020.asx iaw feb 29 2008 appendix 4d half yearly reports

8/9/2019 020.ASX IAW Feb 29 2008 Appendix 4D Half Yearly Reports

1/32


2/32

INTEGRATEDLEGALHOLDINGSLIMITED

ACN120394194

ASXAppendix4D

RESULTSFORANNOUNCEMENTTOTHEMARKET

Duringtheperiod,theGroup,throughitswhollyownedsubsidiaries,gainedcontrolofthe

followingbusinesses:

EntityName Datecontrolgained

TalbotOlivier 10August2007

BrettDaviesLawyers 10August2007

LawCentralCoPtyLtd 10August2007

PeterMarksSuccessionLawyers 19September2007

ShayneLeslie 28September2007

Thegroup

does

not

have

any

interests

in

associates

outside

the

group,

nor

does

it

have

any

interestinjointventures.

o

p

s

o

u

e

o

y


3/32


ACN120

394

194

(ASX:IAW)

HalfYearFinancialReport

forthehalfyearended31December2007

o

p

s

o

u

e

o

y


4/32


FINANCIALREPORTFORTHEHALF-YEARENDED

31DECEMBER2007

ACN120394194

Contents

Corporateinformation.............................................................................................................1

Directorsreport......................................................................................................................2

Balancesheet...........................................................................................................................4

Incomestatement....................................................................................................................5

Cashflowstatement................................................................................................................6

Statementofchangesinequity...............................................................................................7

Notesto

and

forming

part

of

the

financial

report

...................................................................

8

Directorsdeclaration............................................................................................................25

Auditorsindependencedeclaration.....................................................................................26

Independentreviewreport....................................................................................................27

o

p

s

o

u

e

o

y


5/32


6/32



31DECEMBER2007

ACN120394194

DirectorsReport

2

Thedirectors

of

Integrated

Legal

Holdings

Limited

(the

Company)

submit

the

interim

financial

report

forthehalfyearended31December2007.

DIRECTORS

Thenamesofthecompanysdirectorsinofficeduringthehalfyearanduntilthedateofthisreport

aresetoutbelow. Directorswereinofficeforthisentireperiodunlessotherwisestated.

TheHonJohnDawkinsAO(NonexecutiveChairman)

AnneTregonning(NonexecutiveDirector)

ThomasHenn(ManagingDirector)

REVIEWAND

RESULTS

OF

OPERATIONS

On17August2007,theCompanysuccessfullylistedontheAustralianStockExchange(ASX)byway

ofprospectusdated16May2007. Theofferwasoversubscribedand$12,416,660wasraisedasa

result. The success of the initial public offering represents an endorsement of the companys

businessmodelandstrategicplan.

Uponlisting,IntegratedLegalHoldingsLimited,throughitswhollyownedsubsidiaries,acquiredthe

legalpracticesofTalbotOlivierandBrettDaviesLawyers,andtheonlinelegaldocumentproduction

andserviceorganisationknownasLawCentralCoPtyLtd.

During

September

2007,

the

Company,

through

its

wholly

owned

subsidiary,

Talbot

Olivier

Pty

Ltd,

acquired two further practices which will be income accretive from their first year of acquisition

(botharedetailedinnote10).

Fortheperiodended31December2007,theconsolidatedentitygeneratedanetprofitaftertaxof

$895,412(2006:$16,509,998loss).

Against the same period last year, earnings before interest, tax, impairment, depreciation and

amortisation from continuing operations increased from a loss of $4,305,901 to a profit of

$1,412,509.

As

at

31

December

2007,

the

consolidated

cash

holdings

stood

at

$5,040,704.

o

p

s

o

u

e

o

y


7/32



31DECEMBER2007

ACN120394194

DirectorsReport(continued)

3

AUDITORSINDEPENDENCE

DECLARATION

Acopyoftheauditorsindependencedeclarationinrelationtotheauditforthehalfyearisprovided

withthisreportonpage26.

Signedinaccordancewitharesolutionofthedirectors.

THenn

Director

Perth,29February2008

o

p

s

o

u

e

o

y


8/32



31DECEMBER2007

ACN120394194

BalanceSheet

4

Consolidated Parent

Note

Asat

31Dec2007

Asat

30Jun2007

$ $

ASSETS

CurrentAssets

Cashandcashequivalents 4 5,040,704 8,788,735

Tradeandotherreceivables 1,851,195

Capitalisedexpenditure 506,872

Workinprogress 765,001

TotalCurrent

Assets

7,656,900

9,295,607

NoncurrentAssets

Availableforsalefinancialassets 3,883

Plantandequipment 189,030

Goodwill 5 6,330,233

Intangibleassets 6 154,440

Deferredtaxassets 419,588

TotalNoncurrentAssets 7,097,174

TOTALASSETS 14,754,074 9,295,607

LIABILITIES

CurrentLiabilities

Tradeandotherpayables 910,403 9,295,402

Interestbearingloansandborrowings 20,693

Incometaxpayable 589,996

Provisions 155,980

TotalCurrentLiabilities 1,677,072 9,295,402

NoncurrentLiabilities

Interestbearingloansandborrowings 164,374

Provisions 62,017

TotalNon

current

Liabilities

226,391

TOTALLIABILITIES 1,903,463 9,295,402

NETASSETS 12,850,611 205

EQUITY

Contributedequity 7 30,678,545 18,723,452

Accumulatedlosses (17,827,835) (18,723,247)

Reserves (99)

TOTALEQUITY 12,850,611 205

o

p

s

o

u

e

o

y


9/32



31DECEMBER2007

ACN120394194

IncomeStatement

5

Consolidated Parent

Note

Halfyear

ended

31Dec2007

Period

ended

31Dec2006

$ $

Professionalfeesrevenue 4,195,088

Interestrevenue 237,830

Otherrevenue 3 77,218

Totalrevenue 4,510,136

Occupancyexpenses

233,783

Salariesandemployeebenefitsexpenses 1,926,317 4,305,901*

Depreciationandamortisationexpenses 48,831

Impairmentlosses 215,826 12,204,097

Officeexpenses 594,759

Advertisingandmarketingexpenses 46,814

Otherexpenses 58,124

Interestexpenses 11,166

Profitbeforeincometax 1,374,516 (16,509,998)

Incometaxexpense 479,104

Profitafterincometax 895,412 (16,509,998)

Netprofit/(loss)

for

the

period

895,412

(16,509,998)

