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1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial report includes separate financial statements for Ten Network Holdings Limited as an individual entity and the consolidated entity consisting of Ten Network Holdings Limited and its controlled entities.

(a) Basis of Preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group (UIG) Interpretations and the Corporations Act 2001.

Compliance with IFRS

Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the consolidated financial statements and notes of Ten Network Holdings Limited and its controlled entities comply with International Financial Reporting Standards (IFRS).

Historical Cost Convention

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and liabilities (including derivative instruments) at fair value through profit or loss.

Critical Accounting Estimates

The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 3.

(b) Principles of Consolidation

The consolidated financial statements incorporate the assets, liabilities and results of all entities controlled by Ten Network Holdings Limited (“the Company”) as detailed in Note 27 to the financial statements. Ten Network Holdings Limited and its controlled entities together are referred to in this financial report as the consolidated entity. The financial statements of controlled entities are included from the date control commences until the date control ceases.

All intercompany transactions are eliminated in full. Minority interest 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.

Refer to Note 1(j) for the accounting treatment of investments in associates and joint ventures.

(c) Income Tax

The income tax expense or revenue for the year is the tax payable on the current year’s taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary and to unused tax losses.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither account nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

Management have determined that deferred tax assets and deferred tax liabilities associated with indefinite life intangibles such as television licences should be measured based on the tax consequences that would follow from the recovery through ongoing use.

Tax Consolidation Legislation

A controlled entity, The Ten Group Pty Limited, and its wholly-owned Australian controlled entities implemented the tax consolidation legislation as of 1 July 2003.

Ten Network Holdings Limited implemented the tax consolidation legislation as of 1 July 2004.

During February 2008, AMP and Copplemere exchanged their remaining interests in The Ten Group Pty Limited into the equivalent number of new shares in Ten Network Holdings Limited.

Following the above exchange, Ten Network Holdings Limited now holds 100% of the shares in The Ten Group Pty Limited. As a result, Ten Group Pty Limited tax consolidated group joined the existing Ten Network Holdings Limited tax consolidated group. Ten Network Holdings Limited continues to be the head of this tax consolidated group. The impact of Ten Group Pty Limited joining this tax consolidated group is discussed in Note 6.

The head entity, Ten Network Holdings Limited, and the controlled entities in the tax consolidated group account for their own current and deferred tax amounts. These tax amounts are measured under the group allocation method.

In addition to its own current and deferred tax amounts, Ten Network Holdings Limited also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from the controlled entities in the tax consolidated group.

Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the Group. Details about the tax funding agreement are disclosed in Note 6.

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.

(d) Trade Receivables and Revenue Recognition

Revenue is recognised at fair value of the consideration received net of the amount of goods and services tax (GST). The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group's activities as described below.

Revenue from core operating activities consists of advertising and media revenues and is recognised when the advertisement has been broadcast/displayed or the media service performed.

Advertising and media revenues are disclosed after making allowance for commissions paid to advertising agencies.

Other revenue includes bank interest earned.

All trade receivables are initially measured at fair value and subsequently at amortised cost, less provision for doubtful debts. The amount of the provision is recognised in the income statement.

Trade receivables are due for settlement no more than 45 days from date of recognition.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by reducing the carrying amount directly. An allowance account (provision for impairment of trade receivables) is used when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The amount of the impairment allowance is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

The amount of the impairment loss is recognised in the income statement within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in the income statement.

(e) Impairment of Assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The 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 flows (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

(f) Inventories

Television Program Rights

Television programs which are available for broadcast are recognised as an asset and stated at cost. Series programs are written off in full upon initial airing. Features are amortised over their estimated useful lives. Furthermore, the carrying values of television program rights are tested for impairment as set out in Note 1(e).

Television programs at balance date for which the telecast licence period has commenced or will commence in the succeeding year has been classified as a current asset.

Other Inventories

All other inventories are carried at the lower of cost and net realisable value, where 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.

(g) Non-Current Assets Held For Sale (or Disposal Groups) and Discontinued Operations

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. They are 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 rather than continuing use.

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of derecognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.

Non-current assets (including those that are part of a disposal group) classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately on the face of the income statement.

(h) Property, Plant and Equipment

Property, plant and equipment are stated at historical cost. Depreciation or amortisation is provided on property, plant and equipment other than freehold land so as to write off the cost of the assets progressively over their estimated remaining useful lives. The straight line method of calculating depreciation is applied. The cost of the freehold land and buildings is regularly assessed by Directors through impairment testing (Refer to Note 1(e)). Estimates of remaining useful lives are made on a regular basis for all assets. The expected useful lives are as follows:

	2008	2007
Buildings	40 years	40 years
Plant and Equipment	2 to 10 years	2 to 10 years

The cost of leasehold improvements is amortised over the unexpired period of the lease or the estimated useful life of the improvement, whichever is the shorter.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the income statement.

(i) Intangibles

Television Licences

Television licences are stated at cost less accumulated impairment losses. The television licences continue to be subject to Government legislation and regulation by the Australian Communications and Media Authority (“ACMA”). The Directors have no reason to believe that the licences will not be renewed in due course.

No amortisation is provided against these assets as the Directors believe that the television licences do not have a limited useful life. Instead, the Directors regularly assess the carrying value of licences through impairment testing (Note 1(e)) so as to ensure that they are not carried at a value greater than their recoverable amount.

Other Licences

Other licences represent capitalised outdoor site leases. These licences are being amortised on a straight line basis over the term of the site leases (approximately 20 to 40 years).

