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Australian Accounting Standards Board -Financial report

Auditor’s report
Statement by directors
Statement of financial performance
Statement of financial position
Statement of cash flows
Schedule of commitments
Schedule of contingencies
Notes to and forming part of the financial statements

 

Australian Accounting Standards Board - Statement by the Directors and Chief Executive

In our opinion, the attached financial statements for the year ended 30 June 2004 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australian Accounting Standards Board will be able to pay its debts as and when they become due and payable.

This Statement is made in accordance with a resolution of the directors.

SIGNED	SIGNED	SIGNED
C. Macek Chairman 20 September 2004	Graeme McGregor Director 20 September 2004	David Boymal Chief Executive 20 September 2004

Australian Accounting Standards Board statement of financial performance for the year ended 30 June 2004

	Notes	2004 $	2003 $
Revenues from ordinary activities
Revenues from government	5A	1,500,000	1,500,000
Sales of publications	5B	136,040	160,109
Interest	5C	99,051	50,910
Grants and contributions	5D	3,545,000	2,600,000
Other revenues		1,964	21,704
Total revenues from ordinary activities		5,282,055	4,332,723
Expenses from ordinary activities
Employees	6A	2,141,986	2,322,072
Suppliers	6B	834,648	991,838
Depreciation and amortisation	6C	100,234	155,185
Other — contribution to IASCF	6D	300,000	700,000
Total expenses from ordinary activities		3,376,868	4,169,095
Net surplus		1,905,187	163,628
Total changes in equity other than those resulting from transactions with owners as owners		1,905,187	163,628

The above statement should be read in conjunction with the accompanying notes.

Australian Accounting Standards Board statement of financial position as at 30 June 2004

	Notes	2004 $	2003 $
ASSETS
Financial assets
Cash	7A	3,068,761	1,904,727
Receivables	7B	63,265	25,297
Total financial assets		3,132,026	1,930,024
Non-financial assets
Leasehold improvements	8A,C	16,223	64,891
Plant and equipment	8B,C	116,706	105,281
Inventory	8D	2,638	3,090
Prepaid expenses		20,689	14,081
Total non-financial assets		156,256	187,343
Total assets		3,288,282	2,117,367
LIABILITIES
Provisions
Employees	9A	638,664	647,935
Total provisions		638,664	647,935
Payables
Suppliers	10	90,811	121,996
Subscriptions in advance		45,056	47,431
Other	10	44,983	736,424
Total payables		180,850	905,851
Total liabilities		819,514	1,553,786
NET ASSETS		2,468,768	563,581
EQUITY
Accumulated surplus	11	2,468,768	563,581
Total equity		2,468,768	563,581
Current liabilities		283,817	1,008,148
Non-current liabilities		535,697	545,638
Current assets		3,155,353	1,947,195
Non-current assets		132,929	170,172

The above statement should be read in conjunction with the accompanying notes.

Australian Accounting Standards Board statement of cash flows for the year ended 30 June 2004

	Notes	2004 $	2003 $
OPERATING ACTIVITIES
Cash received
Revenue from government		1,500,000	1,500,000
Goods and services		147,795	178,843
Interest		99,051	50,910
GST recovered from taxation authority		111,329	113,735
Grants and contributions		3,560,000	2,615,000
Other		44,542	21,703
Total cash received		5,462,717	4,480,191
Cash used
Employees		2,250,069	2,234,864
Suppliers		1,889,555	1,059,841
GST paid to taxation authority		96,068	102,191
Total cash used		4,235,692	3,396,896
Net cash from operating activities	12	1,227,025	1,083,295
INVESTING ACTIVITIES
Cash received
Proceeds from sale of plant and equipment		-	-
Cash used
Purchase of property, plant and equipment		(62,991)	(43,371)
Total cash used		(62,991)	(43,371)
Net cash used by investing activities		(62,991)	(43,371)
Net increase in cash held		1,164,034	1,039,924
Cash at the beginning of the reporting period	7A	1,904,727	864,803
Cash at the end of the reporting period	7A	3,068,761	1,904,727

The above statement should be read in conjunction with the accompanying notes.

