Exhibit 99.1

9.01 (a)

Financial Statements of Business
Acquired

THE MAC SERVICES GROUP LIMITED

INDEX TO
FINANCIAL STATEMENTS
(All amounts in Australian Dollars)

Report of Independent Auditors			2
Statement of Financial Position as of 30 June 2010			3
Statement of Comprehensive Income for the Year Ended 30 June 2010			4
Statement of Changes in Equity for the Year Ended 30 June 2010			5
Statement of Cash Flows for the Year Ended 30 June 2010			6
Notes to the Financial Statements			7
Statement of Comprehensive Income for each of the Six Month Periods Ended December 31, 2010 and 2009 (Unaudited)			52
Statement of Cash Flows for each of the Six Month Periods Ended December 31, 2010 and 2009 (Unaudited)			53
Notes to the Interim Financial Statements (Unaudited)			54

REPORT OF INDEPENDENT AUDITORS

We have audited the accompanying consolidated statement of financial position of The MAC Services Group Limited as of June 30, 2010, and the related statements of comprehensive income, changes in equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As discussed in Note 2 to the consolidated financial statements, the Company has not presented prior period comparatives because such comparatives are not required by Rule 3-05 of the United States Securities and Exchange Commission Regulation S-X. Disclosure of comparatives is required by International Financial Reporting Standards as issued by the International Accounting Standards Board.

In our opinion, except for the omission of comparative financial information as discussed in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of The MAC Services Group Limited at June 30, 2010, and the consolidated results of its operations and its cash flows for the year then ended in conformity with Australian Accounting Standards (including the Australian Accounting Interpretations) and with International Financial Reporting Standards as issued by the International Accounting Standards Board.

/s/ ERNST & YOUNG

Sydney, Australia
March 17, 2011

The MAC Services Group Limited

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2010

						Consolidated
						2010
		Note				A$000
ASSETS
CURRENT ASSETS
Cash and cash equivalents			9				3,389
Trade and other receivables			10				19,171
Inventories			11				773
TOTAL CURRENT ASSETS							23,333
NON-CURRENT ASSETS
Receivables							1,143
Property, plant and equipment							185,626
Intangible assets							595
TOTAL NON-CURRENT ASSETS							187,364
TOTAL ASSETS							210,697
CURRENT LIABILITIES
Trade and other payables			14				9,758
Interest bearing loans and borrowings			15				609
Income tax payable			6d				1,619
Provisions			16				1,474
TOTAL CURRENT LIABILITIES							13,460
NON-CURRENT LIABILITIES
Interest bearing loans and borrowings			15				41,000
Deferred tax liability			6e				3,368
Provisions			16				118
Derivative financial instruments			17				573
TOTAL NON-CURRENT LIABILITIES							45,059
TOTAL LIABILITIES							58,519
NET ASSETS							152,178
EQUITY
Contributed equity			18				110,448
Retained earnings							41,547
Reserves			19				183
TOTAL EQUITY							152,178

The accompanying notes form part of these financial statements

The MAC Services Group Limited

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2010

						Consolidated
						2010
		Note				A$000
Rendering of services							82,323
Sale of goods							30,287
Rental revenue							437
Other revenue			4				441
Total revenue							113,488
Changes in inventories of finished goods and work in progress							(91	)
Raw materials and consumables used							(23,655	)
Depreciation and amortisation expenses			5b				(14,368	)
Consultants and advisors							(1,365	)
Employee benefits expense			5c				(24,289	)
Freight and travel expenses							(1,023	)
Rent and occupancy costs							(2,214	)
Repairs and maintenance expense							(2,019	)
Other expenses							(1,877	)
Finance costs			5d				(3,737	)
Profit before income tax							38,850
Income tax expense			6a				(11,333	)
Profit after income tax							27,517
Other comprehensive income
Unrealised gain from cash flow hedges, net of tax							424
Total comprehensive income for the period							27,941
Earnings per share for profit attributable to ordinary equity holders of the parent
Basic earnings per share (cents per share)			8				16.67
Diluted earnings per share (cents per share)			8				16.63

The MAC Services Group Limited

STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2010

		Contributed
		equity				Retained Earnings				Option Reserve				Hedge Reserve				Total
		A$000				A$000				A$000				A$000				A$000
CONSOLIDATED
Balance at 1 July 2009			107,743				28,490				339				(825	)			135,747
Profit for the year			—				27,517				—				—				27,517
Other comprehensive income			—				—				—				424				424
Total comprehensive income for the period			—				27,517				—				424				27,941
Transactions with owners in their capacity as owners
Issue of ordinary shares			2,705				—				—				—				2,705
Equity settled share based payments			—				—				245				—				245
Dividends			—				(14,460	)			—				—				(14,460	)
Total transactions with owners			2,705				(14,460	)			245				—				(11,510	)
Balance at 30 June 2010			110,448				41,547				584				(401	)			152,178

The accompanying notes form part of these financial statements.

