FORM 6-K
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Report of Foreign Private Issuer

 

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

 

For the month of August 2005

 

Amcor Limited

(Translation of registrant’s name into English)

 

679 Victoria Street Abbotsford

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ý Form 40-F  o

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ý No  o

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- 0000869428

 

 



 

Amcor News Release

 

 

 

For Release:  Wednesday 24 August, 2005

 

 

Amcor Limited Senior Executive Appointment

 

 

Amcor announces today the appointment of Ron Delia to the role of Executive General Manager Operations Development.  Mr Delia is presently Associate Principal with McKinsey & Company in New York, and will take up his new role with Amcor on 21 September 2005.

 

Mr Delia has an extensive background working with global manufacturing and packaging businesses since he joined McKinsey in 2000.  Prior to joining McKinsey he held a senior management role in a business that is now part of Alcan Packaging.

 

As a member of Amcor’s Global Executive Team, Mr Delia will report directly to Amcor’s CEO and Managing Director, Ken MacKenzie, and his role, which is new, will focus on customer and market-facing activities, global IT, procurement and other cross-divisional opportunities.

 

 

For more information:

 

 

John Murray

 

Ken MacKenzie

EGM Corporate Affairs

 

CEO & Managing Director

Amcor Limited

 

Amcor Limited

Tel: + 61 3 9226 9005

 

Tel: + 61 3 9226 9001

 

 

Amcor Limited

ABN 62 000 017 372

679 Victoria Street

Abbotsford Victoria 3067 Australia

Tel: 61 3 9226 9000  Fax: 61 3 9226 6500

www.amcor.com

 



 

AMCOR LIMITED
A.B.N. 62 000 017 372

 

 

FULL YEAR FINANCIAL REPORT

 

 

FULL REPORT

 

 

30 JUNE 2005

 

24th August 2005

 



 

Amcor Limited and its controlled entities

Statements of Financial Performance

 

 

 

 

 

CONSOLIDATED

 

AMCOR LIMITED

 

For the year ended 30 June

 

Note

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

$m

 

$m

 

$m

 

$m

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from sale of goods

 

2

 

11,099.6

 

10,405.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues from ordinary activities

 

2

 

174.7

 

175.0

 

365.5

 

406.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue from ordinary activities

 

2

 

11,274.3

 

10,580.9

 

365.5

 

406.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses from ordinary activities excluding borrowing costs

 

3

 

(10,871.2

)

(9,964.0

)

287.1

 

(95.9

)

 

 

 

 

 

 

 

 

 

 

 

 

Borrowing costs

 

1(8),3

 

(158.1

)

(145.4

)

(217.2

)

(179.8

)

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT FROM ORDINARY ACTIVITIES BEFORE RELATED INCOME TAX EXPENSE

 

 

 

245.0

 

471.5

 

435.4

 

131.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) / benefit relating to ordinary activities

 

5

 

(58.8

)

(111.3

)

37.9

 

46.9

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT FROM ORDINARY ACTIVITIES AFTER RELATED INCOME TAX EXPENSE

 

 

 

186.2

 

360.2

 

473.3

 

178.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit attributable to outside equity interests

 

 

 

(13.0

)

(14.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET PROFIT ATTRIBUTABLE TO MEMBERS OF THE PARENT ENTITY

 

27

 

173.2

 

345.7

 

473.3

 

178.0

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OWNER TRANSACTION CHANGES IN EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net exchange difference relating to self-sustaining foreign operations

 

26

 

(159.8

)

(65.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues, expenses and valuation adjustments attributable to members of the parent entity recognised directly in equity

 

 

 

(159.8

)

(65.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CHANGES IN EQUITY FROM NON-OWNER RELATED TRANSACTIONS ATTRIBUTABLE TO THE MEMBERS OF THE PARENT ENTITY

 

29

 

13.4

 

280.3

 

473.3

 

178.0

 

 

 

 

 

 

 

 

 

 

 

 

 

NET OPERATING PROFIT ATTRIBUTABLE TO MEMBERS OF THE PARENT ENTITY:

 

 

 

 

 

 

 

 

 

 

 

•  Before significant items

 

 

 

443.0

 

440.3

 

473.3

 

178.0

 

•  After significant items

 

4

 

173.2

 

345.7

 

473.3

 

178.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

cents

 

cents

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

7

 

13.8

 

33.8

 

 

 

 

 

Diluted earnings per share

 

7

 

13.7

 

33.7

 

 

 

 

 

 

The Statements of Financial Performance are to be read in conjunction with the notes to the financial statements set out on pages 6 to 81.

 

2



 

Amcor Limited and its controlled entities

Statements of Financial Position

 

 

 

 

 

CONSOLIDATED

 

AMCOR LIMITED

 

As at 30 June

 

Note

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

$m

 

$m

 

$m

 

$m

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash assets

 

9

 

210.8

 

131.0

 

3.7

 

7.5

 

Receivables

 

10

 

1,685.9

 

1,551.4

 

6,027.4

 

8,103.3

 

Inventories

 

11

 

1,440.1

 

1,369.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

 

3,336.8

 

3,052.0

 

6,031.1

 

8,110.8

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

Receivables

 

12

 

71.6

 

81.8

 

33.8

 

41.8

 

Other financial assets

 

13

 

48.4

 

12.9

 

4,678.7

 

3,647.9

 

Property, plant and equipment

 

14

 

4,400.1

 

4,745.0

 

8.7

 

5.6

 

Intangibles

 

15

 

1,766.9

 

2,062.7

 

5.5

 

5.0

 

Deferred tax assets

 

16

 

176.2

 

238.8

 

88.4

 

100.0

 

