Key Concepts:
- Australian Agricultural Company
Limited is a company limited by shares, incorporated and domiciled in Australia
The Company’s shares are publicly traded on the Australian Securities Exchange
(ASX)
Employee
share plan (ESP)
- On 12 September 2005 they introduced
an employee share plan (ESP) This plan allows shares in Australian Agricultural
Company Limited to be provided to all employees (excluding those participating
in the EOP and Directors) with greater than one year of service up to the value
of $1,000 No shares were issued to employees under the ESP during the three
months to 31 March 2013 (twelve months to 31 December 2012: nil; three months
to 31 March 2012: nil)
Nature and
purpose of reserves
Asset
revaluation reserve
- The asset revaluation reserve is
used to record increments and decrements in the fair value of land and
buildings to the extent that they offset one another The reserve can only be
used to pay dividends in limited circumstances
Capital
profits reserve
- The capital profits reserve is
used to accumulate realised capital profits The reserve can be used to pay
dividends
Cash flow hedge reserve
- The cash
flow hedge reserve is used to record the portion of movements in fair value of
a hedging instrument in a cash flow hedge that is recognised in other
comprehensive income
Employee
equity benefits reserve
- The employee equity benefits
reserve is used to record the value of equity benefits provided to employees
and Directors as part of their remuneration Refer to note 27 for further
details of these plans
They use various methods in
estimating the fair value of a financial instrument.
The methods comprise:
Level 1 – The fair value is calculated using quoted prices in active markets
Level 2 – The fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices)
Level 3 – The fair value is estimated using
inputs for the asset or liability that are not based on observable market data
Non-financial
assets
Their tangible and intangible assets
(excluding inventories, biological assets, current and deferred tax assets, and
financial assets) are measured using the cost basis and are written down to
their recoverable amount where their carrying value exceeds recoverable amount
The outstanding balance as at 31
March 2013 is represented by:
„ 250,000 options over ordinary shares with an exercise
price of $100 each;
„ 350,000 options over ordinary shares with an exercise
price of $139 each;
„ 290,625 options over ordinary shares with an exercise
price of $209 each; and „ 1,306,656 options over ordinary shares with an
exercise price of $327 each
