nonpr ojec t r ela t ed w ork w as r ec ognised f or per f or manc e obliga tions s t ar t ed but no t y e t c omple t ed a t the end o f the period Under AA SB 15 r e v enue is r ec ognised only t o the e xt en t tha t the per f ormanc e obliga tion is ful ly c omple t e usual ly when the r epor t o f fndings or t es t inspec tion c er tifca t e is is sued t o the cus t omer R e v enue is no w r ec ognised la t er than under AA SB 18 T he e f f ec t o f implemen ting AA SB15 is a decr e ase o f In v en t ories W ork in Pr ogr es s o f 123 mil lion with an ad jus tmen t o f equal v alue made t o opening r e t ained e arnings If AA SB 118 w ould ha v e been applied this y e ar r e v enue w ould ha v e been higher with 88 mil lion De f err al in r ec ognition o f r e v enues a tt aching t o the C ompan y s T ribology oper a tions Under AA SB 118 cus t omers w er e in v oic ed and r e v enue r ec ognised a t the time when the cus t omer submits a pur chase or der f or T ribology kits and these w er e dispa t ched t o the cus t om er Each s ample bo ttle sold t o a cus t omer es sen tial ly has a tt ached t o it a pr omise b y ALS t o analyse the lubrican t s ample r e turned t o the labor a t ory In man y ins t anc es the r e turn o f the cus t omers s amples f or analysis b y ALS c ould t ak e plac e w eeks or mon ths a f t er the cus t omer has alr e ady been in v oic ed and r e v enue r ec ognised W hen as ses sing the dischar ge o f per f ormanc e obliga tion crit erion f or r e v enue r ec ognition applicable under AA SB 15 r e v enue should no t be book ed un til the cus t omer is in r ec eip t o f the analy tical t es t r epor t in r espec t o f e ach r e turned s ample bo ttle Under AA SB15 the a v er age r e v enue c y cle f or e ach jurisdic tion is es tima t ed and applied t o the amoun ts o f pr ebil led r e v enues T his me thod tr acks the a v er age le ad time be tw een s ample dispa t ch and s ample analysis R e v enue is no w r ec ognised la t er than under AA SB118 T he e f f ec t o f implemen ting AA SB15 is an incr e ase in de f err ed r e v enue r epor t ed under T r ade and o ther pa y ables on the balanc e shee t o f 122 mil lion T he a f t er t a x e f f ec t on opening r e t ained e arnings is 91 mil lion If AA SB 118 w ould ha v e been applied this fnancial y e ar r e v enue w ould ha v e been higher with 12 mil lion AA SB 9 se ts out r equir emen ts f or r ec ognising and me as uring fnancial as se ts fnancial liabilities and some c on tr ac ts t o buy or sel l non fnancial it ems T his s t andar d r eplac es AA SB 139 Financial Ins trumen ts R ec ognition and Me asur emen t T he Gr oup has t ak en an e x emp tion no t t o r e s t a t e c ompar a tiv e in f orma tion f or prior periods with r espec t t o clas sifca tion and me asur emen t including impairmen t r equir emen ts Dif f er enc es in the carrying amoun ts o f fnancial as se ts and fnancial liabilities r esulting fr om the adop tion o f AA SB 9 ar e r ec ognised in r e t ained e arnings and r eserv es as a t 1 April 2018 Ac c or dingly the in f orma tion pr esen t ed f or FY18 does no t gener al ly r e fec t the r equir e men ts o f AA SB 9 but r a ther those o f AA SB 139 T he e f f ec t o f initial ly applying AA SB 9 is mainly a ttribut ed t o the f ol lo wing incr e ase in impairmen t los ses r ec ognised on fnancial as se ts and the adop tion o f AA SB 9 did no t impac t on the clas sifca tion o f fnancial as se ts or liabilities T he f ol lo wing t able summarises the impac t ne t o f t a x o f tr ansition t o AA SB 15 and AA SB 9 on r e t ained e arnings and Non C on tr ol ling In t er es t a t 1 April 2018 Es tima t ed impac t o f adop tion o f AA SB 9 and AA SB 15 In mil lions o f A UD A s r epor t ed a t 31 M ar ch 2018 Ad jus tmen ts due t o adop tions o f AA SB 15 Ad jus tmen ts due t o adop tion o f AA SB 9 Ad jus t ed opening bal anc es a t 1 April 2018 T r ade and o ther r ec eiv ables 2783 34 2749 In v en t ories 758 118 640 A s se ts held f or s ale 253 05 248 De f err ed T a x A s se ts 220 31 251 T r ade and o ther pa y ables 1698 122 1820 R e t ained e arnings 2291 213 34 2538 T he t o t al ad jus tmen t ne t o f t a x t o the opening balanc e o f the Gr oup s equit y a t 1 April 2018 is 247 mil lion T he principal c omponen ts o f the ad jus tmen t ar e as f ol lo ws a decr e ase o f 123 mil lion in r e t ained e arnings ne t o f t a x due t o changes in r ec ognition o f ac crued r e v enues f or nonpr ojec t r ela t ed w orks in pr ogr es s r educing in v en t ories b y 118 mil lion and as se ts held f or s ale b y 05 mil lion r espec tiv ely a decr e ase o f 91 mil lion in r e t ained e arnings ne t o f t a x due t o a de f err al in r ec ognition o f r e v enues a tt ach ing t o the C ompan y s T ribology oper a tions Indus trial segmen t incr e asing tr ade and o ther pa y ables as un e arned r e v enues b y 91 mil lion a decr e ase o f 34 mil lion in r e t ained e arnings ne t o f t a x due t o impairmen t los ses on fnancial as se ts including additional los s al lo w anc es in r espec t o f tr ade r ec eiv ables T r ade and o ther r ec eiv ables ne t decr e ased b y 34 mil lion due t o incr e ased pr o visions r ec ognised on the initial applica tion o f AA SB 9 T her e w as no ma t erial impac t on the B alanc e shee t and Pr o ft L os s f or the period ended 31 M ar ch 2019 as a r esult o f the implemen t a tion o f the ne w s t andar ds Ac c oun ting policies tha t apply t o specifc c on t en t in the fnancial s t a t emen ts ha v e been included within the r ele v an t no t es Ac c oun ting policies tha t apply acr os s a number o f c on t en ts in the fnancial s t a t emen ts ar e lis t ed belo w 75 ALS LIMITED AND IT S SUBSIDIARIES A NNU AL F INANCIAL R EPOR T F OR THE Y EAR E NDED 31 M AR CH 2019 F INANCIAL REPOR T F INANCIAL S T A TEMENT S N O TES T O THE FINANCIAL S T A TEMENT S Other in f orma tion