Other non-current assets

 

17

 

98.9

 

93.2

 

11.4

 

13.4

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT ASSETS

 

 

 

6,562.1

 

7,234.4

 

4,826.5

 

3,813.7

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

9,898.9

 

10,286.4

 

10,857.6

 

11,924.5

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Payables

 

18

 

1,991.8

 

1,831.1

 

35.9

 

35.1

 

Interest-bearing liabilities

 

19

 

729.2

 

728.5

 

3,849.6

 

4,846.6

 

Current tax liabilities

 

20

 

82.5

 

77.4

 

13.4

 

23.6

 

Provisions

 

21

 

290.4

 

339.7

 

2.1

 

2.9

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

 

 

3,093.9

 

2,976.7

 

3,901.0

 

4,908.2

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Payables

 

22

 

0.7

 

13.2

 

 

 

Interest-bearing liabilities

 

23

 

1,747.8

 

1,776.2

 

1,275.9

 

1,463.8

 

Deferred tax liabilities

 

 

 

292.8

 

388.5

 

148.6

 

169.2

 

Provisions

 

21

 

100.0

 

91.9

 

5.2

 

4.5

 

Undated subordinated convertible securities

 

24

 

301.1

 

332.3

 

301.1

 

332.3

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT LIABILITIES

 

 

 

2,442.4

 

2,602.1

 

1,730.8

 

1,969.8

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

 

5,536.3

 

5,578.8

 

5,631.8

 

6,878.0

 

 

 

 

 

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

4,362.6

 

4,707.6

 

5,225.8

 

5,046.5

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

Contributed equity

 

25

 

3,348.1

 

3,351.9

 

2,751.5

 

2,755.3

 

Reserves

 

26

 

(510.9

)

(349.2

)

40.7

 

40.9

 

Retained profits

 

27

 

1,446.9

 

1,614.3

 

2,433.6

 

2,250.3

 

Equity attributable to members of the parent entity

 

 

 

4,284.1

 

4,617.0

 

5,225.8

 

5,046.5

 

Outside equity interests in controlled entities

 

28

 

78.5

 

90.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY

 

29

 

4,362.6

 

4,707.6

 

5,225.8

 

5,046.5

 

 

The Statements of Financial Position are to be read in conjunction with the notes to the financial statements set out on pages 6 to 81.

 

3



 

Amcor Limited and its controlled entities

Statements of Cash Flows

 

 

 

 

 

CONSOLIDATED

 

AMCOR LIMITED

 

For the year ended 30 June

 

Note

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

$m

 

$m

 

$m

 

$m

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receipts from customers

 

 

 

10,936.7

 

10,453.7

 

 

 

Payments to suppliers and employees

 

 

 

(9,900.0

)

(9,222.8

)

(66.6

)

(64.8

)

Dividends received

 

 

 

0.6

 

0.6

 

40.6

 

37.3

 

Interest received

 

 

 

20.6

 

14.7

 

309.6

 

350.2

 

Borrowing costs paid

 

 

 

(156.3

)

(165.6

)

(211.8

)

(183.4

)

Income taxes paid

 

 

 

(115.5

)

(105.8

)

(42.2

)

(4.9

)

Other (payments)/receipts

 

 

 

71.3

 

57.0

 

31.8

 

(38.9

)

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH FROM OPERATING ACTIVITIES (1)

 

 

 

857.4

 

1,031.8

 

61.4

 

95.5

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans drawn/(repaid) - controlled entities

 

 

 

 

 

157.8

 

(360.8

)

Loans drawn by other persons

 

 

 

4.8

 

24.5

 

5.7

 

8.9

 

Acquisition of:

 

 

 

 

 

 

 

 

 

 

 

Controlled entities and businesses

 

36(2)

 

(9.7

)

(618.9

)

(10.1

)

(132.7

)

Investments

 

 

 

(35.8

)

 

 

 

Property, plant and equipment / Intangibles

 

 

 

(647.4

)

(605.4

)

(3.1

)

(4.4

)

Proceeds on disposal of:

 

 

 

 

 

 

 

 

 

 

 

Controlled entities and businesses (net of cash disposed)

 

36(3)

 

10.8

 

40.2

 

 

 

Property, plant and equipment

 

 

 

77.4

 

98.3

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH FROM / (USED IN) INVESTING ACTIVITIES

 

 

 

(599.9

)

(1,061.3

)

150.6

 

(489.0

)

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and other distributions paid

 

 

 

(346.6

)

(225.0

)

(287.3

)

(172.9

)

Net proceeds from share issues, convertible securities and calls on partly-paid shares

 

 

 

(3.3

)

13.2

 

(2.5

)

13.2

 

Proceeds from borrowings

 

 

 

3,719.0

 

5,280.3

 

3,324.0

 

4,668.3

 

Repayment of borrowings

 

 

 

(3,504.3

)

(4,817.1

)

(3,250.0

)

(4,114.1

)

Principal lease repayments

 

 

 

(18.1

)

(144.8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH (USED IN) / FROM FINANCING ACTIVITIES

 

 

 

(153.3

)

106.6

 

(215.8

)

394.5

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCREASE / (DECREASE) IN CASH HELD

 

 

 

104.2

 

77.1

 

(3.8

)

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH AT THE BEGINNING OF THE YEAR

 

 

 

121.1

 

46.1

 

7.5

 

6.5

 

Exchange rate changes on foreign currency cash balances

 

 

 

(11.5

)

(2.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH AT THE END OF THE YEAR (2)

 

 

 

213.8

 

121.1

 

3.7

 

7.5

 

 

The Statements of Cash Flows are to be read in conjunction with the notes to the financial statements set out on pages 6 to 81.