Goodwill

Goodwill represents the excess of the purchase consideration plus incidental costs over the fair value of the identifiable net assets acquired. Goodwill acquired in business combinations is not amortised. Instead, goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. Each of these cash-generating units represents the consolidated entity's investment in each business segment.

(j) Investments

Associates and Joint Ventures

Associates comprise those investments where the consolidated entity exercises significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights.

Investments in associates are accounted for in the parent entity financial statements using the cost method and in the consolidated financial statements using the equity method of accounting, after initially being recognised at cost. The consolidated entity's investment in associates includes goodwill (net of any accumulated impairment loss) identified on acquisition.

The consolidated entity’s equity accounted share of the associates’ and joint ventures’ net profit or loss is recognised in the consolidated income statement and its share of post-acquisition movements in reserves is recognised in reserves from the date significant influence commences until the date significant influence ceases.

When the consolidated entity’s share of losses in an associate equals or exceeds its interest in the associate, the consolidated entity does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

Unrealised gains and losses on transactions between the consolidated entity and its associates are eliminated to the extent of its interest in the associates.

Other Investments

Other investments are carried in the consolidated financial statements at their fair value.

(k) Business Combinations

The purchase method of accounting is used to account for all business combinations, including business combinations involving entities or businesses under common control, regardless of whether equity instruments or other assets are acquired. Cost is determined as the fair value of the assets given up at the date of acquisition plus costs directly attributable to the acquisition.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the consolidated entity’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the identifiable net assets of the subsidiary acquired, the difference is recognised directly in the income statement, but only after a reassessment of the identification and measurement of the net assets acquired.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of the acquisition. The discount rate used is the rate at which a similar borrowing could be obtained under comparable terms and conditions.

A liability for restructuring costs is recognised as at the date of acquisition of an entity or part thereof when there is a demonstrable commitment by the acquiree to restructure the acquired entity and a reliable estimate of the amount of the liability can be made.

(l) Leases

Operating leases

Operating leases are those leases under which the lessor effectively retains substantially all the risks and benefits incidental to ownership of leased non-current assets.

Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

The present value of future payments for surplus leased space under non-cancellable operating leases is recognised as a liability, net of sub-leasing revenue, in the period in which it is determined that the leased space will be of no future benefit to the company. Each lease payment is allocated between the liability and finance charge.

Lease income from operating leases is recognised in income on a straight-line basis over the lease term.

Finance 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.

Lease liabilities are reduced by repayments of principal. The interest components of the lease payments are expensed. Contingent rentals are expensed as incurred.

(m) Trade and Other Payables

These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial period and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(n) Employee Benefits

Wages and Salaries, Annual Leave and Long Service Leave

Liabilities for wages and salaries, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees' services up to the reporting date and are measured at amounts expected to be paid when the liabilities are settled.

The liability for long service leave is recognised in the provision for employee benefits 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. Consideration is given to expected future wage and salary levels including related on-costs, experience of employee departures and periods of service.

Retirement Benefit Obligations

Contributions to defined contribution funds are recognised as an expense as they become payable.

Equity-Based Compensation Benefits

Ten Executive Option Plan

In previous years, equity-based compensation benefits had been provided to employees via the Ten Executive Option Plan. Information relating to this scheme is set out in Note 33.

No accounting entries are made in relation to the Ten Executive Option Plan until options are exercised, at which time the amounts receivable from employees are recognised in the balance sheet as share capital. The Ten Executive Option Plan is not accounted under AASB 2 Share-based Payment because options were granted before 7 November 2002.

The amount disclosed for emoluments relating to options is the assessed fair value at grant date of options granted to Executives, allocated equally over the period from grant date to vesting date. Fair values at grant date have been independently determined by Mercer Financing and Risk Consulting using the Monte-Carlo option pricing model that takes into account the exercise price, the term of the option, the vesting and performance criteria, the impact of dilution, the non-tradeable nature of the option, the current price and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.

The Ten Executive Option Plan is currently suspended.

Ten Deferred Incentive Plan

The market value of shares purchased for employees for no cash consideration under the Ten Deferred Incentive Plan is recognised as part of employee benefit costs evenly across the total period over which they vest.

Shares purchased, but which have not yet vested to the employee as at reporting date are classified as Treasury Shares and offset the contributed equity of the consolidated entity. Any differences in the timing of the vesting and expensing of shares are recognised within a share-based payment reserve in equity.

(o) Cash and Cash Equivalents

For purposes of the cash flow statement, cash and cash equivalents includes cash management deposits at call net of outstanding deposits. Any bank overdrafts are shown within borrowings in current liabilities on the balance sheet.

(p) Interest Bearing Loans and Borrowings

Interest bearing loans and borrowings are recognised at fair value and subsequently measured at amortised cost.

(q) Borrowing Costs

Borrowing costs are recognised as expenses in the period when incurred.

(r) Provisions

Provisions are recognised when the consolidated entity has a present legal or constructive obligation as a result of past events, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the financial year but not distributed at balance date.

Deferred Settlement Costs

The consolidated entity has provided for payment of additional consideration in relation to the original acquisition of a lease. The timing and amount of payment are subject to the extension of the lease over the site.

Provision has also been made in relation to acquisitions during the period where further consideration is anticipated but dependent on future events.

Make good

A make good provision is recognised for the costs of restoration or removal in relation to property, plant and equipment and site leases where there is a legal or constructive obligation. The provision is initially recorded when a reliable estimate can be determined and discounted to present value. The unwinding of the effect of discounting on the provision is recognised as a finance cost.

