Twenty-First Century Fox 2003 Annual Report Download - page 65

63The News Corporation Limited
Notes to and forming part of the Concise Financial Report
FOR THE YEAR ENDED 30 JUNE, 2003
➤ NOTE 1Basis of preparation of Concise Financial Report
The Concise Financial Report has been prepared in accordance with the Corporations Act 2001, Accounting Standard AASB 1039
“Concise Financial Reports” and other mandatory professional reporting requirements. The financial statements and specific
disclosures have been derived from The News Corporation Limited’s Full Financial Report for the financial year. Other information
included in the Concise Financial Report is consistent with The News Corporation Limited’s Full Financial Report. The Concise
Financial Report does not, and cannot be expected to, provide as full an understanding of the financial performance, financial
position and financing and investing activities of the Group as the Full Financial Report.
At the beginning of the 2001 financial year, the Group changed its accounting policy with regards to, amongst other things, the
treatment of marketing and development costs incurred in the production and distribution of films whereby marketing and certain
development costs, previously capitalised and expensed over time, are now expensed as incurred. All motion picture and television
production costs are reflected as non-current assets. This change in accounting policy provides better comparability of the Group’s
results against its competitors and has also ensured continued consistency with United States generally accepted accounting
principles for producers and distributors of films. The net impact of this change in accounting policy net of outside equity interest
was a one-off pre-tax charge to profit of $1,107 million with an associated tax benefit of $421 million in fiscal 2001. The effect of
this change on the 2001 fiscal year was a reduction in net profit attributable to members of the parent entity of $686 million and a
corresponding reduction in the carrying value of inventory of $1,338 million, a reduction in tax liabilities of $509 million and in
outside equity interest of $143 million.
Dividends payable are recognised when their payment is determined by, and announced, following a meeting of the Board of
Directors. This represents a change in policy over fiscal 2001 whereby dividends were accrued at year end, even though determined
by the Board of Directors at a later date. This change in accounting policy was not material to the financial statements.
The Group discloses as Other revenues and Other expenses those transactions, the financial impact of which are included within
profit (loss) from ordinary activities, that are considered significant by reason of their size, nature or effect on the Group’s financial
performance for the year. Other revenues and Other expenses related to transactions of the Group’s associated entities are included
in Net loss from associated entities. The term Other items includes both Other revenues and Other expenses.
Where necessary, comparative amounts have been reclassified and repositioned for consistency with current year disclosures.
Except as noted above, the Concise Financial Report has been prepared on a basis consistent with the previous year, and in
accordance with historical cost conventions.