Basicanddilutedearnings/(loss)pershareforprofit

attributabletotheordinaryequityholderoftheparent 1.57 (73.79)

*Relatestotheexpensingofsharebasedpaymentstodirectorsandcertainemployees.

o

p

s

o

u

e

o

y


10/32



31DECEMBER2007

ACN120394194

CashFlowStatement

6

Consolidated Parent

Note

Halfyear

ended

31Dec2007

Period

ended

31Dec2006

$ $

Cashflowsfromoperatingactivities

Receiptsfromcustomers 2,556,733

Paymentstosuppliersandemployees (2,299,115)

Interestreceived 212,304

Rentreceived 818

Sundryincome

1,549

Interestandothercostsoffinancepaid (5,220)

Netcashflowsfromoperatingactivities 467,069

Cashflowsfrominvestingactivities

Purchaseofplantandequipment (9,950)

Proceedsfromthedisposalofplantandequipment 1,000

Paymentforavailableforsaleinvestments (3,982)

Paymentforacquisitionofbusinessesnetofcash

acquired (6,652,695)

Netcashflowsusedininvestingactivities (6,665,627)

Cashflowsfromfinancingactivities

Proceedsfromissueofshares 3,628,130

Paymentsforcapitalraisingcosts (944,763)

Repaymentoffinanceleaseliabilities (18,175)

Paymentforthesettlementofliabilityassumedon

acquisitionofLawCentralCoPtyLtd (214,665)

Netcashflowsfromfinancingactivities 2,450,527

Netdecreaseincashheld (3,748,031)

Cashandcashequivalentsatthebeginningofthe

period

8,788,735

Cashandcashequivalentsattheendoftheperiod 5,040,704

o

p

s

o

u

e

o

y


11/32



31DECEMBER2007

ACN120394194

StatementofChangesinEquity

7

PARENT

Issued

Capital

Accumulated

Losses

Total

Equity

$ $ $

At26June2006

Lossfortheperiod (16,509,998) (16,509,998)

Totalincomeandexpensefortheperiod (16,509,998) (16,509,998)

EquityTransactions:

Sharesissued

16,509,998

16,509,998

At31December2006 16,509,998 (16,509,998)

CONSOLIDATED

Issued

Capital

Accumulated

Losses

Net

Unrealised

Gains

Reserve

Total

Equity

$ $ $ $

At1July2007 18,723,452 (18,723,247) 205

Netfairvaluelossesonavailable

forsaleinvestments (99) (99)

Totalincomeandexpenseforthe

periodrecogniseddirectlyinequity (99) (99)

Profitfortheperiod 895,412 895,412

Totalincomeandexpenseforthe

period 895,412 (99) 895,313

EquityTransactions:

Sharesissued 13,045,708 13,045,708

Transactioncosts

on

share

issue

(1,090,615)

(1,090,615)

At31December2007 30,678,545 (17,827,835) (99) 12,850,611

o

p

s

o

u

e

o

y


12/32



31DECEMBER2007

ACN120394194

NotestoandformingpartoftheFinancialReport

8

1)

CORPORATEINFORMATION

Thehalfyear financialreportof IntegratedLegalHoldingsLimited (theCompany) forthehalfyear

ended31December2007wasauthorisedforissueinaccordancewitharesolutionoftheDirectors

on29February2008. IntegratedLegalHoldingsLimitedisacompanyincorporatedinAustraliaand

limitedbyshares,whicharepubliclytradedontheAustralianStockExchange(ASX).

2)

SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

The halfyear financial report does not include all notes of the type normally included within the

annualfinancialreportandthereforecannotbeexpectedtoprovideasfullanunderstandingofthe

financial performance, financial position and financing and investing activities of the consolidated

entityas

the

full

financial

report.

Itisrecommendedthatthehalfyearfinancialreportbereadinconjunctionwiththeannualreport

fortheyearended30June2007andconsideredtogetherwithanypublicannouncementsmadeby

IntegratedLegalHoldingsLimitedanditscontrolledentities(theGroup)duringthehalfyearended

31December2007inaccordancewiththecontinuousdisclosureobligationsundertheCorporations

Act2001.

a)

Basisofpreparation

This general purpose condensed financial report for the halfyear ended 31 December 2007 has

been prepared inaccordancewithAASB134 InterimFinancialReportingand theCorporationsAct

2001.

Apart from the adoption of new accounting policies noted below, the accounting policies and

methodsofcomputationarethesameasthoseadoptedinthemostrecentannualfinancialreport.

Thehalfyearfinancialreport isprepared inAustraliandollarsandonahistoricalcostbasis,except

foravailableforsaleinvestments,whichhavebeenmeasuredatfairvalue.

For the purposes of preparing the halfyear financial report, the halfyear has been treated as a

discretereportingperiod.

b)

Significant

accounting

policies

Theaccountingpoliciesadoptedareconsistentwiththosedisclosedintheannualfinancialreportfor

theperiodended30June2007whichareinaccordancewithaccountingstandards inplaceatthat

date. The adoption of new and amending standards and interpretations mandatory for annual

periods beginning on or after 1 July 2007 did not have a significant impact on the financial

performanceandpositionoftheGroup.

c)

Basisofconsolidation

The halfyear consolidated financial statements comprise the financial statements of Integrated

LegalHoldingsLimitedanditssubsidiariesasat31December2007.

Subsidiariesareallthoseentities(includingspecialpurposeentities)overwhichtheGrouphasthe

power togovern the financialandoperating policiessoas toobtainbenefits from theiractivities.

Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleare

consideredwhenassessingwhetheragroupcontrolsanotherentity.

o

p

s

o

u

e

o

y


13/32



31DECEMBER2007

ACN120394194


9

The

financial

statements

of

the

subsidiaries

are

prepared

for

the

same

reporting

period

as

theparentcompany,usingconsistentaccountingpolicies.

In preparing the consolidated financial statements, all intercompany balances and transactions,

income and expenses and profit and losses resulting from intragroup transactions have been

eliminatedinfull.

Subsidiaries are fully consolidated from the date on which control is obtained by the Group and

ceasetobeconsolidatedfromthedateonwhichcontrolistransferredoutoftheGroup.

d)

Businesscombinations

Thepurchase

method

of

accounting

is

used

to

account

for

all

business

combinations

regardless

of

whetherequity instrumentsorotherassetsareacquired.Cost ismeasuredasthefairvalueofthe

assets given, shares issued or liabilities incurred or assumed at the date of exchange plus costs

directly attributable to the combination. Where equity instruments are issued in a business

combination, the fair value of the instruments is their published market price as at the date of

exchange. Transaction costs arising on the issue of equity instruments are recognised directly in

equity.