Australian Accounting Standards Board schedule of commitments as at 30 June 2004

	Notes	2004 $	2003 $
BY TYPE
Other commitments
Operating leases		160,398	97,609
Total other commitments		160,398	97,609
Commitments receivable*		(23,672)	(44,000)
Net commitments		136,726	53,609
BY MATURITY
Operating lease commitments
One year or less		50,948	79,208
From one to five years		109,450	18,401
Total operating lease commitments		160,398	97,609
Commitments receivable		(23,672)	(44,000)
Net commitments		136,726	53,609

All commitments are GST inclusive where relevant.

* Includes commitment of Australian Stock Exchange (the lessor of the AASB’s premises) to make annual grants to the AASB to cover future premises lease rental commitments.

Operating leases are effectively non-cancellable and comprise:

Nature of lease	General description of leasing arrangement
Lease for office accommodation	Lease payments are subject to increase in accordance with upward movements in the Consumer Price Index. Note 4. refers to new accommodation lease from 1 September 2004.
Lease of photocopiers	The lessors provide photocopiers for 40 – 60 months at fixed instalment rates, plus copy charges at rates which may vary each year.

Australian Accounting Standards Board schedule of contingencies as at 30 June 2004

At 30 June 2004 an amount of $1 million, earmarked for payment as a contribution to the International Accounting Standards Committee Foundation (IASCF), is held by the AASB. Payment of this contribution is contingent upon a decision by the FRC. It is expected the contribution will be paid in the first half of 2004-05.

 

Australian Accounting Standards Board

Notes to and forming part of the financial statements

Note 1: Summary of significant accounting policies

1.1 Basis of accounting

The financial statements are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 and are a general purpose financial report.

The statements have been prepared in accordance with:

• Finance Minister’s Orders (being the Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 30 June 2004));
• Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; and
• Consensus Views of the Urgent Issues Group.

The Australian Accounting Standards Board (AASB) Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

Assets and liabilities are recognised in the AASB Statement of Financial Position when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. Assets and liabilities arising under agreements equally proportionately unperformed are however not recognised unless required by an accounting standard. Liabilities and assets which are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies.

Revenues and expenses are recognised in the AASB Statement of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.

1.2 Changes in accounting policy

The accounting policies used in the preparation of these financial statements are consistent with those used in 2002-03 except where stated.

1.3 Revenue

The revenues described in this note are revenues relating to the core operating activities of the AASB.

The full amount of revenue from government for the year is recognised as revenue.

Certain of the grants and contributions revenue is earmarked as a contribution to the International Accounting Standards Committee Foundation (IASCF) and will be expended in 2004-05. Further funding was provided in 2003-04 to meet the 2004-05 operating costs of the AASB and to meet the costs of relocation of the AASB to co-locate with the newly established Auditing and Assurance Standards Board (AUASB).

Revenue from the sale of publications is recognised upon the delivery of publications to customers. Revenue from subscription services is recognised for the period of the subscription which falls within the financial year.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Services received free of charge are recognised when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value as revenue when the asset qualifies for recognition.

Revenue from disposal of non-current assets is recognised when control of the asset has passed to the buyer.

1.4 Employee benefits

(a) Benefits

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.

Liabilities for wages and salaries and annual leave are measured at their nominal amounts. Other employee benefits expected to be settled within 12 months of their reporting dates are also measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.

(b) Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the AASB is estimated to be less than the annual entitlements for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration including the AASB employer superannuation contribution rates to the extent that leave is likely to be taken during service rather than paid out on termination.

The non-current portion of the liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2004. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

(c) Superannuation

The AASB sponsors the AASB Superannuation Plan, which provides accumulation benefits to members.

For certain employees, the AASB has guaranteed minimum accumulated balances equivalent to benefits under a defined benefit plan. Vested and accrued benefits of these members as at 30 June 2004 amounted to $1,985,275 (2003: $1,692,663) compared to the net market value of attributable assets of $1,789,489 (2003: $1,428,492), giving a deficiency of $195,786 (2003: deficiency $264,171). A provision for this guaranteed deficiency has been recognised at 30 June 2004 (refer Notes 6A and 9A).

Contributions during the year ended 30 June 2004 on behalf of employees with minimum guaranteed benefits amounted to $58,159 (2003: $294,412). Contribution expense represents the annual funding which is determined based on actuarial advice and the provision for the deficient asset position. The provision has been reduced by $68,385 in 2004.

