14
These contracts, which commenced on 1 July 2017, are expected to reduce the volatility attributable to price
15
fluctuations of copper. Hedging the price volatility of forecast copper purchases is in accordance with the risk
management strategy outlined by the Board of Directors. The hedging relationships are for a period between 3
16
and 12 months, based on existing purchase agreements. The Group designated only the spot-to-spot movement
of the entire commodity purchase price as the hedged risk. The forward points of the commodity forward
17
contracts are, therefore, excluded from the hedge designation. Changes in fair value of the forward points
recognised in the statement of profit or loss in finance costs for the current year were $23,000 (see
18
Note 12.3).
19
As at 31 December 2017, the fair value of outstanding commodity forward contracts amounted to a liability
of $980,000. The ineffectiveness recognised in other operating expenses in the statement of profit or loss for
20
the current year was $65,000 (see Note 12.2). The cumulative effective portion of $915,000 is reflected in OCI
and will affect the profit or loss in the first six months of 2018.
21
Fair value hedge
22
At 31 December 2017, the Group had an interest rate swap agreement in place with a notional amount of IFRS 7.22
IFRS 7.24(a)
USD3,600,000 ($2,246,000) (2016: $Nil) whereby the Group receives a fixed rate of interest of 8.25% and
23
pays interest at a variable rate equal to LIBOR+0.2% on the notional amount. The swap is being used to hedge
the exposure to changes in the fair value of its fixed rate 8.25% secured loan.
24
The decrease in fair value of the interest rate swap of $35,000 (2016: $Nil) has been recognised in finance
25
costs and offset with a similar gain on the bank borrowings. The ineffectiveness recognised in 2017 was
immaterial.
26
Hedge of net investments in foreign operations
27
Included in loans at 31 December 2017 was a borrowing of USD3,600,000 which has been designated as a IFRS 7.22
hedge of the net investments in the two subsidiaries in the United States, Wireworks Inc. and Sprinklers Inc.
28
This borrowing is being used to hedge the Group’s exposure to the USD foreign exchange risk on these
Notes
jhj
investments. Gains or losses on the retranslation of this borrowing are transferred to OCI to offset any gains
29
IFRS 7.24(c)
or losses on translation of the net investments in the subsidiaries. There is no ineffectiveness in the years ended
31 December 2017 and 2016.
30
Embedded derivatives
31
In 2017, the Group entered into long-term sale contracts with a customer in Canada. The functional currency of IAS 39.AG33(d)
the customer is USD. The selling price in the contract is fixed and set in Canadian dollars (CAD). The contracts
32
require physical delivery and will be held for the purpose of the delivery of the commodity in accordance with
the buyer’s expected sale requirements. The contracts have embedded foreign exchange derivatives that are
33
required to be separated.
Appendices
34
35
36

37
1
2
Contents
3
4
The Group also entered into various purchase contracts for brass and chrome (for which there is an active IAS 39.AG33(e)
market) with a number of suppliers in South Africa and Russia. The prices in these purchase contracts are linked
5
to the price of electricity. The contracts have embedded commodity swaps that are required to be separated.
The embedded foreign currency and commodity derivatives have been separated and are carried at fair value
6
through profit or loss. The carrying values of the embedded derivatives at 31 December 2017 amounted to
7
$210,000 (other financial assets) (2016: $Nil) and $782,000 (other financial liabilities) (2016: $Nil). The
effects on profit or loss are reflected in operating income and operating costs, respectively.
8
Introduction
20.4 Fair values
9
Set out below is a comparison, by class, of the carrying amounts and fair values of the Group’s financial IFRS 7.25
10
IFRS 7.26
instruments, other than those with carrying amounts that are reasonable approximations of fair values: IFRS 7.29
11
2017 2016
Carrying Carrying
12
amount Fair value amount Fair value
$000 $000 $000 $000
13
Financial assets
Directors’ report
Loans 3,887 3,741 1,693 1,654
14
AFS financial assets 1,987 1,987 1,798 1,798
15
Foreign exchange forward contracts 640 640  
Embedded derivatives 210 210  
16
Foreign exchange forward contracts in cash
flow hedges 252 252 153 153
17
Total 6,976 6,830 3,644 3,605
18
Financial liabilities
Interest-bearing loans and borrowings
19
purchase contracts (988) (1,063) (994) (1,216)
20
Floating rate borrowings* (12,666) (12,666) (12,601) (12,601)
Fixed rate borrowings (6,374) (6,321) (8,239) (8,944)
21
Convertible preference shares (2,778) (2,766) (2,644) (2,621)
Financial guarantee contracts (87) (83) (49) (45)
22
Contingent consideration (1,072) (1,072)  
23
Derivatives not designated as hedges
Foreign exchange forward contracts (720) (720)  
24
Embedded derivatives (782) (782)  
Derivatives in effective hedges (1,185) (1,185) (254) (254)
25
Total (26,652) (26,658) (24,781) (25,681)
26
* Includes an 8.25% secured loan carried at amortised cost adjusted for the fair value movement due to the hedged interest
rate risk.
27
The management assessed that the fair values of cash and short-term deposits, trade receivables, trade IFRS 13.93(d)
28
IFRS 13.97
payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the
Notes
IFRS 7.29
short-term maturities of these instruments.
jhj
29
The following methods and assumptions were used to estimate the fair values:
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
► Long-term fixed-rate and variable-rate receivables/borrowings are evaluated by the Group based on
parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer
5
and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into
account for the estimated losses of these receivables.
6
► The fair values of the quoted notes and bonds are based on price quotations at the reporting date. The fair
value of unquoted instruments, loans from banks and other financial liabilities, obligations under finance
7
leases, as well as other non-current financial liabilities is estimated by discounting future cash flows using
rates currently available for debt on similar terms, credit risk and remaining maturities. In addition to being
8
Introduction
sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the fair value of the
equity instruments is also sensitive to a reasonably possible change in the growth rates. The valuation
9
requires management to use unobservable inputs in the model, of which the significant unobservable
10
inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible
alternatives for those significant unobservable inputs and determines their impact on the total fair value.
11
► The fair values of the unquoted ordinary shares have been estimated using a DCF model. The valuation
requires management to make certain assumptions about the model inputs, including forecast cash flows,
12
the discount rate, credit risk and volatility. The probabilities of the various estimates within the range
can be reasonably assessed and are used in management’s estimate of fair value for these unquoted
13
equity investments.
Directors’ report
14
► The fair values of the remaining AFS financial assets are derived from quoted market prices in active
markets.
15
► The Group enters into derivative financial instruments with various counterparties, principally financial
institutions with investment grade credit ratings. Interest rate swaps, foreign exchange forward contracts
16
and commodity forward contracts are valued using valuation techniques, which employ the use of market
observable inputs. The most frequently applied valuation techniques include forward pricing and swap
17
models using present value calculations. The models incorporate various inputs including the credit quality
of counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies,
18
currency basis spreads between the respective currencies, interest rate curves and forward rate curves of
the underlying commodity. Some derivative contracts are fully cash collateralised, thereby eliminating both
19
counterparty risk and the Group’s own non-performance risk. As at 31 December 2017, the marked-to-
20
market value of other derivative asset positions is net of a credit valuation adjustment attributable to
derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the
21
hedge effectiveness assessment for derivatives designated in hedge relationships and other financial
instruments recognised at fair value.
22
► Embedded foreign currency and commodity derivatives are measured similarly to the foreign currency
forward contracts and commodity derivatives. The embedded derivatives are commodity and foreign
23
currency forward contracts which are separated from long-term sales contracts where the transaction
currency differs from the functional currencies of the involved parties. However, as these contracts are not
24
collateralised, the Group also takes into account the counterparties’ credit risks (for the embedded
derivative assets) or the Group’s own non-performance risk (for the embedded derivative liabilities) and
25
includes a credit valuation adjustment or debit valuation adjustment, as appropriate, by assessing the
maximum credit exposure and taking into account market-based inputs concerning probabilities of default 26
and loss given default.
27
► The fair values of the Group’s interest-bearing borrowings and loans are determined by using the DCF
method using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period.
28
The own non-performance risk as at 31 December 2017 was assessed to be insignificant.

Notes
jhj
29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Description of significant unobservable inputs to valuation:
The significant unobservable inputs used in the fair value measurements categorised within Level 3 of the fair
5
value hierarchy, together with a quantitative sensitivity analysis as at 31 December 2017 and 2016 are as
shown below:
6
IFRS 13.93(d)
Significant IFRS 13.93(h)(i)
Valuation unobservable Range Sensitivity of the
7
IFRS 13.93(h)(ii)
technique inputs (weighted average) input to fair value IFRS 13.97
8
AFS financial DCF Long-term growth 2017: 3.1% - 5.2% (4.2%) 5% (2016: 5%) increase
Introduction
assets in method rate for cash flows 2016: 3.1% - 5.1% (4%) (decrease) in the growth
9
unquoted for subsequent rate would result in an
equity shares years increase (decrease) in
10
 power sector fair value by $17,000
(2016: $15,000)
11
Long-term operating 2017: 5.0% - 12.1% (8.3%) 15% (2016: 12%) increase
12
margin 2016: 5.2% - 12.3% (8.5%) (decrease) in the margin
would result in an
13
increase (decrease) in fair
Directors’ report
value by $21,000
14
(2016: $19,000)
15
WACC 2017: 11.2% - 14.3% (12.6%) 1% (2016: 2%) increase
16
2016: 11.5% - 14.1% (12.3%) (decrease) in the WACC
would result in a decrease
17
(increase) in fair value by
$10,000 (2016: $15,000)
18
Discount for lack of 2017: 5.1% - 15.6% (12.1%) 2% (2016:3%) increase
19
marketability 2016: 5.4% - 15.7% (12.3%) (decrease) in the discount
would decrease (increase)
20
the fair value by $8,000
(2016: $9,000).
21
AFS financial DCF Long-term growth 2017: 4.4% - 6.1% (5.3%) 3% (2016: 3%) increase
22
assets in method rate for cash flows 2016: 4.6% - 6.7% (5.5%) (decrease) in the growth
unquoted for subsequent rate would result in an
23
equity shares years increase (decrease) in fair
 electronics value by $23,000
24
sector (2016: $25,000)
25
Long-term operating 2017: 10.0% - 16.1% (14.3%) 5% (2016: 4%) increase
margin 2016: 10.5% - 16.4% (14.5%) (decrease) in the margin 26
would result in an
27
increase (decrease) in fair

value by $12,000
28
(2016: $13,000)
Notes
jhj
29
WACC 2017: 12.1% - 16.7% (13.2%) 1% (2016: 2%) increase

2016: 12.3% - 16.8% (13.1%) (decrease) in the WACC
30
would result in a decrease

(increase) in fair value by
31
$21,000 (2016: $22,000)

32
Discount for lack of 2017: 5.1% - 20.2% (16.3%) 1.5% (2016: 2%) increase
marketability (decrease) in the discount
33
2016: 5.3% - 20.4% (16.4%)

would decrease (increase)
Appendices
34
the fair value by $7,500

(2016: $8,200).
35
36

37
1
2
Contents
3
4
Significant
Valuation unobservable Range Sensitivity of the
5
technique inputs (weighted average) input to fair value
Embedded Forward Discount for 2017: 0.02% - 0.05% (0.04%) 0.5% (2016: 0.4%)
6
derivative pricing counterparty 2016: 0.01% - 0.04% (0.03%) increase (decrease) would
assets model credit risk result in an increase
7
(decrease) in fair value by
$23,000 (2016: $25,000)
8
Introduction
Embedded Forward Discount for non- 2017: 0.01% - 0.05% (0.03%) 0.4% (2016: 0.4%)
9
derivative pricing performance risk 2016: 0.01% - 0.04% (0.02%) increase (decrease) would
10
liabilities model result in an increase
11
$20,000 (2016: $23,000)
12
Loans to an DCF Constant 2017: 1.5% - 2.5% (2.0%) 1% (2016: 2%) increase
associate and method prepayment rate 2016: 1.6% - 2.7% (2.2%) (decrease) would result in
13
director an increase (decrease) in
fair value by $25,000
Directors’ report
14
(2016: $21,000)
15
Discount for non- 2017: 0.08% 0.4% (2016: 0.4%)
performance risk 2016: 0.09% increase (decrease) would
16
result in an increase
17
$21,000 (2016: $20,000)
18
Financial DCF Discount for 2017: 3.0% 0.5% (2016: 0.4%)
19
guarantee method counterparty non- increase (decrease) would

2016: 3.2%
obligations performance risk result in an increase
20
$22,000 (2016: $24,000)
21
Own non- 2017: 0.05% 0.4% (2016: 0.3%)
22
performance risk 2016: 0.07% increase (decrease) would
23
$19,000 (2016: $22,000)
24
Contingent DCF Assumed 2017: $1,514,000 10% decrease in the
25
consideration method probability-adjusted 2016:  assumed probability-
liability profit before tax of adjusted profit before tax
26
Extinguishers of Extinguishers Limited
Limited results in a decrease in fair
27
value of the contingent

consideration liability by
28
Notes
$390,000.
jhj
29
5% increase in the
assumed probability-
30
adjusted profit before tax

of Extinguishers Limited
31
would not change fair

value of the contingent
32
consideration liability.
33
Appendices
34
35
36

37
1
2
Contents
3
4
Discount rate 2017: 14% 2% increase (decrease) in
2016:  the discount rate would
5
(decrease) in fair value of
6
the contingent
7
$25,000.
8
Introduction
Discount for own 2017: 0.05% 0.4% increase (decrease)
non-performance in the discount for own
9
2016: 
risk non-performance risk
10
would result in an increase
(decrease) in fair value of
11
the contingent
12
$5,000.
13
The discount for lack of marketability represents the amounts that the Group has determined that market
Directors’ report
14
participants would take into account when pricing the investments.
In the case of AFS financial assets, the impairment charge in the profit or loss would depend on whether the
15
decline is significant or prolonged. An increase in the fair value would only impact equity (through OCI) and,
16
would not have an effect on profit or loss.
Reconciliation of fair value measurement of unquoted equity shares classified as AFS financial assets:
17
Power Electronics Total
18
$000 $000 $000
As at 1 January 2016 388 502 890 IFRS 13.93(e)(ii)
19
Remeasurement recognised in OCI 4 6 10 IFRS 13.93(e)(iii)
20
Purchases — — —
Sales (2) — (2)
21
As at 1 January 2017 390 508 898
Remeasurement recognised in OCI 122 (180) (58)
22
Purchases 261 593 854
23
Reclassified in assets held for sale — (508) (508)
Sales (98) (50) (148)
24
As at 31 December 2017 675 363 1,038
25
Reconciliation of fair value measurement of embedded derivative assets and liabilities:
26
Embedded foreign
27
exchange Embedded commodity

derivative asset derivative liability
28
Canadian dollar Brass Chrome

Notes
$000 $000 $000

jhj
29
As at 1 January 2016 and 2017 — — —

Remeasurement recognised in statement of profit or
30
loss during the period (363) (209) (80)

Purchases 573 809 262
31
Sales — — —
32
As at 31 December 2017 210 600 182

33
Appendices
34
35
36

37
1
2
Contents
3
4
Commentary
An entity should provide additional information that will help users of its financial statements to evaluate the quantitative
5
information disclosed. An entity might disclose some or all of the following to comply with IFRS 13.92:
The nature of the item being measured at fair value, including the characteristics of the item being measured that are
6
►
taken into account in the determination of relevant inputs. For example, if the Group had residential mortgage-backed
securities, it might disclose the following:
7
► The types of underlying loans (e.g., prime loans or sub-prime loans)
8
Collateral
Introduction
►
► Guarantees or other credit enhancements
9
► Seniority level of the tranches of securities
10
► The year of issue
► The weighted-average coupon rate of the underlying loans and the securities
11
► The weighted-average maturity of the underlying loans and the securities
The geographical concentration of the underlying loans
12
►
► Information about the credit ratings of the securities
13
► How third-party information such as broker quotes, pricing services, net asset values and relevant market data was
taken into account when measuring fair value
Directors’ report
14
The Group does not have any liabilities measured at fair value and issued with an inseparable third-party credit
enhancement. But if it had such liabilities, IFRS 13.98 requires disclosure of the existence of credit-enhancement and
15
whether it is reflected in the fair value measurement of the liability.
IFRS 13.99 requires an entity to present the quantitative disclosures of IFRS 13 in a tabular format, unless another
16
format is more appropriate. The Group included the quantitative disclosures in tabular format, above.
17
IFRS 13.93(h)(ii) requires a quantitative sensitivity analysis for financial assets and financial liabilities that are measured
at fair value on a recurring basis. For all other recurring fair value measurements that are categorised within Level 3 of
18
the fair value hierarchy, an entity is required to provide:
► A narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change
19
in those inputs to a different amount might result in a significantly higher or lower fair value measurement
► If there are inter-relationships between the inputs and other unobservable inputs used in the fair value measurement,
20
a description of the inter-relationships and of how they might magnify or mitigate the effect of changes in the
unobservable inputs on the fair value measurement
21
For this purpose, significance shall be judged with respect to profit or loss, and total assets or total liabilities, or, when
changes in fair value are recognised in OCI, total equity. The Group included the quantitative sensitivity analyses in tabular
22
format, above.
23
20.5 Financial instruments risk management objectives and policies
24
The Group’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other IFRS 7.33
payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the
25
Group’s operations and to provide guarantees to support its operations. The Group’s principal financial assets
include loans, trade and other receivables, and cash and short-term deposits that derive directly from its 26
operations. The Group also holds AFS financial assets and enters into derivative transactions.
27
The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees
the management of these risks. The Group’s senior management is supported by a financial risk committee
28
that advises on financial risks and the appropriate financial risk governance framework for the Group. The
Notes
jhj
financial risk committee provides assurance to the Group’s senior management that the Group’s financial risk
29
activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with the Group’s policies and risk objectives. All derivative activities
30
for risk management purposes are carried out by specialist teams that have the appropriate skills, experience
31
and supervision. It is the Group’s policy that no trading in derivatives for speculative purposes may be
undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which
32
are summarised below.