Except fornoncurrentassetsordisposalgroupsclassifiedasheldforsale(whicharemeasuredat

fair value less costs to sell), all identifiable assets acquired and liabilities and contingent liabilities

assumedinabusinesscombinationaremeasuredinitiallyattheirfairvaluesattheacquisitiondate.

The

excess

of

the

cost

of

the

business

combination

over

the

net

fair

value

of

the

Groups

share

of

the

identifiablenetassetsacquired isrecognisedasgoodwill. Ifthecostofacquisition is lessthanthe

Groupsshareofthenetfairvalueofthe identifiablenetassetsofthesubsidiary,thedifference is

recognisedasagainintheincomestatement,butonlyafterareassessmentoftheidentificationand

measurementofthenetassetsacquired.

Wheresettlementofanypartoftheconsideration isdeferred,theamountspayable in the future

are discounted to their present value as at the date of exchange. The discount rate used is the

entitys incrementalborrowingrate,beingtherateatwhichasimilarborrowingcouldbeobtained

fromanindependentfinancierundercomparabletermsandconditions.

e)

Trade

and

other

receivables

Trade receivables are initially recognised at the original fee amount. An estimate is made for

doubtfuldebtswhencollectionofthefullamountisnolongerprobable. Baddebtsareincludedin

the income statement when identified. The Groups standard terms for settlement for trade

receivablesare30days.

Collectabilityoftradereceivablesisreviewedonanongoingbasis. Individualdebtsthatareknown

tobeuncollectiblearewrittenoffwhenidentified. Anallowancefordoubtfuldebtsisraisedwhen

thereisobjectiveevidencethattheGroupwillnotbeabletocollectthedebt.

f)

Workinprogress

Work inprogress representscosts incurredand includesprofit recognised todateon thevalueof

workcompletedonmattersthatare inprogressatbalancedate. Costs includesbothvariableand

fixedcostsdirectlyrelatedtomatters.

o

p

s

o

u

e

o

y


14/32



31DECEMBER2007

ACN120394194


10

Workin

progress

is

valued

at

net

realisable

value

after

providing

for

any

foreseeable

losses.

g)

Investmentsandotherfinancialassets

Financialassets inthescopeofAASB139FinancialInstruments:RecognitionandMeasurementare

classifiedaseitherfinancialassetsatfairvaluethroughprofitorloss,loansandreceivables,heldto

maturity investments or availableforsale financial assets. When financial assets are recognised

initially,theyaremeasuredatfairvalue,plus, inthecaseof investmentsnotatfairvaluethrough

profitor loss,directlyattributabletransactioncosts. TheGroupdeterminestheclassificationof its

financial assets upon initial recognition and, when allowed and appropriate, reevaluates this

designationateachfinancialyearend.

Allregular

way

purchases

and

sales

of

financial

assets

are

recognised

on

the

trade

date;

ie

the

date

that the Group commits to purchase the asset. Regular way purchases or sales are purchases or

sales of financial assets under contracts that require delivery of the assets within the period

establishedgenerallybyregulationorconventioninthemarketplace.

i) Availableforsaleinvestments

Availableforsale investments are those nonderivative financial assets that are designated as

availableforsaleorarenotclassifiedasfinancialassetsatfairvaluethroughprofitorloss,loansand

receivables,orheldtomaturityinvestments. Afterinitialrecognitionavailableforsaleinvestments

aremeasuredatfairvaluewithgainsorlossesbeingrecognisedasaseparatecomponentofequity

untilthe investment inderecognisedoruntilthe investment isdeterminetobe impaired,atwhich

time

the

cumulative

gain

or

loss

previously

reported

in

equity

is

recognised

in

profit

or

loss.

Thefairvaluesofinvestmentsthatareactivelytradedinorganisedfinancialmarketsaredetermined

byreference toquotedmarketbidpricesat thecloseofbusinesson thebalancesheetdate. For

investments with no active market, fair values are determined using valuation techniques. Such

techniques include: using recent arms length market transactions; reference to current market

valueofanotherinstrumentthatissubstantiallythesame;discountedcashflowanalysisandoption

pricing models making as much use of available and supportable market data as possible and

keepingjudgementalinputstoaminimum.

h)

Plantandequipment

Plant

and

equipment

is

stated

at

historical

cost

less

accumulated

depreciation

and

any

accumulated

impairment losses. Suchcostincludesthecostofreplacingpartsthatareeligibleforcapitalisation

whenthecostofreplacingthepartisincurred. Similarly,wheneachmajorinspectionisperformed,

itscostisrecognisedinthecarryingamountoftheplantandequipmentasareplacementonlyifitis

eligible for capitalisation. All other repairs and maintenance are recognised in profit or loss as

incurred.o

p

s

o

u

e

o

y


15/32



31DECEMBER2007

ACN120394194


11

Depreciationrates

used

for

each

class

of

assets

are

as

follows:

Classoffixedasset Useful

life

Depreciation

rates

Depreciation

method

Computerequipmentandsoftware 2 3years 33.3340.00% Straightline

Officeplantandequipment 310years 10.0033.33% Straightline

Officefurniture 315years 6.6733.33% Straightline

Leaseholdimprovements Shorterofusefullifeandremaining

periodofthelease

Straightline

Leasedequipment Termoflease Straightline

Motorvehicles 5years 20.00% Straightline

The assets residual values, useful lives and amortisation methods are reviewed, and adjusted if

appropriate,ateachbalancedate.

Anitemofplantandequipmentisderecognisedupondisposalorwhennofurtherfutureeconomic

benefitsareexpectedfromitsuseordisposal. Anygainorlossarisingonderecognitionoftheasset

(calculated as the difference between the net disposal proceeds and the carrying amount of the

asset)isincludedinprofitorlossintheyeartheassetisderecognised.

i)

Leases

Thedeterminationofwhetheranarrangement isorcontainsa lease isbasedon thesubstanceof

the

arrangement

and

requires

an

assessment

of

whether

the

fulfilment

of

the

arrangement

is

dependentontheuseofaspecificassetorassetsandthearrangementconveysarighttousethe

asset.

i) Groupasalessee

Finance leases, which transfer to the Group substantially all the risks and benefits incidental to

ownershipofthe leased item,arecapitalisedat the inceptionof the leaseat the fairvalueofthe

leasedassetor,iflower,atthepresentvalueoftheminimumleasepayments. Leasepaymentsare

apportioned between the finance charges and reduction of the lease liability so as to achieve a

constantrateofinterestontheremainingbalanceoftheliability. Financechargesarerecognisedas

anexpenseinprofitorloss.

