CSL Ltd Annual Report 2021

Contents About this Report 110 Notes to the financial statements: 110 Our Current Performance 112 Note 1: Segment Information and Business Combinations 112 Note 1b: Business Combination 113 Note 2: Revenue and Expenses 114 Note 3: Tax 115 Note 4: Inventories 117 Note 5: People Costs 118 Our Future 121 Note 6: Research and Development 121 Note 7: Intangible Assets 122 Note 8: Property, Plant and Equipment 124 Note 9: Deferred Government Grants 125 Returns, Risk & Capital Management 126 Note 10: Shareholder Returns 126 Note 11: Financial Risk Management 127 Note 12: Equity and Reserves 133 Note 13: Commitments and Contingencies 134 Efficiency of Operation 135 Note 14: Cash and Cash Equivalents 135 Note 15: Trade Receivables and Payables 135 Note 16: Provisions 137 Other Notes 138 Note 17: Related Party Transactions 138 Note 18: Detailed Information – People Costs 139 Note 19: Detailed Information – Shareholder Returns 143 Note 20: Auditor Remuneration 143 Note 21: Deed of Cross Guarantee 144 Note 22: Parent Entity Information 146 Note 23: Subsequent Events 146 Note 24: Amendments to Accounting Standards and Interpretations 147 About this Report Notes to the financial statements: Corporate information CSL Limited (“CSL”) is a for-profit company incorporated and domiciled in Australia and limited by shares publicly traded on the Australian Securities Exchange. This financial report covers the financial statements for the consolidated entity consisting of CSL and its subsidiaries (together referred to as the Group). The financial report was authorised for issue in accordance with a resolution of directors on 17 August 2021. A description of the nature of the Group’s operations and its principal activities is included in the directors’ report. 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, International Financial Reporting Standards (IFRS) and the Corporations Act 2001 . It presents information on a historical cost basis, except for certain financial instruments, which have been measured at fair value. Amounts have been rounded off to the nearest hundred thousand dollars. The report is presented in US Dollars, because this currency is the pharmaceutical industry standard currency for reporting purposes. It is the predominant currency of the Group’s worldwide sales and operating expenses. b. Principles of consolidation The consolidated financial statements comprise the financial statements of CSL and its subsidiaries as at 30 June 2021. CSL has control of its subsidiaries when it is exposed to, and has the rights to, variable returns from its involvement with those entities and when it has the ability to affect those returns. A list of significant controlled entities (subsidiaries) at year-end is contained in Note 17. The financial results of the subsidiaries are prepared using consistent accounting policies and for the same reporting period as the parent company. In preparing the consolidated financial statements, all intercompany balances and transactions have been eliminated in full. The Group has formed a trust to administer the Group’s employee share scheme. This trust is consolidated as it is controlled by the Group. Notes to the Financial Statements For the Year Ended 30 June 2021 CSL Limited Annual Report 2020/21 110