33
Appendices
34
35
36

37
1
2
Contents
3
4
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because IFRS 7.33
5
of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
6
loans and borrowings, deposits, AFS financial assets and derivative financial instruments.
7
The sensitivity analyses in the following sections relate to the position as at 31 December in 2017 and 2016.
The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to IFRS 7.40
8
Introduction
floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign
currencies are all constant and on the basis of the hedge designations in place at 31 December 2017.
9
The analyses exclude the impact of movements in market variables on: the carrying values of pension and other
10
post-retirement obligations; provisions; and the non-financial assets and liabilities of foreign operations. The
analysis for the contingent consideration liability is provided in Note 7.
11
The following assumptions have been made in calculating the sensitivity analyses:
12
► The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in
13
respective market risks. This is based on the financial assets and financial liabilities held at 31 December
2017 and 2016 including the effect of hedge accounting.
Directors’ report
14
► The sensitivity of equity is calculated by considering the effect of any associated cash flow hedges and
hedges of a net investment in a foreign operation at 31 December 2017 for the effects of the assumed
15
changes of the underlying risk.
16
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
17
because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest
rates relates primarily to the Group’s long-term debt obligations with floating interest rates.
18
The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and IFRS 7.22(c)
borrowings. The Group’s policy is to keep between 40% and 60% of its borrowings at fixed rates of interest,
19
excluding borrowings that relate to discontinued operations. To manage this, the Group enters into interest rate
20
swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate
interest amounts calculated by reference to an agreed-upon notional principal amount. At 31 December 2017,
21
after taking into account the effect of interest rate swaps, approximately 44% of the Group’s borrowings are at a
fixed rate of interest (2016: 51%).
22
Interest rate sensitivity
23
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that
portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held
24
constant, the Group’s profit before tax is affected through the impact on floating rate borrowings, as follows:
25
Increase/decrease Effect on profit
in basis points before tax IFRS 7.40(a)
2017 $000 26
Australian dollar +45 (48)
27
US dollar +60 (13)

28
Australian dollar -45 33

Notes
US dollar -60 12
jhj
29
2016
30
Australian dollar +10 (19)

US dollar +15 —
31
Australian dollar -10 12

32
US dollar -15 —
33
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently
observable market environment, showing a significantly higher volatility than in prior years.
Appendices
34
35
36

37
1
2
Contents
3
4
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
5
IFRS 7.22(c)
of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates
relates primarily to the Group’s operating activities (when revenue or expense is denominated in a foreign
6
currency) and the Group’s net investments in foreign subsidiaries.
7
The Group manages its foreign currency risk by hedging transactions that are expected to occur within a
maximum 12-month period for hedges of forecasted sales and purchases and 24-month period for net
8
investment hedges.
Introduction
When a derivative is entered into for the purpose of being a hedge, the Group negotiates the terms of the
9
derivative to match the terms of the hedged exposure. For hedges of forecast transactions, the derivative
10
covers the period of exposure from the point the cash flows of the transactions are forecasted up to the point of
settlement of the resulting receivable or payable that is denominated in the foreign currency.
11
The Group hedges its exposure to fluctuations on the translation into Australian dollars of its foreign operations
by holding net borrowings in foreign currencies and by using foreign currency swaps and forwards.
12
At 31 December 2017 and 2016, the Group hedged 75% and 70%, for 9 and 12 months, respectively, of its
13
expected foreign currency sales. Those hedged sales were highly probable at the reporting date. This foreign
currency risk is hedged by using foreign currency forward contracts.
Directors’ report
14
Commentary
15
For hedges of forecast transactions, useful information to help users understand the nature and extent of such risks may
include:
16
► Time bands in which the highly probable forecast transactions are grouped for risk management purposes
17
► The entity’s policies and processes for managing the risk (for example, how the cash flows of the hedging instruments
and the hedged items may be aligned, such as using foreign currency bank accounts to address differences in cash
18
flow dates)
Entities should tailor these disclosures to the specific facts and circumstances of the transactions.
19
Foreign currency sensitivity
20
The following tables demonstrate the sensitivity to a reasonably possible change in USD and GBP exchange
rates, with all other variables held constant. The impact on the Group’s profit before tax is due to changes in the
21
fair value of monetary assets and liabilities including non-designated foreign currency derivatives and
embedded derivatives. The impact on the Group’s pre-tax equity is due to changes in the fair value of forward
22
exchange contracts designated as cash flow hedges and net investment hedges. The Group’s exposure to
foreign currency changes for all other currencies is not material.
23
Change in Effect on profit Effect on IFRS 7.40(a)
24
USD rate before tax pre-tax equity
$000 $000
25
2017 +5% (30) (154)
-5% 20 172
26
2016 +4% (40) (146)
27
–4% 40 158
28
Change in Effect on profit Effect on

Notes
GBP rate before tax pre-tax equity

jhj
29
$000 $000
2017 +5% 26 102
30
-5% (15) (113)

2016 +4% 31 92
31
–4% (28) (96)

32
33
Appendices
34
35
36

37
1
2
Contents
3
4
The movement in the pre-tax effect is a result of a change in the fair value of derivative financial instruments
not designated in a hedge relationship and monetary assets and liabilities denominated in US dollars, where the
5
functional currency of the entity is a currency other than US dollars. Although the derivatives have not been
designated in a hedge relationship, they act as an economic hedge and will offset the underlying transactions
6
when they occur.
7
The movement in pre-tax equity arises from changes in US dollar borrowings (net of cash and cash equivalents)
in the hedge of net investments in US operations and cash flow hedges. These movements will offset the
8
translation of the US operations’ net assets into Australian dollars.
Introduction
Commodity price risk
9
The Group is affected by the price volatility of certain commodities. Its operating activities require the ongoing IFRS 7.33(a)
10
purchase and manufacture of electronic parts and therefore require a continuous supply of copper. Due to the
significantly increased volatility of the price of the copper, the Group also entered into various purchase
11
contracts for brass and chrome (for which there is an active market). The prices in these purchase contracts are
linked to the price of electricity.
12
The Group’s Board of Directors has developed and enacted a risk management strategy for commodity price risk
13
and its mitigation.
Based on a 12-month forecast of the required copper supply, the Group hedges the purchase price using
Directors’ report
14
forward commodity purchase contracts. The forecast is considered to be highly probable.
15
Forward contracts with a physical delivery that qualify for normal purchase, sale or usage and that are
therefore not recognised as derivatives are disclosed in Note 20.3.
16
Commodity price sensitivity
17
The following table shows the effect of price changes in copper net of hedge accounting impact.
18
Change in Effect on profit Effect on
year-end price before tax equity IFRS 7.40(a)
19
2017 $000 $000
Copper +15% (220) (585)
20
-15% 220 585
21
Brass +4% (8) (8)
-4% 8 8
22
Chrome +2% (10) (10)
23
-2% 10 10
24
Equity price risk
The Group’s listed and unlisted equity securities are susceptible to market price risk arising from uncertainties
25
about future values of the investment securities. The Group manages the equity price risk through IFRS 7.33(b)
diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio
26
are submitted to the Group’s senior management on a regular basis. The Group’s Board of Directors reviews and
approves all equity investment decisions.
27
At the reporting date, the exposure to unlisted equity securities at fair value was $1,038,000. Sensitivity IFRS 7.33(a)
28
analyses of these investments have been provided in Note 20.4.

Notes
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At the reporting date, the exposure to equity securities at fair value listed on the NYSE was $337,000. Given IFRS 7.40
29
that the changes in fair values of the equity investments held are strongly positively correlated with changes of
30
the NYSE market index, the Group has determined that a decrease of 10% on the NYSE market index could have
an impact of approximately $55,000 on the income or equity attributable to the Group, depending on whether
31
the decline is significant or prolonged. An increase of 10% in the value of the listed securities would only impact
equity, but would not have an effect on profit or loss.
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer IAS 7.33
5
contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including deposits with banks and financial institutions,
6
foreign exchange transactions and other financial instruments.
7
Trade receivables
Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures IFRS 7.34(c)
8
IFRS 7.36(c)
Introduction
and control relating to customer credit risk management. Credit quality of a customer is assessed based on an IFRS 7.B8
extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment.
9
Outstanding customer receivables are regularly monitored and any shipments to major customers are
generally covered by letters of credit or other forms of credit insurance. At 31 December 2017, the Group had
10
55 customers (2016: 65 customers) that owed the Group more than $250,000 each and accounted for
11
approximately 71% (2016: 76%) of all the receivables outstanding. There were five customers (2016: seven
customers) with balances greater than $1 million accounting for just over 17% (2016: 19%) of the total amounts
12
receivable.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition,
13
a large number of minor receivables are grouped into homogenous groups and assessed for impairment
Directors’ report
collectively. The calculation is based on actual incurred historical data. The maximum exposure to credit risk at
14
the reporting date is the carrying value of each class of financial assets disclosed in Note 22. The Group does
15
not hold collateral as security. The Group evaluates the concentration of risk with respect to trade receivables
as low, as its customers are located in several jurisdictions and industries and operate in largely independent
16
markets.
Financial instruments and cash deposits
17
Credit risk from balances with banks and financial institutions is managed by the Group’s treasury department in IFRS 7.33
IFRS 7.36
18
accordance with the Group’s policy. Investments of surplus funds are made only with approved counterparties IFRS 7.B10(c)
and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Group’s
19
Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the
Group’s Finance Committee. The limits are set to minimise the concentration of risks and therefore mitigate
20
financial loss through a counterparty’s potential failure to make payments.
The Group’s maximum exposure to credit risk for the components of the statement of financial position at 31
21
December 2017 and 2016 is the carrying amounts as illustrated in Note 22 except for financial guarantees and
22
derivative financial instruments. The Group’s maximum exposure relating to financial guarantees and financial
derivative instruments is noted in the liquidity table below.
23
Liquidity risk
The Group monitors its risk of a shortage of funds using a liquidity planning tool. IFRS 7.33
24
IFRS 7.39(c)
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of
25
bank overdrafts, bank loans, debentures, preference shares, finance leases and hire purchase contracts. The
Group’s policy is that not more than 25% of borrowings should mature in the next 12-month period.
26
Approximately 10% of the Group’s debt will mature in less than one year at 31 December 2017 (2016: 11%)
IFRS 7.B8
based on the carrying value of borrowings reflected in the financial statements. The Group assessed the
27
concentration of risk with respect to refinancing its debt and concluded it to be low. The Group has access to a
sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing
28
Notes
lenders.
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29
Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in
30
the same geographical region, or have economic features that would cause their ability to meet contractual
31
obligations to be similarly affected by changes in economic, political or other conditions. Concentrations

indicate the relative sensitivity of the Group’s performance to developments affecting a particular industry.
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
In order to avoid excessive concentrations of risk, the Group’s policies and procedures include specific
guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are
5
controlled and managed accordingly. Selective hedging is used within the Group to manage risk concentrations
at both the relationship and industry levels.
6
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual
7
undiscounted payments:
On Less than 3 to 12 1 to 5
8
Introduction
Year ended 31 December 2017 demand 3 months months years > 5 years Total IFRS 7.39(a)(b)
$000 $000 $000 $000 $000 $000
9
10
(other than convertible preference shares) 966 21 1,578 10,554 8,000 21,119
Convertible preference shares — — — 676 2,324 3,000
11
Contingent consideration — — 1,125 — — 1,125
Other financial liabilities — — — 150 — 150
12
Trade and other payables 3,620 14,654 802 — — 19,076
13
Financial guarantee contracts* 105 — — — — 105
Derivatives and embedded derivatives 1,970 2,740 391 1,191 1,329 7,621
Directors’ report
14
6,661 17,415 3,896 12,571 11,653 52,196
15
On Less than 3 to 12 1 to 5
16
Year ended 31 December 2016 demand 3 months months years > 5 years Total
$000 $000 $000 $000 $000 $000
17
(other than convertible preference shares) 2,650 18 133 8,872 11,600 23,273
18
Convertible preference shares — — — 624 2,376 3,000
19
Trade and other payables 4,321 14,353 1,743 — — 20,417
Other financial liabilities — — — 202 — 202
20
Financial guarantee contracts* 68 — — — — 68
549 1,255 — — — 1,804
21
Derivatives and embedded derivatives
7,588 15,626 1,876 9,698 13,976 48,764
22
* Based on the maximum amount that can be called for under the financial guarantee contract.
23
The disclosed financial derivative instruments in the above table are the gross undiscounted cash flows.
24
However, those amounts may be settled gross or net. The following table shows the corresponding
reconciliation of those amounts to their carrying amounts:
25
Less
On than 3 3 to 12 1 to 5 Over 26
Year ended 31 December 2017 demand months months years 5 years Total IFRS 7.39(a)(b)
27
$000 $000 $000 $000 $000 $000

Inflows 800 1,000 250 700 950 3,700
28
Outflows (1,970) (2,740) (391) (1,191) (1,329) (7,621)

Notes
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Net (1,170) (1,740) (141) (491) (379) (3,921)

29
Discounted at the applicable

interbank rates (1,170) (1,731) (139) (463) (343) (3,846)
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
4
Less
On than 3 3 to 12 1 to 5 Over
5
Year ended 31 December 2016 demand months months years 5 years Total IFRS 7.39(a)(b)
$000 $000 $000 $000 $000 $000
6
Inflows 500 1,000 — — — 1,500
Outflows (549) (1,254) — — — (1,803)
7
Net (49) (254) — — — (303)
Discounted at the applicable
8
(49) (254) — — — (303)
Introduction
interbank rates
9
Collateral
10
The Group has pledged part of its short-term deposits in order to fulfil the collateral requirements for the IAS 7.48
IFRS 7.14
derivatives contracts. At 31 December 2017 and 2016, respectively, the fair values of the short-term deposits IFRS 7.38
11
pledged were $5,000,000 and $2,000,000, respectively. The counterparties have an obligation to return the IFRS 7.15
securities to the Group. The Group also holds a deposit in respect of derivative contracts $565,000 as at IFRS 7.36(b)
12
31 December 2017 (2016: $385,000). The Group has an obligation to repay the deposit to the counterparties
upon settlement of the contracts. There are no other significant terms and conditions associated with the use of
13
collateral.
Directors’ report
14
IAS 7.44A
20.6 Changes in liabilities arising from financing activities IAS 7.44C
15
Reclassified
1 as part of Foreign Changes
16
Januar Cash disposal exchange in fair New 31 December IAS 7.44B
y 2017 flows group movement values leases Other 2017 IAS 7.44D
17
$000 $000 $000 $000 $000 $000 $000 $000
Current interest-
18
bearing loans and
19
borrowings

(excluding items
20
listed below) 2,724 (2,032) — (6) — — 1,691 2,377
Current
21
obligations under
finance leases
22
and hire purchase
contracts 51 (51) — — — 5 78 83
23
Non-current
24
interest-bearing
loans and
25
borrowings
(excluding items (1,10
listed below) 20,760 5,649 (5,809) (51) — — 8) 19,441 26
Non-current
27
obligations under
finance leases
28
and hire purchase

Notes
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contracts 943 — — — — 40 (78) 905

29
Dividends
30
payable — — — — — — 410 410

31
Derivatives
— — — — 58 — — 58
32
Total liabilities
from financing
33
activities 24,478 3,566 (5,809) (57) 58 45 993 23,274

Appendices
34
35
36

37
1
2
Contents
3
4
IAS 7.44A
IAS 7.44C
1 Foreign
IAS 1.38
5
January Cash exchange New 31 December IAS 7.44B,
2016 flows movement leases Other 2016 IAS 7.44D
6
$000 $000 $000 $000 $000 $000
Current interest-bearing loans and
7
borrowings (excluding items listed below) 4,479 (4.250)) (10) — 2,505 2,724
8
Current obligations under finance leases
Introduction
and hire purchase contracts 76 (76) — 3 48 51
9
Non-current interest-bearing loans and
10
borrowings (excluding items listed below) 18,624 4,871 (57) — (2,678) 20,760
11
Non-current obligations under finance
leases and hire purchase contracts
950 — — 41 (48) 943
12
13
Total liabilities from financing activities 24,129 545 (67) 44 (173) 24,478
Directors’ report
14
The ‘Other’ column includes the effect of reclassification of non-current portion of interest-bearing loans and borrowings,
including obligations under finance leases and hire purchase contracts to current due to the passage of time, the accrual
15
of special dividends that were not yet paid at the year-end, and the effect of accrued but not yet paid interest on interest-
bearing loans and borrowings. The Group classifies interest paid as cash flows from operating activities.
16
Commentary
17
In 2017, the Group adopted the amendments to IAS 7 that were issued as a part of the IASB’s Disclosure Initiative. The
amendments require entities to provide disclosures that enable users of financial statements to evaluate changes in
18
liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. To the
extent necessary to satisfy this requirement, an entity discloses the following changes in liabilities arising from financing
19
activities:
Changes from financing cash flows
20
►
► Changes arising from obtaining or losing control of subsidiaries or other businesses
21
► The effect of changes in foreign exchange rates
► Changes in fair values
22
► Other changes
Paragraph 44C of IAS 7 states that liabilities arising from financing activities are liabilities for which cash flows were, or
23
future cash flows will be, classified in the statement of cash flows as cash flows from financing activities. In addition, the
disclosure requirement in paragraph 44A also applies to changes in financial assets (for example, assets that hedge
24
liabilities arising from financing activities) if cash flows from those financial assets were, or future cash flows will be,
included in cash flows from financing activities.
25
The Group disclosed information about its interest-bearing loans and borrowings including its obligations under finance
lease and hire purchase contracts. In addition, the Group included information on special dividends payable and certain 26
derivatives as their settlement will affect financing cash flows.
27
The amendments suggest that the disclosure requirement may be met by providing a reconciliation between the opening
and closing balances in the statement of financial position for liabilities arising from financing activities. Where an entity
28
discloses such a reconciliation, it shall provide sufficient information to enable users of the financial statements to link
Notes
items included in the reconciliation to the statement of financial position and the statement of cash flows. The Group
jhj
29
decided to provide information in a reconciliation format. The major changes in the Group’s liabilities arising from
financing activities are due to financing cash flows and accrual of financial liabilities. The Group did not acquire any
30
liabilities arising from financing activities during business combinations effected in the current period or comparative
period.
31
Although, on initial application of the amendment, entities are not required to provide comparative information for
preceding period, the Group decided to provide comparative financial information.
32
33
Appendices
34
35
36

37
1
2
Contents
3
21. Inventories
4
2017 2016 IAS 2.36(b)
5
$000 $000 IAS 1.78(c)
Raw materials (at cost) 5,240 7,091
6
Work in progress (at cost) 13,092 10,522
Finished goods (at lower of cost and net realisable value) 5,430 6,972
7
Total inventories at the lower of cost and net realisable value 23,762 24,585
8
Introduction
During 2017, $286,000 (2016: $242,000) was recognised as an expense for inventories carried at net IAS 2.36(e)
realisable value. This is recognised in cost of sales.
9
10
22. Trade and other receivables
11
2017 2016 IAS 1.78(b)
$000 $000
12
IFRS 7.6
Trade receivables 24,501 21,158
13
Receivables from an associate (Note 33) 551 582
Receivables from other related parties (Note 33) 620 550
Directors’ report
14
25,672 22,290
15
For terms and conditions relating to related party receivables, refer to Note 33. IAS 24.18(b)
16
Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.
As at 31 December 2016, trade receivables with an initial carrying value of $108,000 (2016: $97,000) were IFRS 7.37
17
impaired and fully provided for. See below for the movements in the provision for impairment of receivables:
18
Individually Collectively
impaired impaired Total
19
$000 $000 $000 IFRS 7.16
20
At 1 January 2016 29 66 95
Charge for the year 4 8 12
21
Utilised (4) (7) (11)
Unused amounts reversed — — —
22
Discount rate adjustment — 1 1
At 31 December 2016 29 68 97
23
Charge for the year 10 16 26
Utilised (3) (5) (8)
24
Unused amounts reversed (2) (6) (8)
— 1 1
25
Discount rate adjustment
At 31 December 2017 34 74 108
26
As at 31 December, the ageing analysis of trade receivables is, as follows: IFRS 7.37
27
Neither past Past due but not impaired