Capitalised leasedassetsaredepreciatedovertheshorteroftheestimateduseful lifeoftheasset

andthe leaseterm ifthere isnoreasonablecertaintythattheGroupwillobtainownershipbythe

endoftheleaseterm.

Operatingleasepaymentsarerecognisedasanexpenseinthe incomestatementonastraightline

basisovertheleaseterm. Operatingleaseincentivesarerecognisedasaliabilitywhenreceivedand

subsequently reduced by allocating lease payments between rental expense and reduction of the

liability.

j)

Impairmentofnonfinancialassetsotherthangoodwill

Intangibleassets thathavean indefiniteuseful lifeare notsubject toamortisationandare tested

annuallyforimpairmentormorefrequentlyifeventsorchangesincircumstancesindicatethatthey

might be impaired. Other assets are tested for impairment whenever events or changes in

circumstancesindicatethatthecarryingamountmaynotberecoverable.

o

p

s

o

u

e

o

y


16/32



31DECEMBER2007

ACN120394194


12

The

Group

conducts

an

annual

internal

review

of

asset

values,

which

is

used

as

a

source

ofinformation to assess for any indicators of impairment. External factors, such as changes in

expected future processes, technology and economic conditions, are also monitored to assess for

indicators of impairment. If any indication of impairment exists, an estimate of the assets

recoverableamountiscalculated.

An impairment loss isrecognisedfortheamountbywhichtheassetscarryingamountexceeds its

recoverableamount. Recoverableamountisthehigherofanassetsfairvaluelesscoststoselland

valueinuse. Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsfor

whichthereareseparatelyidentifiablecashinflowsthatarelargelyindependentofthecashinflows

from theotherassetsorgroupsofassets (cashgeneratingunits). Nonfinancialassetsother than

goodwill

that

suffered

impairment

are

tested

for

possible

reversal

of

the

impairment

whenevereventsorchangesincircumstancesindicatethattheimpairmentmayhavereversed.

k)

Goodwillandintangibles

Goodwill

Goodwillacquiredinabusinesscombinationisinitiallymeasuredatcostbeingtheexcessofthecost

of the business combination over the Groups interest in the net fair value of the acquirees

identifiableassets,liabilitiesandcontingentliabilities.

Followinginitialrecognition,goodwillismeasuredatcostlessanyaccumulatedimpairmentlosses.

For

the

purposes

of

impairment

testing,

goodwill

acquired

in

a

business

combination

is,

from

the

acquisition date, allocated to each of the Groups cashgenerating units, or groups of cash

generatingunits,thatareexpectedtobenefitfromthesynergiesofthecombination,irrespectiveof

whetherotherassetsorliabilitiesoftheGroupareassignedtothoseunitsorgroupsofunits. Each

unitorgroupofunitstowhichthegoodwillissoallocated:

representsthelowestlevelwithintheGroupatwhichthegoodwillismonitoredforinternal

managementpurposes;and

isnotlargerthanasegmentbasedoneithertheGroupsprimaryortheGroupssecondary

reportingformatdeterminedinaccordancewithAASB114SegmentReporting.

Impairment isdeterminedbyassessingtherecoverableamountofthecashgeneratingunit(group

ofcashgeneratingunits),towhichthegoodwillrelates. Whentherecoverableamountofthecash

generatingunit(groupofcashgeneratingunits)islessthanthecarryingamount,animpairmentloss

isrecognised. Recoverableamountisthehigherofanassetsfairvaluelesscoststosellandvaluein

use. Whengoodwill formspartofa cashgeneratingunit (groupofcashgeneratingunits)and an

operationwithinthatunit isdisposedof,thegoodwillassociatedwiththeoperationdisposedof is

included inthecarryingamountoftheoperationwhendeterminingthegainor lossondisposalof

theoperation. Goodwilldisposedofinthismannerismeasuredbasedontherelativevaluesofthe

operationdisposedofandtheportionofthecashgeneratingunitretained.

Impairment

losses

recognised

for

goodwill

are

not

subsequently

reversed.

o

p

s

o

u

e

o

y


17/32



31DECEMBER2007

ACN120394194


13

IntangiblesIntangible assets acquired separately or in a business combination are initially measured at cost.

Thecostofan intangibleassetacquiredinabusinesscombinationis itsfairvalueasatthedateof

acquisition. Following initialrecognition, intangibleassetsarecarriedatcost lessanyaccumulated

amortisation and any accumulated impairment losses. Internally generated intangible assets,

excludingcapitaliseddevelopmentcosts,arenotcapitalisedandexpenditureisrecognisedinprofit

orlossintheyearinwhichtheexpenditureisincurred.

Theuseful livesof intangibleassetsareassessedtobeeitherfiniteor indefinite. Intangibleassets

withfinite livesareamortisedovertheuseful lifeandtestedfor impairmentwheneverthere isan

indicationthattheintangibleassetmaybeimpaired. Theamortisationperiodandtheamortisation

methodfor

an

intangible

asset

with

afinite

useful

life

is

reviewed

at

least

at

each

financial

year

end.

Changes in the expected useful life or the expected pattern of consumption of future economic

benefitsembodiedintheassetareaccountedforprospectivelybychangingtheamortisationperiod

ormethod,asappropriate,whichisachangeinaccountingestimate. Theamortisationexpenseon

intangibleassetswith finite lives is recognised in profitor loss in theexpense categoryconsistent

withthefunctionoftheintangibleasset.

Intangibleassetswithindefiniteusefullivesaretestedforimpairmentannuallyeitherindividuallyor

atthecashgeneratingunitlevelconsistentwiththemethodologyoutlinedforgoodwillabove. Such

intangiblesarenotamortised. Theusefullifeofanintangibleassetwithanindefinitelifeisreviewed

eachreportingperiodtodeterminewhetherindefinitelifeassessmentcontinuestobesupportable.

If

not,

the

change

in

the

useful

life

assessment

from

indefinite

to

finite

is

accounted

for

as

a

change

inanaccountingestimateandisthusaccountedforonaprospectivebasis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference

betweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognisedinprofit

orlosswhentheassetisderecognised.

l) Interestbearingloansandborrowings

All loansandborrowingsare initiallyrecognisedatthefairvalueoftheconsiderationreceived less

directlyattributabletransactioncosts.

After

initial

recognition,

interest

bearing

loans

and

borrowings

are

subsequently

measured

at

amortisedcostusingtheeffectiveinterestmethod. Feespaidontheestablishmentofloanfacilities

thatareyieldrelatedareincludedaspartofthecarryingamountoftheloansandborrowings.

Borrowingsareclassifiedascurrent liabilitiesunlesstheGrouphasanunconditionalrighttodefer

settlementoftheliabilityforatleast12monthsafterthebalancesheetdate.

Borrowing

costs

Borrowingcostsarerecognisedasanexpensewhenincurred.

m)

Provisionsandemployeeleavebenefits

ProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)asaresult

of a past event, it is probable that an outflow of resources embodying economic benefits will be

required to settle the obligation and a reliable estimate can be made of the amount of the

obligation.

o

p

s

o

u

e

o

y


18/32



31DECEMBER2007

ACN120394194


14

When

the

Group

expects

some

or

all

of

a

provision

to

be

reimbursed,

for

example

under

aninsurance contract, the reimbursement is recognised as a separate asset but only when the

reimbursementisvirtuallycertain. Theexpenserelatingtoanyprovisionispresentedintheincome

statementnetofanyreimbursement.

Provisions are measured at the present value of managements best estimate of the expenditure

requiredtosettlethepresentobligationatthebalancesheetdate. Iftheeffectofthetimevalueof

moneyismaterial,provisionsarediscountedusingacurrentpretaxratethatreflectsthetimevalue

of money and the risks specific to the liability. The increase in the provision resulting from the

passageoftimeisrecognisedinfinancecosts.

Employee

leave

benefitsi) Wages,salaries,annualleaveandsickleave

Liabilities forwagesandsalaries, includingnonmonetarybenefits, annual leaveandaccumulating

sickleaveexpectedtobesettledwithin12monthsofthereportingdatearerecognisedinrespectof

employeesservicesuptothereportingdate. Theyaremeasuredattheamountsexpectedtobe

paidwhentheliabilitiesaresettled. Liabilitiesfornonaccumulatingsickleavearerecognisedwhen

theleaveistakenandaremeasuredattheratespaidorpayable.

ii)

Longserviceleave

The liability for long service leave is recognised and measured as the present value of expected

futurepaymentstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdate

using

the

projected

unit

credit

method.

Consideration

is

given

to

expected

future

wage

and

salary

levels,experienceofemployeedepartures,andperiodsofservice. Expected future paymentsare

discountedusingmarketyieldsatthereportingdateonnationalgovernmentbondswithtermsto

maturityandcurrenciesthatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.

n)

Revenuerecognition

Revenueisrecognisedandmeasuredatthefairvalueoftheconsiderationreceivedorreceivableto

theextent itisprobablethattheeconomicbenefitswillflowtotheGroupandtherevenuecanbe

reliably measured. The following specific recognition criteria must also be met before revenue is

recognised:

i)

Rendering

of

services

Revenue from the provision of legal services is recognised on a stage of completion basis in the

periodinwhichthelegalserviceisprovidedandiscalculatedwithreferencetotheprofessionalstaff

hoursincurredoneachmatter.

ii)

Onlinelegalandnonlegaldocumentsandpublications

Revenuefromtheprovisionofonlinelegalandnonlegaldocumentsandpublicationsisrecognised

onanaccrualsbasisatthetimeofdeliveryofthedocumentstocustomers.

iii)

Subscriptionincome

Revenue frommembershipsgranting thesubscriberaccesstotheknowledgebaseofweekly legal

bulletins,onlinetools,calculatorsandservices isrecognisedonastraight linebasiswhichreflects

thetiming,natureandbenefitprovided. Allmembershipshaveasubscriptionperiodofeitherthree

ortwelvemonths.

o

p

s

o

u

e

o

y


19/32



31DECEMBER2007

ACN120394194


15

iv)

Interestincome

Revenue isrecognisedas interestaccruesusingtheeffective interestmethod. This isamethodof

calculating the amortised cost of a financial asset and allocating the interest income over the

relevantperiodusingtheeffective interestrate,which istheratethatexactlydiscountsestimated

futurecashreceiptsthroughtheexpectedlifeofthefinancialassettothenetcarryingamountofthe

financialasset.

v)

Dividends

RevenueisrecognisedwhentheGroupsrighttoreceivethepaymentisestablished.

vi)

Rentalrevenue

Rentalrevenue

from

investment

properties

is

accounted

for

on

astraight

line

basis

over

the

lease

term. Contingentrentalincomeisrecognizedasincomeintheperiodsinwhichitisearned. Lease

incentivesgrantedarerecognizedasanintegralpartofthetotalrentalincome.

o)

Incomeandothertaxes

Current tax assets and liabilities for the current and prior periods are measured at the amount

expected to be recovered from or paid to the taxation authorities based on the current period's

taxableincome.Thetaxratesandtaxlawsusedtocomputetheamountarethosethatareenacted

orsubstantivelyenactedbythebalancesheetdate.

Deferredincometaxisprovidedonalltemporarydifferencesatthebalancesheetdatebetweenthe

tax

bases

of

assets

and

liabilities

and

their

carrying

amounts

for

financial

reporting

purposes.

Deferredincometaxliabilitiesarerecognisedforalltaxabletemporarydifferencesexcept:

whenthedeferredincometaxliabilityarisesfromtheinitialrecognitionofgoodwillorofan

assetorliabilityinatransactionthatisnotabusinesscombinationandthat,atthetimeof

thetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;or

when the taxable temporary difference is associated with investments in subsidiaries,

associates or interests injoint ventures, and the timing of the reversal of the temporary

differencecanbecontrolledanditisprobablethatthetemporarydifferencewillnotreverse

in

the

foreseeable

future.

