Growthpoint Interactive Half Year Report 2019

Notes to the Financial Statements. Section 1: Basis of preparation in this section … This section shows the basis of reporting for the Group and confirms compliance with accounting standards. Reporting entity Growthpoint Properties Australia was formed by the stapling of two entities: Growthpoint Properties Australia Limited and its controlled entities (“the Company”) and Growthpoint Properties Australia Trust (“the Trust”). The Company is the Responsible Entity for the Trust. Growthpoint Properties Australia is also referred to as “the Group”. The Group was established for the purpose of facilitating a joint quotation of the Company and the Trust and their controlled entities on the Australian Securities Exchange (ASX Code: GOZ). The constitutions of the Company and the Trust ensure that, for so long as the two entities remain jointly quoted, the number of shares in the Company and the number of units in the Trust shall be equal and the shareholders of the Company and the unitholders of the Trust are identical. The Company, both in its personal capacity and in its capacity as the Responsible Entity of the Trust, must at all times act in the best interests of the Group. The Group is a for profit entity. The consolidated interim financial report includes financial statements for Growthpoint Properties Australia, the stapled consolidated group, which is domiciled in Australia, as at, and for the six months ended, 31 December 2018. The Group’s registered address is Level 31, 35 Collins Street, Melbourne, VIC 3000, Australia. The ultimate parent entity of the Group is Growthpoint Properties Limited. Working capital deficiency The Group has undrawn facilities of $244 million and sufficient working capital and cashflows in order to fund all requirements arising from the net current asset deficiency as at 31 December 2018. The deficiency is largely driven by the provision for the 31 December 2018 distribution. Statement of compliance This consolidated interim financial report is a general purpose financial report which has been prepared in accordance with AASB 134 Interim Financial Reporting , the Corporations Act 2001 and IAS 34 Interim Financial Reporting . The consolidated interim financial report does not include all of the information required for a full annual financial report and should be read in conjunction with the annual report for the year ended 30 June 2018 and any public announcements made by Growthpoint Properties Australia during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 . This consolidated interim financial report was authorised for issue by the Directors of the Group on 21 February 2019. The Group is of a kind referred to in ASIC Corporations (Rounding in Directors’ / Financial Reports) Instrument 2016/191 and in accordance with that Instrument, all financial information presented in Australian dollars has been rounded to the nearest thousand unless otherwise stated. Accounting policies The accounting policies applied by the Group in this interim financial report are consistent with those of the previous financial year ended 30 June 2018 and the corresponding interim reporting period. New accounting standards amendments adopted by the Group The Group applied the following accounting standards amendments that became mandatory for the first time during the reporting period: IFRS 9 Financial Instruments addresses the classification, measurement, recognition and derecognition of financial assets and financial liabilities. It has also introduced revised rules for hedge accounting and impairment. IFRS 9 has been applied retrospectively by the Group and did not result in a change to the classification or measurement of the Group’s financial instruments. Consequently, there is no material impact on the Group’s consolidated financial statements. IFRS 15 Revenue from Contracts with Customers sets out the requirements for recognising revenue that applies to most contracts with customers, with some exceptions. The Group’s main source of income includes rental income, interest and gains on financial instruments held at fair value through profit or loss, which are all excepted from the scope of IFRS 15. The application of IFRS 15 has no material impact on the Group’s consolidated financial statements. 28 Growthpoint Properties Australia | 2019 Half Year Report