1.5 Leases

Operating lease payments are expensed on a basis which is representative of the pattern of benefits derived from the leased assets.

1.6 Cash

Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount. Interest is credited to revenue as it accrues.

1.7 Financial instruments

Accounting policies for financial instruments are stated at Note 19.

1.8 Acquisition of assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition.

1.9 Leasehold improvements, plant and equipment

Asset recognition threshold

Purchases of plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases less than $500, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Revaluations

Leasehold improvements, plant and equipment are carried at valuation. Valuations at fair value, as at 30 June 2003, were Directors’ valuations after a review of all leasehold improvements, plant and equipment assets, their useful lives, depreciation rates and methods applied. No revaluations have been made in the year ended 30 June 2004.

Depreciation and amortisation

Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the AASB using, in all cases, the straight line method of depreciation. Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change in prices only when assets are revalued.

Depreciation and amortisation rates applying to each class of depreciable asset are based on the following useful lives:

	2004	2003
Leasehold improvements	Lease term	Lease term
Plant and equipment	3 to 10 years	3 to 10 years

1.10 Impairment of non-current assets

Non-current assets carried at cost or directors’ valuation have been assessed as having no indications of impairment. Consequently there has been no change to the carrying amounts of non-current assets.

1.11 Inventories

Inventories held for resale are valued at the lower of cost and net realisable value.

1.12 Taxation

The AASB is exempt from all forms of taxation except fringe benefits tax and the goods and services tax (GST).

Revenues, expenses and assets are recognised net of GST:

• except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
• except for receivables and payables.

1.13 Insurance

The AASB has taken insurance cover considered appropriate through the Government’s insurable risk managed fund, called ‘Comcover’. Workers compensation is insured through Comcare Australia.

1.14 Foreign currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency transactions relate primarily to currency obtained for overseas travel. The amounts and any associated gains or losses are not material.

1.15 Comparative figures

Comparative figures have been adjusted to conform to changes in presentation in these financial statements where required.

Note 2: Adoption of Australian equivalents to International Financial Reporting Standards from 2005-2006

Accounting Standard AASB 1047 Disclosing the Impact of Adopting Australian Equivalents to IFRSs requires that the financial statements for 2003-04 disclose:

• An explanation of how the transition to the Australian equivalents is being managed; and
• A narrative explanation of the key differences in accounting policies arising from the transition.

The purpose of this note is to make these disclosures.

The Australian Accounting Standards Board has issued replacement Australian Accounting Standards to apply from 2005-06. The new standards are the Australian equivalents to International Financial Reporting Standards (IFRSs) which are issued by the International Accounting Standards Board. The new standards cannot be adopted early. The standards being replaced are to be withdrawn with effect from 2005-06, but continue to apply in the meantime.

It is expected that the Finance Minister will continue to require compliance with the Accounting Standards issued by the AASB, including the Australian equivalents to IFRSs, in his Orders for the Preparation of Authorities’ financial statements for 2005-06 and beyond.

The Australian equivalents to IFRSs contain certain additional provisions which will apply to not-for-profit entities, including the AASB. However, it is expected that the AASB will be able to assert compliance with the Australian equivalents to IFRSs.

Existing AASB standards that have no IFRS equivalent will continue to apply.

Management of the transition to Australian equivalents to IFRSs

The AASB has taken the following steps in preparation for the implementation of Australian equivalents to IFRSs:

• Identification of all major accounting policy differences between current AASB standards and Australian equivalents to IFRSs;
• Identification of system changes necessary to be able to report under Australian equivalents to IFRSs, including those necessary to enable capture of data under both sets of rules for 2004-05; and
• Preparation of a transitional balance sheet as at 1 July 2004, under Australian equivalents to IFRSs, within two months of 30 June 2004.

Changes to major accounting policies are as follows:

Property, plant and equipment:

Prior to 2002-03 the AASB reported assets at cost. At 30 June 2003 these assets were reviewed and reported at fair value based on a Director’s valuation. The AASB intends to continue to report property, plant and equipment at fair value and accordingly the application of Australian equivalents to IFRSs is expected to have no effect on the carrying value of these assets. In accordance with Australian equivalents of IFRSs, property, plant and equipment will be subject to impairment testing.