 

4



 

 

 

CONSOLIDATED

 

AMCOR LIMITED

 

For the year ended 30 June

 

2005

 

2004

 

2005

 

2004

 

 

 

$m

 

$m

 

$m

 

$m

 

(1)

 

RECONCILIATION OF PROFIT FROM ORDINARY ACTIVITIES AFTER INCOME TAX TO NET CASH FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT FROM ORDINARY ACTIVITIES AFTER INCOME TAX

 

186.2

 

360.2

 

473.3

 

178.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add / (less) non-cash items and items classified as financing / investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of property, plant and equipment

 

444.1

 

459.4

 

0.6

 

0.5

 

 

 

Amortisation of leased assets

 

7.4

 

13.2

 

 

 

 

 

Amortisation of goodwill and other intangibles

 

131.3

 

131.2

 

0.3

 

0.3

 

 

 

Interest capitalised

 

(3.7

)

(4.5

)

 

 

 

 

Finance charges on capitalised leases

 

3.9

 

4.7

 

 

 

 

 

Profit on disposal of non-current assets

 

(8.6

)

(30.6

)

(0.1

)

 

 

 

Profit on disposal of business/controlled entities

 

(3.8

)

(4.1

)

(3.3

)

 

 

 

Unrealised foreign exchange (gain)/loss

 

(1.6

)

 

(322.1

)

42.4

 

 

 

Effect of tax consolidation regime on tax balances

 

 

 

(102.7

)

 

 

 

Non cash significant item

 

227.5

 

50.2

 

 

 

 

 

 

 

982.7

 

979.7

 

46.0

 

221.2

 

 

 

Change in assets and liabilities excluding acquisitions/disposals of controlled entities and businesses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Decrease / (increase) in sundry assets

 

6.2

 

(19.9

)

(9.2

)

(6.1

)

 

 

  Increase / (decrease) in current and deferred taxes

 

(6.2

)

10.7

 

22.6

 

(51.8

)

 

 

  Increase / (decrease) in provisions

 

(66.3

)

(55.4

)

(2.2

)

1.4

 

 

 

 

 

(66.3

)

(64.6

)

11.2

 

(56.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  (Increase) / decrease in receivables

 

(167.4

)

143.7

 

10.4

 

(40.1

)

 

 

  Increase in inventories

 

(165.5

)

(18.1

)

 

 

 

 

  Increase / (decrease) in payables

 

273.9

 

(8.9

)

(6.2

)

(29.1

)

 

 

 

 

(59.0

)

116.7

 

4.2

 

(69.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH FROM OPERATING ACTIVITIES

 

857.4

 

1,031.8

 

61.4

 

95.5

 

 

(2)

 

RECONCILIATION OF CASH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the purposes of the Statements of Cash Flows, cash includes cash on hand and at bank and short-term money market investments, net of outstanding bank overdrafts. Cash as at the end of the financial year as shown in the Statements of Cash Flows is reconciled to the related items in the Statements of Financial Position as follows:

 

 

 

 

Cash - refer Note 9

 

210.8

 

131.0

 

3.7

 

7.5

 

 

 

Short-term deposits - refer Note 10

 

19.0

 

17.3

 

 

 

 

 

Bank overdrafts - refer Note 19

 

(16.0

)

(27.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

213.8

 

121.1

 

3.7

 

7.5

 

 

(3)

 

NON-CASH FINANCING AND INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During the year, the consolidated entity acquired property, plant and equipment with an aggregate value of nil (2004 $104.0 million) by means of finance leases. Dividends of nil (2004 $94.7 million) were paid for via the Dividend Reinvestment Plan and convertible securities of $0.1 million (2004 $99.9 million) were converted into fully paid ordinary shares. These transactions are not reflected in the Statements of Cash Flows.

 

 

The Statements of Cash Flows are to be read in conjunction with the notes to the financial statements set out on pages 6 to 81.

 

5



 

Amcor Limited and its controlled entities

Notes to the financial statements

For the year ended 30 June 2005

 

INDEX

 

Note

 

Description

 

1

 

Accounting policies

 

2

 

Revenue

 

3

 

Profit from ordinary activities

 

4

 

Significant items

 

5

 

Income tax expense

 

6

 

Auditors’ remuneration

 

7

 

Earnings per share

 

8

 

Segment report

 

9

 

Cash assets

 

10

 

Receivables

 

11

 

Inventories

 

12

 

Non-current receivables

 

13

 

Other financial assets

 

14

 

Property, plant and equipment

 

15

 

Intangibles

 

16

 

Deferred tax assets

 

17

 

Other non-current assets

 

18

 

Current Payables

 

19

 

Current Interest bearing liabilities

 

20

 

Current tax liabilities

 

21

 

Provisions

 

22

 

Non-current payables

 

23

 

Non-current interest bearing liabilities

 

24

 

Undated subordinated convertible securities

 

25

 

Contributed equity

 

26

 

Reserves

 

27

 

Retained profits

 

28

 

Outside equity interests in controlled entities

 

29

 

Total equity reconciliation

 

30

 

Additional financial instrument disclosure

 

31

 

Capital expenditure commitments

 

32

 

Lease commitments

 

33

 

Other expenditure commitments

 

34

 

Contingent liabilities

 

35

 

Employee benefits

 

36

 

Amcor’s controlled entities

 

37

 

Related party disclosures

 

38

 

Directors’ and Executives’ disclosures

 

39

 

Impact of Adopting Australian Equivalents to International Financial Reporting Standards

 

40

 

Events Subsequent to Reporting Date

 

NOTE 1. ACCOUNTING POLICIES

 

The significant accounting policies which have been adopted by Amcor Limited (‘the company’) and its controlled entities (‘the consolidated entity’) in the preparation of this financial report are:

 

(1) Basis of Preparation

 

The financial report is a general purpose financial report which has been prepared in accordance with Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Consensus Views and the Corporations Act 2001.