Straight-lining

Lease payments are recognised as an expense on a straight-line basis over the lease term for contracts which include fixed annual increases. Cash costs relating to certain contracts will be lower than reported costs in earlier years and higher than reported costs in later years of each contract term. In the earlier years of the lease term, a provision is created which will in effect be unwound over the lease term.

(s) Foreign Currency Translation

Functional and Presentation Currency

Items included in the financial statements of the consolidated entity are measured using the currency of the primary economic environment in which the entity operates. The consolidated financial statements are presented in Australian dollars, which is Ten Network Holdings Limited’s functional and presentation currency.

Transactions and Balances

Foreign currency transactions are translated into the functional currency at the date of the transaction. At balance date amounts payable and receivable are translated at rates of exchange current at that date. All realised and unrealised currency translation gains and losses are brought to account in the income statement.

Consolidated Companies

The result and financial position of the consolidated entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of the balance sheet;

• Income and expenses for each income statement are translated at average exchange rates; and

• All resulting exchange differences are recognised as a separate component of equity.

On consolidation, exchange differences arising from the translation of any investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to shareholders’ equity. When a foreign operation is sold or borrowing repaid, a proportionate share of such exchange differences are recognised in the income statement as part of the gain or the loss on sale.

(t) Earnings Per Share

Basic Earnings per Share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted Earnings per Share

In 2007, diluted earnings per share has been calculated on the basis that the convertible debentures in The Ten Group Pty Limited (a controlled entity) had been converted and the subordinated debentures had been redeemed for the full year. The consolidated entity no longer has any diluted shares on issue.

(u) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.

(v) Derivatives

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The consolidated entity designates certain derivatives as either: (1) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge); or (2) hedges of highly probable forecast transactions (cash flow hedges).

The consolidated entity documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. The consolidated entity also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.

Fair Value Hedge

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Cash Flow Hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in equity in the hedging reserve. The gain or loss relating to the ineffective portion is recognised immediately in the income statement.

Amounts accumulated in equity are recycled in the income statement in the periods when the hedged item will affect profit or loss.

When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement.

(w) Segment Reporting

A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different to those of other business segments. A geographical segment is engaged in providing products or services within a particular environment and is subject to risks and returns that are different from those of segments operating in other economic environments.

(x) Contributed Equity

Ordinary shares are classified as equity.

If the consolidated entity reacquires its own equity instruments, eg under the Ten Deferred Incentive Plan, those instruments are deducted from equity.

(y) Rounding of Amounts

The company is of a kind referred to in Class order 98/100, issued by the Australian Securities and Investments Commission, relating to the “rounding off” of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.

(z) New Accounting Standards and UIG Interpretations

Certain new accounting standards and UIG interpretations have been published that are not mandatory for 31 August 2008 reporting periods. The consolidated entity's assessment of the impact of these new standards and interpretations is set out below.

AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8

AASB 8 and AASB 2007-3 are effective for annual reporting periods commencing on or after 1 January 2009. AASB 8 requires adoption of a 'management approach' to reporting on the financial performance. The information being reported will be based on what the key decision-makers use internally for evaluating segment performance and deciding how to allocate resources to operating segments. Application of the revised standard will likely not have an impact on the consolidated entity's financial statements.

Revised AASB 123 Borrowing Costs and AASB 2007 6 Amendments to Australian Accounting Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12]

The revised AASB 123 is applicable to annual reporting periods commencing on or after 1 January 2009. It has removed the option to expense all borrowing costs and   when adopted   will require the capitalisation of all borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset. There will be no impact on the financial report of the Group, as the Group does already capitalise borrowing costs relating to qualifying assets.

Revised AASB 101 Presentation of Financial Statements and AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101

The revised AASB 101 was issued in September 2007 and is applicable to annual reporting periods beginning on or after 1 January 2009. It requires the presentation of a statement of comprehensive income and makes changes to the statement of recognised income and expense but will not affect any of the amounts recognised in the financial statements. If an entity has made a prior period adjustment or a reclassification of items in the financial statements, it will also need to disclose a third balance sheet, this one being as at the beginning of the comparative period. The consolidated entity intends to apply the revised standard from 1 September 2009.

Revised AASB 3 Business Combinations, AASB 127 Consolidated and Separate Financial Statements and AASB 2008-3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127.

Revised accounting standards for business combinations and consolidated financial statements were issued in March 2008 and are operative for annual reporting periods beginning on or after 1 July 2009, but may applied earlier. The Group has not yet decided when it will apply the revised standards. However, the new rules generally apply only prospectively to transactions that occur after the application date of the standard. Their impact will therefore depend on whether the Group will enter into any business combinations or other transactions that affect the level of ownership held in the controlled entities in the year of initial application. For example, under the new rules:

• all payments (including contingent consideration) to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments subsequently remeasured at fair value through income

• all transaction costs will be expensed

• the Group will need to decide whether to continue calculating goodwill based only on the parent’s share of net assets or whether to recognise goodwill also in relation to the non-controlling (minority) interest, and

• when control is lost, any continuing ownership interest in the entity will be remeasured to fair value and a gain or loss recognised in profit or loss.
  
  2. FINANCIAL RISK MANAGEMENT

The Group's activities expose it to a variety of financial risks; market risk (including currency risk and fair value interest rate risk), credit risk, liquidity risk and cash flow interest rate risk.