Financial instruments:

Financial assets and liabilities will be accounted for at fair value. Fair values will be published prices where an active market exists or by appraisal.

Cash and receivables will continue to be measured at cost.

Financial assets, except those classified as ‘held at fair value through profit and loss’ will be subject to impairment testing.

This is not expected to have a material effect on any carrying values.

Note 3: Economic dependency

The AASB is dependent on funding from the Parliament of the Commonwealth and on grants from the States and Territories and contributions from CPA Australia, The Institute of Chartered Accountants in Australia, the National Institute of Accountants and the Australian Stock Exchange, and donations from other entities to carry out its normal activities.

Note 4: Events occurring after reporting date

On 20 July 2004, the AASB signed a letter of agreement to lease new premises for the relocation of the AASB and co-location with the newly established Auditing and Assurance Standards Board, from 1 August 2004 (later revised to 1 September 2004). This decision will affect the financial situation of the AASB. There will be significantly increased tenancy costs and the Financial Reporting Council has approved the necessary funding to meet these costs.

Note 5: Operating revenues

	2004	2003
	$	$
5A. Revenues from government
ASIC funding	1,500,000	1,500,000
	1,500,000	1,500,000
5B. Sales of publications
Publications	136,040	160,109
Sale of publications to:
Related entities	3,803	3,342
External entities	132,237	156,767
Total sales of publications	136,040	160,109
Cost of sales of publications	39,022	74,658
5C. Interest
Deposits	99,051	50,910
5D. Grants and contributions
Grants from States and Territories	500,000	500,000
Other contributions:
CPA Australia	325,000	325,000
The Institute of Chartered Accountants in Australia	325,000	325,000
National Institute of Accountants	100,000	100,000
Australian Stock Exchange	60,000	60,000
Voluntary Corporate Contributions	235,000	290,000
Financial Institutions Development Account (for contribution to IASCF)	1,000,000	1,000,000
Companies Unclaimed Monies Account (for 2003-04 and 2004-05 operating expenses, and 2004-05 relocation)	1,000,000	-
Total grants and contributions revenue	3,545,000	2,600,000

Note 6: Operating expenses

	2004	2003
	$	$
6A. Employee expenses
Wages and salaries	1,901,228	1,953,711
Superannuation*	164,227	380,181
Leave and other benefits	67,469	(18,360)
Total employee benefits expenses	2,132,924	2,315,532
Comcare premium	9,062	6,540
Total employee expenses	2,141,986	2,322,072
* Includes a decrease in the provision for superannuation of $68,385 (increase of $93,941 in 2003) [Note 1.4 (c)]
6B. Suppliers expenses
Goods from related entities	-	1,130
Goods from external entities	124,052	150,724
Services from related entities	169,443	97,992
Services from external entities	444,874	646,519
Operating lease rental	96,279	95,473
Total suppliers expenses	834,648	991,838
* 2003 includes $128,889 attributable to the operations of the Financial Reporting Council. From 1 July 2003 FRC expenses have been met by the Department of Treasury.
6C. Depreciation and amortisation
Depreciation of property, plant and equipment	100,234	155,185
The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class of depreciable asset are as follows:
Leasehold improvements	48,668	96,076
Plant and equipment	51,566	59,109
Total depreciation and amortisation	100,234	155,185
6D. Other
Contribution to the International Accounting Standards Committee Foundation towards the development of international accounting standards	300,000	700,000
Total other	300,000	700,000

Note 7: Financial assets

	2004	2003
	$	$
7A. Cash
Cash at bank and on hand	3,068,761	1,904,727
Balance of cash as at 30 June shown in the Statement of Cash Flows	3,068,761	1,904,727
7B. Receivables
Goods and services	42,661	273
GST receivable	20,604	25,024
	63,265	25,297
Receivables (gross) are aged as follows:
Not overdue	63,265	25,297

Note 8: Non-financial assets

	2004	2003
	$	$
8A. Leasehold improvements
Leasehold improvements at valuation — 30 June 2003	364,313	364,313
Accumulated amortisation	(348,090)	(299,422)
Total leasehold improvements	16,223	64,891
8B. Plant and equipment
Plant and equipment at cost	62,991	-
Plant and equipment at valuation — 30 June 2003	187,134	239,222
Accumulated depreciation	(133,419)	(133,941)
Total plant and equipment	116,706	105,281