The MAC Services Group Limited

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2010

						Consolidated
						2010
		Note				A$000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers							125,292
Payments to suppliers and employees							(74,189	)
Interest received							197
Finance costs							(3,737	)
Income tax paid							(8,656	)
Net cash provided by operating activities			20a				38,907
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for property, plant and equipment							(15,872	)
Proceeds from the sale of property, plant and equipment							232
Net cash used in investing activities							(15,640	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of shares							2,705
Proceeds from borrowings							10,000
Repayment of borrowings							(20,130	)
Proceeds from the repayment of share scheme loans							345
Dividends paid							(14,331	)
Net cash used in by financing activities							(21,411	)
Net increase in cash held							1,856
Cash at beginning of year							1,533
Cash at end of year			9				3,389
The accompanying notes form part of these financial statements.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 1: CORPORATE INFORMATION

This financial report of The MAC Services Group Limited (the “Company”) for the year ended 30 June 2010 represents an extract of the previously released annual report authorised for issue on 24 August 2010. This financial report has been authorised for issue in accordance with a resolution of directors on 17 March 2011. All amounts in this report are expressed in Australian dollars.

The MAC Services Group Limited is a company limited by shares incorporated in Australia. The nature of the operations and principal activities of The MAC Services Group Limited and its subsidiaries (together referred to as the “Group”) was the supply of accommodation services to the mining, construction and resource industries.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a)		Basis of preparation
		The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis, except for derivative financial instruments, which have been measured at fair value.
		The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars (A$000) unless otherwise stated.
		The financial report complies with Australian Accounting Standards and International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.
		The consolidated financial statements for the year ended June 30, 2010 have been prepared in accordance with IFRS as issued by IASB, except that these consolidated financial statements do not include comparative figures for the prior year as required by AASB 101 Presentation of Financial Statements. The purpose of these consolidated financial statements is to meet the reporting requirements of Rule 3-05 of Regulation S-X.
b)		New accounting Standards and Interpretations
		The Group has adopted the following new and amended Australian Accounting Standards and AASB interpretations as of 1 July 2009:

	i)		AASB 7 Financial Instruments: Disclosures effective 1 July 2009
			The amended Standard requires additional disclosures about fair value measurement. Fair value measurements related to all financial instruments recognised and measured at fair value are to be disclosed by source of inputs using a three level fair value hierarchy, by class. In addition, a reconciliation between the beginning and ending balance for level three fair value measurements is now required, as well as significant transfers between levels in the fair value hierarchy. The change only impacts presentation and disclosure aspects.
	ii)		AASB 8 Operating Segments effective 1 July 2009
			The Group has applied AASB 8 Operating Segments from 1 July 2009. The Group determines and presents operating segments based on the information that is provided internally to the Board of Directors, who are the Group’s chief operating decision makers. Comparative segment information has been re-presented in conformity with the transitional requirements of AASB 8: Segment Reporting. The change only impacts presentation and disclosure aspects.
	iii)		AASB 101 Presentation of Financial Statements (revised 2007) effective 1 July 2009
			The revised Standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details of transactions with owners, with non-owner changes in equity presented in a reconciliation of each component of equity and included in the new statement of comprehensive income. The statement of comprehensive income presents all items of recognised income and expense. The change only impacts presentation and disclosure aspects.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

b)

New accounting Standards and Interpretations (continued)

	iv)		AASB 123 Borrowing Costs
			The revised AASB 123 requires capitalisation of borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset. This is in line with the Group’s previous policy. The Group capitalised A$272,000 of borrowing costs in the current year.
	v)		AASB 3 Business Combinations (2008) and amended AASB 127 Consolidated and Separate Financial Statements (2008) effective 1 July 2009
			The Group has adopted revised AASB 3 Business Combinations (2008) and amended AASB 127 Consolidated and Separate Financial Statements (2008) for business combinations occurring in the financial year starting 1 July 2009. All business combinations occurring on or after 1 July 2009 are accounted for by applying the acquisition method. The change in accounting policy is applied prospectively and had no material impact on earnings.