Deferredincometaxassetsarerecognisedforalldeductibletemporarydifferences,carryforwardof

unusedtaxcreditsandunusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbe

availableagainstwhich thedeductible temporarydifferencesand thecarryforwardofunused tax

creditsandunusedtaxlossescanbeutilised,except:

whenthedeferred incometaxassetrelatingtothedeductibletemporarydifferencearises

from the initial recognition of an asset or liability in a transaction that is not a business

combination and, at the time of the transaction, affects neither the accounting profit nor

taxableprofitorloss;or

when the deductible temporary difference is associated with investments in subsidiaries,

associatesorinterestsinjointventures,inwhichcaseadeferredtaxassetisonlyrecognised

totheextentthatitisprobablethatthetemporarydifferencewillreverseintheforeseeable

o

p

s

o

u

e

o

y


20/32



31DECEMBER2007

ACN120394194


16

future

and

taxable

profit

will

be

availableagainst

which

the

temporary

difference

can

be

utilised.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and

reducedtotheextentthat it isno longerprobablethatsufficienttaxableprofitwillbeavailableto

allowallorpartofthedeferredincometaxassettobeutilised.

Unrecognised deferred income tax assets are reassessed at each balance sheet date and are

recognised to the extent that it has become probable that future taxable profit will allow the

deferredtaxassettoberecovered.

Deferredincome

tax

assets

and

liabilities

are

measured

at

the

tax

rates

that

are

expected

to

apply

to

theyearwhentheasset isrealisedorthe liability issettled,basedontaxrates(andtax laws)that

havebeenenactedorsubstantivelyenactedatthebalancesheetdate.

Incometaxesrelatingtoitemsrecogniseddirectlyinequityarerecognisedinequityandnotinprofit

orloss.

Deferredtaxassetsanddeferredtax liabilitiesareoffsetonly ifa legallyenforceablerightexiststo

set off current tax assets against current tax liabilities and the deferred tax assets and liabilities

relatetothesametaxableentityandthesametaxationauthority.

Tax

consolidation

legislation

Integrated Legal Holdings Limited and its whollyowned Australian controlled entities have

implementedthetaxconsolidationlegislationasof10August2007.

Theheadentity,IntegratedLegalHoldingsLimitedandthecontrolledentitiesinthetaxconsolidated

groupcontinuetoaccountfortheirowncurrentanddeferredtaxamounts. TheGrouphasapplied

thegroupallocationapproachindeterminingtheappropriateamountofcurrenttaxesanddeferred

taxestoallocatetomembersofthetaxconsolidatedgroup.

In addition to its own current and deferred tax amounts, Integrated Legal Holdings Limited also

recognisesthecurrenttax liabilities(orassets)andthedeferredtaxassetsarisingfromunusedtax

losses

and

unused

tax

credits

assumed

from

controlled

entities

in

the

tax

consolidated

group.

Assets or liabilities arising under tax funding agreements with the tax consolidated entities are

recognisedasamountsreceivablefromorpayabletootherentitiesintheGroup.

Any difference between the amounts assumed and amounts receivable or payable under the tax

funding agreement are recognised as a contribution to (or distribution form) whollyowned tax

consolidatedentities.

o

p

s

o

u

e

o

y


21/32



31DECEMBER2007

ACN120394194


17

Other

taxesRevenues,expensesandassetsarerecognisednetoftheamountofGSTexcept:

when the GST incurred on a purchase of goods and services is not recoverable from the

taxationauthority, inwhichcasetheGST isrecognisedaspartofthecostofacquisitionof

theassetoraspartoftheexpenseitemasapplicable;and

receivablesandpayables,whicharestatedwiththeamountofGSTincluded.

ThenetamountofGSTrecoverablefrom,orpayableto,thetaxationauthorityisincludedaspartof

receivablesorpayablesinthebalancesheet.

CashflowsareincludedintheCashFlowStatementonagrossbasisandtheGSTcomponentofcash

flows arising from investing and financing activities, which is recoverable from, or payable to, the

taxationauthorityisclassifiedaspartofoperatingcashflows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or

payableto,thetaxationauthority.

3)

OTHERREVENUE

Consolidated Parent

Halfyear

ended

31Dec2007Period

ended

31Dec2006

$ $

Rentalrevenue 818

Disbursementsincome 74,851

Sundryincome 1,549

77,218

4)

CASHANDCASHEQUIVALENTS

Consolidated

ParentAt

31Dec2007

At

30Jun2007

$ $

Forthepurposesofthehalfyearcashflowstatement,cashand

cashequivalentsarecomprisedofthefollowing:

Cashatbankandinhand 639,898

Shorttermdeposits 4,400,806 8,788,735

5,040,704 8,788,735

o

p

s

o

u

e

o

y


22/32


23/32



31DECEMBER2007

ACN120394194


19

a)

Descriptionsof

the

Groups

other

intangible

assets

Otherintangiblesrepresentthevalueofleasedpremisesacquiredupontheacquisitionofthe legal

practice of Peter Marks (see note 10) and is carried at cost less accumulated amortisation. This

intangible asset has been assessed as having a finite life and is amortised using the straight line

methodovertheremainingtermofthe lease. Theamortistionhasbeenrecognised inthe income

statementinthelineitemdepreciationandamortisationexpenses.

7) ISSUEDCAPITAL

a) Ordinaryshares

Consolidated Parent

31Dec

2007

30

Jun

2007

$ $

63,538,320ordinaryfullypaidshares 30,678,545 18,723,452

b)

Movementsinordinarysharecapital

Consolidated Shares $

Openingbalanceat1July2007 37,446,904 18,723,452

Issueofsharesatavalueof50centspershare

on17August2007:

Share

issue

for

initial

public

offering

Sharesissuedforacquisitionofsubsidiary

24,833,3201,258,096

12,416,660629,048

Capitalraisingcosts,netofrelatedincometaxbenefits (1,090,615)

Balanceat31December2007 63,538,320 30,678,545

Effective1July1998,theCorporations legislationabolishedtheconceptsofauthorisedcapitaland

parvalueshares. Accordingly,thecompanydoesnothaveauthorisedcapitalorparvalueinrespect

ofitsissuedcapital.

Fullypaidordinarysharescarryonevotepershareandcarrytherighttodividends.

8)

SEGMENTINFORMATION

The company operates predominantly in one business and geographical segment, being the

identification,acquisitionand integrationof lawfirmsand informationtechnologyorganisationsto

provideanetworkedservicetoclients.

9)

CONTINGENTLIABILITIESANDCONTINGENTASSETS

Therearenocontingentliabilitiesorassetsasat31December2007.