The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the consolidated entity. The consolidated entity uses derivative financial instruments such as interest rate swaps and cross currency interest rate swaps to hedge certain risk exposures. Derivatives are exclusively used for hedging purposes, the Group does not acquire or issue derivative financial instruments for trading or speculative purposes.

The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and foreign exchange risks and aging analysis for credit risk.

The Risk Management Policy and Framework is carried out by management under policies which include Treasury approved by the Board of Directors. The Risk Management and Treasury Policies are written documents and covers specific areas, such as mitigating foreign exchange, interest rate, credit and liquidity risks and the use of derivative financial instruments.

(a) Market Risk

(i) Foreign Exchange Risk

Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the entity's functional currency.

The Group operates internationally and has some exposure to foreign exchange risk arising from agreements being denominated in US dollars and from foreign operations, particularly in the US Out-Of-Home business. In the Television segment, the vast majority of international program agreements are denominated in Australian dollars

The Group’s risk management policy (set out in the group's Treasury Policy) is to hedge identified transactional risk on foreign exchange capital expenditure spend within a $10m p.a. Earnings at Risk tolerance level.

The Group’s exposure to foreign currency risk at the reporting date was as follows:

	2008	2007
	USD	USD
	$'000	$'000
Borrowings	125,000	125,000
Cross Currency Interest rate swaps	(125,000)	(125,000)

The carrying amounts of the parent entity's financial assets and liabilities are denominated in Australian dollars.

Consolidated entity sensitivity

Based on the financial instruments held at 31 August 2008 and 31 August 2007, there would have been no impact on the entity’s post-tax profit for the year or equity balances had the Australian dollar weakened / strengthened against any foreign currencies.

The borrowings held in foreign currency were the USD Senior Unsecured Notes. This USD debt has been fully swapped into AUD with a cross currency interest rate swap.

Foreign subsidiaries of the group have all balances denominated in functional currency and are not subject to transaction risk. They therefore are not exposed to foreign currency risk.

(ii) Cash Flow and Fair Value Interest Rate Risk

The Group's main interest rate risk arises from long-term borrowings which are all issued at variable rates and therefore expose the Group to cash flow interest rate risk.

The fixed rate USD Private Placement entered into in March 2003 was fully swapped into variable rate borrowings at inception via a cross currency interest rate swap. The Group has no other fixed rate debt.

The Group manages its cash flow interest rate risk by interest rate swaps. These have the economic effect of converting borrowings from floating rates to fixed rates. Generally, the Group raises long-term borrowings at floating rates and swaps them into fixed rates that are lower than those available if the Group borrowed at fixed rates directly. Under the interest rate swaps, the Group agrees with other parties to exchange, at specified intervals (mainly quarterly), the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional principal amounts.

The Treasury Policy has a framework for managing the core debt portfolio and is based on the spread of the interest rate resets across the yield curve, as measured by the proportion of the total face value of the debt which falls into specified repricing buckets on a rolling basis. The policy allows for latitude in managing interest rate risk with minimum and maximum repricing limits for each time band based on management's assessment of future interest rate movements.

A Treasury Report is prepared on a monthly basis for senior management and presented to a Management Treasury Steering Group and the Board on a quarterly basis.

As at the reporting date, the consolidated entity had the following variable rate borrowings and interest rate swap contracts outstanding:

	31 August 2008		31 August 2007
	Weighted average interest rate	Balance	Weighted average interest rate	Balance
	%	$'000	%	$'000
Borrowings ^	8.2%	635,084	7.3%	605,084
Interest rate swaps *	7.8%	(320,000)	6.5%	(255,000)
		315,084		350,084
^ Made up of:
Bank Loans		275,000		245,000
USD senior unsecured notes #		210,084		210,084
AUD senior unsecured notes		150,000		150,000
		635,084		605,084

^# Represents principal of notes. $64.64m (2007: $62.48m) difference to carrying amount of USD senior unsecured notes is revaluation in accordance with AASB 139.

* Notional principal amounts.

An analysis by maturities is provided in (c) below.

Consolidated entity sensitivity

At 31 August 2008, if interest rates had changed by -/+ 100 basis points from the year end rates with all other variables held constant, post-tax profit for the year would have been $1.85m higher / $1.89m lower (2007 – -/+ 100 bps: $2.28m higher / $2.29m lower), mainly as a result of lower / higher interest expense from borrowings.

Other components of equity would have been $4.88m lower / $4.68m higher (2007: $2.73m lower / $2.62m higher) mainly as a result of an increase / decrease in the fair value of the cash flow hedges of borrowings.

Parent entity sensitivity

The parent entity's main interest rate risk arises from cash and cash equivalents with variable interest rates. The parent entity would not have been materially impacted if interest rates had reasonably changed from the year end rates.

(b) Credit Risk

Credit risk is the risk that a counterparty will not meet it's obligations under a financial instrument or contract, leading to a financial loss. The Group is exposed to credit risk from it's operating activities (primarily from customer receivables) and from it's financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Credit risk related to receivables

Customer credit risk is managed by each business segment subject to a policy and controls related to customer credit risk management.

Credit is extended to customers following either internal or external credit ratings. For internal credit ratings, a written policy exists outlining strict credit assessment criteria and the credit quality will determine the credit limit. Outstanding customer receivables are monitored regularly and any credit concerns are highlighted to senior management. Monthly credit reports are monitored by both senior management and the most current report is also tabled at the Audit Committee meetings.

As at 31 August 2008 the Group had 10 customers totalling $106.5m (2007: 10 customers - $134.4m) that owed the Group more than $5 million each which accounted for 66.9% (2007: 72.1%) of all receivables owing.

