AUB Group Limited Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

18 FINANCIAL LIABILITIES (CONTINUED)

Put options (continued) After initial recognition, put options financial liability is subsequently measured at amortised cost using the effective interest method. The Group re-estimates put options financial liability at the reporting date using the same model applied during the initial measurement, however the discount rate is not reset as the liability is held at amortised cost. The adjustment is recognised through the Consolidated Statement of Comprehensive Income as income or expense. Movements in the put option liability are ultimately transferred from retained earnings to the Put Option Reserve. Whilst this obligation will only be payable in the event that other shareholders of controlled and associated entities put their remaining shares to the Group, a liability has been recognised in relation to the put option. The financial liability will be derecognised when the put option expires unexercised or an entity is disposed with the corresponding movement being reflected in the Put Option Reserve. At balance date there has been no indication from the non-controlling shareholders that they wish to exit their respective businesses and put their shares to the Group. Included in financial liabilities are the following:

As at 30 June 2023

Financial Liability at amortised Cost $’000

Contingent and Deferred Considerations $’000

Actuarial Liability $’000

Put Options $’000

Total $’000

Balance at the beginning of the period

17,576

51,861

5,252 6,235

8,161

82,850 158,751

Additions during the year

152,516

–

–

Interest unwind/Finance charge on profits of trust minority Remeasurement of past obligations (including foreign currency movements) Payments made in respect of previously recognised balances

12,126

10,999

–

397

23,522

26,920

7,642

(757)

3,223

37,028

(16,078)

(11,805) 58,697

(190)

–

(28,073) 274,078

Balance at the end of the period

193,060

10,540

11,781

Contingent consideration sensitivity: A 10% increase or decrease in profit or revenue of acquired entities which are subject to an earn out would have a $2.68m charge or $19.36m release to the profit or loss respectively.

As at 30 June 2022

Financial Liability at amortised Cost $’000

Contingent and Deferred Considerations $’000

Actuarial Liability $’000

Put Options $’000

Total $’000

Balance at the beginning of the period

8,606 14,529

–

817

7,057

16,480 70,825

Additions during the year

51,861

4,435

–

Interest unwind/Finance charge on profits of trust minority Remeasurement of past obligations (including foreign currency movements) Payments made in respect of previously recognised balances

–

–

–

234

234

(380)

–

–

870

490

(5,179)

–

–

–

(5,179)

Balance at the end of the period

17,576

51,861

5,252

8,161

82,850

AUB GROUP ANNUAL REPORT 2023

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