b"EQUESTRIAN AUSTRALIA LIMITED ABN 19 077 455 755EQUESTRIAN AUSTRALIA LIMITED ABN 19 077 455 755NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 20191.STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)Accounting Policies(a) RevenueFINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2018 Revenue from sale of goods is recognised when the significant risks and rewards of ownershipof the goods have passed to the buyer and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Risks and rewards of ownership are considered passed to the buyer at the time of delivery of the goods to the customer.Branch levies and related contributions revenue is recognised in the period in which the service is provided.Sponsorship revenue is recognised as and when received.Interest revenue is recognised when it becomes receivable on a proportional basis taking in to account the interest rates applicable to the financial assets.All revenue is stated net of the amount of goods and services tax (GST).(b) Foreign currency translations and balancesFunctional and presentation currencyThe financial statements are presented in Australian dollars which is the company's functional and presentation currency. 1Transactions and BalancesForeigncurrencymonetaryitemsthatareoutstandingatthereportingdate(otherthan monetary items arising under foreign currency contracts where the exchange rate for that monetary item is fixed in the contract) are translated using the spot rate at the end of the financial year.Except for certain foreign currency hedges, all resulting exchange differences arising on settlement or restatement are recognised as revenues and expenses for the financial year.(c) Inventories on HandInventories are measured at the lower of cost and current replacement cost.Inventories held for distribution are measured at cost adjusted, when applicable, for any loss of service potential.Inventories acquired at no cost or for nominal consideration are measured at the current replacement cost as at the date of acquisition. \x03\x0355"