28
due nor < 30 30–60 61–90 91–120 > 120

Notes
Total impaired days days days days days

jhj
29
$000 $000 $000 $000 $000 $000 $000

2017 24,501 15,596 4,791 2,592 1,070 360 92
30
2016 21,158 14,455 3,440 1,840 945 370 108

31
See Note 20.5 on credit risk of trade receivables, which explains how the Group manages and measures credit IFRS 7.36(c)
quality of trade receivables that are neither past due nor impaired.
32
33
Appendices
34
35
36

37
1
2
Contents
3
23. Cash and short-term deposits
4
2017 2016
$000 $000
5
Cash at banks and on hand 11,316 11,125
Short-term deposits 5,796 3,791
6
17,112 14,916
7
Cash at banks earn interest at floating rates based on daily bank deposit rates. Short-term deposits are made
for varying periods of between one day and three months, depending on the immediate cash requirements of
8
Introduction
the Group, and earn interest at the respective short-term deposit rates.
9
At 31 December 2017, the Group had available $5,740,000 (2016: $1,230,000) of undrawn committed IAS 7.50(a)
borrowing facilities.
10
The Group has pledged a part of its short-term deposits to fulfil collateral requirements. Refer to Note 20.5 for IAS 7.48
11
further details.
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following at IAS 7.45
12
31 December:
13
2017 2016
$000 $000
Directors’ report
14
Cash at banks and on hand 11,316 11,125
Short-term deposits 5,796 3,791
15
Cash at banks and short-term deposits attributable to discontinued operations 1,294 —
18,406 14,916
16
Bank overdrafts (966) (2,650)
Cash and cash equivalents 17,440 12,266
17
18
19
20
21
22
23
24
25
26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
23. Cash and short-term deposits (continued)
4
2017 2016
$000 $000
5
Cash flow reconciliation
Reconciliation of net profit before tax to net cash flows from operations: AASB 1054.16
6
Profit before tax from continuing operations 11,108 8,880
Profit/(loss) before tax from discontinued operations 213 (193)
7
Adjustments to reconcile profit before tax to net cash flows:
8
Depreciation and impairment of property, plant and equipment 3,907 3,383
Introduction
Amortisation and impairment of intangible assets 325 174
9
Contribution of equipment by customers (191) (151)
10
Decrease in investment properties 306 300
Net foreign exchange differences (365) (240)
11
Gain on disposal of property, plant and equipment (532) (2,007)
Fair value adjustment of a contingent consideration 358 —
Finance income (1,186) (211)
12
Finance costs 2,766 1,123
13
Share of profit of an associate and a joint venture (671) (638)
Movements in provisions, pensions and
Directors’ report
government grants (732) 202
14
Working capital adjustments:
Increase in trade and other receivables and prepayments (9,264) (1,239)
15
Decrease in inventories 6,030 2,245
Increase in trade and other payables 4,095 4,246
16
16,579 16,366
Interest received 336 211
17
Interest paid (484) (1,026)
Income tax paid (3,131) (3,200)
18
Net cash flows from operating activities 13,300 12,351
19
Commentary
20
When presenting the statement of cash flows using the direct method, AASB 1054 Australian Additional Disclosures
requires an entity to provide a reconciliation of the cash flows from operating activities to profit (loss). The Group has
21
reconciled net cash flows from operating activities to profit before tax. However, a reconciliation to profit after tax is also
acceptable under AASB 1054.
22
Certain working capital adjustments and other adjustments included in the reconciliation, reflect the change in balances
between 2017 and 2016, including the 2017 balances of the discontinued operations grouped in line-items ‘assets
23
classified as held for sale’ and ‘liabilities directly associated with the assets classified as held for sale’.
24
25
26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
24. Issued capital and reserves
4
Issued shares 2017 2016 IAS 1.78(e)
Thousands Thousands IAS 1.79(a)(i)
5
Ordinary shares 21,888 19,388 IAS 1.79(a)(iii)
7% convertible preference shares 2,500 2,500
6
24,388 21,888
IAS
7
Ordinary shares issued and fully paid Thousands $000 1.79(a)(ii),(iv)
At 1 January 2016 and 31 December 2016 19,388 19,388
8
Issued on 1 May 2017 for acquisition of Extinguishers Limited (Note 7) 2,500 7,203
Introduction
Decrease due to transaction costs for issued share capital - (32)
9
At 31 December 2017 21,888 26,559
10
During the year, the issued share capital was increased by $7,203,000 by the issue of 2,500,000 ordinary
11
shares.
Treasury shares Thousands $000 IAS 1.79(a)(vi)
12
At 1 January 2016 335 774
13
Issued for cash on exercise of share options (65) (120)
At 31 December 2016 270 654
Directors’ report
14
Issued for cash on exercise of share options (75) (146)
At 31 December 2017 195 508
15
Share option schemes
16
The Group has two share option schemes under which options to subscribe for the Group’s shares have been
17
granted to certain senior executives and certain other employees. Refer to Note 30 for further details.
Share options exercised in each respective year have been settled using the treasury shares of the Group.
18
The reduction in the treasury share equity component is equal to the cost incurred to acquire the shares, on a
weighted average basis. Any excess of the cash received from employees over the reduction in treasury shares
19
is recorded in share-based payments reserve.
Other capital reserves
20
Share-based Convertible
payments preference shares Total
$000 $000 $000
21
As at 1 January 2016 338 228 566
22
Increase on 1 November 2015 for cash on exercise of
share options in excess of cost of treasury shares 80 — 80
23
Share-based payments expense during the year 298 — 298
At 31 December 2016 716 228 944
24
Increase on 1 November 2016 for cash on exercise of
share options in excess of cost of treasury shares 29 — 29
25
Share-based payments expense during the year 307 — 307
At 31 December 2017 1052 228 1,280
26
IAS 1.79(b)
Nature and purpose of reserves
27
Other capital reserves

28
Share-based payments
Notes
The share-based payments reserve is used to recognise the value of equity-settled share-based payments
jhj
29
provided to employees, including key management personnel, as part of their remuneration. Refer to Note 30
for further details of these plans.
30
Convertible preference shares

31
The convertible preference share reserve covers the equity component of the issued convertible preference
shares. The liability component is reflected in financial liabilities.
32
All other reserves are as stated in the consolidated statement of changes in equity.
33
Appendices
34
35
36

37
1
2
Contents
3
24. Issued capital and reserves (continued)
4
OCI items, net of tax:
The disaggregation of changes of OCI by each type of reserve in equity is shown below:
5
As at 31 December 2017 Foreign
6
Cash flow Available- currency Asset
hedge for-sale translation revaluation Retained
reserve reserve reserve surplus earnings Total
7
$000 $000 $000 $000 $000 $000
8
Net investment hedging — — 195 — — 196
Introduction
Foreign exchange
9
translation differences — — (246) — — (247) IAS 1.106A
Currency forward
10
contracts (640) — — — — (640)
Commodity forward
11
contracts (154) — — — — (154)
12
Reclassified to statement
of profit or loss 282 — — — — 282
13
Loss on AFS financial
assets — (40) — — — (40)
Directors’ report
14
Remeasurement on
defined benefit plan — — — — 257 257
15
Revaluation of office
properties in Australia — — — 592 — 592
16
(512) (40) (51) 592 257 246
17
As at 31 December 2016 Foreign
18
Cash flow Available- currency
hedge for-sale translation Retained
19
reserve reserve reserve earnings Total
$000 $000 $000 $000 $000
20
Foreign exchange translation
21
differences — — (117) — (117)
Currency forward contracts (265) — — — (265)
22
Reclassification to statement of profit
or loss 289 — — — 289
23
Gain on AFS financial assets — 2 — — 2
Remeasurement on defined benefit plan — — — (273) (273)
24
24 2 (117) (273) (364)
25
26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
25. Distributions made and proposed
4
2017 2016
$000 $000
5
Cash dividends on ordinary shares declared and paid: IAS 1.107
6
Final dividend for 2016: 5.66 cents per share (2015: 3.93 cents per share) 1,082 749
Interim dividend for 2017: 4.66 cents per share (2016: 4.47 cents per share) 890 851
7
1,972 1,600
Special cash dividends on ordinary shares declared but not paid:
8
Introduction
Special dividends for 2017: 2.14 cents per share (2016: Nil) 410 —
9
Proposed dividends on ordinary shares:
Final cash dividend for 2017: 5.01 cents per share (2016: 5.66 cents per share) 1,087 1,082 IAS 1.137(a)
10
Special dividends were approved by an extraordinary shareholders meeting on 15 December 2017 and are
11
included as a separate line item in to the statement of financial position. Proposed dividends on ordinary shares
are subject to approval at the annual general meeting and are not recognised as a liability as at 31 December.
12
Franking credit balance
13
The amount of franking credits available for the subsequent financial year are:
Franking account balance as at the end of the financial year at 30%
Directors’ report

14
AASB 1054.13
(2016: 30%) 9,057 7,627
Franking credits that will arise from the payment of income tax payable as AASB 1054.14(a)
15

at the end of the financial year 1,823 1,264
16
 Franking debits that will arise from the payment of dividends as at the end AASB 1054.14(b)
of the financial year (326) (324)
17
 Franking credits that will arise from the receipt of dividends recognised as AASB 1054.14(c)
receivables at the reporting date - -
18
10,554 8,567
19
20
21
22
23
24
25
26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
26. Provisions
4
Annual Waste
Onerous leave and electrical and Contingent
5
Maintenance operating long service electronic liability
warranties Restructuring Decommissioning lease leave equipment (Note 7) Total
$000 $000 $000 $000 $000 $000 $000 $000
6
At 1 January 2017 78 — — — 44 53 — 175 IAS 37.84(a)
7
Acquisition of a
subsidiary (Note 7) — 500 1,200 400 — — 380 2,480
Arising during
8
Introduction
the year 112 — — — 10 102 20 244 IAS 37.84(b)
Utilised (60) (39) — (20) (2) (8) — (126) IAS 37.84(c)
9
Unused amounts
reversed (6) (6) — — — — — (12)
10
IAS 37.84(d)
Unwinding of discount
and changes in the
11
discount rate 2 11 21 6 — 2 — 43 IAS 37.84(e)
At 31 December 2017 126 466 1,221 386 52 149 400 2,800
12
Current 89 100 — 205 28 28 400 850
13
Non-current 37 366 1,221 181 24 121 — 1,950
Directors’ report
14
Annual Waste
leave and electrical and
15
Maintenance long service electronic
warranties leave equipment Total
$000 $000 $000 $000
16
At 1 January 2016 36 40 31 107 IAS 37.84(a)
Arising during the year 42 6 22 70 IAS 37.84(b)
17
Utilised — (2) — (2)
78 44 53 175
18
At 31 December 2016
Current 35 25 38 98
19
Non-current 43 19 15 77
20
Commentary
The above table shows the voluntary disclosure of provisions for the comparative period as IAS 37.84 does not require
21
such disclosure.
22
Maintenance warranties
A provision is recognised for expected warranty claims on products sold during the last two years, based on
23
past experience of the level of repairs and returns. It is expected that most of these costs will be incurred in
the next financial year and all will have been incurred within two years after the reporting date. Assumptions IAS 37.85
24
used to calculate the provision for warranties were based on current sales levels and current information
available about returns based on the two-year warranty period for all products sold.
25
Restructuring
Extinguishers Ltd recorded a restructuring provision prior to being acquired by the Group. The provision relates 26
principally to the elimination of certain of its product lines. The restructuring plan was drawn up and announced
27
to the employees of Extinguishers Limited in 2017 when the provision was recognised in its financial
statements. The restructuring is expected to be completed by 2019.
28
Notes
Decommissioning
jhj
29
A provision has been recognised for decommissioning costs associated with a factory owned by Extinguishers
Limited. The Group is committed to decommissioning the site as a result of the construction of the
30
manufacturing facility for the production of fire retardant fabrics.

31
32
33
Appendices
34
35
36

37
1
2
Contents
3
26. Provisions (continued)
4
Operating lease liability
On acquisition of Extinguishers Limited, a provision was recognised for the fact that the agreed lease payments
5
on the operating lease were significantly higher than the market rate at acquisition. The provision has been
calculated based on the difference between the market rate and the rate paid.
6
Waste electrical and electronic equipment
7
The provision for waste electrical and electronic equipment is calculated based on sales after 13 August 2005
(new waste) and expected disposals of historical waste (sales up to 13 August 2005).
8
Introduction
9
IAS 20.39(b)
27. Government grants
10
2017 2016
11
$000 $000
At 1 January 1,551 1,450
12
Received during the year 2,951 642
Released to the statement of profit or loss (1,053) (541)
13
At 31 December 3,449 1,551
Directors’ report
14
Current 149 151
Non-current 3,300 1,400
15
Government grants have been received for the purchase of certain items of property, plant and equipment. IAS 20.39(c)
16
There are no unfulfilled conditions or contingencies attached to these grants.
17
28. Deferred revenue
18
Deferred revenue includes: revenue allocated to GoodPoints; revenue allocated to unperformed installation
19
services in contracts with the customers where they are bundled together with the sale of equipment; deferred
revenue recognised under IFRIC 18 Transfers of Assets from Customers on transfer of moulds and other tools
20
for its manufacturing process from customers; and long-term advances received from customers.
2017 2016
21
$000 $000
GoodPoints transactions 416 365
22
Installation services 315 403
23
Equipment received from customers 176 80
Long-term advances from customers 140 62
24
Total deferred revenue 1,047 910
25
Current 588 513
Non-current 459 397
26
28.1 GoodPoints transactions
27
2017 2016
$000 $000
28
Notes
At 1 January 365 364

jhj
29
Deferred during the year 1,426 1,126

Released to the statement of profit or loss (1,375) (1,125)
30
At 31 December 416 365

31
Current 220 200

Non-current 196 165
32
The amounts relate to the accrual and release of GoodPoints transactions. As at 31 December 2017, the
33
estimated liability for unredeemed points amounted to $416,000 (2016: $365,000).

Appendices
34
35
36

37
1
2
Contents
3
29. Pension and other post employment benefit plans
4
Pensions and other post-employment benefit plans
Net employee defined benefit liabilities
5
2017 2016
6
$000 $000
US post-employment healthcare benefit plan (339) (197)
7
Australian pension plan (2,711) (2,780)
8
Total (3,050) (2,977)
Introduction
9
The Group has a defined benefit pension plan in Australia (funded). Also, in the United States, the Group IAS 19.135
IAS 19.136
provides certain post-employment healthcare benefits to employees (unfunded). The Group’s defined benefit
10
IAS 19.138
pension plan is a final salary plan for Australian employees, which requires contributions to be made to a
separately administered fund.
11
This plan is governed by the employment laws of Australia, which require final salary payments to be adjusted
IAS 19.139
12
for the consumer price index upon payment during retirement. The level of benefits provided depends on the
member’s length of service and salary at retirement age. The fund has the legal form of a foundation and it is
13
governed by the Board of Trustees, which consists of an equal number of employer and employee
representatives. The Board of Trustees is responsible for the administration of the plan assets and for the
Directors’ report
14
definition of the investment strategy.
15
Each year, the Board of Trustees reviews the level of funding in the Australian pension plan as required by
IAS19.146
Australia’s employment legislation. Such a review includes the asset-liability matching strategy and investment IAS 19.147(a)
16
risk management policy. This includes employing the use of annuities and longevity swaps to manage the risks.
The Board of Trustees decides its contribution based on the results of this annual review. Generally, it aims to
17
have a portfolio mix of a combined 40% in equity and property and 60% in debt instruments. Australia’s
employment legislation requires the Group to clear any plan deficit (based on a valuation performed in
18
accordance with the regulations in Australia) over a period of no more than five years after the period in which
the deficit arises. The Board of Trustees aim to keep annual contributions relatively stable at a level such that
19
no plan deficits (based on valuation performed in accordance with the regulations in Australia) will arise.
20
Since the pension liability is adjusted to the consumer price index, the pension plan is exposed to Australia’s
inflation, interest rate risks and changes in the life expectancy for pensioners. As the plan assets include
21
significant investments in quoted equity shares of entities in manufacturing and consumer products sector, the
Group is also exposed to equity market risk arising in the manufacturing and consumer products sector.
22
The following tables summarise the components of net benefit expense recognised in the statement of profit or
loss and the funded status and amounts recognised in the statement of financial position for the respective plans:
23
Post-employment healthcare benefit plan
24
Net benefit expense (recognised in profit or loss) 2017 2016
25
$000 $000
Current service cost (142) (108)
Interest cost on benefit obligation (11) (5) 26
Net benefit expense (153) (113)
27
28
Changes in the present value of the defined benefit obligations:

Notes
$000 IAS 19.141

jhj
29
Defined benefit obligation at 1 January 2016 88

Interest cost 5
30
Current service cost 108

Benefits paid (34)
31
Exchange differences 30
Defined benefit obligation at 31 December 2016 197
32
Interest cost 11
Current service cost 142
33
Benefits paid (21)

Appendices
34
Exchange differences 10
Defined benefit obligation at 31 December 2017 339
35
36