 

The financial report has been prepared on the basis of historical cost and except where stated, does not take into account changing money values or fair values of assets.  Unless otherwise stated, the accounting policies adopted are consistent with those of the previous year.  Certain items in the comparative periods have been reclassified to conform to current period disclosures.

 

(2) Consolidated Financial Statements

 

The consolidated financial statements comprise the financial statements of the company, being the parent entity, and its controlled entities in accordance with Accounting Standard AASB 1024 ‘Consolidated Accounts’. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases. A list of controlled entities appears in Note 36 to the financial statements.

 

Outside interests in the equity and results of the entities that are controlled by the company are shown as a separate item in the consolidated financial statements.

 

Investments in controlled entities are carried in the financial statements of the company at the lower of cost and recoverable amount and dividends are brought to account in the Statement of Financial Performance when they are declared.

 

In preparing the financial statements all balances and transactions between entities included in the consolidated entity have been eliminated.

 

6



 

(3) Revenue Recognition

 

Sale of Goods

 

Sales revenue comprises revenue earned (net of returns, discounts and allowances) from the provision of products to entities outside the consolidated entity.  Sales revenue is recognised when control of the goods passes to the customer.

 

Interest Income

 

Interest income is recognised as it accrues, taking into account the effective yield on the financial asset.

 

Sales of Non-Current Assets

 

The gross proceeds of non-current asset sales are recognised as revenue at the date control passes to the buyer.  The profit or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal (including incidental costs).

 

(4) Taxation

 

General

 

The consolidated entity adopts the accounting policy for treatment of company income tax as set out in Accounting Standard AASB 1020 ‘Tax Effect Accounting’ issued in December 1999 whereby the taxation benefits or liabilities which arise due to differences between the time when items are taken up in the consolidated entity’s financial statements and when they are to be taken up for income tax purposes are shown either as a deferred tax asset or a deferred tax liability.  The deferred tax asset and deferred tax liability are taken up at tax rates applicable to the periods in which they are expected to reverse.

 

The deferred tax asset relating to tax losses is not carried forward as an asset unless the benefit can be regarded as being virtually certain of realisation.  These benefits will be brought to account as a reduction in income tax expense in the period in which they are recouped.  The tax effect of capital losses is not recorded unless realisation is virtually certain.

 

The company is the head entity in the tax-consolidated group comprising all the Australian wholly-owned subsidiaries set out in Note 36.  The head entity recognises all of the current and deferred tax assets and liabilities of the tax-consolidated group (after elimination of intragroup transactions).

 

The tax-consolidated group has entered into a tax sharing agreement that requires wholly-owned subsidiaries to make contributions to the head entity for tax liabilities arising from external transactions during the year.  The contributions are calculated as if each subsidiary was a stand-alone entity.  The contributions are payable annually.

 

The assets and liabilities arising under the tax sharing agreement are recognised as intercompany assets and liabilities with a consequential adjustment to income tax expense/revenue.

 

Capital Gains Tax

 

Capital gains tax, where applicable, is provided in the period in which an asset is sold.

 

Goods and Services Tax

 

Revenues, expenses and assets are recognised net of the amount of goods and services tax (‘GST’), except where the amount of GST incurred is not recoverable from the Australian Tax Office (‘ATO’).  In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

 

Receivables and payables are stated with the amount of GST included.

 

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Statements of Financial Position.

 

Cash flows are included in the Statements of Cash Flows on a gross basis.  The GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

 

7



 

(5) Depreciation

 

Property, plant and equipment, excluding freehold land, are depreciated at rates based upon their expected useful lives using the straight line method.

 

Depreciation rates used for each class of asset are as follows:

 

                  Leasehold land between 1% - 3% (2004 1% - 3%)

 

                  Land improvements between 1% - 3% (2004 1% - 3%)

 

                  Buildings between 1% - 5% (2004 1% - 5%)

 

                  Plant and equipment between 3% - 25% (2004 3% - 25%)

 

                  Finance leased assets between 4% - 20% (2004 4% - 20%)

 

(6) Employee Entitlements

 

Wages, Salaries, Annual Leave and Sick Leave

 

Liabilities for employee benefits such as wages, salaries, annual leave, sick leave and other current employee entitlements represent present obligations resulting from employees’ service provided to reporting date, calculated at undiscounted amounts based on wage and salary rates that the consolidated entity expects to pay as at reporting date including related on-costs.

 

Long Service Leave

 

Liabilities relating to long service leave and post-employment benefits have been calculated to represent the present value of estimated future cash outflows discounted to reporting date.

 

Liabilities for employee entitlements include, where appropriate, forecast future increases in wages and salaries, grossed up for on-costs, and are based on the consolidated entity’s experience with staff departures.

 

Liabilities which are not expected to be settled within 12 months are discounted using the rate attaching to those national government securities at reporting date which most closely match the terms of maturity of the related entitlements.

 

Profit Sharing and Bonus Plans

 

A liability is recognised for profit sharing and bonus plans, including benefits based on the future value of equity instruments and benefits under plans allowing the consolidated entity to settle in either cash or shares.

 

Entitlements under the Employee Bonus Payment Plan (‘EBPP’) are estimated and accrued at the end of the financial reporting period.