Credit risk related to financial instruments

Credit risk from balances with banks and financial institutions are managed by Group Treasury in accordance with the Board approved Treasury Policy.

Counterparty credit ratings and limits are set out in the Treasury Policy with the aim to minimise the concentration of risks and therefore mitigate financial loss through potential counterparty failure.

The Group only transacts with entities that are rated above investment grade.

(c) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Due to the dynamic nature of the underlying businesses, the Group aims to maintain flexibility in funding by keeping committed credit lines available.

Financing arrangements

The consolidated entity had access to the following undrawn borrowing facilities at the reporting date:

	Consolidated		The Company
	2008	2007	2008	2007
	$'000	$'000	$'000	$'000
Floating rate
Expiring within one year (bank overdraft)	5,000	5,000	-	-
Expiring beyond one year (bank loans)	355,000	455,000	-	-
	360,000	460,000	-	-

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time and have any average maturity of 2.7 years (2007 – 1.3 years).

Maturities of financial liabilities

The tables below analyse the Group's and the parent entity's financial liabilities and derivative financial instruments into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cashflows. For interest rate swaps the cash flows have been estimated using forward interest rates applicable at the reporting date. USD cashflows relating to the USD senior unsecured notes and the CCIRS have been translated at the spot rate applicable at reporting date.

Consolidated entity	1 year	Between	Between	Over 5	Total	Carrying
At 31 August 2008	or less	1 and 2	2 and 5	years	contractual	Amount
		Years	years		cash flows	(assets) /
						liabilities
Non-derivatives
Non-interest bearing	217,796	12,948	-	-	230,744	230,744
Variable rate	34,450	31,730	324,025	176,551	566,756	425,000
Fixed rate	7,803	7,803	168,455	-	184,061	145,441
Total non-derivatives	260,049	52,481	492,480	176,551	981,561	801,185
Derivatives
Interest rate swaps (net-settled)	(1,995)	(167)	275	182	(1,705)	(3,356)
Cross Currency interest rate Swaps (gross-settled)
(Inflow)	(7,803)	(7,803)	(168,455)	-	(184,061)	-
Outflow	15,682	14,464	249,872	-	280,018	69,191
Total derivatives	5,884	6,494	81,692	182	94,252	65,835

 

Consolidated entity	1 year	Between	Between	Over 5	Total	Carrying
At 31 August 2007	or less	1 and 2	2 and 5	years	contractual	Amount
		Years	years		cash flows	(assets) /
						liabilities
Non-derivatives
Non-interest bearing	197,614	14,178	-	-	211,792	211,792
Variable rate	270,492	11,688	33,756	187,448	503,384	395,000
Fixed rate	8,217	8,217	24,652	160,954	202,040	147,604
Total non-derivatives	476,323	34,083	58,408	348,402	917,216	754,396
Derivatives
Interest rate swaps (net-settled)	(3,069)	(2,163)	(2,437)	(316)	(7,985)	(5,389)
Cross Currency interest rate Swaps (gross-settled)
(Inflow)	(8,217)	(8,217)	(24,652)	(160,954)	(202,040)	-
Outflow	17,893	15,682	43,473	220,863	297,911	68,029
Total derivatives	6,607	5,302	16,384	59,593	87,886	62,640

 

The Company	No	1 year	Between	Between	Over 5	Total	Carrying
At 31 August 2008	maturity^	or less	1 and 2	2 and 5	years	contractual	Amount
			Years	years		cash flows	(assets) /
							liabilities
Non-derivatives
Non-interest bearing	316	148	-	-	-	464	464

The Company	No	1 year	Between	Between	Over 5	Total	Carrying
At 31 August 2007	maturity^	or less	1 and 2	2 and 5	years	contractual	Amount
			years	years		cash flows	(assets) /
							liabilities
Non-derivatives
Non-interest bearing	2,389	187	-	-	-	2,576	2,576

^{^} The amount in the “no maturity” time bucket represents an intercompany loan for which there is no contractual agreement on repayment terms. It is not management’s intention to recall the loan within 12 months of the reporting date, therefore it is classified as non-current in the balance sheet.

(d) Fair Value of Financial Instruments

The fair value of financial instruments (for example, over-the-counter derivatives) are determined using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Techniques, such as estimated discounted cash flows, are used to determine fair value for financial instruments. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows.

The carrying value of the Group’s financial instruments is their fair value.

3 CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

The consolidated entity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Estimated Impairment of Intangible Assets With Indefinite Lives and Goodwill

The consolidated entity tests annually or when circumstances indicate impairment, whether indefinite lived intangibles and goodwill has suffered any impairment, in accordance with the accounting policy stated in Note 1(e). The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of assumptions. Refer to Note 16 for details of these assumptions and the potential impact of changes to the assumptions.