37
29. Pension and other post employment benefit plans (continued)
Australia Plan
2017 changes in the defined benefit obligation and fair value of plan assets
Pension cost charged to profit or loss Remeasurement gains/(losses) in OCI
Return on plan assets Actuarial changes Actuarial changes IAS 19.140
Net Sub-total included (excluding amounts arising from arising from changes IAS 19.141
Service interest in profit or loss included in net changes in demographic in financial Experience Sub-total Contributions by 31 December
1 January 2017 cost expense (Note 12.6) Benefits paid interest expense) assumptions assumptions adjustments included in OCI employer 2017
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Defined benefit
obligation (5,610) (1,267) (256) (1,523) 868 — 211 (80) (20) 111 — (6,154)
Fair value of plan
assets 2,830 — 125 125 (868) 258 — — — 258 1,098 3,443
Benefit liability (2,780) (1,398) — 258 211 (80) (20) 369 1,098 (2,711)
2016 changes in the defined benefit obligation and fair value of plan assets
Pension cost charged to profit or loss Remeasurement gains/(losses) in OCI
Sub-total Return on plan assets Actuarial changes Actuarial changes
included in profit (excluding amounts arising from arising from changes
Service Net interest or loss Benefits included in net changes in demographic in financial Experience Sub-total Contributions by 31 December
1 January 2016 cost expense (Note 12.6) paid interest expense) assumptions assumptions adjustments included in OCI employer 2016
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Defined benefit
obligation
(5,248) (1,144) (283) (1,427) 1,166 — (201) 70 30 (101) — (5,610)
Fair value of plan
assets 2,810 — 161 161 (1,166) (288) — — — (288) 1,313 2,830
Benefit liability (2,438) (1,266) — (288) (201) 70 30 (389) 1,313 (2,780)
Commentary
An entity must assess whether all or some disclosures should be disaggregated to distinguish plans or groups of plans with materially different risks under the requirements of IAS 19.138. For
example, an entity may disaggregate disclosure about plans showing one or more of the following features: different geographical locations, characteristics such as flat salary pension plans,
final salary pension plans or post-employment medical plans, regulatory environments, reporting segments and/or funding arrangements (e.g., wholly unfunded, wholly or partly funded).
Entities must exercise judgement and assess the grouping criteria according to their specific facts and circumstances. In this case, the Group has only one defined benefit pension plan in
Australia, hence there is no further disaggregation shown.
Additional disclosures may also be provided to meet the objectives in IAS 19.135. For example, an entity may present an analysis of the present value of the defined benefit obligation that
distinguishes the nature, characteristics and risks of the obligation. Such a disclosure could distinguish between:
(a) Amounts owing to active members, deferred members, and pensioners
(b) Vested benefits and accrued but not vested benefits
(c) Conditional benefits, amounts attributable to future salary increases and other benefits

1
2
Contents
3
4
The acquisitions of Extinguishers Limited in 2017 and Lightbulbs Limited in 2016 did not affect plan assets or
the defined benefit obligation, as neither of the entities had defined benefit plans.
5
The fair value of each major class of plan assets are as follows: IAS 19.142
6
Australia plan
7
2017 2016
$000 $000
8
Investments quoted in active markets:
Introduction
Quoted equity investments
9
Manufacturing and consumer products sector 830 655
Telecom sector 45 33
10
Bonds issued by Australian Government 1,670 1,615
11
Cash and cash equivalents 400 250
12
Unquoted investments:
13
Debt instruments issued by Good Bank International Limited 428 222
Property 70 55
Directors’ report
14
Total 3,443 2,830
15
The plan assets include a property occupied by the Group with a fair value of $50,000 (2016: $50,000). IAS 19.143
16
Commentary
The fair value of the plan assets is provided in this disclosure. Even though the fair value is determined using IFRS 13, the
17
fair value disclosures required by IFRS 13 do not apply to employee benefits within the scope of IAS 19. However, if there
was an impact on the plan assets from the measurement using IFRS 13 that would need to be disclosed.
18
Under IAS 19.142, the Group has separated the plan assets within different classes. The Group has a class -
19
which has not been further classified into categories. The amount is not determined to be material to the consolidated

financial statements.
20
The principal assumptions used in determining pension and post-employment medical benefit obligations for the IAS 19.144
Group’s plans are shown below:
21
2017 2016
22
% %
23
Discount rate:
Australian pension plan 4.9 5.5
24
Post-employment medical plan 5.7 5.9
25
Future salary increases:
26
Future consumer price index increases:
27

28
Healthcare cost increase rate 7.2 7.4

Notes
jhj
29
Life expectation for pensioners at the age of 65: Years Years

Australian pension plan
30
Male 20.0 20.0

Female 23.0 23.0
31
Post-employment healthcare benefit plan

32
Male 19.0 19.0

Female 22.0 22.0
33
Appendices
34
35
36

37
1
2
Contents
3
4
A quantitative sensitivity analysis for significant assumptions as at 31 December is, as shown below:
5
Impact on defined IAS 19.145
benefit obligation
6
2017 2016
Assumptions for Australian pension plan: $000 $000
7
Future pension cost increase:
1% increase 70 60
8
Introduction
1% decrease (80) (70)
Discount rate:
9
0.5% increase (90) (100)
10
0.5% decrease 80 70
Future salary increases:
11
0.5% increase 120 110
0.5% decrease (110) (130)
12
Life expectancy of male pensioners:
Increase by 1 year 110 100
13
Decrease by 1 year (120) (130)
Directors’ report
Life expectancy of female pensioners:
14
15
16
Assumptions for US post-employment healthcare benefit plan:
Future pension cost increase:
17
1% increase 110 105
1% decrease (90) (95)
18
Discount rate:
0.5% increase (90) (120)
19
0.5% decrease 100 80
Life expectancy of male pensioners:
20
21
Life expectancy of female pensioners:
22
23
The sensitivity analyses above have been determined based on a method that extrapolates the impact on the IAS 19.145(b)
24
defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the
reporting period. The sensitivity analyses are based on a change in a significant assumption, keeping all other
25
assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined
benefit obligation as it is unlikely that changes in assumptions would occur in isolation from one another.
26
The following payments are expected contributions to the defined benefit plan in future years:
27
2017 2016 IAS 19.147(a)

28
$000 $000 IAS 19.147(b)

Notes
Within the next 12 months (next annual reporting period) 1,500 1,350 IAS 19.147(c)
jhj
29
Between 2 and 5 years 2,150 2,050

Between 5 and 10 years 2,160 2,340
Beyond 10 years
30
3,000 2,600 
Total expected payments 8,810 8,340

31
The average duration of the defined benefit plan obligation at the end of the reporting period is 26.5 years
32
(2016: 25.3 years).

33
Appendices
34
35
36

37
1
2
Contents
3
4
Commentary
IAS 19.145(c) also requires disclosure of changes from the previous period in the methods and assumptions used in
5
preparing the sensitivity analyses, and the reasons for such changes. The Group did not have such changes.
IAS 19.145(a) requires disclosure of sensitivity analyses showing how the defined benefit obligation would be affected by
6
reasonably possible changes in actuarial assumptions. The purpose of this publication is to illustrate the disclosures
required and the changes in the assumptions provided in the sensitivity analyses above are not necessarily reflective of
7
those in the current markets.
8
The standard includes some overriding disclosure objectives and considerations that provide a framework to identify the
Introduction
overall tone and extent of disclosures that should be included in the financial statement notes. For example, IAS 19.136
9
indicates that entities should consider the following when providing defined benefit plan disclosures:
► The level of detail necessary to satisfy the disclosure requirements
10
► How much emphasis to place on each of the various requirements
11
► How much aggregation or disaggregation to undertake
► Whether users of financial statements need additional information to evaluate the quantitative information disclosed
12
These considerations are meant to assist entities in reconciling the overriding disclosure objective along with the fact
that an extensive list of required disclosures still remains in the standard. In the Basis for Conclusions accompanying
13
IAS 19, the IASB emphasise that information that is immaterial is not required to be disclosed, as set out
in IAS 1.31.
Directors’ report
14
The addition of clear disclosure objectives provides entities with an opportunity to take a fresh look at their defined benefit
plan disclosures. Eliminating immaterial disclosures would enhance the financial statement users’ ability to focus on those
15
transactions and details that truly matter.
16
30. Share-based payments
17
Executive STI plan
Under the executive STI plan, 25% of the STI is deferred into shares with the number of shares calculated based
18
IFRS 2.45(a)
on Good Group (Australia) Limited’s weighted average share price during the five trading days immediately
preceding the allocation date of the shares. The shares are subject to a further two year service period.
19
Executive LTI plan
20
Under the executive LTI plan, awards are made to executives and other key talent who have an impact on the
Group’s performance. LTI awards are delivered in the form of options over shares which vest over a period of
21
three years subject to meeting performance measures, with no opportunity to retest. The Group uses relative
total shareholder return (TSR) and ROE as the performance measures. The fair value of share options granted is
22
estimated at the date of grant using a Monte-Carlo simulation model, taking into account the terms and
conditions upon which the share options were granted. For the portion of the LTI subject to the relative TSR
23
performance measure, the model simulates the TSR and compares it against the group of principal competitors.
It takes into account historical and expected dividends, and the share price fluctuation covariance of the Group
24
and its competitors to predict the distribution of relative share performance.
IFRS 2.45(a)(iii)
The exercise price of the share options is equal to the market price of the underlying shares on the date of
25
IFRS 2.46
grant. The contractual term of the share options is five years and there are no cash settlement alternatives for
the employees. The Group does not have a past practice of cash settlement for these awards. 26
Share Appreciation Rights
27
The Group’s business development employees are granted share appreciation rights (SARs), settled in cash. IFRS 2.45(a)
IFRS 2.46
The SARs vest when a specified target number of new sales contracts (non-market vesting condition) are closed
28
IFRS 2.47(a)(iii)
within three years from the date of grant and the employee continues to be employed by the Group at the
Notes
jhj
vesting date. The share options can be exercised up to three years after the three-year vesting period and
29
therefore, the contractual term of the SARs is six years. The liability for the share appreciation rights is
30
measured, initially and at the end of each reporting period until settled, at the fair value of the share
appreciation rights, by applying an option pricing model, taking into account the terms and conditions on which
31
the share appreciation rights were granted, and the extent to which the employees have rendered services to
date.
32
The carrying amount of the liability relating to the SARs at 31 December 2017 was $299,000 (2016: $194,000). IFRS 2. 50
IFRS 2.51(b)
No SARs had vested, granted or forfeited at 31 December 2017 and 2016.
33
IFRS 2.46(c)
Appendices
34
35
36

37
1
2
Contents
3
30. Share-based payments (continued)
4
The expense recognised for employee services received during the year is shown in the following table:
2017 2016
5
$000 $000
6
Expense arising from equity-settled share-based payment transactions 307 298
Expense arising from cash-settled share-based payment transactions 105 194
7
Total expense arising from share-based payment transactions 412 492 IFRS 2.51(a)
There were no cancellations or modifications to the awards in 2017 or 2016.
8
Introduction
Movements during the year
9
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in,
share options during the year (excluding SARs):
10
2017 2017 2016 2016
Number WAEP Number WAEP
11
Outstanding at 1 January 575,000 $2.85 525,000 $2.75
12
Granted during the year 250,000 $3.85 155,000 $3.13
Forfeited during the year — — (25,000) $2.33
13
Exercised during the year (75,000)2 $2.33 (65,000)1 $3.08 IFRS 2.45(c)
(25,000) (15,000)
Directors’ report
Expired during the year $3.02 $2.13
14
Outstanding at 31 December 725,000 $3.24 575,000 $2.85 IFRS 2.45(d)
15
Exercisable at 31 December 110,000 $2.98 100,000 $2.51 IFRS 2.45(b)
16
1
The weighted average share price at the date of exercise of these options was $4.09. IFRS 2.45(c)
2
The weighted average share price at the date of exercise of these options was $3.13.
17
The weighted average remaining contractual life for the share options outstanding as at 31 December 2017
IFRS 2.45(d)
18
was 2.94 years (2016: 2.60 years).
The weighted average fair value of options granted during the year was $1.32 (2016: $1.18). IFRS 2.47(a)
19
The range of exercise prices for options outstanding at the end of the year was $2.33 to $3.85 IFRS 2.45(d)
(2016: $2.13 to $3.13).
20
The following tables list the inputs to the models used for the two plans for the years ended IFRS 2.47(a)(i)
21
31 December 2017 and 2016, respectively:
2017
22
Executive LTI 2017
Plan SAR
23
Weighted average fair values at the measurement date $3.10 $2.80
Dividend yield (%) 3.13 3.13
24
Expected volatility (%) 16.00 18.00
Risk–free interest rate (%) 5.10 5.10
25
Expected life of share options/SARs (years) 4.25 6.00
Weighted average share price ($) 3.10 3.12
Model used Monte Carlo Binomial 26
27
2016
Executive LTI 2016
28
Plan SAR
Notes
Weighted average fair values at the measurement date $3.00 $2.60

jhj
29
Dividend yield (%) 3.01 3.01

Expected volatility (%) 17.50 18.10
30
Risk–free interest rate (%) 5.00 5.00

Expected life of options/SARs (years) 4.25 6.00
31
Weighted average share price ($) 2.86 2.88

Model used Monte Carlo Binomial
32
IFRS 2.47(a)(ii)
The expected life of the share options and SARs is based on historical data and current expectations and is not
necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that
33
the historical volatility over a period similar to the life of the options is indicative of future trends, which may
Appendices
not necessarily be the actual outcome.

34
35
36

37
1
2
Contents
3
30. Share-based payments (continued)
4
Modifications IFRS 2.47(c)(i)
The Board permitted L.P. Lyn to retain a pro-rated (based on time and performance) portion of the awards
5
made under the 2014 LTI plan. As the options were no longer subject to L.P. Lyn’s employment with the Group,
the expense relating to 27,000 unvested options at departure has been accelerated and recognised in profit or
6
loss.
7
31. Trade and other payables
8
2017 2016
Introduction
$000 $000
9
Trade payables 17,528 18,945
Other payables 1,833 1,494
10
Interest payable 43 269
11
Related parties 40 22
19,444 20,730
12
Terms and conditions of the above financial liabilities: IFRS 7.39
13
► Trade payables are non-interest bearing and are normally settled on 60-day terms
Directors’ report
14
► Other payables are non-interest bearing and have an average term of six months
Interest payable is normally settled quarterly throughout the financial year
15
►
► For terms and conditions with related parties, refer to Note 33
16
IFRS 7.39(c)
For explanations on the Group’s liquidity risk management processes, refer to Note 20.5.
17
32. Commitments and contingencies
18
IAS 17.35(d)
Operating lease commitments – Group as lessee
19
The Group has entered into operating leases on certain motor vehicles and items of machinery, with lease terms
between three and five years. The Group has the option, under some of its leases, to lease the assets for
20
additional terms of three to five years.
21
Future minimum rentals payable under non-cancellable operating leases as at 31 December are, as follows: IAS 17.35(a)
22
2017 2016
$000 $000
23
Within one year 255 250
After one year but not more than five years 612 600
24
More than five years 408 400
25
1,275 1,250
Operating lease commitments – Group as lessor 26
The Group has entered into operating leases on its investment property portfolio consisting of certain office IAS 17.56(c)
27
and manufacturing buildings. These leases have terms of between 5 and 20 years. All leases include a clause to
enable upward revision of the rental charge on an annual basis according to prevailing market conditions.
28
Notes
The total contingent rents recognised as income during the year is $13,900 (2016: $12,007).
jhj
29
Future minimum rentals receivable under non-cancellable operating leases as at 31 December are, as follows:
30
2017 2016 IAS 17.56(a)

31
$000 $000
Within one year 1,418 1,390
32
After one year but not more than five years 5,630 5,520
More than five years 5,901 5,864
33
12,949 12,774
Appendices
34
35
36

37
1
2
Contents
3
32. Commitments and contingencies (continued)
4
Finance lease and hire purchase commitments
The Group has finance leases and hire purchase contracts for various items of plant and machinery. The Group’s IAS 17.31(e)
5
obligations under finance leases are secured by the lessor’s title to the leased assets. Future minimum lease
payments under finance leases and hire purchase contracts, together with the present value of the net minimum
6
lease payments are, as follows:
7
2017 2016
Minimum Present value Minimum Present value
8
Introduction
payments of payments payments of payments
$000 $000 $000 $000
9
Within one year 85 83 56 51
10
After one year but not more than five years 944 905 1,014 943
More than five years — — — —
11
Total minimum lease payments 1,029 988 1,070 994 IAS 17.31(b)
Less amounts representing finance charges (41) — (76) —
12
Present value of minimum lease payments 988 988 994 994
13
Commentary
Directors’ report
14
IAS 17 Leases requires additional disclosures for material leasing arrangements, such as: the basis on which contingent
rent payable is determined; the existence and terms of renewal or purchase options and escalation clauses; and
15
restrictions imposed by the lease arrangements, such as dividends, additional debt and further leasing. Where these
disclosures are absent in the Group’s financial statements, it is because they are not applicable to the Group’s lease
16
arrangements.
17
Commitments
At 31 December 2017, the Group had commitments of $2,310,000 (2016: $4,500,000) including $2,000,000 IAS 16.74(c)
18
IFRS 12.23 (a)
(2016: $Nil) relating to the completion of the fire equipment safety facility and $310,000, (2016: $516,000) IFRS 12.B18-B19
relating to trade purchase commitments by the Group’s joint venture.
19
Legal claim contingency
20
An overseas customer has commenced an action against the Group in respect of equipment claimed to be IAS 37.86
defective. The estimated payout is $850,000 should the action be successful. A trial date has not yet been
21
set. Therefore, it is not practicable to state the timing of the payment, if any.
The Group has been advised by its legal counsel that it is only possible, but not probable, that the action
22
will succeed. Accordingly, no provision for any liability has been made in these financial statements.
23
Guarantees
The Group has provided the following guarantees at 31 December 2017: IAS 24.21(h)
24
IAS 24.19 (d)
► Guarantee of 25% of the bank overdraft of the associate to a maximum amount of $500,000 IAS 24.19 (e)
25
(2016: $250,000), which is incurred jointly with other investors of the associate (carrying amounts of
IAS 37.86
the related financial guarantee contracts were $67,000 and $34,000 at 31 December 2017 and 2016,
respectively) 26
Guarantee to an unrelated party for the performance in a contract by the joint venture. No liability is
27
►
IFRS 12.23 (b)
expected to arise
28
► Guarantee of its share of $20,000 (2016: $13,000) of the associate’s contingent liabilities which have
Notes
been incurred jointly with other investors

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29
Contingent liabilities
The Group recognised a contingent liability of $400,000 in the course of the acquisition of Extinguishers
30
Limited (see Notes 7 and 26).

31
32
33
Appendices
34
35
36

37
1
2
Contents
3
33. Related party disclosures
4
Note 6 provides information about the Group’s structure, including details of the subsidiaries and the holding
company. The following table provides the total amount of transactions that have been entered into with related
5
parties for the relevant financial year.
6
Sales to Purchases Amounts owed Amounts owed
related from related by related to related IAS 24.18
7
parties parties parties* parties* IAS 24.21
$000 $000 $000 $000
8
Entity with significant influence
Introduction
over the Group:
9
International Fires P.L.C. 2017 7,115 — 620 —
2016 5,975 — 550 —
10
Associate:
11
Power Works Limited 2017 2,900 — 551 —
2016 2,100 — 582 —
12
13
Joint venture in which the parent
is a venturer:
Directors’ report
14
Showers Limited 2017 — 590 — 30
2016 — 430 — 12
15
Key management personnel of
16
the Group:
Other directors’ interests 2017 225 510 — 10
17
2016 135 490 — 10
18
* The amounts are classified as trade receivables and trade payables, respectively (see Notes 22 and 31).
19
Interest Amounts owed by IAS 24.13
IAS 24.18
received related parties
20
Loans from/to related parties $000 $000
Associate:
21
Power Works Limited 2017 20 200
2016 — —
22
Key management personnel of the Group:
23
Directors’ loans 2017 1 13
2016 — 8
24
There were no transactions other than dividends paid between the Group and S.J. Limited, the ultimate parent
25
during the financial year (2016: $Nil).
26
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
33. Related party disclosures (continued)
4
The ultimate parent
IAS 24.13
The ultimate parent of the Group is S.J. Limited and is based and listed in Australia. There were no AASB 124.Aus13.1
5
transactions other than dividends paid between the Group and S.J. Limited during the financial year (2016: IAS 1.138(c)
$Nil).
6
Loan to an associate
The loan granted to Power Works Limited is intended to finance an acquisition of new machines for the
7
manufacturing of fire prevention equipment. The loan is unsecured and repayable in full on 1 June 2017.
Interest is charged at 10%.
8
Introduction
Terms and conditions of transactions with related parties
9
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s IAS 24.21
IAS 24. 18(b)
length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement
10
occurs in cash. There have been no guarantees provided or received for any related party receivables or
payables. For the year ended 31 December 2017, the Group has not recorded any impairment of receivables
11
relating to amounts owed by related parties (2016: $Nil). This assessment is undertaken each financial year
through examining the financial position of the related party and the market in which the related party operates.
12
Commentary
13
The disclosure that transactions with related parties are made on terms equivalent to an arm’s length transaction is only
Directors’ report
14
required if an entity can substantiate such terms, but IAS 24.23 does not require such a disclosure. The Group was able to
substantiate the terms and therefore provides the disclosure.
15
Commitments with related parties
On 1 July 2017, Bright Sparks Limited entered into a two-year agreement ending 30 June 2019 with Power IAS 24.18(b)
16
IAS 24.21(i)
Works Limited to purchase specific electrical and optical cables that Bright Sparks Limited uses in its production
17
cycle. Bright Sparks Limited expects the potential purchase volume to be $750,000 in 2018 and $250,000 in
the first 6 months of 2019. The purchase price is based on Power Works Limited’s actual cost plus a 5% margin
18
and will be settled in cash within 30 days of receiving the inventories.
The Group has provided a contractual commitment to Fire Equipment Test Lab Limited, whereby if the assets IFRS 12.14-15
19
held as collateral by Fire Equipment Test Lab Limited for its borrowing fall below a credit rating of ‘AA’, the
parent will substitute assets of an equivalent of ‘AA’ rating. The maximum fair value of the assets to be replaced
20
is $200,000 as at 31 December 2017 (2016: $210,000).
21
Transactions with key management personnel
Directors’ loans
22
Loans to directors are interest free. Senior executives are charged interest at the concessional rate of 4% per IAS 24.18
annum. The average commercial rate of interest during the year was 8%.
23
During the year, Good Group (Australia) Limited provided a housing loan to P.G. Gerherns of $150,000
24
repayable within five years on interest free terms, secured by a registered first mortgage over the property. No
amount was repaid during the year. The loan was approved by shareholders at the AGM.
25
A loan of $350,000 was also provided to Everest Pty Ltd, a company controlled by R.J. Ferns. The loan is
repayable within three years, on a concessional rate of 4.25% per annum. An amount of $60,000 was repaid 26
during the year. The loan was approved by shareholders at the AGM.
27
28
Notes
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29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
33. Related party disclosures (continued)
4
Other directors’ interests IAS 24.18
IAS 24.19(f)
Purchases
5
During the year, purchases totalling $310,000 at a 5% discount to market prices have been made by Group
6
companies from Gnome Industries Limited, of which M.A. Pryce's wife is a director and controlling shareholder.
$10,000 was outstanding at 31 December 2017.
7
Sales
8
Introduction
C. Feens holds a 25% equity interest in Home Fires Limited. During the year the Group supplied extinguishers to
Home Fires Limited to the value of $225,000 at normal market prices. At 31 December 2017, Home Fires
9
Limited owed $20,000 to the Group.
10
Investments
11
During the year, Good Group (Australia) Limited acquired a 10% interest in the shares in Blister Limited, a
company which is 50% owned by F. Canuck at fair value at the date of acquisition.
12
Compensation of key management personnel of the Group IAS 24.17
13
2017 2016
$ $
Directors’ report
14
Short-term employee benefits 3,129,195 2,743,746
Post-employment benefits 223,931 183,080
15
Other long-term benefits 9,700 8,300
Termination benefits 161,026 —
16
Share-based payment 284,956 95,260
Total compensation paid to key management personnel 3,808,808 3,030,116
17
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period
18
related to key management personnel.
19
34. Standards issued but not yet effective
20
Australian Accounting Standards and Interpretations that are issued, but are not yet effective, up to the date IAS 8.30
IAS 8.31(d)
of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these
21
standards, is applicable, when they become effective.
22
AASB 9 Financial Instruments
In December 2014, the AASB issued the final version of AASB 9 Financial Instruments that replaces AASB 139
23
Financial Instruments: Recognition and Measurement and all previous versions of AASB 9. AASB 9 brings
together all three aspects of the accounting for financial instruments project: classification and measurement,
24
impairment and hedge accounting. AASB 9 is effective for annual periods beginning on or after 1 January 2018,
with early application permitted. Except for hedge accounting, retrospective application is required but providing
25
comparative information is not compulsory. For hedge accounting, the requirements are generally applied
prospectively, with some limited exceptions.
26
The Group plans to adopt the new standard on the required effective date and will not restate comparative
27
information. During 2017, the Group has performed a detailed impact assessment of all three aspects of AASB 9.
This assessment is based on currently available information and may be subject to changes arising from further
28
reasonable and supportable information being made available to the Group in 2018 when the Group will adopt
Notes
AASB 9. Overall, the Group expects no significant impact on its statement of financial position and equity except
jhj
29
for the effect of applying the impairment requirements of AASB 9. The Group expects an increase in the loss
allowance resulting in a negative impact on equity as discussed below. In addition, the Group will implement
30
changes in classification of certain financial instruments.

31
(a) Classification and measurement

The Group does not expect a significant impact on its balance sheet or equity on applying the classification and
32
measurement requirements of AASB 9. It expects to continue measuring at fair value all financial assets
currently held at fair value. Quoted equity shares currently held as available-for-sale (AFS) with gains and losses
33
recorded in OCI will, instead, be measured at fair value through profit or loss, which will increase volatility in
Appendices
recorded profit or loss. The AFS reserve of $7,000 related to those securities in amount, which is currently
34
presented as accumulated OCI, will be reclassified to retained earnings.

35
36

37
1
2
Contents
3
34. Standards issued but not yet effective (continued)
4
Debt securities are expected to be measured at fair value through OCI under AASB 9 as the Group expects not
only to hold the assets to collect contractual cash flows, but also to sell a significant amount on a relatively
5
frequent basis.
The equity shares in non-listed companies are intended to be held for the foreseeable future. No impairment
6
losses were recognised in profit or loss during prior periods for these investments. The Group will apply the
option to present fair value changes in OCI, and, therefore, the application of AASB 9 will not have a significant
7
impact.
8
Loans as well as trade receivables are held to collect contractual cash flows and are expected to give rise to cash
Introduction
flows representing solely payments of principal and interest. The Group analysed the contractual cash flow
9
characteristics of those instruments and concluded that they meet the criteria for amortised cost measurement
under AASB 9. Therefore, reclassification for these instruments is not required.
10
(b) Impairment
11
AASB 9 requires the Group to record expected credit losses on all of its debt securities, loans and trade
receivables, either on a 12-month or lifetime basis. The Group will apply the simplified approach and record
12
lifetime expected losses on all trade receivables. The Group has determined that, due to the unsecured nature of
its loans and receivables, the loss allowance will increase by $770,000 with corresponding related decrease in
13
the deferred tax liability of $231,000.
Directors’ report
14
(c) Hedge accounting
The Group determined that all existing hedge relationships that are currently designated in effective hedging
15
relationships will continue to qualify for hedge accounting under AASB 9. The Group has chosen not to
retrospectively apply AASB 9 on transition to the hedges where the Group excluded the forward points from the
16
hedge designation under AASB 139. As AASB 9 does not change the general principles of how an entity
accounts for effective hedges, applying the hedging requirements of AASB 9 will not have a significant impact on
17
Group’s financial statements.
18
(d) Other adjustments
In addition to the adjustments described above, on adoption of AASB 9, other items of the primary financial
19
statements such as deferred taxes, assets held for sale and liabilities associated with them, investments in the
associate and joint venture, will be adjusted as necessary. The exchange differences on translation of foreign
20
operations will also be adjusted.
21
In summary, the impact of AASB 9 adoption is expected to be, as follows:
22
Impact on equity (increase/(decrease)) as of 31 December 2017:
Adjustments $000
23
Assets
24
Investments in associate and joint venture (d) (7)
25
Trade and other receivables (b) (770)
Assets held for sale (d) (349) 26

Total assets (1,126)
27
28
Liabilities
Notes
jhj
29
Deferred tax liabilities (b) (233)

30
Liabilities directly associated with assets held for (105)

(d)
sale
31
Total liabilities (338)

32
Net impact on equity, Including (788)
Retained earnings (a) (758)

33
Other components of equity (a), (d) 2

Appendices
34
Non-controlling interests (d) (32)

35
36

37
1
2
Contents
3
4
AASB 15 Revenue from Contracts with Customers
AASB 15 was issued in December 2014, and amended in May 2016, and establishes a five-step model to
5
account for revenue arising from contracts with customers. Under AASB 15, revenue is recognised at an
amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring
6
goods or services to a customer.
7
The new revenue standard will supersede all current revenue recognition requirements under Australian
Accounting Standards. Either a full retrospective application or a modified retrospective application is required
8
for annual periods beginning on or after 1 January 2018. Early adoption is permitted. The Group plans to
Introduction
adopt the new standard on the required effective date using the full retrospective method. During 2016, the
9
Group performed a preliminary assessment of AASB 15, which was continued with a more detailed analysis
completed in 2017.
10
The Group is in the business of providing fire prevention and electronics equipment and services. The
11
equipment and services are sold both on their own in separate identified contracts with customers and
together as a bundled package of goods and/or services.
12
(a) Sale of goods
13
For contracts with customers in which the sale of equipment is generally expected to be the only performance
obligation, adoption of AASB 15 is not expected to have any impact on the Group’s revenue and profit or loss.
Directors’ report
14
The Group expects the revenue recognition to occur at a point in time when control of the asset is transferred
to the customer, generally on delivery of the goods.
15
In preparing to adopt AASB 15, the Group is considering the following:
16
(i) Variable consideration
Some contracts with customers provide a right of return, trade discounts or volume rebates. Currently, the
17
Group recognises revenue from the sale of goods measured at the fair value of the consideration received or
receivable, net of returns and allowances, trade discounts and volume rebates. If revenue cannot be reliably
18
measured, the Group defers revenue recognition until the uncertainty is resolved. Such provisions give rise to
variable consideration under AASB 15, and will be required to be estimated at contract inception and updated
19
thereafter.
20
AASB 15 requires the estimated variable consideration to be constrained to prevent over-recognition of
revenue. The Group expects that application of the constraint will result in more revenue being deferred than
21
under current Australian Accounting Standards.
22
Rights of return
When a contract with a customer provides a right to return the good within the specified period, the Group
23
currently accounts for the right of return using a probability-weighted average amount of return approach
similar to the expected value method under AASB 15. Under the current accounting policy, the amount of
24
revenue related to the expected returns is deferred and recognised in the statement of financial position within
Trade and other payables. A corresponding adjustment is made to the cost of sales. The initial carrying amount
25
of goods expected to be returned is included within Inventories.
Under AASB 15, because the contract allows the customer to return the products, the consideration received 26
from the customer is variable. The Group has decided to use the expected value method to estimate the goods
27
that will be returned because this method better predicts the amount of variable consideration to which the
Group will be entitled. The Group applied the requirements in AASB 15 on constraining estimates of variable
28
consideration to determine the amount of variable consideration that can be included in the transaction price.
Notes
jhj
The Group concluded that, when it adopts AASB 15, an adjustment to revenue from the sale of goods of
29
$120,000 would be needed with a related adjustment to cost of sales of $100,000 for 2017. Under AASB 15,
the Group presents a refund liability and an asset for the right to recover products from a customer separately
30
in the statement of financial position. On transition to AASB 15, the Group will reclassify Trade and other
payables in the amount of $1,215,000 to Refund liabilities and related Inventories in the amount of $834,000
31
to Rights to recover products from customers on return. In addition, Refund liabilities in the amount of
$125,000 and Rights to recover products from customers on return in the amount of $95,000, will be
32
recognised in the statement of financial position. As a result of these adjustments, Retained earnings as at 31
December 2017 will decrease by $30,000.
33
Appendices
34
35
36

37
1
2
Contents
3
Volume rebates
4
In the Electronics segment, the Group provides retrospective volume rebates to its customers on all products
5
purchased by the customer once the quantity of products purchased during the period exceeds a threshold
specified in the contract. Under its existing accounting policy, the Group estimates the expected volume
6
rebates using the probability-weighted average amount of rebates approach and includes them in Trade and
other payables. These amounts may subsequently be repaid in cash to the customer or are offset against
7
amounts payable by customer.
Under AASB 15, retrospective volume rebates give rise to variable consideration. To estimate the variable
8
Introduction
consideration to which it will be entitled, the Group considered that the most likely amount method better
predicts the amount of variable consideration for contracts with only a single volume threshold while for
9
contracts with more than one volume threshold it would apply either the expected value method or the most
10
likely amount method, depending on which of them better predicts the amount of variable consideration for
the particular type of contract. The Group applied the requirements in AASB 15 on constraining estimates of
11
variable consideration and concluded that an adjustment to reduce revenue from sale of goods by $1,315,000
would be needed in 2017, with a corresponding increase in Trade and other payables (to be presented under
12
AASB 15 as Contract liabilities). In addition, the Group would present a liability recognised for the expected
future rebates as part of Contract liabilities. Therefore, an amount of $3,115,000 would be reclassified from
13
Trade and other payables to Contract liabilities. In addition, Contract liabilities in amount of $474,000 will be
recognised in the statement of financial position for the effects of restating of prior periods. As result of these
Directors’ report
14
adjustments Retained earnings as at 31 December 2017 will decrease by $1,789,000.
15
(ii) Warranty obligations
The Group generally provides for warranties for general repairs and does not provide extended warranties in
16
its contracts with customers. As such, most existing warranties will be assurance-type warranties under AASB
15, which will continue to be accounted for under AASB 137 Provisions, Contingent Liabilities and Contingent
17
Assets, consistent with its current practice. However, in certain non-standard contracts, the Group provides
extended warranties that are currently accounted for under AASB 137. Under AASB 15, such warranties will
18
be accounted for as service-type warranties and, therefore, will be accounted for as separate performance
obligations to which the Group allocates a portion of the transaction price. When the Group adopts AASB 15 in
19
2018, the following adjustments are expected for 2017: the amount of $58,000 recognised as short-term
Provisions under AASB 137; and the related expenses included in cost of sales ($58,000) will be derecognised.
20
The revenue that should be allocated to the sale of service-type warranties ($60,000) will be deferred and
presented as the current portion of Contract liabilities of $60,000. Since the Group did not have any unfulfilled
21
extended warranties related to the years prior to 2017, Retained earnings as at 31 December 2017 will
decrease by the difference of $2,000.
22
(iii) Loyalty points programme (GoodPoints)
23
Under Interpretation 13 Customer Loyalty Programmes, the loyalty programme offered by the Group’s
electronic segment results in the allocation of a portion of the transaction price to the loyalty programme
24
using the fair value of points issued and recognition of the deferred revenue in relation to points issued but not
yet redeemed or expired. The Group concluded that under AASB 15 the loyalty programme gives rise to a
25
separate performance obligation because it generally provides a material right to the customer. Under AASB
15, the Group will need to allocate a portion of the transaction price to the loyalty programme based on
relative stand-alone selling price instead of the allocation using the fair value of points issued, i.e. residual 26
approach, as it did under Interpretation 13. The Group determined that more revenue must be allocated to the
27
goods sold in comparison to the existing accounting policy. When AASB 15 is adopted, the following
adjustments are expected to the current year: revenue from the sale of goods would increase and the current
28
portion of Deferred revenue would decrease by $18,000. In addition, $30,000 would be reclassified from the
Notes
jhj
non-current portion of Deferred revenue to the opening Retained earnings, with a cumulative effect on
29
Retained earnings as at 31 December 2017 in the amount of $48,000; the remaining balances of non-current
30
Deferred revenue in the amount of $166,000 and current portion of Deferred revenue in the amount of
$202,000 will be reclassified as non-current and current portions of Contract liabilities.
31
(b) Rendering of services

The Group’s fire prevention segment provides installation services. These services are sold either on their own
32
in contracts with the customers or bundled together with the sale of equipment to a customer. Currently, the
Group accounts for the equipment and service as separate deliverables of bundled sales and allocates
33
consideration between these deliverables using the relative fair value approach. The Group recognises service
Appendices
revenue by reference to the stage of completion. Under AASB 15, allocation will be made based on relative
34
stand-alone selling prices. Hence, the allocation of the consideration and, consequently, the timing of the
amount of revenue recognised in relation to these sales would be affected.
35
36

