REA Group Ltd Annual Report 2021

Annual Report 2021 | REA Group Ltd 22. Parent entity financial information Accounting policies The financial information for the parent entity has been prepared on the same basis as the Consolidated Financial Statements, except as set out below. Investments in subsidiaries, associates and joint ventures are accounted for at cost. Dividends received from associates and joint ventures are recognised in the parent entity’s Income Statement, rather than being deducted from the carrying amount of these investments. In addition to its own current and deferred tax amounts, REA Group Ltd also recognises the 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. The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate the Company for any current tax payable assumed and are compensated by the Company for any current tax receivable and deferred taxes relating to unused tax losses or unused tax credits that are transferred to REA Group Ltd under the tax consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entities’ financial statements. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable or payable to other entities in the group. Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities. Where the parent entity has provided financial guarantees in relation to loans and payables of subsidiaries for no compensation, the fair values of these guarantees are accounted for as contributions and recognised as part of the cost of the investment. The individual Financial Statements for the parent entity, REA Group Ltd show the following aggregate amounts: 2021 $’000 2020 $’000 Current assets 6,448 45,876 Non-current assets 455,978 395,530 Total assets 462,426 441,406 Current liabilities 20,666 59,688 Non-current liabilities – – Total liabilities 20,666 59,688 Net assets 441,760 381,718 Contributed equity 150,028 90,178 Reserves 5,071 3,078 Retained earnings 286,661 288,462 Total shareholders’ equity 441,760 381,718 Profit and other comprehensive income of the parent entity 148,591 152,823 REA Group Ltd had net current liabilities of $14.2 million as at 30 June 2021 (2020: $13.8 million), driven by intercompany balances with its subsidiaries. REA Group Ltd intends to repay these balances as they fall due. Year in review Directors’ Report Financial Statements Remuneration Report Sustainability Our Leaders 113