 

Employee Share and Option Plans

 

The company maintains two Employee Share Schemes, the Employee Share Purchase Plan (‘ESPP’) and the Employee Share/Option Plan (‘ESOP’).  Both schemes were introduced in 1985, and have been subsequently amended and approved by shareholders at Annual General Meetings.

 

Options relating to the ESOP are generally issued at the closing market price on the date of allotment.  Options are issued under the plan upon such terms and conditions as determined by the directors at the time of the invitation.

 

Issues relating to the ESPP and the ESOP are detailed in Note 35.

 

8



 

Loans to assist in the purchase of shares are shown as receivables.  Shares are held in trust until the loan is settled.  The loans can be paid off at any time and must be settled when an individual ceases to be employed by the consolidated entity.  No value is recognised at the time of the issue of options under the ESOP.  If exercised, contributions are recognised as equity.  Shares issued under the ESOP are treated as equity to the extent the shares are paid-up.  Shares issued under the ESPP are credited to equity at the discounted value at the time of allotment.

 

Superannuation Funds

 

The consolidated entity contributes to employee superannuation funds.  Contributions are charged against profit as and when they are incurred.  Further information is set out in Note 35.

 

(7) Provisions

 

A provision is recognised when there is a legal, equitable or constructive obligation as a result of a past event and it is probable that a future sacrifice of economic benefits will be required to settle the obligation, the timing or amount of which is uncertain.

 

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the recovery receivable is recognised as an asset when it is probable that the recovery will be received and is measured on a basis consistent with the measurement of the related provision.

 

In the Statements of Financial Performance, the expense recognised in respect of a provision is presented net of the recovery.  In the Statements of Financial Position, the provision is recognised net of the recovery receivable only when the entity:

 

                  has a legally recognised right to set-off the recovery receivable and the provision; and

 

                  intends to settle on a net basis, or to realise the asset and settle the provision simultaneously.

 

Restructuring

 

A provision for restructuring, including employee termination benefits, related to an acquired entity or operation is recognised at the date of acquisition where:

 

                  the main features of the restructuring were announced, implementation of the restructuring commenced, or contracts were entered into by the date of acquisition

 

                  a detailed formal plan is developed by the earlier of three months after the date of acquisition and the completion of this financial report.

 

The provision only relates to costs associated with the acquired entity, and is included in the determination of the fair value of the net assets acquired.  The provision includes liabilities for termination benefits that will be paid to employees of the acquired entity as a result of the restructuring.

 

Other provisions for restructuring or termination benefits are only recognised when a detailed plan has been formally approved and the restructuring or termination benefits have either commenced or been publicly announced, or firm contracts related to the restructuring or the termination benefits have been entered into.  Costs related to ongoing activities are not provided for. The liabilities for termination benefits that will be paid as a result of these restructurings have been included in the provision for restructuring.

 

Dividends

 

A provision for dividends payable is recognised in the reporting period in which the dividends are declared, for the entire undistributed amount, regardless of the extent to which they will be paid in cash.

 

Onerous Contracts

 

A provision for onerous contracts is recognised after impairment losses on assets dedicated to the contract have been recognised and when the expected benefits are less than the unavoidable costs of meeting the contractual obligations.  A provision is recognised to the extent that the contract obligations exceed future economic benefits.

 

9



 

Insurance and Other Claims

 

Provisions for workers’ compensation, insurance and other claims are made for claims received and claims expected to be received in relation to incidents occurring prior to reporting date, based on historical claim rates.

 

Estimated net future cash flows are based on the assumption that all claims will be settled and the weighted average cost of historical claims adjusted for inflation will continue to approximate future costs.

 

(8) Borrowing Costs

 

Borrowing costs include interest, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings, lease finance charges and foreign exchange differences on borrowings other than those designated as net investment hedges.

 

Borrowing costs are brought to account in determining profit for the year, except to the extent the interest incurred relates to major capital items in which case interest is capitalised as a cost of the asset up to the time it is ready for its intended use and amortised over the expected useful economic life.

 

The total amount of interest capitalised during the year as part of the carrying amount of assets is shown in Note 3.

 

(9) Investments and Other Financial Assets

 

Investments in listed and unlisted securities, other than controlled entities and associates, in the financial report, are brought to account at cost and dividend income is recognised in the Statements of Financial Performance when receivable.

 

The consolidated entity follows the requirements of AASB 1016 ‘Accounting for Investments in Associates’ and applies the equity method of accounting for investments in associates.  Associates are those entities over which the consolidated entity exercises significant influence, but does not control.  The equity method requires the carrying amount of investments in associates to be adjusted by the consolidated entity’s share of associates’ net profit or loss after tax and other movements in reserves.  Investments in associates are carried at the lower of the equity accounted amount and the recoverable amount.  These amounts are recognised in the consolidated Statement of Financial Performance and consolidated reserves.

 

(10) Non-Current Assets

 

The recoverable amount of non-current assets carried at cost is reviewed at each reporting date using profit multiples and undiscounted or discounted cash flows as deemed appropriate. Non-current assets are written down to recoverable amount where the carrying value of any non-current asset exceeds recoverable amount.  The write-down is recognised as an expense in the Statements of Financial Performance in the reporting period in which it occurs.

 

(11) Inventories

 

Inventories are valued at the lower of cost (including an appropriate proportion of fixed and variable overheads) and net realisable value in the normal course of business.

 

(12) Foreign Currency Translation

 

The financial statements of overseas controlled entities which are classified as self-sustaining are converted to Australian currency at balance date using the current rate method as set out in Accounting Standard AASB 1012 ‘Foreign Currency Translation’.  Any exchange gains/losses arising from the effect of currency fluctuations on these investments are taken directly to the exchange fluctuations reserve on consolidation.