37
1
2
Contents
3
4
The Group assessed that when AASB 15 is adopted, the current reporting period would be adjusted such that
revenue from sale of goods would increase by $170,000 because of re-allocation of the portion of contract
5
consideration that, under AASB 118, was allocated to installation services and the current portion of Deferred
revenue would be lower by the same amount. The effect on prior periods would be a decrease in the current
6
portion of Deferred revenue and an increase in opening Retained earnings by $60,000. In addition, the Group
would reclassify $30,000 from the non-current portion of Deferred revenue to the non-current portion of
7
Contract liabilities and $55,000 from the current portion of Deferred revenue to the current portion of
Contract liabilities.
8
Introduction
The Group concluded that the services are satisfied over time given that the customer simultaneously receives
9
and consumes the benefits provided by the Group. Consequently, under AASB 15 the Group would continue to
recognise revenue for these service contracts/service components of bundled contracts over time rather than
10
at a point of time.
11
Applying a percentage of completion method, the Group currently recognises revenue and Trade and other
receivables, even if receipt of the total consideration is conditional on successful completion of installation
12
services. Under AASB 15, earned consideration that is conditional should be recognised as a contract asset
rather than receivable. Therefore, on adoption of AASB 15, the Group will reclassify at 31 December 2017
13
$4,180,000 from Trade and other receivables to the current portion of Contract assets.
Directors’ report
(c) Equipment received from customers
14
The Group receives transfers of moulds and other tools for its manufacturing process from customers, which
15
are recognised at fair value as property, plant and equipment under Interpretation 18 Transfers of Assets from
Customers with a corresponding increase in Deferred revenue.
16
AASB 15 requires that the fair value of such non-cash consideration, received or expected to be received by the
customer, is included in the transaction price. The Group has concluded that adoption of AASB 15 would not
17
have an effect on the accounting for equipment received from customers. However, amounts that were
presented previously as Deferred revenue would be presented under AASB 15 as Contract liabilities. This would
18
result in reclassification as of 31 December 2017 of $43,000 from the current portion of Deferred revenue to
the current portion of Contract liabilities and $133,000 from the non-current portion of Deferred revenue to
19
the non-current portion of Contract liabilities.
20
(d) Advances received from customers
21
Generally, the Group receives only short-term advances from its customers. They are presented as part of
Trade and other payables. However, from time to time, the Group may receive from customers long-term
22
advances. Under the current accounting policy, the Group presents such advances as Deferred revenue under
the non-current liabilities heading in the statement of financial position. No interest was accrued on the long-
23
term advances received under the current accounting policy.
Under AASB 15, the Group must determine whether there is a significant financing component in its contracts.
24
However, the Group decided to use the practical expedient provided in AASB 15, and will not adjust the
25
promised amount of the consideration for the effects of a significant financing components in the contracts,
where the Group expects, at contract inception, that the period between the Group transfer of a promised good
or service to a customer and when the customer pays for that good or service will be one year or less. 26
Therefore, for short-term advances, the Group will not account for a financing component even if it is
27
significant.
Based on the nature of the goods and services offered and the purpose of payment terms, the Group
28
Notes
determined that for the vast majority of the contracts that require customers to pay long-term advances, the
jhj
29
payment terms were structured primarily for reason other than the provision of finance to the Group, i.e.
advances are generally required from new customers, as well as customers with a history of late payments,
30
they do not provide customers with an alternative to pay in arrears. In addition, the length of time between
when the customer pays for the goods and the Group transfers goods to the customer is relatively short.
31
Therefore, the Group has concluded that there is not a significant financing component in these contracts.
However, certain contracts between the Group and its customers include two alternative payment options:
32
payments after a number of years when the customers obtain control over the assets and the payment of a
smaller amount when the contracts are signed. For these contracts when the customer elects to use the
33
prepayment option, the Group concluded that they contain a significant financing component because of the
Appendices
34
length of time between when the customer pays for the goods and when the Group transfers goods to the
customer, as well as the prevailing interest rates in the market. The transaction price for such contracts will be
35
determined by discounting the amount of promised consideration using the appropriate discount rate.
36

37
1
2
Contents
3
4
When AASB 15 is adopted, adjustments to the current reporting period are expected such that Deferred
revenue (presented under AASB 15 as non-current portion of Contract liabilities) would increase by $32,000
5
reflecting the adjustment of the promised amount of consideration by the interest, with a related increase in the
Finance costs for 2017 in the amount of $27,000 and a decrease of $5,000 in opening Retaining earnings. In
6
addition, the Group would reclassify $100,000 from the non-current portion of Deferred revenue and $40,000
from the current portion of Deferred revenue to the current and non-current portions of Contract liabilities,
7
respectively.
(e) Principal versus agent considerations
8
Introduction
From time to time the Group enters into contracts with its customers to acquire, on their behalf, special fire
9
prevention equipment produced by foreign suppliers. Under these contracts, the Group provides procurement
services (i.e., selects suitable suppliers and manages the ordering and delivery of the imported equipment). In
10
these contracts, the Group is not considered to be primarily responsible for fulfilling the promise to provide the
specified equipment. The Group does not have inventory risk before or after the specified equipment has been
11
transferred to the customer as it purchases equipment only upon approval of the customer and the foreign
supplier ships equipment directly to the customers. In addition, the Group has no discretion in establishing the
12
price for the specified equipment. However, the Group’s consideration in these contracts is determined as the
13
difference between the maximum purchase price quoted by the customer and the final price negotiated by the
Group with the foreign supplier. The Group bears credit risk on these transactions as it is obliged to pay the
Directors’ report
14
foreign supplier even if the customer defaults on a payment. Under the current accounting policy, based on the
existence of credit risk and the nature of the consideration in the contract, the Group concluded that it has an
15
exposure to the significant risks and rewards associated with the sale of equipment to its customers, and
accounted for the contracts as if it is a principal. AASB 15 requires assessment of whether the Group controls a
16
specified good or service before it is transferred to the customer. The Group has determined that it does not
control the goods before they are transferred to customers, and hence, is an agent rather than principal in these
17
contracts. In addition, the Group concluded that it transfers control over its services (of arranging for the
provision of the equipment from a foreign supplier), at a point of time. When the Group adopts AASB 15,
18
adjustments to the current period would decrease revenue from the sale of goods by $3,956,000 and cost of
sales by $3,440,000 and increase revenue from rendering of services by the difference of $516,000.
19
(f) Presentation and disclosure requirements
20
The presentation and disclosure requirements in AASB 15 are more detailed than under current Australian
Accounting Standards. The presentation requirements represent a significant change from current practice and
21
significantly increases the volume of disclosures required in the Group’s financial statements. Many of the
22
disclosure requirements in AASB 15 are new and the Group has assessed that the impact of some of these
disclosures requirements will be significant. In particular, the Group expects that the notes to the financial
23
statements will be expanded because of the disclosure of significant judgements made: when determining the
transaction price of those contracts that include variable consideration, how the transaction price has been
24
allocated to the performance obligations, and the assumptions made to estimate the stand-alone selling prices of
each performance obligation. Also, extended disclosures are expected as a result of the significant judgement
25
made when assessing the contracts where the Group has concluded that: it acts as an agent instead of a
principal, there is a significant financing component, and service-type warranties are provided. In addition, as
required by AASB 15, the Group will disaggregate revenue recognised from contracts with customers into 26
categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by
27
economic factors. It will also disclose information about the relationship between the disclosure of disaggregated
revenue and revenue information disclosed for each reportable segment. In 2017 the Group continued testing of
28
appropriate systems, internal controls, policies and procedures necessary to collect and disclose the required
Notes
jhj
information.
29
(g) Other adjustments

30
In addition to the major adjustments described above, on adoption of AASB 15, other items of the primary
31
financial statements such as deferred taxes, assets held for sale and liabilities associated with them, profit or
loss after tax for the year from discontinued operations, investments in associate and joint venture, as well as
32
share of profit of an associate and a joint venture, will be affected and adjusted as necessary. Furthermore,
exchange differences on translation of foreign operations would also be adjusted.
33
The recognition and measurement requirements in AASB 15 are also applicable for recognition and
Appendices
measurement of any gains or losses on disposal of non-financial assets (such as items of property and equipment
34
and intangible assets), when that disposal is not in the ordinary course of business. However, on transition, the
effect of these changes is not expected to be material for the Group.
35
36

37
1
2
Contents
3
4
In summary, the impact of AASB 15 adoption is expected to be, as follows:
Impact on equity (increase/(decrease)) as of 31 December 2017 (1 January 2017: ($319,000)):
5
Adjustments $000
6
Assets
7
Investments in associate and joint venture (g) (20)
8
Trade and other receivables (b) (4,180)
Introduction
Inventories (a)(i) (834)
9
Rights to recover products from customers on return (a)(i) 929
10
Contract assets (current) (b) 4,180
11
Assets held for sale (g) 12
12
Total assets 87
13
Liabilities
Directors’ report
14
Trade and other payables (a)(i), (a)(i) (4,330)
15
Refund liabilities (a)(i) 1,340
16
Contract liabilities (current) (a)(i), (a)(ii),
5,264
(c), (d), (f)
17
Contract liabilities (non-current) (c), (d), (f) 501
18
Provisions (a)(ii) (58)
19
Deferred revenue (non-current) (a)(iii), (c),

(459)
(d), (f)
20
Deferred revenue (current) (a)(iii), (b),
(588)
(c), (d), (f)
21
Deferred tax liabilities (g) (484)
22
Liabilities directly associated with assets held for sale (g) 34
23
Total liabilities 1,220
24
Net impact on equity, Including (1,133)
Retained earnings (908)
25
Other components of equity 26
26
Non-controlling interests (251)
27
28
Impact on the statement of profit or loss (increase/(decrease)) for 2017:

Notes
jhj
Adjustments $000
29
Sale of goods (a)(i), (a)(ii), (a)(iii),

30
(5,263)
(b),(e)
31
Rendering of services (e) 516
Cost of sales (a)(i), (a)(ii), (e) 3,598

32
Finance costs (d) (27)

33
Appendices
34
35
36

37
1
2
Contents
3
4
Share of profit of an associate and a joint (g)
5
(12)
venture
6
Income tax expense (g) 358
Profit or loss after tax for the year from (g)
7
(5)
discontinued operations
8
Net impact on profit for the year (835)
Introduction
9
Attributable to:
Equity holders of the parent (610)
10
Non-controlling interests (225)
11
12
Impact on basic and diluted earnings per share (EPS):
13
Earnings per share (increase/
(decrease)
Directors’ report
14
Basic (0.04)
15
Diluted (0.03)
16
Earnings per share for continuing operations
Basic (0.04)
17
Diluted (0.03)
18
19
Impact on other comprehensive income (increase/(decrease)):
20
$000
Exchange differences on translation of foreign operations 21
21
Net impact on other comprehensive income for the year 21
22
Commentary
23
AASB 108.30 requires entities to disclose in the financial statements those standards that have been issued but are not yet
24
effective and to provide known or reasonably estimable information to enable users to assess the possible impact of the
application of such Australian Accounting Standards on an entity’s financial statements.
25
The International Organisation of Securities Commissions (IOSCO) and ASIC issued recommendations on disclosure of the
expected impact of major standards such as AASB 9 Financial Instruments, AASB 15 Revenue from Contracts with Customers
and AASB 16 Leases in the interim and annual financial statements of the companies within their jurisdictions. Good Group 26
decided to provide detailed information on the expected impact on its consolidated financial statements of initial application
27
of AASB 15 and AASB 9, which will be effective in the next reporting year. Since Good Group has not yet quantified the effect
of the future adoption of AASB 16, it has not provided quantitative information on the potential impact of the standard (see
28
below).
Notes
Good Group stated that it has completed its detailed analysis of AASB 15 and AASB 9 adoption in 2017. Therefore, it
jhj
29
disclosed the quantified impact of AASB 15 for individual line items in the financial statements. However, paragraph 30 of
AASB 108 does not require disclosures to be provided with this level of granularity. Entities may be only in the process of
30
finalising their analysis at the date of issuing of their financial statements for 2017, and may wish to disclose the impact of
AASB 15 at a more aggregated level. Such entities would disclose the known or reasonably estimable information relevant to
31
assessing the possible impact that application of AASB 15 will have on their financial statements in the period of initial
application. However, rather than disclosing the impact on each financial statement line item, entities may only be able to
32
disclose an estimated range of the overall impact on profit or loss, assets, liabilities and equity, and they would state in their
financial statements that quantitative information disclosed in this note may be subject to further changes in 2018.
33
Appendices
34
35
36

37
1
2
Contents
3
4
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture
5
The amendments address the conflict between AASB 10 and AASB 128 in dealing with the loss of control of a
subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that the gain or
6
loss resulting from the sale or contribution of assets that constitute a business, as defined in AASB 3,
between an investor and its associate or joint venture, is recognised in full. Any gain or loss resulting from
7
the sale or contribution of assets that do not constitute a business, however, is recognised only to the extent
of unrelated investors’ interests in the associate or joint venture. The IASB has deferred the effective date of
8
Introduction
these amendments indefinitely, but an entity that early adopts the amendments must apply them
prospectively.9 The Group will apply these amendments when they become effective.
9
AASB 2016-5 Amendments to Australian Accounting Standards - Classification and Measurement of
10
Share-based Payment Transactions
The AASB issued amendments to AASB 2 Share-based Payment that address three main areas: the effects of
11
vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification
of a share-based payment transaction with net settlement features for withholding tax obligations; and
12
accounting where a modification to the terms and conditions of a share-based payment transaction changes
its classification from cash settled to equity settled.
13
On adoption, entities are required to apply the amendments without restating prior periods, but retrospective
Directors’ report
14
application is permitted if elected for all three amendments and other criteria are met. The amendments are
effective for annual periods beginning on or after 1 January 2018, with early application permitted. The
15
Group is assessing the potential effect of the amendments on its consolidated financial statements.
16
AASB 16 Leases
AASB 16 was issued in February 2016 and it replaces AASB 117 Leases, Interpretation 4 Determining
17
whether an Arrangement contains a Lease, Interpretation 115 Operating Leases-Incentives and Interpretation
127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. AASB 16 sets out the
18
principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to
account for all leases under a single on-balance sheet model similar to the accounting for finance leases
19
under AASB 117. The standard includes two recognition exemptions for lessees – leases of ’low-value’ assets
(e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the
20
commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease
21
liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-
of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and
22
the depreciation expense on the right-of-use asset.
Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change
23
in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine
those payments). The lessee will generally recognise the amount of the remeasurement of the lease liability as
24
an adjustment to the right-of-use asset.
25
Lessor accounting under AASB 16 is substantially unchanged from today’s accounting under AASB 117.
Lessors will continue to classify all leases using the same classification principle as in AASB 117 and
26
distinguish between two types of leases: operating and finance leases.
27
AASB 16 also requires lessees and lessors to make more extensive disclosures than under AASB 117.
AASB 16 is effective for annual periods beginning on or after 1 January 2019. Early application is permitted,
28
but not before an entity applies AASB 15. A lessee can choose to apply the standard using either a full
Notes
jhj
29
retrospective or a modified retrospective approach. The standard’s transition provisions permit certain
reliefs.
30
In 2018, the Group will continue to assess the potential effect of AASB 16 on its consolidated financial
statements.
31
32
33
Appendices
34
9
During its October 2017 meeting, the AASB deferred the effective date of AASB 2014-10 to reporting periods beginning on or after 1
35
January 2022. Due to legal requirements in Australia, the amendments cannot be deferred indefinitely.
36

37
1
2
Contents
3
4
In July 2017, the AASB issued AASB 17 Insurance Contracts (AASB 17), a comprehensive new accounting
5
standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once
effective, AASB 17 will replace AASB 4 Insurance Contracts (AASB 4), AASB 1023 General Insurance
6
Contracts and AASB 1038 Life Insurance Contracts. AASB 17 applies to all types of insurance contracts (i.e.,
life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as
7
to certain guarantees and financial instruments with discretionary participation features. A few scope
exceptions will apply. The overall objective of AASB 17 is to provide an accounting model for insurance
8
contracts that is more useful and consistent for insurers. In contrast to the requirements in AASB 4, which
Introduction
are largely based on grandfathering previous local accounting policies, AASB 17 provides a comprehensive
9
model for insurance contracts, covering all relevant accounting aspects. The core of AASB 17 is the general
model, supplemented by:
10
• A specific adaptation for contracts with direct participation features (the variable fee approach)
• A simplified approach (the premium allocation approach) mainly for short-duration contracts.
11
AASB 17 is effective for reporting periods beginning on or after 1 January 2021, with comparative figures
12
required. Early application is permitted, provided the entity also applies AASB 9 and AASB 15 on or before
the date it first applies AASB 17. This standard is not applicable to the Group.
13
AASB 2017-2 Amendments to Australian Accounting Standards - Transfers of Investment Property,
Annual Improvements 2014-2016 Cycle and Other Amendments
Directors’ report
14
Transfers of Investment Property
The amendments clarify when an entity should transfer property, including property under construction or
15
development into, or out of investment property. The amendments state that a change in use occurs when
the property meets, or ceases to meet, the definition of investment property and there is evidence of the
16
change in use. A mere change in management’s intentions for the use of a property does not provide
evidence of a change in use. Entities should apply the amendments prospectively to changes in use that occur
17
on or after the beginning of the annual reporting period in which the entity first applies the amendments. An
18
entity should reassess the classification of property held at that date and, if applicable, reclassify property to
reflect the conditions that exist at that date. Retrospective application in accordance with IAS 8 is only
19
permitted if it is possible without the use of hindsight. Effective for annual periods beginning on or after

1 January 2018. Early application of the amendments is permitted and must be disclosed. The Group will
20
apply amendments when they become effective. However, since Group’s current practice is in line with the
clarifications issued, the Group does not expect any effect on its consolidated financial statements.
21
Annual Improvements 2014-2016 Cycle
22
These improvements include:
AASB 1 First-time Adoption of Australian Accounting Standards - Deletion of short-term exemptions for
23
first-time adopters
24
Short-term exemptions in paragraphs E3–E7 of AASB 1 were deleted because they have now served their
intended purpose. The amendment is effective from 1 January 2018. This amendment is not applicable to
25
the Group.
AASB 128 Investments in Associates and Joint Ventures - Clarification that measuring investees at fair 26
value through profit or loss is an investment-by-investment choice
27
The amendments clarify that:

28
• An entity that is a venture capital organisation, or other qualifying entity, may elect, at initial
Notes
recognition on an investment-by-investment basis, to measure its investments in associates and joint

jhj
29
ventures at fair value through profit or loss.