10)

BUSINESSCOMBINATIONS

Accountingforthefollowingacquisitionofbusinessesremainsprovisionallydeterminedbecauseall

circumstancesandfactorsaffectingfairvaluesoftheidentifiablenetassetsacquiredhaveyettobe

finalisedattheendoftheperiod.

o

p

s

o

u

e

o

y


24/32



31DECEMBER2007

ACN120394194


20

Thefactors

contributing

to

goodwill

recognised

relate

to

the

synergies

existing

within

the

acquired

businessesanditscombinedprofessionalworkforce.

AcquisitionofTalbotOlivier

On11 January2006, thecompany (through itsagent,LawCentralCoPtyLtd)and the foundation

partnersofTalbotOlivierenteredintoanOptionAgreementwherebyanoptionwasgrantedtothe

company,exercisablethroughitswhollyownedsubsidiaryTalbotOlivierPtyLtd,toacquire100%of

theTalbotOlivierbusinessassets. Thisagreementwassubsequentlyvariedbyanagreementdated

19September2006andwas furtheramendedbyagreementsbetweenthesamepartiesdated12

March2007and15May2007.

Theoption

was

exercised

on

10

August

2007

and

the

purchase

price

agreed

to

be

paid

in

cash

upon

theexerciseoftheoptionwas$3,194,648.

TalbotOlivierPtyLtd,tradingasTalbotOlivier,wasincorporatedon10August2007andisawholly

ownedsubsidiaryofIntegratedLegalHoldingsLimited.

Thefollowingconstitutesthecalculationoftheconsiderationgivenandthefairvalueofnetassets

acquiredinTalbotOlivier:$

Consideration

Cash 3,194,648

Directcostsrelatingtotheacquisition 167,394

Totalcash

consideration

3,362,042

Totalacquisitioncost 3,362,042

Fair

Value

$

Carrying

Amount

$

Netassetsacquired

Assets

Plantandequipment 130,866 130,866

Workinprogress 200,000 200,000

Prepayments 164,079 164,079

Totalassetsacquired 494,945 494,945

Liabilities

Provisionforinsurancepremium 134,136 134,136

Totalliabilitiesacquired 134,136 134,136

Netassetsacquired 360,809 360,809

Goodwillonacquisition 3,001,233

Fromthedateofacquisition,TalbotOlivierhascontributed$977,572tothenetprofitaftertaxof

theGroup.

If the combination had taken place at the beginning of the year, the profit from continuing

operations for the Group would have been $1,144,133 and revenue from continuing operations

wouldhavebeen$5,604,590.

o

p

s

o

u

e

o

y


25/32



31DECEMBER2007

ACN120394194


21

$

Thecashoutflowonacquisitionisasfollows:

Netcashacquiredwiththebusiness

Cashpaid 3,194,648

Netconsolidatedcashoutflow 3,194,648

BrettDaviesLawyers

On30March2007,thecompany(throughitsagent,LawCentralCoPtyLtd)andBrettDavies,owner

oftheBrettDaviesLawyersbusinessassets,enteredintoanOptionAgreementwherebyanoption

wasgranted

to

the

company,

exercisable

through

its

wholly

owned

subsidiary

Tax

Lawyers

Australia

PtyLtd,toacquire100%oftheBrettDaviesLawyersbusinessassets.

Theoptionwasexercisedon10August2007andthepurchasepriceagreedtobepaidincashupon

theexerciseoftheoptionwas$804,000.

TaxLawyersAustraliaPtyLtd,tradingasBrettDaviesLawyers,was incorporatedon8August2007

andisawhollyownedsubsidiaryofIntegratedLegalHoldingsLimited.


acquiredinBrettDaviesLawyers:

$

Consideration

Cash 804,000

Directcostsrelatingtotheacquisition 37,116

Totalcashconsideration 841,116

Totalacquisitioncost 841,116

Fair

Value

$

Carrying

Amount

$

Netassetsacquired

Assets




Goodwillonacquisition 823,662

Thegoodwilldisclosedabove,beingtheexcessofthecostoftheacquisitionovertheidentifiablenet

assetsacquired,isnotfullysupportedbytheresultsofindependentvaluationsandhasbeenwritten

down to the independent valuationamountof$704,000. The impairmentexpense thathasbeen

recognisedintheincomestatementis$119,662.

Fromthedateofacquisition,BrettDaviesLawyershasincurredalossof$53,494. Thislossincludes

theimpairmentexpenseof$119,662.

If

the

combination

had

taken

place

at

the

beginning

of

the

year,

the

profit

from

continuing

operationsfortheGroupwouldhavebeen$929,435andrevenuefromcontinuingoperationswould

havebeen$4,652,359.

o

p

s

o

u

e

o

y


26/32



31DECEMBER2007

ACN120394194


22

$Thecashoutflowonacquisitionisasfollows:


Cashpaid 804,000

Netconsolidatedcashoutflow 804,000

AcquisitionofLawCentralCoPtyLtd

UnderthetermsoftheProspectusdated16May2007,thecompanyofferedtoacquire100%ofthe

fullypaidordinaryshares inthecapitalofLawCentralCoPtyLtd. Theofferwasconditionalupon

theacceptanceoftheofferbyatleast90%oftheLawCentralCoPtyLtdshareholdersby15August

2007.

Thisconditionwassatisfiedinfulland100%oftheLawCentralCoPtyLtdshareholdersacceptedthe

offer.

The consideration offered by Integrated Legal Holdings Limited was 0.105028 fully paid ordinary

sharesinthecompanytogetherwithacashpaymentof$0.04736011forevery1LawCentralCoPty

Ltdshare. Settlementtookplaceon10August2007and IntegratedLegalHoldingsLimited issued

1,258,096sharesinthecompanyandpaid$2,700,000incashtothevendors.


acquiredin

Law

Central

Co

Pty

Ltd:

$

Consideration

Cash 2,700,000

Totalcashconsideration 2,700,000

Sharesissuedatfairvalue 629,048

Totalacquisitioncost 3,329,048

Fair

Value

$

Carrying

Amount

$

Netassetsacquired

Assets

Cash

and

cash

equivalents

220,953

220,953

Tradeandotherreceivables 995,879 995,879

Property,plantandequipment 37,173 37,173

Deferredtaxassets 14,684 14,684

1,268,689 1,268,689

Liabilities

Tradeandotherpayables 200,031 200,031

Interestbearingloansandborrowings 15,060 15,060

Incometaxpayable 80,972 80,972

Provisions 259,742 259,742



Goodwillonacquisition 2,616,164

Thegoodwilldisclosedabove,beingtheexcessofthecostoftheacquisitionovertheidentifiablenet

assetsacquired,isnotfullysupportedbytheresultsofindependentvaluationsandhasbeenwritten

o

p

s

o

u

e

o

y


27/32



31DECEMBER2007

ACN120394194


23

downto

the

independent

valuation

amount

of

$2,520,000.