8C. Analysis of leasehold improvements, plant and equipment
Table A1: Reconciliation of the opening and closing balances of leasehold improvements, plant and equipment
	Leasehold improvements $	Plant and equipment $
As at 1 July 2003
Gross book value	364,313	239,222
Accumulated depreciation/amortisation	(299,422)	(133,941)
Net book value	64,891	105,281
Additions by purchase	-	62,991
Depreciation/amortisation expense	(48,668)	(51,566)
Other disposals	-	(52,088)
As at 30 June 2004
Gross book value	364,313	250,125
Accumulated depreciation/amortisation	(348,090)	(133,419)
Net book value	16,223	116,706

Table A2: Assets at valuation
	Leasehold improvements $	Plant and equipment $	Total $
As at 30 June 2004
Gross book value	364,313	187,134	551,447
Accumulated depreciation/amortisation	(348,090)	(126,349)	(474,439)
Net book value	16,223	60,785	77,008
As at 1 July 2003
Gross book value	364,313	239,222	603,535
Accumulated depreciation/amortisation	(299,422)	(133,941)	(433,363)
Net book value	64,891	105,281	170,172

	2004	2003
	$	$
8D. Inventories
Inventories held for sale	2,638	3,090
Total inventories	2,638	3,090

All inventories are current assets.

Note 9: Provisions

	2004	2003
	$	$
9A. Employee provisions
Salaries and wages	2,145	10,500
Annual Leave	190,986	162,338
Long Service Leave	249,747	210,926
Superannuation [Note 1.4 (c)]	195,786	264,171
Aggregate employee benefit liability	638,664	647,935
Employee provisions are categorised as follows:
Current	102,968	102,297
Non-current	535,696	545,638
Total	638,664	647,935

Note 10: Payables

	2004	2003
	$	$
Trade creditors	90,811	121,996
Other payables *	44,982	736,424
Total	135,793	858,420

All supplier payables are current.

* 2003 other payables was comprised of $700,000 to be paid to the International Accounting Standards Committee Foundation as a contribution to the development of international accounting standards. The FRC decision to make this contribution was made on 27 June. The transfer of funds took place on 3 July 2003. The balance of Other payables at 30 June 2003 was PAYG tax for June, paid on 1 July 2003.

Note 11: Equity

	Accumulated results
	2004	2003
	$	$
Opening balance 1 July	563,581	399,953
Net surplus	1,905,187	163,628
Closing balance as at 30 June	2,468,768	563,581
Total equity attributable to the Commonwealth	2,468,768	563,581

Note 12: Cash flow reconciliation

Reconciliation of net surplus to net cash from operating activities

	2004	2003
	$	$
Net surplus	1,905,187	163,628
Depreciation and amortisation	100,234	155,185
Changes in assets and liabilities
Decrease/(increase) in receivables	(37,968)	7,770
Decrease/(increase) in inventories	452	210
Decrease/(increase) in prepaid expenses	(6,608)	2,357
Increase/(decrease) in employee provisions	(9,271)	82,303
Increase/(decrease) in liability to suppliers	(31,185)	(48,375)
Decrease in subscriptions in advance	(2,375)	(16,207)
Increase/(decrease) in other payables	(691,441)	736,424
Net cash from operating activities	1,227,025	1,083,295

Note 13: Directors’ remuneration

	2004	2003
The number of directors of the AASB included in these figures are shown below in the relevant remuneration bands
$ Nil — $9,999	-	1
$80,000 — 89,999	-	1
Total	-	2
Total remuneration received by directors of the AASB*	-	$94,674

* Directors’ remuneration relates to the FRC Chairman. From 1 July 2003 all FRC related expenses have been met by the Department of Treasury. This includes the Chairman’s salary (including superannuation) of $27,250.