• If an entity, that is not itself an investment entity, has an interest in an associate or joint venture that
30
is an investment entity, the entity may, when applying the equity method, elect to retain the fair
value measurement applied by that investment entity associate or joint venture to the investment
31
entity associate’s or joint venture’s interests in subsidiaries. This election is made separately for each
32
investment entity associate or joint venture, at the later of the date on which: (a) the investment
entity associate or joint venture is initially recognised; (b) the associate or joint venture becomes an
33
investment entity; and (c) the investment entity associate or joint venture first becomes a parent.
The amendments should be applied retrospectively and are effective from 1 January 2018, with earlier
Appendices
34
application permitted. If an entity applies those amendments for an earlier period, it must disclose that
fact. These amendments are not applicable to the Group.
35
36

37
1
2
Contents
3
4
AASB 2016-6 Amendments to Australian Accounting Standards – Applying AASB 9 Financial
Instruments with AASB 4 Insurance Contracts
5
The amendments address concerns arising from implementing the new financial instruments standard,
AASB 9, before implementing AASB 17 Insurance Contracts, which replaces AASB 4. The amendments
6
introduce two options for entities issuing insurance contracts: a temporary exemption from applying AASB 9
and an overlay approach. The temporary exemption is first applied for reporting periods beginning on or after
7
1 January 2018. An entity may elect the overlay approach when it first applies AASB 9 and apply that
approach retrospectively to financial assets designated on transition to AASB 9. The entity restates
8
Introduction
comparative information reflecting the overlay approach if, and only if, the entity restates comparative
information when applying AASB 9. These amendments are not applicable to the Group.
9
AASB Interpretation 22 Foreign Currency Transactions and Advance Consideration
10
The Interpretation clarifies that, in determining the spot exchange rate to use on initial recognition of the
related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-
11
monetary liability relating to advance consideration, the date of the transaction is the date on which an entity
initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration.
12
If there are multiple payments or receipts in advance, then the entity must determine the transaction date for
each payment or receipt of advance consideration. Entities may apply the amendments on a fully
13
retrospective basis. Alternatively, an entity may apply the Interpretation prospectively to all assets, expenses
and income in its scope that are initially recognised on or after:
Directors’ report
14
(i) The beginning of the reporting period in which the entity first applies the interpretation
Or
15
(ii) The beginning of a prior reporting period presented as comparative information in the financial
statements of the reporting period in which the entity first applies the interpretation.
16
The Interpretation is effective for annual periods beginning on or after 1 January 2018. Early application of
interpretation is permitted and must be disclosed. However, since the Group’s current practice is in line with
17
the Interpretation, the Group does not expect any effect on its consolidated financial statements.
AASB Interpretation 23 Uncertainty over Income Tax Treatment
18
The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that
19
affects the application of AASB 112 and does not apply to taxes or levies outside the scope of AASB 112, nor

does it specifically include requirements relating to interest and penalties associated with uncertain tax
20
treatments. The Interpretation specifically addresses the following:
• Whether an entity considers uncertain tax treatments separately
21
• The assumptions an entity makes about the examination of tax treatments by taxation authorities
22
• How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and
tax rates
23
• How an entity considers changes in facts and circumstances
An entity must determine whether to consider each uncertain tax treatment separately or together with one
24
or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty
should be followed. The interpretation is effective for annual reporting periods beginning on or after 1
25
January 2019, but certain transition reliefs are available. The Group will apply interpretation from its
effective date. Since the Group operates in a complex multinational tax environment, applying the 26
Interpretation may affect its consolidated financial statements and the required disclosures. In addition, the
27
Group may need to establish processes and procedures to obtain information that is necessary to apply the
Interpretation on a timely basis.
28
Notes
Commentary
jhj
29
IAS 8.30 requires disclosure of standards that have been issued but are not yet effective. These disclosures are required
to provide known or reasonably estimable information to enable users to assess the possible impact of the application of
30
such IFRSs on an entity’s financial statements. The quarterly supplement to Good Group lists all standards and
interpretations that are not yet effective. An alternative that entities may consider would be to only list and address the
31
ones expected to have an impact on the Group’s financial position, performance, and/or disclosures.
In Australia, the adoption of each IFRS for Australian reporting purposes is subject to a specific legal process.
32
Nevertheless, all new standards and interpretations issued by the IASB must be considered for disclosure as standards
issued but not yet effective in accordance with IAS 8.30 when an entity provides a complete set of financial statements,
33
irrespective of whether the legal process referred to above has been completed.
Appendices
34
35
36

37
1
2
Contents
3
35. Events after the reporting period
4
On 14 January 2018, a building with a net book value of $1,695,000 was severely damaged by flooding and IAS 10.21
IAS 10.10
inventories with a net book value of $857,000 were destroyed. It is expected that insurance proceeds will fall
5
short of the costs of rebuilding and loss of inventories by $750,000.
36. Auditors' remuneration
6
The auditor of Good Group (Australia) Limited is Ernst & Young Australia. CA 300(11B)(a),
7
CA 300(11C)(a)
Consolidated
8
Introduction
2017 2016
$ $
9
Amounts received or due and receivable by Ernst & Young
Australia for:
10
► An audit or review of the financial report of the entity and AASB 1054.10(a)
11
any other entity in the consolidated group 1,206,000 1,185,500
Other services in relation to the entity and any other entity in AASB 1054.10(b)
12
►
CA 300(11B)(a),
the consolidated group: CA 300(11C)(b)
13
Tax compliance 37,000 43,500
Assurance related 50,300 80,400
Directors’ report
14
Special audits required by regulators 38,500 23,000
1,331,800 1,332,400
15
Amounts received or due and receivable by related practices of
Ernst & Young Australia for:
16
► Due diligence services provided by overseas Ernst & Young AASB 1054.10(b)
17
firm 55,000 35,000
1,386,800 1,367,400
18
Amounts received or due and receivable by non Ernst & Young
19
audit firm for:
20
► Review of the financial report 105,000 102,400
AASB 1054.10(b)
AASB 1054.10(b
Taxation services
21
►
14,900 14,600 CA 300(11B)(a)
AASB 1054.10(b
► Other non-audit services 6,200 5,050
22
CA 300(11B)(a)
126,100 122,050
23
Amounts received or due and receivable by related practices of non
Ernst & Young Australia audit firm for:
24
► Other non-audit services 8,827 8,544 CA 300(11B)(a)
25
26
27
28
Notes
jhj
29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
Reg 2M.3.01(1)
37. Information relating to Good Group (Australia) Limited (the Parent)
2017 2016
4
$000 $000
5
Current assets 44,183 39,413 Reg 2M.3.01(1)(a)
Total assets 83,417 72,848 Reg 2M.3.01(1)(b)
6
Current liabilities 17,444 20,233 Reg 2M.3.01(1)(c)
Total liabilities 22,980 25,223 Reg 2M.3.01(1)(d)
7
8
Issued capital 26,668 19,468
Introduction
Reg 2M.3.01(1)(e)
Retained earnings 33,404 27,895 Reg 2M.3.01(1)(e)
9
Asset revaluation reserve 47 47 Reg 2M.3.01(1)(e)
Net unrealised gains reserve 64 50 Reg 2M.3.01(1)(e)
10
Employee equity benefits reserve 209 145 Reg 2M.3.01(1)(e)
Cash flow hedge reserve 45 20 Reg 2M.3.01(1)(e)
11
60,437 47,625 Reg 2M.3.01(1)(e)
12
Profit or loss of the Parent entity 7,771 5,228 Reg 2M.3.01(1)(f)
Total comprehensive income of the Parent entity 7,810 5,298 Reg 2M.3.01(1)(g)
13
The Parent has issued the following guarantees in relation to the debts of its subsidiaries: Reg 2M.3.01(1)(h)
Directors’ report
14
► Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, Good Group
(Australia) Limited, Light Bulbs Limited and Hose Limited have entered into a deed of cross guarantee
15
on 12 March 2001. The effect of the deed is that Good Group (Australia) Limited has guaranteed to pay
any deficiency in the event of winding up of any controlled entity or if they do not meet their
16
obligations under the terms of overdrafts, loans, leases or other liabilities subject to the guarantee. The
controlled entities have also given a similar guarantee in the event that Good Group (Australia) Limited
17
is wound up or if it does not meet its obligations under the terms of overdrafts, loans, leases or other
liabilities subject to the guarantee.
18
19
The Parent has a contingent liability whereby an overseas customer has commenced an action against the Reg 2M.3.01(1)(i)

Group in respect of equipment claimed to be defective. It has been estimated that the liability, should the
20
action be successful, is $850,000.
The Parent entity has contractual obligations to purchase plant and equipment for $975,000 at balance Reg 2M.3.01(1)(j)
21
date (2016: $350,000) principally relating to the completion of operating facilities of Sprinklers Inc.
22
23
24
25
26
27
28
Notes
jhj
29
30
31
32
33
Appendices
34
35
36

37
1
2
Contents
3
Directors' declaration
4
CA 295(4)
5
In accordance with a resolution of the directors of Good Group (Australia) Limited, I state that: CA 295(5)(a)
6
1. In the opinion of the directors:
7
(a) the financial statements and notes of Good Group (Australia) Limited for the financial year CA 295(4)(d)(i)-(ii)
ended 31 December 2017 are in accordance with the Corporations Act 2001, including:
8
Introduction
(i) giving a true and fair view of the consolidated entity’s financial position as at 31
9
December 2017 and of its performance for the year ended on that date; and
10
(ii) complying with Accounting Standards and the Corporations Regulations 2001;
11
(b) the financial statements and notes also comply with International Financial Reporting CA 295(4)(ca)
Standards as disclosed in Note 2.2; and
12
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and CA 295(4)(c)
13
when they become due and payable.
Directors’ report
14
2. This declaration has been made after receiving the declarations required to be made to the CA 295(4)(e)
directors by the chief executive officer and chief financial officer in accordance with section 295A
15
of the Corporations Act 2001 for the financial year ended 31 December 2017.
16
On behalf of the board
17
Frank Canuck
18
F. Canuck CA 295(5)(c)
19
Director
20
29 February 2018 CA 295(5)(b)
21
22
23
24
25
26
27
28
Notes
jhj
29
30
31
32
33
Appendices
34
35
36

37
ASX additional
information
Contents
ASX additional information
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in
this report is as follows. The information is current as at 21 February 2018.
(a) Distribution of equity securities
ASX 4.10.5
(i) Ordinary share capital
22,588,000 fully paid ordinary shares are held by 864 individual shareholders
Introduction
►
All issued ordinary shares carry one vote per share and carry the rights to dividends. ASX 4.10.6
ASX 4.10.5
(ii) Preference share capital
► 2,500,000 7.09% convertible non-cumulative redeemable preference shares are held by ASX 4.10.16
five individual shareholders

All issued convertible non-cumulative redeemable preference shares have a nominal value of $1 and ASX 4.10.6
are convertible at the option of the Company or the shareholder into ordinary shares on 1 January
2019on the basis of one ordinary share for every three preference shares held. Each preference
share carries one right to vote but the right is limited to matters affecting the rights of such shares.
ASX 4.10.5
(iii) Options
Directors’ report
► 725,000 options are held by 15 individual option holders ASX 4.10.16
Options do not carry a right to vote. ASX 4.10.6
The number of shareholders, by size of holding, in each class are: ASX 4.10.7,
ASX 19.12
Fully paid Redeemable

ordinary shares preference shares Options
1 - 1,000 823 - 1
1,001 - 5,000 21 - 1

5,001 - 10,000 6 - 3
10,001 - 100,000 9 2 6
100,001 and over 5 3 4
864 5 15
Holding less than a marketable parcel 45 - - ASX 4.10.8
(b) Substantial shareholders ASX 4.10.4

Fully paid
Ordinary shareholders Number Percentage
S.J. Limited 10,740,177 52.85

International Fires Plc 6,937,366 31.48
17,137,543 84.33
Notes
Appendices

ASX additional information (continued)
Contents
(c) Twenty largest holders of quoted equity securities ASX 4.10.9
Fully paid
Ordinary shareholders Number Percentage
S.J. Limited 10,740,177 52.85

International Fires Plc 6,397,366 31.48
Macca Limited 434,891 2.14
JOG Pty Limited 434,891 2.14
Introduction
The Hong Kong Family Trust 227,606 1.12
TW & Daughters Limited 93,481 0.46
M.A.B. Car Limited 93,481 0.46
Castellas Superannuation Trust 60,966 0.30
Weldin Pty Limited 20,322 0.10
Della Limited 20,322 0.10
Pat Lee Pty Limited 20,322 0.10
Feeney & Co Limited 16,258 0.08
K. Mac Limited 16,258 0.08
Jackson Limited 16,258 0.08
MVH Pty Limited 8,129 0.04
KMI Trust 8,129 0.04
Directors’ report
Shimon & Sadhu Trust 6,097 0.03
J. Houng-Lee 6,097 0.03
GMB Limited 6,097 0.03
P. Barns 6,097 0.03
18,633,245 91.69
(d) Unquoted equity securities shareholdings greater than 20% ASX 4.10.16
Number
Convertible non-cumulative redeemable preference shares

International Fires Plc 101,000
(e) On market share purchases for executive LTI plan ASX 4.10.22
During the year Good Group (Australia) Limited purchased 50,000 shares at an average price of $3.90
per share for the purpose of satisfying the entitlements of options holders under the executive plan.
Notes
Appendices

Appendix A
Consolidated statement of
profit or loss (example of
expenses disclosed by nature)
A: Consolidated statement of P&L disclosed by nature
Appendix A – Consolidated statement of profit or loss
Contents
(example of expenses disclosed by nature)
==
IAS 1.49
Commentary IAS 1.10(b)
The Group presents the statement of profit or loss disclosing expenses by function. For illustrative purposes, the IAS 1.10A
statement of profit or loss disclosing expenses by nature is presented in this appendix. IAS 1.51(c)
2017 2016
Restated* IAS 8.28
Introduction
Notes $000 $000 IAS 1.51(d)(e)
Rental income 17 1,404 1,377 IAS 18.35(b)(ii)
B: Single consolidated statement of P&L and OCI

Revenue 180,462 160,465 IAS 1.82(a)
Changes in inventories of finished goods and work in progress (1,133) (3,342) IAS 1.99, IAS 1.102
Directors’ report
Raw materials and consumables used (129,974) (117,456) IAS 1.99, IAS 1.102
Employee benefits expense 12.6 (33,749) (29,151) IAS 1.99, IAS 1.102
Depreciation and amortisation 16,18 (3,922) (3,256) IAS 1.99, IAS 1.102
Impairment of non-current assets 16,19 (200) (301) IAS 1.99, IAS 36.126
Other operating expenses 12.2 (2,554) (353) IAS 1.99, IAS 1.102
Share of profit of an associate and a joint venture 9, 10 671 638 IAS 1.82(c)

IAS 1.82(d)
Income tax expense 14 (3,098) (2,233) IAS 12.77
IAS 1.82(ea)
Profit/(loss) after tax for the year from discontinued operations 13 220 (188) IFRS 5.33(a)
C: Closed Group disclosures

Attributable to:
Equity holders of the parent 7,942 6,220 IAS 1.81B(a)(ii)
Non-controlling interests 288 239 IAS 1.81B(a)(i)
8,230 6,459
Earnings per share 15 IAS 33.66

Basic profit for the year attributable to ordinary equity holders of
the parent $0.38 $0.33
Diluted profit for the year attributable to ordinary equity holders
of the parent $0.38 $0.32

Notes
jhj
Basic profit from continuing operations attributable to ordinary

Diluted profit from continuing operations attributable to ordinary
D: Australian reporting requirements
* Certain numbers shown here do not correspond to those in the 2016 financial statements and reflect adjustments made as detailed in Note 2.5.
Appendices

Appendix B
Consolidated statement of
profit or loss and other
comprehensive income
(example of a single statement)
Appendix B – Consolidated statement of profit or loss and
Contents
other comprehensive income (example of a single statement)
For the year ended 31 December 2017 IAS 1.49
Commentary
The Group presents the statement of profit or loss and statement of comprehensive income in two separate statements. For
illustrative purposes, the statement of profit or loss and other comprehensive is presented as a single statement in this
Appendix.
IAS 1.10(b)
Introduction
IAS 1.10A
2017 2016 IAS 1.51(c)
Restated* IAS 8.28
Notes $000 $000 IAS 1.51(d)(e)


Rental income 17 1,404 1,377 IAS 18.35(b)(ii)
Revenue 180,462 160,465 IAS 1.82(a)
Cost of sales (136,549) (128,386) IAS 1.103
Gross profit 43,913 32,079 IAS 1.85, IAS 1.103
Directors’ report
Selling and distribution expenses (14,001) (12,964) IAS 1.99, IAS 1.103
Administrative expenses 12.9 (18,428) (12,156) IAS 1.99, IAS 1.103
IAS 1.99, IAS 1.103
Other operating expenses 12.2 (2,554) (353) IAS 1.85
Operating profit 11,365 9,154 IAS 1.BC55-56

Share of profit of an associate and a joint venture 9,10 671 638 IAS 1.82(c)

IAS 1.82(d)
Income tax expense 14 (3,098) (2,233) IAS 12.77
IAS 1.82(ea)
Profit/(loss) after tax for the year from discontinued operations 13 220 (188) IFRS 5.33(a)

Other comprehensive income

subsequent periods: IAS 1.82A
Net gain on hedge of net investment 278  IAS 39.102(a)
Exchange differences on translation of foreign operations (246) (117) IAS 21.32
Net (losses)/gains of cash flow hedges 12.8 (732) 33 IFRS 7.23(c)
Net (losses)/gains on AFS financial assets 12.8 (58) 3

Share of other comprehensive income of an associate 10 (43)  IAS 1.82A(b)
Income tax effect relating to the components of OCI 14 168 (10) IAS 1.91
Other comprehensive income not to be reclassified to profit or loss in

subsequent periods:
Notes
IAS 19.120(c)
jhj
Remeasurement gains/(losses) on defined benefit plans 29 369 (389) IAS 19.122

Revaluation of office properties in Euroland 16 846  IAS 16.39
Share of other comprehensive income of an associate 10 43  IAS 1.82A(b)

Income tax effect relating to the components of OCI 14 (379) 116 IAS 1.90
Other comprehensive income/(loss) for the year, net of tax 246 (364) IAS 1.81A(b)
Total comprehensive income for the year, net of tax 8,476 6,095 IAS 1.81A(c)
Appendices

Appendix B – Consolidated statement of profit or loss and
Contents
other comprehensive income (example of a single statement)
(continued) IAS 1.10(b)
IAS 1.51(b)
For the year ended 31 December 2017 IAS 1.51(c)
2017 2016
Restated* IAS 8.28
$000 $000
Profit attributable to:
Introduction
Equity holders of the parent 7,942 6,220 IAS 1.81B (a)(ii)
Non-controlling interests 288 239 IAS 1.81B(a)(i)

8,230 6,459
Total comprehensive income attributable to:

Equity holders of the parent 8,188 5,856 IAS 1.81(b)(ii)
Non-controlling interests 288 239 IAS 1.81B(b)(i)
8,476 6,095
Earnings per share 15
Directors’ report
IAS 33.66
Basic, profit for the year attributable to ordinary equity
Diluted, profit for the year attributable to ordinary equity

Basic, profit from continuing operations attributable to
Diluted, profit from continuing operations attributable to

Commentary
The Group presents, for illustrative purposes, the disclosure of a single statement of profit or loss and OCI in this Appendix.
The different components of OCI are presented on a net basis in the statement above. Therefore, an additional note is
required to present the amount of reclassification adjustments and current year gains or losses. Alternatively, the

individual components could have been presented within the statement of profit or loss and OCI.
In this Appendix, the Group illustrates the presentation of the income tax effects on OCI items on an aggregated basis as
allowed under IAS 1.91(b).
Notes
jhj
Appendices

Appendix C
Closed Group disclosures
Appendix C — Closed Group disclosures
Contents
Commentary
In addition to the disclosures below which should be included in the notes to the financial statements, ASIC
Corporations (Wholly-owned Companies) Instrument 2016/785 also requires that the directors’ declaration of the
Holding Entity include a statement as to whether, as at the date of the declaration, there are reasonable grounds to
believe that the members of the Extended Closed Group will be able to meet any obligations or liabilities to which
they are, or may become, subject by virtue of the Deed of Cross Guarantee.
Closed Group disclosures
Introduction
The consolidated financial statements include the financial statements of Good Group (Australia) Limited
and the subsidiaries listed in the following table:
Country of % Equity interest Investment $000
Name incorporation 2017 2016 2017 2016
Extinguishers Limited Australia 100 - 4,018 -
Bright Sparks Pty Limited Australia - - - -

