Section 3: Explanatory tables and budgeted financial statements

Budgeted Agency Income Statement

The operating deficit in 2010–11 is primarily driven by high levels of valuation losses on the loan portfolio. IBA loans have concessional interest rates and in line with international accounting standards, the portfolio balances are effectively written-down in IBA's books to reflect a truer market value. Loan settlements in 2010–11 are expected to record a 30% increase over the previous year due to the transfer of $56 million of HOIL capital to the Home Ownership program (HOP). The consequent increased write down of $45 million during the year will result in a net deficit of $12 million.

New loan settlements drop to normal levels in 2011–12 and the impact of the loan write downs is significantly lower at $32 million. The operating results for the budget year is estimated to return to a surplus of $2.0 million.

Budgeted Agency Balance Sheet

• 
  continuing capital injections from Government of $33.2 million
  
• 
  estimated operating surplus of $2.0 million.
  

Statement of cash flows

Statement of changes in equity

Total equity is expected to increase by $36 million to $993 million as at 30 June 2012, with additional equity injection of $33.2 million from the Commonwealth.

3.2.3 Budgeted financial statements tables

Table 3.2.1 comprehensive income statement (showing net cost of services)
(for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

(continued on next page)

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) (continued)

* ‘Equity’ is the residual interest in assets after deduction of liabilities.

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity—summary of movement (Budget year 2011–12)

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

(continued on next page)

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) (continued)

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements (2011–12)

Prepared on Australian Accounting Standards basis.

3.2.4 Notes to the financial statements

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance and Deregulation.

The statements have been prepared:

• 
  on an accrual accounting basis
  
• 
  in compliance with Australian Accounting Standards and Australian Equivalents to International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Boards and the Consensus Views of the Urgent Issues Group.
  

Revenue from government

Represents appropriation from government to Indigenous Business Australia for the delivery of IBA‘s four programs in pursuit of its single outcome. Increases in the ordinary annual appropriations are a result of new measures and variations explained in Section 2.

Expenses – depreciation and amortisation

Property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives using, in all cases, the straight-line method of depreciation

Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Concessional Loan discount

IBA continues to designate its loan portfolio at fair value through profit and loss per paragraph 11A of AASB 139 which provides for contracts with embedded derivatives, such as prepayment options, to be designated at fair value through profit and loss. The variation in the loan portfolio under Fair Value basis is written directly to the Income Statement.

Financial Assets – receivables

This includes loans and advances made by IBA to clients in the delivery of its outputs, in addition to amounts owing to IBA for delivery of goods and services, and dividends owed to IBA from subsidiaries, associates and investments. Loans receivable are carried at Fair value under AASB 139.

Assets – non-financial

Except for any re-valued assets, reported value of plant and equipment represents the purchase price paid less depreciation incurred.

Land and building held for investment are carried at fair value.

Indigenous Land Corporation

Agency resources and planned performance

Directory: sites -> default -> files -> documents
documents -> North Mankato Taylor Library
documents -> In the Red and Brown Water
documents -> -
documents -> Cbp and Trade Automated Interface Requirements Appendix: pga december 22, 2015
documents -> Ace abi catair customs and Trade Automated Interface Requirements
documents -> Ace abi catair customs and Trade Automated Interface Requirements
documents -> Mobile audio/video recording systems
documents -> The south australian government gazette
documents -> All public acts appearing in this gazette are to be considered official, and obeyed as such
documents -> Union interparlementaire inter-parliamentary union

Download 0.59 Mb.

Share with your friends: