NOTES TO THE FINANCIAL STATEMENTS
Note 1: Summary of significant accounting policies (a) Corporate information
The consolidated financial statements of Go Vita Group Limited (the “Parent”) and its subsidiaries (collectively, the “Consolidated Entity” or “Group”) for the year ended 30 June 2021 were authorised for issue in accordance with a resolution of the directors on 21st of September 2021. The Parent is a non-listed public company limited by shares, incorporated in Australia and operating in Australia. The principal activity of the Group during the financial year was the operation of a health food buying company. The Group primarily sells health food products to health food stores but also provides some ancillary services for member stores such as marketing and from time to time on an ad hoc basis may provide general advice in areas such as leasing and health food retailing. Some of the products sold are private label brands owned by the Group and some products are owned by other suppliers and the Group acts as a distributor. (b) Basis of preparation The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report also complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The financial report has been prepared on a historical cost basis. Cost is based on the fair values of the consideration given in exchange for assets. The Parent has determined for the purposes of preparing the financial statements it is a for-profit entity. (c) Principles of consolidation The consolidated financial statements comprise the financial statements of Go Vita Group Limited and its subsidiaries as at 30 June each year. The financial statements of the subsidiaries are prepared for the same reporting period as the Parent, using consistent accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit or losses resulting from intra-group transactions have been eliminated in full. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the subsidiaries and has the ability to affect those returns through its power over the subsidiaries. Specifically, the Group controls a subsidiary if and only if the Group has: power over the subsidiary (ie. existing rights that give it the current ability to direct the relevant activities of the subsidiary), exposure, or rights, to variable returns from its involvement with the subsidiary, and the ability to use its power over the subsidiary to affect its returns.
I GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 46
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