Notes to the Consolidated Financial Statements
for the year ended 31 March 2009
| 36. Accounting Estimates and Judgments |
| 37. Subsequent Events |
| 38. Approval of Financial Statements |
36. Accounting Estimates and Judgments
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses.
Management has discussed with the Audit Committee the development, selection and disclosure of the Group’s critical accounting policies and estimates and the application of these policies and estimates.
Particular areas which are subject to accounting estimates and judgements in these financial statements are areas such as impairment testing, share options valuation and judgemental provisions and accruals. Impairment testing of assets involves estimating the future cash flows from the assets and an appropriate discount rate to determine a recoverable value. The estimation of the cost of share awards requires the use of actuaries and the determination of appropriate assumptions such as discount rates and expected future rates of return. The fair value of share options has been estimated using the binomial lattice model (see note 33 for further details). As neither the Company’s shares nor the shares in subsidiaries are listed, the share prices used as an input to determining the fair value of the options granted during the year and prior year arise from periodic valuations of Company and subsidiary share valuations are performed by external experts engaged by the Directors.
In June 2009, GPRE acquired two ethanol plants located in Nebraska. These plants have 150 million gallons of ethanol production capacity.
In June 2009, Tessera Solar North America signed a 20 year Power Purchase Agreement with CPS Energy to develop a 27MW solar project in Texas, using the SunCatcher power system.
38. Approval of Financial Statements
The Board of Directors approved the consolidated financial statements on 16 July 2009.