Accounting Standards and Interpretations issued but not yet effective

		Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective and have not been adopted by the Group for the annual reporting period ending 30 June 2010 are outlined below:
		AASB 2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project
		The Improvements to IFRS project is an annual process that the IASB has adopted to deal with non-urgent but necessary amendments to IFRS. The amendments result in various accounting changes and terminology or editorial amendments. The amendments become effective for the Group’s 30 June 2011 financial statements. The Group has not yet determined the potential impact of the amendments on the Group’s financial report.
		AASB 2009-8 Amendments to Australian Accounting Standards — Group Cash-settled Share-based Payment Transactions
		The amendment clarifies that if an entity receives goods or services that are cash settled by shareholders not within the group, they are outside the scope of IFRS 2. The amendments become effective for the Group’s 30 June 2011 financial statements. The consolidated entity has not yet determined the potential impact of the amendments on the Group’s financial report.
		AASB 2009-10 Amendments to Australian Accounting Standards — Classification of Rights Issues [AASB132]
		The amendment will provide relief to entities that issue rights (fixed in a currency other than their functional currency), from treating the rights as derivatives with fair value changes recorded in profit or loss. The amendments become effective for the Group’s 30 June 2011 financial statements. The Group has not yet determined the potential impact of the amendments on the Group’s financial report.
		AASB Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments
		IFRIC 19 clarifies that equity instruments issued to a creditor to extinguish a financial liability are consideration paid in accordance with paragraph 41 of IAS 39 Financial Instruments; Recognition and Measurement. The equity instruments issued are measured at their fair value, unless this cannot be reliably measured, in which case they are measured at the fair value of the liability extinguished. Any gain or loss is recognised immediately in profit or loss. The amendments become effective for the Group’s 30 June 2011 financial statements. The Group has not yet determined the potential impact of the amendments on the Group’s financial report.
		AASB 9 Financial Instruments
		Phase 1 of IFRS 9 will have a significant impact on the classification and measurement of financial assets. The amendments become effective for the Group’s 30 June 2014 financial statements. The Group has not yet determined the potential impact of the amendments on the Group’s financial report.
		AASB 124 Related Party Disclosures (Revised)
		The definition of a related party has been clarified to simplify the identification of related party relationships, particularly in relation to significant influence and joint control. The amendments become effective for the Group’s 30 June 2012 financial statements. The Group has not yet determined the potential impact of the amendments on the Group’s financial report.

c)		Basis of consolidation
		The consolidated financial statements comprise the financial statements of The MAC Services Group Limited and its subsidiaries as at and for the period ended 30 June 2010.
		Subsidiaries are all those entities over which the Group has the power to govern the financial and operating policies so as to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether a group controls another entity.
		The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-group transactions have been eliminated in full. Subsidiaries are fully consolidated from the date on which control is obtained by the Group and cease to be consolidated from the date on which control is transferred out of the Group.
		The acquisition of subsidiaries is accounted for using the acquisition method of accounting. The acquisition method of accounting involves recognising at acquisition date, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree. The identifiable assets acquired and the liabilities assumed are measured at their acquisition date fair value.
		The difference between the above items and the fair value of the consideration (including the fair value of any pre-existing investment in the acquiree) is goodwill or a discount on acquisition.
d)		Operating segments
		An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available. This includes start up operations which are yet to earn revenues. Management will also consider other factors in determining operating segments such as the existence of a line manager and the level of segment information presented to the board of directors.
		Operating segments have been identified based on the information provided to the chief operating decision makers — being the board of directors.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

d)

Operating segments (continued)

The Group aggregates two or more operating segments when they have similar economic characteristics, and the segments are similar in each of the following respects:

	i)		Nature of the products and services;
	ii)		Nature of the production processes;
	iii)		Type or class of customer for the products and services;
	iv)		Methods used to distribute the products or provide services and if applicable;
	v)		Nature of the regulatory environment.

		Operating segments that meet the quantitative criteria as prescribed by AASB 8 are reported separately. However, an operating segment that does not meet the quantitative criteria is still reported separately where information about the segment would be useful to users of the financial statements.
		Information about other business activities and operating segments that are below the quantitative criteria are combined and disclosed in a separate category for ‘all other segments’.
e)		Cash and cash equivalents
		Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term deposits that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
		For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. Bank overdrafts are included within interest-bearing loans and borrowings in current liabilities on the statement of financial position.
f)		Trade and other receivables
		Trade receivables, which generally have 30 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for impairment.
		Collectability of trade receivables is reviewed on an ongoing basis at an operating unit level. Individual debts that are known to be uncollectible are written off when identified. An impairment provision is recognised when there is objective evidence that the Group will not be able to collect the receivable. The amount of the impairment loss is the receivable carrying amount compared to the present value of estimated future cash flows, discounted at the original effective interest rate.
g)		Inventories
		Inventories are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Costs are assigned on the basis of weighted average costs.
h)		Derivative financial instruments and hedging
		The Group uses derivative financial instruments to hedge its risks associated with interest rate fluctuations. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value. Derivatives are carried as assets when their fair value is positive and as liabilities when their fair value is negative.
		Derivative assets and liabilities are classified as non-current when the remaining maturity is more than twelve months, or current when the remaining maturity is less than twelve months.
		Any gains or losses arising from changes in the fair value of derivatives, except for those that qualify as cash flow hedges, are taken directly to profit or loss for the year.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