The

impairment

expense

that

has

been

recognisedintheincomestatementis$96,164.

Fromthedateofacquisition,LawCentralCoPtyLtdhascontributed$95,048tothenetprofitofthe

Group.

If the combination had taken place at the beginning of the year, the profit from continuing

operationsfortheGroupwouldhavebeen$891,714andrevenuefromcontinuingoperationswould

havebeen$4,611,480.

$

Thecash

outflow

on

acquisition

is

as

follows:

Netcashacquiredwiththebusiness 220,953

Cashpaid 2,700,000

Netconsolidatedcashoutflow 2,479,047

PeterMarksSuccessionLawyers

On 19 September 2007, the company, through its wholly owned subsidiary Talbot Olivier Pty Ltd,

acquired 100% of the legal practice of the late Peter Marks trading as Peter Marks Succession

Lawyers. Thisacquisition wasmerged into theexistingpracticeofTalbotOlivier. Theacquisition

promotes the companys business strategy which encourages acquired practices to enhance their

owngrowth

aspirations

via

the

acquisition

of

complementary

practices.

The assets purchased include goodwill and business assets excluding all work in progress and

outstandingdebtors.


acquiredinthepracticeofPeterMarksSuccessionLawyers:$

Consideration

Cash 50,000

Deferredcashconsideration 75,000


Totalacquisition

cost

125,000

Fair

Value

$

Carrying

Amount

$

Netassetsacquired

Assets


Intangibleassets 163,254 163,254


Liabilities

Deferredtaxliability 48,976 48,976



Goodwillonacquisition

o

p

s

o

u

e

o

y


28/32



31DECEMBER2007

ACN120394194


24

Itis

impracticable

to

disclose

Peter

Marks

Succession

Lawyers

profit

and

revenue

from

continuing

operations for the Group prior to acquisition as the information is not available. The acquirees

contribution to the net profit of the Group cannot be determined as this business has been

incorporatedintotheTalbotOlivierbusiness.

$



Cashpaid 125,000


ShayneLeslie

On28September2007, thecompany, through itswhollyownedsubsidiary,TalbotOlivierPtyLtd,

acquiredthelegalpracticeofShayneLeslie. Thisacquisitionwasmergedintotheexistingpracticeof

TalbotOlivier.

Theconsiderationforthepurchaseiscashonly.


acquiredinthepracticeofShayneLeslie:$

Consideration

Cash 50,000Directcostsrelatingtotheacquisition 55,000


Totalacquisitioncost 105,000

Fair

Value

$

Carrying

Amount

$

Netassetsacquired

Goodwillonacquisition 105,000

ItisimpracticabletodiscloseShayneLesliesprofitandrevenuefromcontinuingoperationsforthe

Groupprior

to

acquisition

as

the

information

is

not

available.

The

acquirees

contribution

to

the

net

profit of the Group cannot be determined as this business has been incorporated into the Talbot

Olivierbusiness.

$



Cashpaid 50,000


o

p

s

o

u

e

o

y


29/32


30/32

GHM:NR:ILH:016 26

Liability limited by a scheme approved under

Professional Standards Legislation.

Auditors Independence Declaration to the Directors of Integrated Legal Holdings Limited

In relation to our review of the financial report of Integrated Legal Holdings Limited for the half-year ended31 December 2007, to the best of my knowledge and belief, there have been no contraventions of theauditor independence requirements of the Corporations Act 2001 or any applicable code of professional

conduct.

Ernst & Young

G H MeyerowitzPartnerPerth

29 February 2008

o

p

s

o

u

e

o

y


31/32

GHM:NR:ILH:015 27

Liability limited by a scheme approved under

Professional Standards Legislation.

To the members of Integrated Legal Holdings Limited

Report on the Condensed Half-Year Financial Report

We have reviewed the accompanying half-year condensed financial report of Integrated Legal HoldingsLimited, which comprises the consolidated balance sheet as at 31 December 2007, and the consolidated

income statement, consolidated statement of changes in equity and consolidated cash flow statement for thehalf-year ended on that date, other selected explanatory notes and the Directors Declaration of theconsolidated entity comprising the company and the entities it controlled at the half-year end or from timeto time during the half-year.

Directors Responsibility for the Half- Year Financial Report

The directors of the company are responsible for the preparation and fair presentation of the half-yearfinancial report in accordance with Australian Accounting Standards (including the Australian AccountingInterpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaininginternal controls relevant to the preparation and fair presentation of the half-year financial report that is free

from material misstatement, whether due to fraud or error; selecting and applying appropriate accountingpolicies; and making accounting estimates that are reasonable in the circumstances.

Auditors Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review.

We conducted our review in accordance with Auditing Standard on Review Engagements (ASRE) 2410Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to statewhether, on the basis of the procedures described, we have become aware of any matter that makes us

believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a trueand fair view of the consolidated entitys financial position as at 31 December 2007 and its performance for

the half-year ended on that date; and complying with Accounting Standard AASB 134 InterimFinancialReporting and the Corporations Regulations 2001 and other mandatory financial reporting requirements inAustralia. As the auditor of Integrated Legal Holdings Limited and the entities it controlled during the half-year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annualfinancial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for

financial and accounting matters, and applying analytical and other review procedures. A review issubstantially less in scope than an audit conducted in accordance with Australian Auditing Standards andconsequently does not enable us to obtain assurance that we would become aware of all significant mattersthat might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act

2001. We have given to the directors of the company a written Auditors Independence Declaration, a copyof which is included in the financial report.

o

p

s

o

u

e

o

y


32/32

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believethat the interim financial report of Integrated Legal Holdings Limited is not in accordance with the

Corporations Act 2001, including:

(i) giving a true and fair view of the consolidated entitys financial position as at 31 December2007 and of its performance for the half-year ended on that date; and

(ii) complying with Accounting Standard AASB 134 Interim Financial Reporting and theCorporations Regulations 2001.

Ernst & Young

G H MeyerowitzPartnerPerth

29 February 2008

o

p

s

o

u

e

o

y

020.asx iaw feb 29 2008 appendix 4d half yearly reports

Documents