Note 14: Related party disclosures

The Directors and Alternate Directors of the AASB during the year were:

• Charles Macek — Chairman
• Elizabeth Alexander AM — Deputy Chairman
• Don Challen
• Karen Hamilton
• David Jackson
• John Langoulant
• Graeme McGregor AO
  • Greg Larsen (Alternate to Mr McGregor)
• Jim Murphy
  • Mike Rawstron (Alternate to Mr Murphy)
• Tom Pockett
• Gregory Pound
• Phillip Prior
  • Jim Kerwin (Alternate to Mr Prior)
• Brian Scullin
  • Jenifer Wells (Alternate to Mr Scullin — resigned October 2003)
• Ken Spencer
  • (Passed away March 2004)
• Lewis Ting
  • Stephen Harrison AO (Alternate to Mr Ting)
• Catherine Walter AM
• Klaus Zimmermann
  • Roger Cotton (Alternate to Mr Zimmermann)

Note 15: Remuneration of officers

	2004	2003
The number of officers who received or were due to receive total remuneration of $100,000 or more:
$110,001 - $120,000	-	1
$130,001 - $140,000	1	-
$170,001 - $180,000	1	-
$210,001 - $220,000	-	2
$260,001 - $270,000	1	-
	3	3
The aggregate amount of total remuneration of officers shown above	$573,503	$550,846

The officer remuneration includes officers concerned with or taking part in the management of the AASB during 2003-04 except the FRC Chairman. Details in relation to the FRC Chairman have been incorporated into Note 13: Directors’ remuneration.

Note 16: Remuneration of part-time members of the AASB

	2004	2003
	$	$
Sitting fees	94,612	52,080

Note 17: Remuneration of auditors

	2004	2003
	$	$
Remuneration to the Auditor-General for auditing the financial statements for the reporting period	15,000	14,000

No other services were provided by the Auditor-General during the reporting period.

Note 18: Average staffing levels

	2004	2003
The average staffing levels for the AASB during the year were (equivalent full time staff)	21	21

Note 19: Financial instruments

(a) Terms, conditions and accounting policies

Financial instrument	Notes	Accounting policies and methods (including recognition criteria and measurement basis)	Nature of underlying instruments (including significant terms and conditions affecting the amount, timing and certainty of cash flows)
Financial assets		Financial assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured.
Cash	7A	Deposits are recognised at their nominal amounts. Interest is credited to revenue as it accrues.	Temporarily surplus funds are placed on deposit at call with the AASB’s bank in a Business Investment Account.
Receivables	7B	Receivables are recognised at the nominal amounts due less any provision for bad and doubtful debts.	Credit terms are net 14 days (2003: 14 days)
Financial liabilities		Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured.
Supplier payables	10	Creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).	Settlement is usually made net 30 days.
Other payables	10	Refer to Note 10.	Refer to Note 10.

(b) Interest rate risk

Financial assets (recognised)	Notes	Floating interest rate		Non-interest bearing		Total		Weighted average
								effective interest rate
		03-04 $	02-03 $	03-04 $	02-03 $	03-04 $	02-03 $	03-04 %	02-03 %
Cash on hand	7A	-	-	2,669	1,044	2,669	1,044	n/a	n/a
Cash at Bank-Cheque account	7A	38,901	201,042	-	-	38,901	201,042	3.52	3.48
Cash at Bank-AASB Bus Invest A/c	7A	425,638	406,985	-	-	425,638	406,985	4.73	4.53
Cash at Bank-FRC Bus Invest A/c	7A	2,601,553	1,295,656	-	-	2,601,553	1,295,656	4.46	4.33
Receivables	7B	-	-	63,265	25,297	63,265	25,297	n/a	n/a
Total financial assets (recognised)		3,066,092	1,903,683	65,934	26,341	3,132,016	1,930,024
Total assets						3,288,282	2,117,367
Financial liabilities (recognised)
Supplier payables	10	-	-	90,811	121,996	90,811	121,996	n/a	n/a
Other payables	10	-	-	90,039	736,424	90,039	736,424	n/a	n/a
Total financial liabilities (recognised)		-	-	180,850	858,420	180,850	858,420
Total liabilities						819,514	1,553,786

(c) The fair value of financial assets and liabilities approximate their carrying amounts.

(d) Credit risk exposures

The economic entity’s maximum exposure to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the statement of financial position.

The economic entity has no significant exposures to any concentrations of credit risk.