h)		Derivative financial instruments and hedging (continued)
		Hedges that meet the strict criteria for hedge accounting are accounted for as follows:

	i)		Cash flow hedges
			Cash flow hedges are hedges of the Group’s exposure to variability in cash flows that are attributable to a particular risk associated with a recognised asset or liability or to a forecast transaction and that could affect profit or loss. The effective portion of the gain or loss on the hedging instrument is recognised directly in equity, while the ineffective portion is recognised in profit or loss.
			Amounts taken to equity are transferred out of equity and included in the measurement of the hedged transaction when the forecast transaction occurs.
			At each balance date, the Group measures ineffectiveness. Any ineffective portion relating to interest rate hedges is taken to other expenses in the statement of comprehensive income.
			If the forecast transaction is no longer expected to occur, amounts recognised in equity are transferred to the statement of comprehensive income. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked (due to it being ineffective), amounts previously recognised in equity remain in equity until the forecast transaction occurs.

i)		Non-current assets held for sale
		Non-current assets are classified as held for sale and measured at the lower of their carrying amount and fair value less costs to sell if their carrying amount will be recovered principally through a sale transaction instead of use. They are not depreciated or amortised. For an asset to be classified as held for sale, it must be available for immediate sale in its present condition and its sale must be highly probable.
j)		Other financial assets
		Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are categorised as either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired or originated.
		When financial assets are recognised initially, they are measured at fair value, plus, in the case of assets not at fair value through profit or loss, directly attributable transaction costs.
		Recognition and derecognition
		All purchases and sales of financial assets are recognised on the date that the Group commits to purchase the asset (trade date). Financial assets are derecognised when the right to receive cash flows from the financial assets has expired or when the entity transfers substantially all the risks and rewards of the financial assets. If the entity neither retains nor transfers substantially all of the risks and rewards, it derecognises the asset if it has transferred control of the assets.
		Subsequent measurement

	i)		Financial assets at fair value through profit or loss
			Financial assets classified as held for trading are included in the category “financial assets at fair value through profit or loss”. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term with the intention of making a profit. Derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on financial assets held for trading are recognised in profit or loss and the related assets are classified as current assets in the statement of financial position.
	ii)		Held-to-maturity investments
			Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Group’s intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

j)		Other financial assets (continued)
		Subsequent measurement (continued)

	iii)		Loans and receivables
			Loans and receivables including loan notes and loans to key management personnel are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired. These are included in current assets, except for those with maturities greater than twelve months after balance date, which are classified as non-current.
	iv)		Available-for-sale financial assets
			Available-for-sale financial assets are those non-derivative financial assets, principally equity securities, which are designated as available-for-sale or are not classified as any of the three preceding categories. After initial recognition available-for sale financial assets are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in profit or loss.

k)		Property, plant and equipment
		Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed or variable overheads.
		When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.
		Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income in profit or loss.
		Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the profit and loss during the financial period in which they are incurred.
		Depreciation
		Depreciation is calculated on the depreciable amount, which is the cost of the asset, or other amount substituted for cost, less its residual value.
		Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated.
		The estimated useful lives for the current and comparative periods are as follows:

Class of Fixed Asset		Depreciation Rate
Buildings			6.7—30	%
Plant and equipment			7.5—50	%
Leasehold Improvements			20—33	%

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

l)		Leases
		Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to the asset.
		Other leases are operating leases and are not recognised in the Group’s statement of financial position.
m)		Impairment of non-financial assets other than goodwill and indefinite life intangibles
		Non-financial assets other than goodwill and indefinite life intangibles are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
		The Group conducts an annual internal review of asset values, which is used as a source of information to assess for any indicators of impairment. External factors, such as changes in expected future processes, technology and economic conditions, are also monitored to assess for indicators of impairment. If any indication of impairment exists, an estimate of the asset’s recoverable amount is calculated.
		An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows that are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed.
n)		Goodwill and intangibles
		Goodwill
		Goodwill acquired in a business combination is initially measured at cost of the business combination being the excess of the consideration transferred over the fair value of the Group’s net identifiable assets acquired and liabilities assumed. If this consideration transferred is lower than the fair value of the net identifiable assets of the subsidiary acquired, the difference is recognised in profit or loss. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.
		For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes, and is not larger than an operating segment determined in accordance with AASB 8 Operating Segments.
		Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash generating units), to which the goodwill relates.
		At each reporting date, the Group performs its impairment testing using the value in use methodology. When the recoverable amount of the cash-generating unit (or group of cash-generating units) is less than the carrying amount, an impairment loss is recognised. When goodwill forms part of a cash-generating unit (group of cash-generating units) and an operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this manner is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained.
		Impairment losses recognised for goodwill are not subsequently reversed.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