 

10



 

Prior to translation, the financial reports of self-sustaining operations in hyper-inflationary economies are restated to account for changes in the general purchasing power of the local currency, based on relevant price indices at reporting date.

 

For hyper-inflationary self-sustaining operations, the translated amounts for non-monetary assets, other than inventory, are compared to recoverable amounts translated at spot rates at reporting dates and any excess is expensed.

 

(13) Financial Instruments

 

Financial Instruments Included in Equity

 

Details of shares and other securities issued and the terms and conditions of options outstanding over ordinary shares at balance date are set out in Notes 25 and 35.

 

The issue of $400 million of Perpetual Amcor Convertible Reset Securities (‘PACRS’) and $210 million of 2002 Perpetual Amcor Convertible Reset Securities (‘PACRS2’) are classified as equity and the coupon interest payable on the PACRS and PACRS2 is treated as a distribution of shareholders’ equity.  The Consolidated Statement of Financial Performance does not include the coupon interest on the PACRS or PACRS2.

 

Financial Instruments Included in Liabilities

 

Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the consolidated entity.

 

Bank overdrafts, bank loans, mortgage loans and other loans are carried at their principal amounts.  Interest is charged as an expense as it accrues other than for amounts capitalised.  Refer Note 1 (8).

 

Commercial paper is carried at face value.  The discount interest is carried as a deferred expense and brought to account on an accruals basis.

 

US$ notes are carried at face value and translated at the rates ruling at reporting date. Interest is charged as an expense as it accrues.

 

Eurobond notes are carried at face value. The discount is carried as a deferred expense and amortised over the period to maturity. Interest is charged as an expense as it accrues.

 

Undated subordinated convertible securities were initially recorded at the amount of consideration received. These securities have been translated at the rate of exchange ruling at reporting date. Interest payable on these securities is recognised when entitlements accrue and is calculated in accordance with the terms of each issue.  The terms and conditions of undated subordinated convertible securities outstanding are set out in Note 24.

 

Financial Instruments Included in Assets

 

Trade debtors are carried at nominal amounts due less any provision for doubtful debts.  Collectability of overdue accounts is assessed on an ongoing basis.  Specific provision is made for all doubtful accounts.  A provision for doubtful debts is recognised when collection of the full nominal amount is no longer probable.

 

Receivables other than trade debtors are carried at nominal amounts due.

 

Derivatives

 

The consolidated entity’s policy on interest rate risk management is to monitor and, where appropriate, hedge the consolidated entity’s exposure to movements in interest rates through the use of various hedging products available in the financial markets.

 

11



 

The consolidated entity may enter into interest rate and cross currency swaps, forward rate agreements and interest rate options to hedge interest rate and foreign currency exposures.  These instruments are not held for speculative purposes.  Where hedge transactions are designated as a hedge of the anticipated purchase or sale of goods or services or an anticipated interest transaction, gains and losses on the hedge arising up to the date of the anticipated transactions are included in the measurement of the anticipated transaction when the transaction has occurred as designated. Any gains or losses on the hedge transaction after that date are included in the Statements of Financial Performance.

 

The net amounts receivable or payable under forward foreign exchange contracts and the associated deferred gains or losses are recorded on the Statements of Financial Position until the hedge transaction occurs.  When recognised, the net receivables or payables are revalued using the rate of exchange ruling at reporting date.

 

Where a hedge transaction is terminated early and the anticipated transaction is still expected to occur, the deferred gains or losses that arose prior to its termination are included in the measurement of the purchase or sale or interest transaction as it occurs.  Where a hedge transaction is terminated early because the anticipated transaction is no longer expected to occur, deferred gains or losses that arose on the hedge instrument are included in the Statements of Financial Performance.

 

Net receipts and payments under the interest rate swap contracts, forward rate agreements and cross currency swaps are recognised on an accruals basis as an adjustment to interest expense.  The premiums paid on interest rate options are included in other assets and amortised to borrowing costs over the term of the agreement.

 

Net Investment in Foreign Operation

 

Foreign exchange differences relating to foreign currency transactions hedging a net investment in a self-sustaining foreign operation, together with any related income tax, are transferred to the exchange fluctuations reserve on consolidation.

 

(14) Leased Assets

 

Leases under which the company or its controlled entities assume substantially all the risks and benefits of ownership are classified as finance leases. Other leases are classified as operating leases.

 

Finance leases are capitalised. A lease asset and a lease liability equal to the present value of the minimum lease payments are recorded at the inception of the lease.

 

Payments made under operating leases are expensed over the term of the lease.

 

(15) Research and Development Expenditure

 

Expenditure on research and development associated with product research and development innovation is charged against operating profit in the year in which the expenditure is incurred.

 

Where such expenditure is considered to have a demonstrable future economic benefit and commercial value, it is capitalised and amortised over the period of time during which the benefits are expected to arise.

 

Expenditure on significant commercial development, including major software applications and associated systems, is capitalised and amortised over the period of time during which the benefits are expected to arise, typically not exceeding ten years.

 

(16) Trademarks / Licences

 

The consolidated entity writes off expenditure on trademarks / licences to profit as incurred.

 

12



 

(17) Goodwill

 

Goodwill represents the excess of the purchase consideration plus incidental costs over the fair value of the identifiable net assets acquired on acquisitions of controlled entities and businesses.

 

All goodwill is amortised in equal instalments over the period of time during which the benefits are expected to arise but for a period not exceeding 20 years.  The unamortised balance of goodwill is reviewed at reporting date and adjusted where it is considered that the carrying amount exceeds the expected future benefits.