			Consolidated						The Company
	Note		2008 $’000			2007 $’000			2008 $’000		2007 $’000
4 REVENUE
Revenue from continuing operations
Sales revenue			1,003,089			989,412			-		-
Other revenue
Dividends - Controlled entity	34		-			-			130,421		52,574
Interest			3,033			2,418			327		260
			1,006,122			991,830			130,748		52,834
Other income
Net gain on sale of investment – Big Tree Outdoor Sdn Bhd (Equity accounted associate) A			-			8,924			-		-
Net gain on disposal of property, plant and equipment			4			4,097			-		-
			4			13,021			-		-
Total revenue			1,006,126			1,004,851			130,748		52,834
A 2007: Proceeds from the sale of shares in Big Tree Outdoor Sdn Bhd were $15.5m. The carrying value of the investment at disposal was $4.2m, the carrying value of licences was $2.7m, and the foreign exchange effect was $0.3m.
5 EXPENSES
(a) Profit before income tax includes the following specific items:
Net loss on sale of property, plant and equipment			1			-			-		-
Net foreign exchange losses			162			53			-		-
Net bad and doubtful debts, including movements in provision for doubtful debts			763			103			-		-
Employee benefits expense			151,509			141,513			-		-
Operating lease rentals
Minimum lease payments			81,514			78,711			-		-
Contingent rental expense			32,503			26,970			-		-
Sub-leases			186			174
Finance costs
Subordinated debentures			-			50,883			-		-
Other			51,949			45,116			-		-
			51,949			95,999			-		-
Depreciation and amortisation of property, plant and equipment:
Plant and equipment				31,239			24,864		-		-
Leasehold improvements				719			534		-		-
Buildings				235			223		-		-
Leased plant and equipment				-			145		-		-
Amortisation
Licences				575			647		-		-
Other intangibles				2,295			2,877		-		-
				2,870			3,524		-		-

		Consolidated			The Company
	Note	2008 $’000		2007 $’000	2008 $’000	2007 $’000
6 INCOME TAX
(a) Income tax expense
Current income tax expense/(revenue)		46,816		53,446	(320)	-
Deferred income tax (revenue)/expense		(190,364)		(6,052)	11	19
Prior year adjustments		590		(242)	-	-
		(142,958)		47,152	(309)	19
Attributable to:
Profit from continuing operations		45,108		47,152	(309)	19
Tax Consolidations (Note 6f)		(188,066)		-	-	-
		(142,958)		47,152	(309)	19
Deferred income tax expense/(revenue) included in income tax expense comprises:
(Increase)/decrease in deferred tax asset		(2,514)		62	11	19
(Decrease) in deferred tax liabilities		(187,850)		(6,114)	-	-
		(190,364)		(6,052)	11	19
(b) Reconciliation of income tax to prima facie tax payable
Profit before tax		131,047		125,675	129,633	51,950
Tax at the Australian tax rate 30%		39,314		37,702	38,890	15,585
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Debenture interest		-		15,265	-	-
Non deductible depreciation and amortisation		557		591	-	-
Sale of Property Plant and Equipment		1,084		(1,200)	-	-
Sale of equity accounted investment		-		(2,450)	-	-
Non-assessable income		-		(234)	-	-
Realised foreign exchange losses		(829)		(1,846)	-	-
Other		195		(434)	(135)	-
Tax Consolidations		(188,066)		-	-	-
Write off of deferred tax asset for previously recognised tax losses		2,088		-	-	-
Unrecognised deferred tax assets arising from tax losses and timing differences		2,109		-	-	-
Prior year adjustments		590		(242)	-	-
Dividend rebate				-	(39,064)	(15,566)
Income tax expense/(revenue)		(142,958)		47,152	(309)	19
		Consolidated			The Company
	Note	2008 $’000		2007 $’000	2008 $’000	2007 $’000
6 INCOME TAX (continued)
(c) Current tax (assets) / liabilities
(Income tax receivable) / Provision for income tax		(20,178)		(5,545)	3,134	-
(d) Deferred tax assets
The balance comprises temporary differences attributable to:
Trade debtors		188		39	-	-
Prepaid expenses and deposits		(142)		(601)	-	-
Property, plant and equipment		(18)		(75)	-	-
Trade creditors and accruals		555		639	45	56
Provisions		3,532		2,782	-	-
Tax losses		7,211		6,028
Deferred tax assets		11,326		8,812	45	56

(e) Deferred tax liabilities
The balance comprises temporary differences attributable to:
Provision for doubtful debts and advertising credits		(474)	(398)	-	-
Television licences		3,247	189,671	-	-
Program rights		46,067	45,100	-	-
Property, plant and equipment		(239)	2,091	-	-
Capitalised costs		(578)	(295)	-	-
Trade creditors and accruals		(2,491)	(3,680)	-	-
Provisions		(6,507)	(5,614)	-	-
Hedge reserve		(280)	(15)	-	-
Deferred tax liability		38,745	226,860	-	-
All movements in deferred tax assets and liabilities are taken to the income statement, except for the movement in hedge reserve, which is taken directly to equity.
The potential deferred tax asset not brought to account is:
Tax losses		3,609	-	-	-
The benefit for tax losses will only be obtained if: The consolidated entity derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised; the consolidated entity continues to comply with the conditions for deductibility imposed by tax legislation; and no changes in tax legislation adversely affect the consolidated entity in realising the benefit from the deductions for the losses.

(f)Tax consolidation legislation
A controlled entity, The Ten Group Pty Limited, and its wholly-owned Australian controlled entities implemented the tax consolidation legislation as of 1 July 2003. Ten Network Holdings Limited implemented the tax consolidation legislation as of 1 July 2004. During February 2008, AMP and Copplemere exchanged their remaining interests in The Ten Group Pty Limited into the equivalent number of new shares in Ten Network Holdings Limited. Following the above exchange, Ten Network Holdings Limited now holds 100% of the shares in The Ten Group Pty Limited. As a result, Ten Group Pty Limited tax consolidated group joined the existing Ten Network Holdings Limited tax consolidated group. Ten Network Holdings Limited continues to be the head of this tax consolidated group. As a result of the Ten Group Pty Limited tax consolidated group joining the Ten Network Holdings Limited tax consolidated group, the tax bases of the group were reassessed – broadly with reference to proportional market values. As a result, an income tax benefit of $188.1m was booked to the income statement. Of this benefit, $186.4m relates to a reduction to deferred tax liabilities arising from an uplift of $621.4m in the tax cost base of television licences. The remaining benefit of $1.6m relates to uplifts in the tax cost bases of other depreciable assets, particularly fixed assets such as plant and equipment. The accounting policy in relation to tax consolidation legislation is set out in Note 1(c). Following Ten Group Pty Limited joining the Ten Network Holdings Limited tax consolidated group, the entities in the tax consolidated group entered into a tax sharing agreement which, in the opinion of the directors, limits the joint and several liability of the wholly-owned entities in the case of a default by the head entity, Ten Network Holdings Limited. The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate Ten Network Holdings Limited for any current tax payable assumed and are compensated by Ten Network Holdings Limited for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Ten Network Holding Limited under the tax consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entities' financial statements.

		Consolidated		The Company
	Note	2008 $’000	2007 $’000	2008 $’000	2007 $’000
7 CASH AND CASH EQUIVALENTS
Cash on hand		88	88	-	-
Cash at bank		30,850	20,099	623	1,380
		30,938	20,187	623	1,380
At 31 August 2008, cash at bank is bearing a floating interest rate of 7.56% (2007: 6.35%). Cash on hand is non-interest bearing. The Group's and the parent entity's exposure to interest rate risk is discussed in Note 2.

8 RECEIVABLES (CURRENT)
Trade debtors		161,570	188,129	-	-
Provision for impairment of receivables		(1,474)	(1,131)	-	-
Provisions for advertising credits		(1,128)	(879)	-	-
		158,968	186,119	-	-
Loans and advances
Associated companies	34	2	2	-	-
Other		85	106	-	-
		87	108	-	-
		159,055	186,227	-	-
All receivables are non-interest bearing.

1. Impaired trade receivables

As at 31 August 2008 current trade receivables of the consolidated entity with a nominal value of $930k (2007: $682k) were impaired. The amount of the provision was $1,474k (2007: $1,131k). The individually impaired receivables are in the Out of Home business segment and relate to a number of individual debtors for which these amounts are considered not recoverable.

There were no trade receivables for the Company in 2008 or 2007.

The ageing of these receivables is as follows:

	Consolidated		The Company
	2008	2007	2008	2007
	$'000	$'000	$'000	$'000
1 to 30 days	4	-	-	-
31 to 60 days	100	-	-	-
61 to 90 days	116	-	-	-
Over 90 days	710	682	-	-
	930	682	-	-

Movements in the provision for impairment of receivables are as follows:

	Consolidated		The Company
	2008	2007	2008	2007
	$'000	$'000	$'000	$'000
At 1 September	1,131	4,149	-	-
Provision for impairment recognised during the year	763	337	-	-
Receivables written off during the year as uncollectible	(325)	(107)	-	-
Unused amount reversed	(95)	(3,248)	-	-
	1,474	1,131	-	-

The creation and release of the provision for impaired receivables has been included in “other expenses” in the income statement. Amounts charged to the allowance account are generally written off when there is no expectation of recovering additional cash.

1. Past due but not impaired

As of 31 August 2008, trade receivables in the consolidated entity of $15.5m (2007: $9.9m) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default.

The ageing of these trade receivables by business segment are as follows:

	Consolidated - 2008
	TV	EYE	TOTAL
	$'000	$'000	$'000
Up to 30 days overdue	2,854	1,323	4,177
31 to 60 days overdue	860	2,641	3,501
61 to 90 days overdue	568	926	1,494
Over 90 days overdue	4,495	1,789	6,284
	8,777	6,679	15,456

	Consolidated – 2007
	TV	EYE	TOTAL
	$'000	$'000	$'000
Up to 30 days overdue	761	2,726	3,487
31 to 60 days overdue	911	783	1,694
61 to 90 days overdue	34	1,050	1,084
Over 90 days overdue	1,989	1,638	3,627
	3,695	6,197	9,892

The consolidated entity does not hold any collateral in relation to these receivables.

1. Other loans and advances

Other loans and advances do not contain impaired assets and are not past due.

1. Foreign exchange and interest rate risk

Information about the Group and the company's exposure to foreign currency risk and interest rate risk in relation to receivables is provided in Note 2.

1. Credit risk

The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables mentioned above and is not considered to be material.

9 PROGRAM RIGHTS & INVENTORIES (CURRENT)
Program rights		144,275	133,294	-	-
		144,275	133,294	-	-
10 ASSETS OF DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE / LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS OF A DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE
As at 31 August 2007, Eye Corp Pty Limited, a controlled entity, had classified the balances of their Indonesian operations and Adval Australia Pty Limited (a controlled entity) as held for sale. As at 31 August 2008, neither of these are considered as held for sale.