Wireworks Inc. United States 100 100 2,664 2,664
Sprinklers Inc. United States 100 100 1,946 1,946
Light Bulbs Limited Australia 100 100 1,119 2,000
Hose Limited* Australia 100 100 - 1,641
Pipe Limited Australia - 100 - 989
9,747 9,240
Directors’ report
* Classified as held for sale
Entities subject to relief
ASIC CI 2016/785
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, relief has been granted
to Light Bulbs Limited and Hose Limited from the Corporations Act 2001 requirements for the
preparation, audit and lodgement of their financial reports.
ASIC CI 2016/785
As a condition of the Corporations Instrument, Good Group (Australia) Limited, Light Bulbs Limited and
Hose Limited (the “Closed Group”), entered into a deed of cross guarantee on 12 March 2003. The effect
of the deed is that Good Group (Australia) Limited has guaranteed to pay any deficiency in the event of
winding up of a controlled entity or if they do not meet their obligations under the terms of overdrafts,

loans, leases or other liabilities subject to the guarantee. The controlled entities have also given a similar
guarantee in the event that Good Group (Australia) Limited is wound up or if it does not meet its
obligations under the terms of overdrafts, loans, leases or other liabilities subject to the guarantee.
ASIC CI 2016/785
The consolidated statement of profit or loss, consolidated statement of comprehensive income, summary
of movements in consolidated retained earnings and consolidated statement of financial position of the
entities that are members of the Closed Group are as follows:

Closed Group
2017 2016
$000 $000
Revenue from continuing operations 85,017 78,583
Cost of sales (62,506) (60,443)
Other operating income 1,968 1,586
Other expenses (13,693) (11,463)
Share of profit of an associate 275 240
Profit from continuing operations before income tax 11,090 8,316
Income tax expense (3,253) (2,292)
Profit after tax from continuing operations 7,598 6,024
Notes
Profit/(loss) after tax from discontinued operation (refer Note 13) 220 (188)
jhj
Profit for the year 7,818 5,836


Other comprehensive income
Other comprehensive income to be reclassified to profit or loss
Net (loss) on cash flow hedges (27) (12)
Other comprehensive income not to be reclassified to profit or loss
Revaluation of office properties in Australia 124 -
Other comprehensive income, net of tax 97 (12)
Appendices
Total comprehensive income for the year, net of tax 7,915 5,824

Appendix C — Closed Group disclosures (continued)
Contents
Closed Group
2017 2016
$000 $000
Summary of movements in consolidated retained earnings
Retained earnings at the beginning of the year 25,417 21,181
Dividends provided for or paid (1,984) (1,600)
Aggregate amounts transferred to reserves — depreciation transfer
for buildings 12 -
Retained earnings at the end of the year 31,263 25,417
Introduction
ASSETS
Current assets
Cash and cash equivalents 12,819 5,697

Trade and other receivables 13,809 18,224
Inventories 20,342 16,542
Prepayments 90 79
47,060 40,542
Assets and disposal group classified as held for sale 13,554 -
Directors’ report
Total current assets 59,128 40,542
Non-current assets
Available-for-sale investments 989 -
Other financial assets 16,047 8,314
Investment in associate 764 681
Deferred tax assets 90 90
Property, plant and equipment 16,776 14,104
Investment properties 8,893 7,983
Intangible assets - 58
Total non-current assets 43,559 31,230

TOTAL ASSETS 102,687 71,772
LIABILITIES
Current liabilities
Trade and other payables 15,708 13,635
Interest-bearing loans and borrowings 516 690
Income tax payable 3,113 2,500

19,337 16,825
Liabilities directly associated with assets classified as held for sale 13,125 -
Total current liabilities 32,462 16,825
Non-current liabilities
Interest-bearing loans and borrowings 5,969 5,874
Deferred income tax liabilities 2,312 1,189
Convertible redeemable preference shares 2,503 2,486
Total non-current liabilities 10,784 9,549
TOTAL LIABILITIES 43,246 26,374
NET ASSETS 59,441 45,398
Notes
jhj
EQUITY
Contributed equity 27,992 19,916
Retained earnings 31,263 25,417
Other reserves 186 (15)
TOTAL EQUITY 59,441 45,398
Commentary
If the deed of cross guarantee and the subsequent Closed Group disclosures were contained in the accounts of Good
Group (Australia) Limited, then an assessment would need to be made of the fair value of the deed of cross guarantee,
which represents a financial liability to the Parent.
Appendices

Appendix D
Australian reporting
requirements
Appendix D — Australian reporting requirements
Contents
The table below provides a summary of reporting requirements for different types of entities.
Type of entity Financial reporting Complying with reporting requirements
Chapter 2M of
Corporations Act ASX listing
Required Not required 2001 s292(1) rules Other
Listed company   
General purpose
Introduction
Listed registered scheme    
General purpose Investment and
Financial Services
Association (IFSA)
standards may be
applicable

Disclosing entity*  
General purpose
Significant Global Entity (SGE)+ 

General purpose
Public company (unless small + 
Directors’ report
company limited by guarantee and
CA 294A(1) or CA 294B(1) do not
apply) #
Small company limited by + 

guarantee (at least 5% member
direction under CA 294A(1))#
Small company limited by + 

guarantee (if directed to by ASIC
under CA 294B(1))#
Unlisted registered scheme +  

IFSA standards
may be applicable
Large proprietary company + 

Small proprietary company (unless 
CA 292(2)(b), 293(1), 294(1)
apply)

Small proprietary company to + 
which CA 292(2)(b) applies
(controlled by a foreign company
for all or part of the year and not
consolidated in financial statements
lodged with ASIC)
Small proprietary (at least 5% + 

member direction under CA 293(1))
Small proprietary company (if + 

directed to by ASIC under
CA 294(1))
* For unlisted disclosing entities, be aware of continuous reporting requirements under the Corporations Act 2001. Please note that Part 2M.3
Notes
jhj
only applies to disclosing entities incorporated or formed in Australia (footnote to CA 292(1)). A disclosing entity incorporated or formed
outside Australia does not need to comply with Chapter 2M of the Corporations Act 2001 unless it is a registered scheme.
+ In December 2015 the tax laws were amended to require SGEs to lodge general purpose financial statements with the ATO unless already
lodged with ASIC. For more information on the requirements, see our publication.
# Companies limited by guarantee are also public companies. The Corporations Amendment (Corporate Reporting Reform) Act 2010 introduced
the definition of small companies limited by guarantee. Such companies have revenue less than $250,000 and are not deductible gift
recipients for the financial year. Small companies limited by guarantee are not required to prepare or lodge financial reports unless they are
directed to do so by their members or by ASIC.
+ Entities must make an assessment as to whether they are a reporting entity in accordance with SAC 1 Definition of the Reporting Entity.
Reporting entities must prepare general purpose financial statements, whereas non-reporting entities may prepare special purpose financial
statements.
Appendices

Appendix D — Australian reporting requirements (continued)
Contents
Disclosing entities
Issue annual report to Lodge reports Lodge reports
Entity type/ Notice of AGM*# Date of AGM members with ASX with ASIC
reference
CA 249H, 249HA CA 250N CA 315 ASX 4.2A, 4.2B, 4.2C, CA 319, 320
4.3A, 4.3B, 4.3C, 4.5
Listed company At least 28 days Within 5 months after Earlier of 21 days Lodge Annual report ASX is agent for ASIC,
before the AGM the end of the before the AGM, or when it is lodged with therefore lodgement with
31 Dec 17: 3 May 18 financial year 4 months after the end ASIC. In any event ASX represents lodgement
30 Jun 18: 2 Nov 18 31 Dec 17: 31 May 18 of the financial year within 3 months after with ASIC
30 Jun 18: 30 Nov 18 the end of the financial
Introduction
If AGM is held year Annual report within
31 May 18 31 Dec 17: 30 Mar 18 3 months after the end of
31 Dec 17: 30 Apr 18 30 Jun 18: 28 Sep 18 the financial year
31 Dec 17: 30 Mar 18
If AGM is held 30 Jun 18: 28 Sep 18
30 Nov 18 Lodge Appendix 4E
30 Jun 18: 31 Oct 18 immediately when it Half-year report within
becomes available and 75 days after the end of

no later than when the the half-year
annual report is lodged 31 Dec 17: 14 Mar 18
with ASIC. In any event 30 Jun 18: 13 Sep 18
within 2 months after
the end of the financial
year
31 Dec 17: 28 Feb 18
Directors’ report
30 Jun 18: 31 Aug 18
Lodge Half-year report

and Appendix 4D
immediately when they
become available and no
later than when the half-
year report is lodged
with ASIC. In any event
within 2 months after
the end of the half-year
31 Dec 17: 28 Feb 18
30 Jun 18: 31 Aug 18

Listed registered - - Within 3 months after Same requirements as Same requirements as
scheme the end of the financial listed company listed company
year
31 Dec 17: 30 Mar 17
30 Jun 18: 28 Sep 18
Unlisted public At least 21 days Within 5 months after Earlier of 21 days - Annual report within
company before the AGM the end of the before the AGM, or 3 months after the end
31 Dec 17: 10 May 18 financial year 4 months after the end of the financial year

30 Jun 18: 9 Nov 18 31 Dec 17: 31 May 18 of the financial year 31 Dec 17: 30 Mar 18
30 Jun 18: 30 Nov 18 30 Jun 18: 28 Sep 18
If AGM is held
31 May 18 Half-year report within
31 Dec 17: 30 Apr 18 75 days after the end of
the half-year
If AGM is held 31 Dec 17: 14 Mar 18
30 Nov 18 30 Jun 18: 13 Sep 18
30 Jun 18: 31 Oct 18
Unlisted - - Within 3 months after - Annual report within
registered the end of the 3 months after the end
scheme financial year of the financial year
31 Dec 17: 30 Mar 18 31 Dec 17: 30 Mar 18
30 Jun 18: 28 Sep 18 30 Jun 18: 28 Sep 18
Half-year report within

Notes
jhj
75 days after the end of

the half-year
31 Dec 17: 14 Mar 18
30 Jun 18: 13 Sep 18
* If a company has a constitution, it may specify a longer minimum period of notice. An unlisted company may also call an AGM upon shorter
notice, provided all members entitled to attend agree in advance, and no resolution will be moved to remove a director under CA 203D, appoint
a director as a replacement of another under that same section, or remove an auditor under CA 329. For a listed company 28 days notice is
required for all members’ meetings unless a longer period is specified in the Company’s constitution.
# A public company that has only one member is not required to hold an AGM (CA 250N(4)).
Appendices
Please note that for convenience, dates that fall on a weekend have been adjusted to instead show nearest earlier weekday.
Readers should also take into account any relevant public holidays.

Contents
Non-disclosing entities
Issue annual report to Lodge reports
Entity type/ reference Notice of AGM Date of AGM members with ASIC
CA 249H, 249HA CA 250N CA 315, 294, 316A CA 319, 320
Registered scheme - - Within 3 months after the end Within 3 months after the end
(Prescribed interest of the financial year of the
undertaking) 31 Dec 17: 30 Mar 18 financial year
30 Jun 18: 28 Sep 18 31 Dec 17: 30 Mar 18
30 Jun 18: 28 Sep 18
Large proprietary - - Within 4 months after the end Within 4 months after the end
company of the financial year of the
Introduction
or 31 Dec 17: 27 Apr 18 financial year
Small proprietary company 30 Jun 18: 31 Oct 18 31 Dec 17: 27 Apr 18
— foreign controlled under 30 Jun 18: 31 Oct 18
CA 292(2)(b)
Small proprietary company - - In accordance with the terms In accordance with the terms
- ASIC direction under of the direction of the direction
CA 294(1)

Small proprietary company - - If shareholder direction is -
- 5% shareholders' given after the end of the
direction financial year the Company
under CA 293(1) must report to the members
by the later of 2 months after
the date of the direction and 4
Directors’ report
months after the end of the
financial year
If 4 months after the end of

the financial year
31 Dec 17: 27 Apr 18
30 Jun 18: 31 Oct 18
Unlisted public company At least 21 days Within 5 months after the end Earlier of 21 days before the Within 4 months after the end
(excluding small company before the AGM of the AGM, or 4 months after the of the
limited by guarantee under 31 Dec 17: 10 May 18 financial year end of the financial year financial year
member or ASIC direction) 30 Jun 18: 9 Nov 18 31 Dec 17: 31 May 18 31 Dec 17: 28 Apr 18
30 Jun 18: 30 Nov 18 If AGM is held 31 May 18 30 Jun 18: 31 Oct 18
31 Dec 17: 28 Apr 18

If AGM is held
30 Nov 18
30 Jun 18: 31 Oct 18
Small company limited by At least 21 days Within 5 months after the end If a member direction is given No lodgement requirement
guarantee (5% member before the AGM of the after the end of the financial under CA 319. Lodgement
direction under 31 Dec 17: 10 May 18 financial year year the Company must send subject to ASIC direction.
CA 294A(1)) 30 Jun 18: 9 Nov 18 31 Dec 17: 31 May 18 copies of the report to each
30 Jun 18: 30 Nov 18 member who has elected to

receive the report by the later
of 2 months after the date of
the direction and 4 months
after the end of the financial
year
Small company limited by At least 21 days Within 5 months after the end In accordance with the terms No lodgement requirement
guarantee (ASIC direction before the AGM of the of the direction under CA 319. Lodgement
under CA 294B(1)) 31 Dec 17: 10 May 18 financial year subject to ASIC direction.
30 Jun 18: 9 Nov 18 31 Dec 17: 31 May 18
30 Jun 18: 30 Nov 18
# A proprietary company that is a disclosing entity is required to lodge reports with ASIC within 3 months after the end of the
financial year (CA 319 (3)).
Please note that the for convenience, dates that fall on a weekend have been adjusted to instead show nearest earlier weekday.
Notes
jhj
Readers should also take into account any relevant public holidays.
Appendices

Contents
Non-disclosing entities (continued)
Differential reporting framework for general purpose financial statements

For annual financial reporting periods beginning on or after 1 July 2013, Australia has had a two-tier reporting regime which
applies to all entities that prepare general purpose financial statements. Entities are classified, for financial reporting
purposes, as either:
“Tier 1” on the basis that they are “publicly accountable” or are a government entity
Introduction
Or
“Tier 2” on the basis that they are not “publicly accountable”
In the case of Tier 1 entities, such entities cannot apply the reduced disclosure requirements (RDR) and therefore continue to
prepare general purpose financial statements that fully comply with IFRS, including all recognition, measurement, presentation

and disclosure requirements.
Tier 2 entities, however, can elect to prepare their general purpose financial statements in accordance with Australian
Accounting Standards using the RDR. Reduced disclosures relate only to the notes to the financial statements. Where reduced
disclosures have been adopted, the financial statements will not be IFRS compliant and cannot be described as complying with
IFRS as issued by the IASB.
Directors’ report
Good Group (Australian RDR) Proprietary Limited is an illustrative financial report for companies eligible to apply RDR.

Notes
jhj
Appendices

Key IFRS Services contacts:
Frank Palmer
Partner – EY Oceania IFRS
Services Leader
Tel: +61 2 8295 6264
frank.palmer@au.ey.com
Adelaide Perth
Peter Gerhardy John Virgo
Tel: +61 8 8417 2057 Tel: +61 8 9429 2206
peter.gerhardy@au.ey.com john.virgo@au.ey.com
Brisbane Sydney
Kellie McKenzie Melissa Sim
Tel: +61 7 3243 3643 Tel: +61 2 9276 9965
kellie.mckenzie@au.ey.com melissa.sim@au.ey.com
Melbourne Charles Feeney

Vincent Sheehan Tel: +61 2 9248 4665
Tel: +61 3 9655 2941 charles.feeney@au.ey.com
vincent.sheehan@au.ey.com
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Tel: +61 3 9288 8638
tracey.waring@au.ey.com
Georgina Dellaportas
Tel: +61 3 9288 8621
georgina.dellaportas@au.ey.com
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Good Group

Consolidated financial statements

Good Group (Australia) Limited i

Consolidated financial statements

Good Group (Australia) Limited ii

IAS 33.41 International Accounting Standard No. 33, paragraph 41

IFRS 2.44 International Financial Reporting Standard No. 2, paragraph 44

SIC 29.6 Standing Interpretations Committee Interpretation No. 29, paragraph 6

GAAP Generally Accepted Accounting Principles/Practice

IASB International Accounting Standards Board

Interpretations IFRS Interpretations Committee

SIC Standing Interpretations Committee

Consolidated financial statements

CA 300A Corporations Act 2001, section 300A

ASIC CI Australian Securities & Investments Commission Corporations Instrument

RG Australian Securities & Investments Commission Regulatory Guide

Good Group (Australia) Limited iii

How to use these illustrative financial statements to prepare entity-specific disclosures

Improving disclosure effectiveness

Consolidated financial statements

Sections For example, comprising:

Basis of preparation and other • Basis of preparation

Good Group (Australia) Limited iv

Consolidated financial statements

Good Group (Australia) Limited v

Consolidated financial statements

Good Group (Australia) Limited vi

Accounting policy choices

Consolidated financial statements

Good Group (Australia) Limited vii

Independent auditor’s report

Consolidated financial statements

Good Group (Australia) Limited viii

Consolidated financial statements

14. Income tax .................................................................................................................................................... 99

20.2 Financial liabilities: Interest-bearing loans and borrowings .............................................................................. 114

Good Group (Australia) Limited 1

Consolidated financial statements

Good Group (Australia) Limited 2

Company Secretary ASX 4.10.10

Share register ASX 4.10.12

Consolidated financial statements

Good Group (Australia) Limited 3

Names, qualifications, experience and special responsibilities CA 300(10)(a)

V. Sheen (Non-executive Chair)

D.A. Bank Ltd* — appointed 30 June 2012

* Denotes current directorship

F. Canuck, B.Sc (Managing Director)

P.G. Gerherns, B.Com., F.C.A. (Finance Director)

Consolidated financial statements

Castle Ltd* — appointed 15 July 2011

* Denotes current directorship

DE Manufacturing Ltd — appointed 31 December 2007; resigned 30 June 2016

Good Group (Australia) Limited 5

Consolidated financial statements

Dividends paid in the year: CA 300(1)(a)

Final for 2016 shown as recommended

on preference shares 0.46 13

Good Group (Australia) Limited 6

Operating and financial review CA 299(1)(a)

The purpose of this section is to:

Consolidated financial statements

Good Group (Australia) Limited 7

Consolidated financial statements