 

(18) Earnings per Share (EPS)

 

Basic Earnings per Share

 

Basic earnings per share is calculated by dividing the net profit attributable to members of the company for the reporting period, after adjusting for distributions on PACRS, by the weighted average number of ordinary shares of the company, adjusted for any bonus issue.

 

Diluted Earnings per Share

 

Diluted EPS is calculated by adjusting the basic EPS for the after tax effect of financing costs and the effect of conversion to ordinary shares associated with dilutive potential ordinary shares.

 

The diluted EPS weighted average number of shares includes the number of ordinary shares assumed to be issued for no consideration in relation to dilutive potential ordinary shares.  The number of ordinary shares assumed to be issued for no consideration represents the difference between the number that would have been issued at the exercise price and the number that would have been issued at the average market price (refer Note 7).

 

The identification of dilutive potential ordinary shares is based on net profit or loss from continuing ordinary operations and is applied on a cumulative basis, taking into account the incremental earnings and incremental number of shares for each series of potential ordinary shares.

 

(19) Acquisition of Assets

 

All assets acquired, including property, plant and equipment and intangibles other than goodwill, are initially recorded at their cost of acquisition at the date of acquisition, being the fair value of the consideration provided plus incidental costs directly attributable to the acquisition.  Acquired in-process research and development is only recognised as a separate asset when future benefits are expected beyond any reasonable doubt to be recoverable.

 

13



 

NOTE 2. REVENUE

 

 

 

CONSOLIDATED

 

AMCOR LIMITED

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

$m

 

$m

 

$m

 

$m

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from sale of goods

 

11,099.6

 

10,405.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest received/receivable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Controlled entities

 

 

 

320.5

 

351.1

 

  Other

 

20.9

 

13.2

 

2.6

 

1.7

 

 

 

20.9

 

13.2

 

323.1

 

352.8

 

 

 

 

 

 

 

 

 

 

 

Dividend received/receivable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Controlled entities

 

 

 

40.6

 

37.3

 

  Other

 

0.6

 

0.6

 

 

 

 

 

0.6

 

0.6

 

40.6

 

37.3

 

 

 

 

 

 

 

 

 

 

 

Other revenues from outside operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross proceeds on disposal of non-current assets

 

77.8

 

98.7

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

Gross proceeds on disposal of businesses and controlled entities

 

10.8

 

2.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

64.6

 

60.4

 

1.5

 

16.7

 

 

 

153.2

 

161.2

 

1.8

 

16.7

 

 

 

 

 

 

 

 

 

 

 

Total other revenues

 

174.7

 

175.0

 

365.5

 

406.8

 

 

 

 

 

 

 

 

 

 

 

TOTAL REVENUE FROM ORDINARY ACTIVITIES

 

11,274.3

 

10,580.9

 

365.5

 

406.8

 

 

14



 

NOTE 3. PROFIT FROM ORDINARY ACTIVITIES

 

 

 

CONSOLIDATED

 

AMCOR LIMITED

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

$m

 

$m

 

$m

 

$m

 

Profit from ordinary activities before income tax has been arrived at after (charging)/crediting:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

 

 

 

•  of property, plant and equipment - refer Note 1 (5)

 

(444.1

)

(459.4

)

(0.6

)

(0.5

)

Amortisation:

 

 

 

 

 

 

 

 

 

•  of leased assets- refer Note 1 (5)

 

(7.4

)

(13.2

)

 

 

•  of goodwill - refer Note 1 (17)

 

(127.2

)

(127.6

)

 

 

•  of other intangibles

 

(4.1

)

(3.6

)

(0.3

)

(0.3

)

 

 

(582.8

)

(603.8

)

(0.9

)

(0.8

)

Borrowing costs

 

 

 

 

 

 

 

 

 

Interest paid/payable:

 

 

 

 

 

 

 

 

 

•  Controlled entities

 

 

 

(125.3

)

(92.2

)

•  Finance charges on leased assets

 

(3.9

)

(4.7

)

 

 

•  Other persons

 

(150.0

)

(138.4

)

(91.0

)

(87.6

)

 

 

 

 

 

 

 

 

 

 

Interest capitalised - refer Note 1 (8)

 

3.7

 

4.5

 

 

 

 

 

(150.2

)

(138.6

)

(216.3

)

(179.8

)

 

 

 

 

 

 

 

 

 

 

Other borrowing costs

 

(7.9

)

(6.8

)

(0.9

)

 

Total borrowing costs

 

(158.1

)

(145.4

)

(217.2

)

(179.8

)

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bad debts written off:

 

 

 

 

 

 

 

 

 

•  Trade debtors

 

(3.0

)

(6.2

)

 

 

 

 

 

 

 

 

 

 

 

 

Provisions:

 

 

 

 

 

 

 

 

 

•  Employee entitlements and directors’ retiring allowances

 

(63.6

)

(106.0

)

(1.6

)

(1.6

)

•  Doubtful debts

 

(5.8

)

(1.1

)

 

 

•  Diminution in value of inventories

 

(26.8

)

5.4

 

 

 

•  Insurance/workers’ compensation and other claims

 

(37.4

)

(24.6

)

 

 

•  Onerous Contracts

 

(12.6

)

(12.8

)

 

 

•  Restructuring

 

(64.9

)

(57.0

)

 

 

 

 

 

 

 

 

 

 

 

 

Lease rentals

 

 

 

 

 

 

 

 

 

•  Operating leases

 

(131.7

)

(131.6

)

 

 

 

 

 

 

 

 

 

 

 

 

Asset impairments - refer Note 4

 

(242.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit on disposal of businesses and non-current assets

 

12.4

 

34.7

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

Net foreign exchange gains / (losses)

 

4.6

 

4.8

 

324.1

 

(50.3

)

 

 