		Consolidated		The Company
	Note	2008 $’000	2007 $’000	2008 $’000	2007 $’000

(a) Fair value of assets and liabilities relating to the Indonesian operations
Cash and cash equivalents		-	306	-	-
Trade and other receivables		-	200	-	-
Plant and equipment		-	122	-	-
Other assets		-	960	-	-
Total assets		-	1,588	-	-
Trade and other payables		-	984	-	-
Other liabilities		-	1,410	-	-
Provisions		-	111	-	-
Total liabilities		-	2,505	-	-
Net liabilities		-	(917)	-	-

(b) Fair value of assets and liabilities relating to Adval Australia Pty Limited
Cash and cash equivalents		-	3,010	-	-
Trade and other receivables		-	2,871	-	-
Inventories		-	509	-	-
Plant and equipment		-	2,190	-	-
Deferred tax assets		-	278	-	-
Total assets		-	8,858	-	-
Trade and other payables		-	2,686	-	-
Provisions		-	687	-	-
Total liabilities		-	3,373	-	-
Net assets		-	5,485	-	-
Total assets of disposal group classified as held for sale		-	10,446	-	-
Total liabilities directly associated with assets of a disposal group classified as held for sale		-	5,878	-	-

11 OTHER ASSETS (CURRENT)
Prepayments		9,285	11,518	42	52
Capitalised costs		149	344	-	-
Sundry debtors		76	453	-	-
		9,510	12,315	42	52

		Consolidated		The Company
	Note	2008 $’000	2007 $’000	2008 $’000	2007 $’000

12 RECEIVABLES (NON-CURRENT)
Loans and advances
Associated companies	34	248	249	3,454	-
		248	249	3,454	-
All receivables are non-interest bearing.

1. Impaired receivables and receivables past due

None of the non-current receivables are impaired or past due but not impaired.

1. Risk exposure

Information about the Group's and the Company's exposure to credit risk, foreign exchange and interest rate risk is provided in Note 2.

13 OTHER FINANCIAL ASSETS
Investments in unlisted securities
Controlled entities	34	-		-	2,228,568	2,215,484
Associated companies	34	2,119		2,119	-	-
Other		3,393		1,063	-	-
		5,512		3,182	2,228,568	2,215,484
14 PROGRAM RIGHTS & INVENTORIES (NON-CURRENT)
Program rights		798		2,693	-	-
15 PROPERTY, PLANT AND EQUIPMENT
Freehold land
At cost		2,740		2,740	-	-
Freehold buildings
At cost		7,578		7,195	-	-
Accumulated depreciation		(2,317)		(2,081)	-	-
		5,261		5,114	-	-
Leasehold improvements
At cost		13,488		11,788	-	-
Accumulated depreciation		(2,770)		(2,101)	-	-
		10,718		9,687	-	-
Plant and equipment
At cost		230,695		218,930	-	-
Accumulated depreciation		(126,186)		(116,814)	-	-
		104,509		102,116	-	-
Total property, plant and equipment
Net book value		123,228		119,657	-	-

			Consolidated				The Company
	Note		2008 $’000		2007 $’000		2008 $’000		2007 $’000
15 PROPERTY, PLANT AND EQUIPMENT (continued)
Reconciliations
Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below:
Freehold land
Balance at beginning of year				2,740		2,738		-	-
Additions				-		2		-	-
Balance at end of year				2,740		2,740		-	-
Freehold buildings
Balance at beginning of year				5,114		5,292		-	-
Additions				382		10		-	-
Transfer from other assets				-		35		-	-
Depreciation				(235)		(223)		-	-
Balance at end of year				5,261		5,114		-	-

Leasehold improvements
Balance at beginning of year					9,687		6,199	-	-
Additions					1,811		4,059	-	-
Disposals					-		(22)	-	-
Foreign currency exchange differences					(65)		(11)	-	-
Depreciation					(719)		(534)	-	-
Reclassified from/(to) as held for sale					4		(4)	-	-
Balance at end of year					10,718		9,687	-	-
Plant and equipment
Balance at beginning of year					102,116		73,555	-	-
Additions					33,193		53,806	-	-
Acquisitions through entity acquired					-		2,278	-	-
Disposals					(151)		(409)	-	-
Transfer from other assets					-		643	-	-
Foreign currency exchange differences					(1,718)		(585)	-	-
Depreciation					(31,239)		(24,864)	-	-
Reclassified from/(to) as held for sale					2,308		(2,308)	-	-
Balance at end of year					104,509		102,116	-	-
Leased plant and equipment
Balance at beginning of year					-		823	-	-
Additions					-		-	-	-
Disposals					-		-	-	-
Transfer to other assets					-		(678)	-	-
Depreciation					-		(145)	-	-
Balance at end of year					-		-	-	-

			Consolidated				The Company
		Note	2008 $’000		2007 $’000		2008 $’000		2007 $’000
16 INTANGIBLE ASSETS
Television licences – cost				1,077,822		1,077,822		-	-
Other licences – cost				23,000		23,838		-	-
Accumulated amortisation				(4,430)		(4,693)		-	-
				18,570		19,145		-	-
Opening net book amount				19,145		22,452		-	-
Amortisation				(575)		(647)		-	-
Other – sale of shares in Big Tree Outdoor Sdn Bhd.				-		(2,664)		-	-
Foreign exchange				-		4		-	-
Closing net book amount				18,570		19,145		-	-
Goodwill – cost				88,538		90,390		-	-
Opening net book amount				90,390		70,781		-	-
Additions – current year acquisitions				3		20,208		-	-
Prior year acquisitions				(977)B		723A		-	-
Foreign exchange				(878)		(1,322)		-	-
Closing net book amount				88,538		90,390		-	-
Other identifiable intangibles – cost				25,483		26,736		-	-
Accumulated amortisation				(5,787)		(3,491)		-	-
				19,696		23,245
Opening net book amount				23,245		7,300		-	-
Additions – current year acquisitions				1		19,197		-	-
Prior year acquisitions				(419)B		194A		-	-
Amortisation				(2,295)		(2,877)		-	-
Foreign exchange				(836)		(569)		-	-
Closing net book amount