n)		Goodwill and intangibles (continued)
		Intangibles
		Intangible assets acquired separately or in a business combination are initially measured at cost. The cost of an intangible asset acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is recognised in profit or loss in the year in which the expenditure is incurred.
		The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortised over their useful life and tested for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for prospectively by changing the amortisation period or method, as appropriate, which is a change in accounting estimate. The amortisation expense on intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the function of the intangible asset.
		Intangible assets with indefinite useful lives are tested for impairment annually either individually or at the cash-generating unit level consistent with the methodology outlined for goodwill above. Such intangibles are not amortised. The useful life of an intangible asset with an indefinite life is reviewed each reporting period to determine whether indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is accounted for as a change in an accounting estimate and is thus accounted for on a prospective basis.
o)		Trade and other payables
		Trade and other payables are carried at amortised cost and due to their short-term nature they are not discounted. They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.
p)		Interest bearing loans and borrowings
		All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying amount of the loans and borrowings.
		Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
		Borrowing costs
		Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

q)		Provisions and employee benefits
		Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
		Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision resulting from the passage of time is recognised in finance costs.
		Employee leave benefits

	i)		Wages, salaries and annual leave
			Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled within twelve months of the reporting date are recognised in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
	ii)		Long service leave
			The liability for long service leave is recognised and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.

r)		Share-based payment transactions
		The grant date fair value of share-based payment awards granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that do not meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.
		The fair value of the amount payable to employees in respect of share appreciation rights, which are settled in cash, is recognised as an expense, with a corresponding increase in liabilities, over the period that the employees unconditionally become entitled to the payment. The liability is remeasured at each reporting date and at settlement date. Any changes in the fair value of the liability are recognised as personnel expense in profit or loss.
s)		Contributed equity
		Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

t)		Revenue recognition
		Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

	i)		Rendering of services
			Revenue from the provision of services is recognised when the services are provided or when entitlement exists to accrue the revenue.
	ii)		Sale of goods
			Revenue from the sale of goods includes food and beverage and other sundry operating revenue. Revenue is recognised when there has been a transfer of risks and rewards to the customer, no further work or processing is required, the quantity and quality of the goods has been determined, the price is fixed and generally title has passed.
	iii)		Rental revenue
			Rental revenue from investment properties is accounted for on a straight-line basis over the lease term. Contingent rental income is recognised as income in the periods in which it is earned. Lease incentives granted are recognised as an integral part of the total rental income.
	iv)		Interest revenue
			Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

u)		Income tax
		Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.
		Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
		Deferred income tax liabilities are recognised for all taxable temporary differences except when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
		Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

u)		Income tax (continued)
		The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
		Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
		Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
		Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
		Tax consolidation legislation
		The MAC Services Group Limited and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under tax consolidation legislation. Each entity in the consolidated group recognises its own current and deferred tax assets and liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to allocation. Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are immediately transferred to the head entity.
		The consolidated group notified the Australian Tax Office (ATO) that it had formed an income tax consolidated group to apply from 1 July 2006. The tax consolidated group has entered a tax funding arrangement whereby each company in the consolidated group contributes to the income tax payable by the consolidated group in proportion to their contribution to the consolidated group’s taxable income. Differences between the amounts of net tax assets and liabilities derecognised and the net amounts recognised pursuant to the funding arrangement are recognised as either a contribution by, or distribution to the head entity.
v)		Goods and Services Tax (“GST”)
		Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item 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 statement of financial position.
		Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
w)		Earnings per share
		The MAC Services Group Limited presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise share rights granted to employees.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

x)		Significant accounting judgements, estimates and assumptions
		The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources.
		Management has identified the following critical accounting policies for which significant judgements, estimates and assumptions are made. Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods.

	i)		Impairment of non-financial assets other than goodwill and indefinite life intangibles
			The Group assesses impairment of all assets at each reporting date by evaluating conditions specific to the Group and to the particular asset that may lead to impairment. These include product and manufacturing performance, technology, economic and political environments and future product expectations. If an impairment trigger exists the recoverable amount of the asset is determined.
	ii)		Impairment of goodwill and intangibles with indefinite useful lives
			The Group determines whether goodwill and intangibles with indefinite useful lives are impaired at least on an annual basis. This requires an estimation of the recoverable amount of the cash-generating units, using a value in use discounted cash flow methodology, to which the goodwill and intangibles with indefinite useful lives are allocated.
	iii)		Share-based payment transactions
			The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined with the assistance of an external valuer using a Black Scholes model. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses and equity.
			The Group measures the cost of cash-settled share-based payments at fair value at the grant date using the Black-Scholes formula and a Monte-Carlo simulation model, taking into account the terms and conditions upon which the instruments were granted.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 3: OPERATING SEGMENTS

a)		Identification of reportable segments
		The group has identified its operating segments based on the internal reports that are reviewed and used by the board of directors (the chief operating decision makers) in assessing performance and in determining the allocation of resources.
		The operating segments are identified by management based on the manner in which the product is sold, the nature of the service provided and the identity of service line manager. Discrete financial information about each of these operating businesses is reported to the board of directors on at least a monthly basis.
		The reportable segments are based on aggregated operating segments determined by the similarity of the products produced and sold and/or the services provided, as these are the sources of the Group’s major risks and have the most effect on the rates of return.
b)		Types of products and services

	i)		Accommodation Services
			The accommodation business provides accommodation and ancillary services to the mining industry in Australia. Ancillary services primarily consist of the supply of meals to guests of the accommodation business.
	ii)		Other
			Other segment revenue and results relates to the supply of laundry services to our accommodation business and manufacturing services to the mining industry in Australia.

c)		Accounting policies and intersegment transactions
		Intersegment pricing is determined on an arm’s-length basis. Segment result and assets include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Elimination adjustments are made to eliminate intersegment revenues from the total consolidated revenues.
d)		Major customers
		There are two major customers in the Group’s Accommodation Services segment representing approximately A$25,477,000 or 22.4% and A$17,192,000 or 15.1% of the Group’s total revenues.
e)		Customers and assets by area
		The Group’s Accommodation Services and Other segment are managed wholly within Australia. Segment revenue is based on the geographical location of customers, who are wholly within Australia. Segment assets are based on the geographical location of the assets, which are wholly held within Australia.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 3: OPERATING SEGMENTS (CONTINUED)

		ACCOMMODATION								SEGMENT								CONSOLIDATED
		SERVICES				OTHER				TOTAL				ELIMINATIONS				TOTAL
		2010				2010				2010				2010				2010
		A$000				A$000				A$000				A$000				A$000
Revenue
Revenue from rendering of services			79,298				3,025				82,323				—				82,323
Revenue from sale of goods			28,808				1,479				30,287				—				30,287
Other revenue			679				199				878				—				878
External segment revenue			108,785				4,703				113,488				—				113,488
Inter-segment revenue			366				1,025				1,391				(1,391	)			—
Total segment revenue			109,151				5,728				114,879				(1,391	)			113,488
Result
EBITDA			67,502				(2,477	)			65,025				(32	)			64,993
Depreciation			(13,117	)			(973	)			(14,090	)			—				(14,090	)
EBIT			54,385				(3,450	)			50,935				(32	)			50,903
Corporate Overheads																			(8,316	)
Financing costs																			(3,737	)
Profit before income tax																			38,850
Income tax expense																			(11,333	)
Profit after income tax																			27,517
Segment assets			202,549				8,148				210,697				—				210,697
Capital expenditure			14,307				1,565				15,872				—				15,872
Segment liabilities			52,294				6,225				58,519				—				58,519

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 4: OTHER REVENUE

		Consolidated
		2010
		A$000
Interest			197
Other			244
			441

NOTE 5: EXPENSES

a)			Cost of sales			23,746
b)			Depreciation and amortisation included in statement of comprehensive income
			Depreciation			14,325
			Amortisation of leasehold improvements			43
						14,368
c)			Employee benefits expense
			Wages and salaries			23,172
			Share-based payments expense			245
			Other employee benefits expense			872
						24,289
d)			Finance costs
			Interest expense on financial liabilities			3,737
e)			Rental expense on operating leases
			Minimum lease payments			1,178

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 6: INCOME TAX

						Consolidated
						2010
						A$000
	a	)		Income tax expense
				The major components of income tax expense are:
				Current income tax
				Current income tax charge			8,919
				Adjustments in respect of current income tax of previous years			(395	)
				Deferred income tax
				Relating to the origination and reversal of temporary differences			2,809
				Income tax expense reported in the statement of comprehensive income			11,333
	b	)		Amounts charged or credited directly to equity
				Net gain on revaluation of cash flow hedges			182
				Income tax expense reported in equity			182
	c	)		Numerical reconciliation between aggregate tax expense recognised in the statement of comprehensive income and tax expense calculated per the statutory income tax rate
				Total accounting profit before income tax			38,850
				At the Parent Entity’s statutory income tax rate of 30%			11,655
				Adjustments in respect of current income tax expense of previous years			(395	)
				Entertainment			8
				Share based payments			73
				Other			(8	)
				Aggregate income tax expense			11,333

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 6: INCOME TAX (CONTINUED)

						Consolidated
						2010
						A$000
	d	)		Recognised current income tax
				Opening balance			(966	)
				Charged to income			(8,919	)
				Adjustments in respect of current income tax expense of previous income years			(390	)
				Other payments			8,656
				Closing balance			(1,619	)
	e	)		Recognised deferred income tax
				Opening balance			(1,149	)
				Charged to income			(2,809	)
				Adjustments in respect of current income tax expense of previous income years			772
				Charged to equity			(182	)
				Closing balance			(3,368	)
				Deferred income tax relates at balance date relates to the following:
				i) Deferred tax asset
				Provisions and accrued expenses			1,104
				Derivatives			172
				Transaction costs on equity issue			410
				Other			124
							1,810
				ii) Deferred tax liabilities
				Property, plant and equipment			5,178

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 7: DIVIDENDS PAID AND PROPOSED

						Consolidated
						2010
						A$000
	a	)		Recognised amounts
				Declared and paid during the year:
				Final franked dividend for 2009: A$0.0425 per share franked at a rate of 30%			7,001
				Interim franked dividend for 2010 A$0.045 per share franked at a rate of 30%			7,459
							14,460
	b	)		Unrecognised amounts
				Final franked dividend for 2010: A$0.0475 per share franked at a rate of 30%			7,883
				After reporting date, the above dividends were proposed for approval at the Company’s Annual General Meeting. These amounts have not been recognised as a liability as at 30 June 2010 but will be brought to account subsequent to balance date.
	c	)		Franking credit balance
				The amount of franking credits available for the subsequent financial year are:
				i) Franking account balance as at the end of the financial year at 30%			9,821
				ii) Franking credits that will arise from the payment of income tax payable as at the end of the financial year			1,619
							11,440
				The amount of franking credits available for future periods:
				i) Impact on the franking account of dividends proposed or declared before the financial report was authorised for issue but not recognised as a distribution to equity holders during the period			(3,378	)
							8,062

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 8: EARNINGS PER SHARE

						Consolidated
						2010
						A$000
	a	)		Earnings used in calculating earnings per share
				Net profit attributable to ordinary equity holders of the parent			27,517
				Earnings used in the calculation of basic and diluted EPS			27,517
							2010
							‘000
	b	)		Weighted average number of shares
				Weighted average number of ordinary shares for basic earnings per share			165,053
				Effect of dilution:
				Share rights			401
				Weighted average number of ordinary shares adjusted for the effect of dilution			165,454
				Rights granted under the Long Term Incentive Scheme to employees are considered to be potential ordinary shares and have been included in the determination of diluted earnings per share to the extent they are dilutive.
				100,001 options that could potentially dilute basic earnings per share in the future have not been included in the calculation of diluted earnings per share due to being anti-dilutive for the period.

NOTE 9: CASH AND CASH EQUIVALENTS

		Consolidated
		2010
		A$000
Cash at bank and in hand			3,389
Reconciliation to statement of cash flows
For the purposes of the statement of cash flows, cash and cash equivalents comprise the following at 30 June:
Cash and cash equivalents			3,389

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 10: TRADE AND OTHER RECEIVABLES

						Consolidated
						2010
		Note				A$000
CURRENT
Trade receivables							19,204
Allowance for impairment loss			10a	)			(767	)
							18,437
Prepayments							422
Other receivables							311
Related party receivables:
Other related parties							1
							19,171
NON-CURRENT
Other receivables							35
Share scheme loan							1,108
							1,143

a)		Allowance for impairment loss
		Trade receivables are non-interest bearing and are generally on 30 day terms. A provision for impairment loss is recognised when there is objective evidence that an individual trade receivable is impaired. An impairment loss of A$767,000 has been recognised by the Group. These amounts have been included in other expenses in the statement of comprehensive income.

		Consolidated
		2010
		A$000
Movements in the provision for impairment loss were as follows:
As at 1 July			219
Charge for the year			915
Receivables written off			(367	)
As at 30 June			767

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 10: TRADE AND OTHER RECEIVABLES (CONTINUED)

a)		Allowance for impairment loss (continued)
		At 30 June, the ageing analysis of trade receivables is as follows:

		Consolidated
		2010
		Gross				Allowance
		A$000				A$000
Not past due			10,419				60
Past due 0-30 days			4,282				46
Past due 31-60 days			1,418				41
Past due 61-90 days			313				9
Past due +90 days			2,772				611
			19,204				767

		The carrying amount of receivables past due but not considered impaired are A$8,078,000 for the Group. These comprise customers who have a good debt history and are considered recoverable.
b)		Fair value and credit risk
		Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value.
		The maximum exposure to credit risk is the fair value of receivables. Collateral is not held as security, nor is it the Group’s policy to transfer (on-sell) receivables to special purpose entities.

NOTE 11: INVENTORIES

		Consolidated
		2010
		A$000
CURRENT
Consumables			773

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 12: PROPERTY, PLANT AND EQUIPMENT

		Consolidated
		2010
		A$000
Total freehold land at cost			10,540
Buildings at cost			204,845
Less: accumulated depreciation			(37,684	)
Total buildings			167,161
Total land and buildings			177,701
Leasehold improvements
Leasehold improvements at cost			174
Less: accumulated amortisation			(154	)
Total leasehold improvements			20
Plant and equipment
Plant and equipment at cost			16,451
Less: accumulated depreciation			(9,643	)
			6,808
Leased plant and equipment
Capitalised lease assets			1,814
Less: accumulated depreciation			(717	)
			1,097
Total property, plant and equipment			185,626

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 12: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

a)

Reconciliation of carrying amounts at the beginning and end of the period

		Consolidated
										Leasehold
		Freehold								Improve -				Plant and Equipment
		Land				Buildings				ments				Owned				Leased				Total
		A$000				A$000				A$000				A$000				A$000				A$000
At 30 June 2009 net of accumulated depreciation			5,159				169,754				56				6,639				1,382				182,990
Additions			4,135				9,528				7				2,175				27				15,872
Disposals			—				(12	)			—				(83	)			(19	)			(114	)
Depreciation charge for the year			—				(12,109	)			(43	)			(1,923	)			(293	)			(14,368	)
Transfer from assets held for sale			1,246				—				—				—				—				1,246
At 30 June 2010 net of accumulated depreciation			10,540				167,161				20				6,808				1,097				185,626

NOTE 13: INTANGIBLE ASSETS

		Consolidated
		2010
		A$000
Goodwill at cost			554
Licences at cost			41
			595

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 13: INTANGIBLE ASSETS (CONTINUED)

a)

Reconciliation of carrying amounts at the beginning and end of the period

		Consolidated
		Goodwill				Licences
		A$000				A$000
Year ended 30 June 2010
At 1 July 2009 net of accumulated amortisation and impairment			554				48
Additions			—				—
Disposals			—				(7	)
At 30 June 2010 net of accumulated amortisation and impairment			554				41

b)		Impairment tests for goodwill and intangibles with indefinite useful lives
		Goodwill acquired through business combinations and licences have been allocated to and are tested at the level of groups of cash generating units at which goodwill is monitored. The Group has two cash generating units being accommodation services and laundry services.

		2010
		A$000
Accommodation services		82
Laundry services		513
		595

		The recoverable amount of the cash generating units are determined based on a value in use calculation using cash flow projections as at 30 June 2010 based on financial budgets approved by management.
		The pre-tax risk-adjusted discount rate applied to these projections is 14.7%.
		The long-term growth rate used to extrapolate cash flows beyond the budget period is 4.0% for Accommodation services and 2.9% for Laundry services.
		With regard to the assessment of the value in use of each cash generating unit, management believe that no reasonable possible change in any of the above key assumptions would cause the carrying value of the cash generating unit to materially exceed its recoverable amount.

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 14: TRADE AND OTHER PAYABLES

		Consolidated
		2010
		A$000
CURRENT
Trade payables			5,915
Other payables and accrued expenses			3,843
Income received in advance			—
			9,758

Fair value

Due to the short-term nature of these payables, their carrying value is assumed to approximate their fair value.

NOTE 15: INTEREST BEARING LOANS AND BORROWINGS

		Consolidated
		2010
		A$000
CURRENT
Secured liabilities
Lease liability			609
NON-CURRENT
Secured liabilities
Bank loan			40,729
Lease liability			271
			41,000

The MAC Services Group Limited
Notes to the Financial Statements

NOTE 15: INTEREST BEARING LOANS AND BORROWINGS (CONTINUED)

a)		Fair values
		The carrying amounts of the Group’s current and non-current borrowings approximate their fair value.
b)		Assets pledged as security
		The carrying amounts of assets pledged as security for current and non-current interest-bearing liabilities are:

						Consolidated
						2010
		note				A$000
CURRENT
Floating charge
Cash and cash equivalents			9				3,389
Trade and other receivables			10				19,171
Inventories			11				773
First mortgage
Land held for resale							—
Total current assets pledged as security							23,333
NON-CURRENT
First mortgage
Freehold land and buildings			12				177,701
Finance lease
Leased plant and equipment			12				1,097
Floating charge
Receivables			10				1,143
Other property, plant and equipment							6,828
Intangible assets			13				595
Total non-current assets pledged as security							187,364
Total assets pledged as security							210,697