 

 

 

 

 

 

 

 

Net loss on sale of receivables

 

(7.5

)

 

 

 

 

15



 

 

 

CONSOLIDATED

 

AMCOR LIMITED

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

$m

 

$m

 

$m

 

$m

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

(9,304.8

)

(8,589.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

 

 

 

 

Sales and marketing expenses

 

(303.2

)

(312.6

)

 

 

General and administration expenses including foreign exchange gains / (losses)

 

(1,223.5

)

(1,015.3

)

287.4

 

(95.2

)

Research and development costs

 

(39.7

)

(46.4

)

(0.3

)

(0.7

)

 

 

 

 

 

 

 

 

 

 

Expenses from ordinary activities excluding borrowing costs

 

(10,871.2

)

(9,964.0

)

287.1

 

(95.9

)

 

NOTE 4. SIGNIFICANT ITEMS

 

Significant items before income tax

 

 

 

 

 

 

 

 

 

PET business integration and restructure

 

(51.8

)

(19.9

)

 

 

Flexibles’ market sector rationalisation

 

(34.2

)

(69.3

)

 

 

Write-down residual assets of the former Twinpak group

 

 

(10.6

)

 

 

Asset impairments

 

(242.4

)

 

 

 

Significant items before income tax

 

(328.4

)

(99.8

)

 

 

 

 

 

 

 

 

 

 

 

 

Related income tax on significant items (where applicable)

 

 

 

 

 

 

 

 

 

Income tax benefit on PET business integration and restructure

 

14.8

 

 

 

 

Income tax benefit on Flexibles’ market sector rationalisation

 

9.5

 

2.4

 

 

 

Income tax benefit on write-down residual assets of the former Twinpak group

 

 

2.8

 

 

 

Income tax benefit on asset impairments

 

34.3

 

 

 

 

Income tax on significant items

 

58.6

 

5.2

 

 

 

 

 

 

 

 

 

 

 

 

 

SIGNIFICANT ITEMS AFTER INCOME TAX ATTRIBUTABLE TO MEMBERS OF THE PARENT ENTITY

 

(269.8

)

(94.6

)

 

 

 

16



 

DETAILS OF CONSOLIDATED SIGNIFICANT ITEMS BEFORE INCOME TAX

 

 

 

Restructuring

 

 

 

 

 

(1)

 

 

 

 

 

 

 

Plant

 

 

 

Goodwill

 

Asset

 

 

 

 

 

Redundancy

 

Closure

 

Onerous Lease

 

Impairment

 

Impairments

 

Total

 

 

 

$m

 

$m

 

$m

 

$m

 

$m

 

$m

 

PET

 

20.7

 

19.1

 

12.0

 

5.6

 

49.9

 

107.3

 

Australasia

 

 

 

 

 

108.7

 

108.7

 

Flexibles

 

27.7

 

6.5

 

 

 

27.2

 

61.4

 

Asia

 

 

 

 

0.7

 

44.2

 

44.9

 

Corporate

 

 

 

 

 

6.1

 

6.1

 

Total

 

48.4

 

25.6

 

12.0

 

6.3

 

236.1

 

328.4

 

 


(1) Comprises $7.3m related to inventory, $1.1m related to other intangibles, $0.4 related to other non current assets

and the balance relates to property plant & equipment reflecting the reassessment of carrying values in a number of

operating units.

 

NOTE 5. INCOME TAX EXPENSE

 

 

 

CONSOLIDATED

 

AMCOR LIMITED

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

$m

 

$m

 

$m

 

$m

 

 

 

 

 

 

 

 

 

 

 

Prima facie income tax expense calculated at 30% rate of tax on profit from ordinary activities

 

(73.5

)

(141.5

)

(130.6

)

(39.3

)

(Add) / deduct the tax effect of:

 

 

 

 

 

 

 

 

 

  Effect of different overseas tax rates

 

5.6

 

(6.9

)

 

 

  Tax rebate on dividends from investments

 

 

 

12.2

 

11.2

 

  Capital structures and PACRS

 

57.3

 

71.9

 

 

 

  Amortisation / write down of goodwill

 

(37.3

)

(25.7

)

 

 

  (Under) / over provision in prior years

 

8.6

 

9.3

 

3.5

 

1.7

 

  Income tax benefit related to current and deferred tax transactions of the wholly-owned subsidiaries in the tax consolidated group

 

 

 

98.1

 

20.5

 

  Income tax benefit related to tax losses of the wholly owned subsidiaries in the tax consolidated group

 

 

 

66.8

 

55.8

 

  Tax loss utilisation

 

11.1

 

22.9

 

 

 

  Significant items

 

(30.6

)

(25.0

)

 

 

  Other

 

 

(16.3

)

(12.1

)

(3.0

)

 

 

 

 

 

 

 

 

 

 

TOTAL INCOME TAX (EXPENSE) / BENEFIT

 

(58.8

)

(111.3

)

37.9

 

46.9

 

 

The balance of the franking account as at 30 June 2005 was nil (2004 nil) after taking into account the payment of

income tax payable at that date and any franking credits included therein which may not be distributable in the

following year.

 

17



 

NOTE 6. AUDITORS’ REMUNERATION

 

 

 

CONSOLIDATED

 

AMCOR LIMITED

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

$000’s

 

$000’s

 

$000’s

 

$000’s

 

Audit services:

 

 

 

 

 

 

 

 

 

Auditors of the company - KPMG:

 

 

 

 

 

 

 

 

 

Audit and review of financial reports (1)

 

9,151

 

7,407

 

1,765

 

984

 

Other services:

 

 

 

 

 

 

 

 

 

Auditors of the company - KPMG: