Home > Reports > FRC, AASB & AAUSB Annual Report 2007-2008 - Financial Reports

Part 5: Financial Reports

Australian Accounting Standards Board

Independent audit report

Statement by Directors and Chief Executive

Income statement

Balance sheet

Statement of changes in equity

Cash flow statement

Schedule of commitments

Schedule of contingencies

Note 1: Summary of significant accounting policies

Note 2: Events after the Balance Sheet date

Note 3: Income

Note 4: Expenses

Note 5: Financial assets

Note 6: Non-financial assets

Note 7: Payables

Note 8: Provisions

Note 9: Cash flow reconciliation

Note 10: Directors' remuneration

Note 11: Executive remuneration

Note 12: Remuneration of auditors

Note 13: Financial instruments

 

 

Australian Accounting Standards Board Statement by Directors and Chief Executive

In our opinion, the attached financial statements for the year ended 30 June 2008 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.

Australian Accounting Standards Board
Income statement

For the period ended 30 June 2008

	Notes	2008 $	2007 $
INCOME
Revenue
Revenue from Government	3A	2,934,000	2,770,000
Sale of goods and rendering of services	3B	88,213	104,367
Interest	3C	268,656	138,475
Rental income	3D	43,590	35,023
Other revenue	3E	1,979,055	1,427,821
Total revenue		5,313,514	4,475,686
Gains
Sale of assets	3F	-	1,141
Total gains		-	1,141
Total income		5,313,514	4,476,827
EXPENSES
Employee benefits	4A	3,125,763	2,723,774
Suppliers	4B	1,299,818	1,261,058
Contribution	4C	200,000	200,000
Depreciation and amortisation	4D	145,354	139,179
Finance costs	4E	5,208	4,938
Total expenses		4,776,143	4,328,949
Surplus		537,371	147,878

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

Australian Accounting Standards Board
Balance sheet

as at 30 June 2008

	Notes	2008 $	2007 $
ASSETS
Financial assets
Cash and cash equivalents	5A	3,691,295	3,173,831
Trade and other receivables	5B	99,942	57,981
Total financial assets		3,791,237	3,231,812
Non-financial assets
Infrastructure, plant and equipment	6A,C	687,644	744,315
Intangibles	6B,C	18,867	5,524
Inventories	6D	2,682	2,661
Other non-financial assets	6E	87,605	100,085
Total non-financial assets		796,798	852,585
Total assets		4,588,035	4,084,397
LIABILITIES
Payables
Suppliers	7A	65,452	140,580
Other payables	7B	574,019	664,317
Total payables		639,471	804,897
Provisions
Employee provisions	8A	1,309,597	588,111
Other provisions	8B	100,558	95,350
Total provisions		1,410,155	683,461
Total liabilities		2,049,625	1,488,358
Net assets		2,538,410	2,596,039
EQUITY
Retained surplus (accumulated deficit)		2,538,410	2,596,039
Total equity		2,538,410	2,596,039
Current assets		3,809,194	3,253,187
Non-current assets		778,841	831,210
Current liabilities		1,433,519	818,989
Non-current liabilities		616,106	669,369

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

Australian Accounting Standards Board
Statement of changes in equity

for the period ended 30 June 2008

	Retained earnings		Total equity
	2008 $	2007 $	2008 $	2007 $
Opening balance
Balance carried forward from previous period	2,596,039	2,233,160	2,596,039	2,233,160
Income and expenses
Income and expenses recognised
directly in equity
Actuarial gains/(losses)	(595,000)	215,000	(595,000)	215,000
Surplus for the period	537,371	147,879	537,371	147,879
Total income and expenses	(57,629)	362,879	(57,629)	362,879
Closing balance at 30 June 2008	2,538,410	2,596,039	2,538,410	2,596,039

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

Australian Accounting Standards Board
Cash flow statement

for the period ended 30 June 2008

	Notes	2008 $	2007 $
OPERATING ACTIVITIES
Cash received
Revenues from Commonwealth Government		2,885,000	3,057,500
Receipts from publication and subscriptions		133,114	89,279
Interest		277,861	129,269
Net GST received		155,603	249,280
Other cash received		2,065,591	1,530,551
Total cash received		5,517,170	5,055,879
Cash used
Employees		3,016,734	2,640,954
Suppliers		1,591,531	1,201,661
Net GST paid		98,457	293,623
Other cash used		200,000	200,000
Total cash used		4,906,722	4,336,238
Net cash flows from operating activities	9	610,448	719,641
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment		-	22,144
Total cash received		-	22,144
Cash used
Purchase of property, plant and equipment		92,985	599,927
Total cash used		92,985	599,927
Net cash flows (used by) investing activities		(92,985)	(577,783)
FINANCING ACTIVITIES
Cash received
Other cash received		-	710,127
Total cash received		-	710,127
Cash used
Total cash used		-	-
Net cash flows from financing activities		-	710,127
Net increase in cash held		517,463	851,985
Cash and cash equivalents at the beginning
of the reporting period		3,173,831	2,321,846
Cash and cash equivalents at the end of the reporting period	5A	3,691,295	3,173,831

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

Australian Accounting Standards Board
Schedule of commitments

as at 30 June 2008

		2008 $	2007 $
BY TYPE
Commitments receivable
Sublease rental income1		420,329	463,674
GST recoverable on commitments		372,920	459,782
Total commitments receivable		793,249	923,456
Commitments payable
Operating leases2		4,102,120	4,547,558
Other commitments		42,033	46,368
Total commitments payable		4,144,153	4,593,926
Net commitments by type		3,350,904	3,670,470
BY MATURITY
Commitments receivable
One year or less		87,064	88,174
From one to five years		378,585	386,722
Over five years		327,600	448,560
Total commitments receivable		793,249	923,456
Operating lease commitments payable
One year or less		461,833	445,438
From one to five years		1,974,506	1,937,677
Over five years		1,665,781	2,164,443
Total operating lease commitments payable		4,102,120	4,547,558
Other Commitments payable
One year or less		4,508	4,335
From one to five years		19,908	19,143
Over five years		17,617	22,890
Total other commitments payable		42,033	46,368
Net commitments by maturity		3,350,904	3,670,470

NB: Commitments are GST inclusive where relevant.

(1) Part of the leased area is sub-let and this represents the revenue from the sub-lease.

(2) 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 of 4 per cent per annum as per Lease agreement.
Lease of photocopier	The lessor provides a photocopier for 36 months at a fixed instalment rate.

Australian Accounting Standards Board
Schedule of contingencies

as at 30 June 2008

There are no known contingencies as at 30 June 2008.

(Nil contingencies as at 30 June 2007).

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

Notes to and forming part of the financial statements

Note 1: Summary of significant accounting policies

1.1 Objectives of AASB

The financial statements and notes 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 AASB is dependent on funding from the Parliament of the Commonwealth and on contributions from State Treasuries, CPA Australia, The Institute of Chartered Accountants in Australia, and the National Institute of Accountants to carry out its normal activities.

The financial statements and notes have been prepared in accordance with:

• Finance Minister's Orders (or FMOs) for reporting periods ending on or after 01 July 2007; and
• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial report has been prepared on an accrual basis and is in accordance with historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial report is presented in Australian dollars.

Unless an alternative treatment is specifically required by an Accounting Standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the entity and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments and the schedule of contingencies.

Unless alternative treatment is specifically required by an accounting standard, revenues and expenses are recognised in the income statement when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.2 Significant accounting judgements and estimates

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

1.3 Statement of compliance

Adoption of new Australian Accounting Standard requirements

No accounting standard has been adopted earlier than the application date as stated in the standard. The following new standards are applicable to the current reporting period.

Financial instrument disclosure

AASB 7 Financial Instrument: Disclosures is effective for reporting periods beginning on or after 1 January 2007 (the 2007-08 financial year) and amends the disclosure requirements for financial instruments. In general AASB 7 requires greater disclosure than that previously required. Associated with the introduction of AASB 7, a number of accounting standards were amended to reference the new standard or remove the present disclosure requirements through 2005-10 Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]. These changes have no financial impact but will affect the disclosure presented in future financial reports.

The following new standards (including reissued standards), amendments to standards, erratum or interpretations for the current financial year have no material financial impact on the AASB:

• AASB 101 Presentations of Financial Statements (reissued October 2006);
• AASB 1048 Presentations and Application of Standards (reissued September 2007);
• 2007-04 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments and Erratum: Proportionate Consolidation;
• 2007-05 Amendments to Australian Accounting Standard — Inventories Held for Distribution by Not-for-Profit Entities [AASB 102];
• 2007-07 Amendments to Australian Accounting Standards [AASB 1, AASB 2, AASB 4, AASB 5, AASB 107 & AASB 128];
• AASB interpretation 10 Interim Financial Reporting and Impairment;
• AASB Interpretation 11 AASB2 — Group and Treasury Share Transactions and 2007-1 Amendments to Australian Accounting Standards arising from AASB Interpretation 11;
• AASB Interpretation 1003 Australian Petroleum Resource Rent Tax.

Future Australian Accounting Standard requirements

The following new standards, amendments to standards or interpretations have been issued by the Australian Accounting Standards board but are effective for future reporting periods. It is estimated that adopting these pronouncements when effective will have no material financial impact on future reporting periods:

• AASB 3 Business Combinations;
• AASB 8 Operating Segments and 2007-3 Amendments to Australian Accounting standards arising from AASB 8;
• AASB 101 Presentation of Financial Statements (reissued September 2007) and 2007-08 Amendments to Australian Accounting Standards arising from AASB 101;
• AASB 123 Borrowing costs and 2007-06 Amendments to Australian Accounting Standards arising from AASB 123;
• AASB 127 Consolidated and Separate Financial Statements and 2008-03 Amendments to Australian Accounting Standards from AASB 3 and ASB 127 [AASBs 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138 and 139 and Interpretations 9 & 107];
• AASB 1004 contributions;
• AASB 1050 Administered Items and 2007-9 Amendments to Australian Accounting standards arising from the Review of AASB 27, 29 and 31;
• AASB 1051 Land under Roads;
• AASB 1052 Disaggregated Disclosures;
• 2008-1 Amendments to Australian Accounting Standard — Share-based Payments: Vesting Conditions and Cancellations [AASB 2];
• 2008-2 Amendments to Australian Accounting Standards — Puttable financial Instruments and Obligations arising on Liquidation [AASB7, AASB 101, AASB 132, AASB 139 & Interpretations 2];
• AASB Interpretation 1 Changes in Existing Decommissioning, Restoring and Similar Liabilities;
• AASB Interpretation 4 Determining whether an Arrangement contains a Lease;
• AASB Interpretation 12 Service Concession Arrangements and 2007-2 Amendments to Australian Accounting Standards arising from Interpretation 12;
• AASB Interpretation 13 Customer Loyalty Programmes;
• AASB Interpretation 14 AASB 119 — The Limit on a Defined Benefit Asset, Minimum Funding Requirement and their Interaction;
• AASB Interpretation 129 Service Concession Arrangements; Disclosures;
• AASB Interpretation 1038 Contributions by Owners Made to Wholly‑Owned Public Sector Entities.

Other

The following standards and interpretations have been issued but are not applicable to the operations of the AASB:

• AASB 1049 Financial Reporting of General Government Sectors by Governments;
• AASB 1049 Financial Reporting of General Government Sectors by Governments 2008-4 Amendments to Australian Accounting Standard — Key Management Personnel Disclosures by Disclosing Entities [AASB 124].

1.4 Revenue

Revenues from government and contributions are recognised at nominal amounts when invoiced in accordance with agreed schedules of payment (annually or quarterly).

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

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.

1.5 Employee benefits

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

Liabilities for 'short-term employee benefits' (as defined in AASB 119) and termination benefits due within 12 months of balance date are 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 at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.

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 entitlement 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 the leave is likely to be taken during service rather than paid out on termination.

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 2008. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

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. The present value of the defined benefit obligation of these members as at 30 June 2008 amounted to $2,826,000 (2007: $2,586,000) compared to the fair value of attributable assets of $2,326,000 (2007: $2,692,000), giving a deficiency of $500,000 (2007: surplus $106,000). A provision for this deficiency has been recognised at 30 June 2008 (refer Notes 4A and 8A).

In accordance with the choice available under paragraphs 93A and 93B of AASB 119 'employee benefits' actuarial gains and losses are charged direct to the statement of changes in equity.

Refer to Note 8A (i) for a reconciliation of the superannuation liability as at 30 June 2008.

1.6 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased non-current assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

The AASB has no finance leases.

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

1.7 Cash

Cash and cash equivalents includes notes and coins held and any deposits in bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

1.8 Financial assets

The AASB's financial assets comprise 'loans and receivables'.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Financial assets are recognised and derecognised upon 'trade date'.

Loans and receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. Loans and receivables are measured at amortised cost using the effective interest method less impairment.

Impairment of financial assets

Financial assets are assessed for impairment at each balance date.

Financial assets held at amortised cost — If there is objective evidence that an impairment loss has been incurred for loans and receivables, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the income statement.

1.9 Financial liabilities

Financial liabilities comprise 'supplier and other payables'.

The AASB's financial liabilities are recognised and derecognised upon 'trade date'.

Supplier and other payables

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.10 Contingent liabilities and contingent assets

Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.11 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. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

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, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor Authority's accounts immediately prior to the restructuring.

1.12 Property, plant and equipment

Asset recognition threshold

Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $300, 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).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site. These costs are included in the AASB's other non-financial assets with a corresponding provision for restoration obligations recognised.

Revaluations

Fair values for each class of asset are determined as shown below:

	2008	2007
Leasehold improvements	Depreciated replacement cost	Depreciated replacement cost
Plant and equipment	Market selling price	Market selling price

Following initial recognition at cost, property, plant and equipment are carried at fair value less accumulated depreciation. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ from the assets' fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the operating result. Revaluation decrements for a class of assets are recognised directly through operating result except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalue amount.

Depreciation

Depreciable property 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.

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

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

	2008	2007
Leasehold improvements	Lease term — 10 years	Lease term — 10 years
Plant and equipment	3 to 10 years	3 to 10 years

Impairment

All assets were assessed for impairment at 30 June 2008. Where indications of impairment exist, the asset's recoverable amount is estimated and an impairment adjustment made if the asset's recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset's ability to generate future cash flows, and the asset would be replaced if the AASB were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.13 Intangibles

The AASB's intangible assets comprise purchased software and licences for internal use. These assets are carried at cost, less accumulated amortisation.

Software and licences are amortised on a straight line basis over their anticipated useful life. The useful life of AASB's software and licences is 3‑5 years (2006-07: 3-5 years).

1.14 Inventories

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

1.15 Taxation/competitive neutrality

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.

1.16 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.

1.17 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.

1.18 Comparative figures

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

Note 2: Events after the balance sheet date

There have been no subsequent events that would cause amendment to the Financial Statements.

As a result of an amendment to the ASIC Act, the AASB was restructured on 1 July 2008 so as to come under the FMA Act instead of the CAC Act.

On 1 July 2008 the assets and liabilities of the AASB became assets and liabilities held by the Office of the AASB on behalf of the Commonwealth.

One consequence of the restructure is that as from 1 July 2008 the AASB no longer had Directors, with responsibility for financial management of the organisation falling to a Chief Executive Officer. However, the previous Directors remain responsible for the preparation of the 30 June 2008 financial statements.

Note 3: Income

	2008 $	2007 $
Revenue
Note 3A: Revenue from Government
Other:
ASIC funding	1,635,000	1,620,000
Appropriation funds from FRC	1,299,000	1,150,000
Total revenue from Government	2,934,000	2,770,000
Note 3B: Sale of goods and rendering of services
Provision of goods — related entities	2,850	3,663
Provision of goods — external parties	85,363	100,704
Total sale of goods and rendering of services	88,213	104,367
Note 3C: Interest
Deposits	268,656	138,475
Total interest	268,656	138,475
Note 3D: Rental income
Operating lease:
Other	43,590	35,023
Total rental income	43,590	35,023
Note 3E: Other revenue
Contributions from States and Territories	500,000	500,000
Contributions from CPA Australia	133,000	245,000
Contributions from the Institute of Chartered Accountants in Australia	133,000	245,000
Contributions from National Institute of Accountants	84,000	110,000
Contributions from Australian Stock Exchange	100,000	100,000
Contributions from Companies Unclaimed Monies Account	819,705	75,000
Total contributions	1,769,705	1,275,000
Recoup of costs from AUASB	155,747	133,583
Recoup of salaries from secondment	53,603	19,238
Total other revenue	1,979,055	1,427,821
Gains
Note 3F: Sale of assets
Infrastructure, plant and equipment
Proceeds from sale	-	1,141
Net gain from sale of assets	-	1,141

Note 4: Expenses

	2008 $	2007 $
Note 4A: Employee benefits
Wages and salaries	2,721,768	2,395,622
Superannuation:
Superannuation	283,266	257,362
Leave and other entitlements	120,729	70,790
Total employee benefits	3,125,763	2,723,774
Note 4B: Suppliers
Provision of goods — related entities	-	339
Provision of goods — external parties	148,916	86,494
Rendering of services — related entities	49,238	86,801
Rendering of services — external parties	789,870	745,462
Operating lease rentals:
Minimum lease payments	302,993	331,382
Workers compensation premiums	8,801	10,580
Total supplier expenses	1,299,818	1,261,058
Note 4C: Contributions
Other:
Contribution to IASC Foundation	200,000	200,000
Total contributions	200,000	200,000
Note 4D: Depreciation and amortisation
Depreciation:
Infrastructure, plant and equipment	129,091	122,453
Total depreciation	129,091	122,453
Amortisation:
Intangibles:
Computer software	7,222	7,685
Make good asset	9,041	9,041
Total amortisation	16,263	16,726
Total depreciation and amortisation	145,354	139,179
Note 4E: Finance costs
Unwinding of discount	5,208	4,938
Total finance costs	5,208	4,938

Note 5: Financial assets

	2008 $	2007 $
Note 5A: Cash and cash equivalents
Cash on hand or on deposit	3,691,295	673,831
Term deposit	-	2,500,000
Total cash and cash equivalents	3,691,295	3,173,831
Note 5B: Trade and other receivables
GST receivable from the Australian Taxation Office	38,228	15,152
Other:
Interest	-	9,205
Other receivables	61,715	33,624
Total other receivables	61,715	42,829
Total trade and other receivables (net)	99,943	57,981
Receivables are represented by:
Current	99,943	57,981
Non-current	-	-
Total trade and other receivables (net)	99,943	57,981
Receivables are aged as follows:
Less than 30 days	99,943	57,981
Total receivables (gross)	99,943	57,981

Note 6: Non-financial assets

	2008 $	2007 $
Note 6A: Infrastructure, plant and equipment
Infrastructure, plant and equipment:
— gross carrying value (at fair value)	1,060,113	987,693
— accumulated depreciation	(372,469)	(243,378)
Total infrastructure, plant and equipment (non-current)	687,644	744,315
No indicators of impairment were found for infrastructure, plant and equipment.
Note 6B: Intangibles
Computer software at cost:
Other computer software	41,461	20,896
Total computer software	41,461	20,896
Accumulated amortisation	(22,594)	(15,372)
Total intangibles (non-current)	18,867	5,524

No indicators of impairment were found for intangible assets.

Note 6C: Analysis of property, plant and equipment
Table A — Reconciliation of the opening and closing balances of infrastructure, plant and equipment and intangibles (2007-08).
	Other infrastructure, plant and equipment $	Computer software purchased $
As at 1 July 2007
Gross book value	987,693	20,896
Accumulated depreciation/ amortisation and impairment	(243,378)	(15,372)
Net book value 1 July 2007	744,315	5,524
Additions:
By purchase	72,420	20,565
Depreciation/amortisation expense	(129,091)	(7,222)
Net book value 30 June 2008	687,644	18,867
Net book value as of 30 June 2008 represented by:
Gross book value	1,060,113	41,461
Accumulated depreciation/amortisation and impairment	(372,469)	(22,594)
	687,644	18,867

 

Note 6C: Analysis of property, plant and equipment
Table B — Reconciliation of the opening and closing balances of infrastructure, plant and equipment and intangibles (2006-07).
	Other infrastructure, plant and equipment $	Computer software purchased $
As at 1 July 2006
Gross book value	456,615	30,419
Accumulated depreciation/amortisation and impairment	(167,628)	(17,210)
Net book value 1 July 2006	288,987	13,209
Additions:
By purchase	599,925
Depreciation/amortisation expense	(122,175)	(7,685)
Disposals:
Other disposals	(22,144)
Net book value 30 June 2007	744,593	5,524
Net book value as of 30 June 2007 represented by:
Gross book value	987,693	20,896
Accumulated depreciation/amortisation and impairment	(243,378)	(15,372)
	744,315	5,524

 

	2008 $	2007 $
Note 6D: Inventories
Inventories held for sale
Finished goods	2,682	2,661
Total inventories (current)	2,682	2,661
Note 6E: Other non-financial assets
Prepayments	15,275	18,714
Restoration of leasehold improvements	90,412	90,412
Accumulated amortisation	(18,082)	(9,041)
Total other non-financial assets	87,605	100,085
Other non-financial assets are represented by:
Current	15,275	18,714
Non-current	72,330	81,371
Total other non-financial assets	87,605	100,085

No indicators of impairment were found for other non-financial assets.

Note 7: Payables

	2008 $	2007 $
Note 7A: Suppliers
Trade creditors	65,452	140,580
Total supplier payables	65,452	140,580
Supplier payables are represented by:
Current	65,452	140,580
Total supplier payables	65,452	140,580
Settlement is usually made net 30 days
Note 7B: Other payables
Lease incentive	574,019	645,032
Other	-	19,285
Total other payables	574,019	664,317
Other payables are represented by:
Current	71,013	90,298
Non-current	503,006	574,019
Total other payables	574,019	664,317

Note 8: Provisions

	2008 $	2007 $
Note 8A: Employee provisions
Salaries and wages	1,794	15,692
Annual leave	358,749	298,479
Long service leave	396,304	335,845
Superannuation [Note 8A (i)]	500,000	(106,000)
Withholding tax	52,750	44,095
Total employee provisions	1,309,597	588,111
Employee provisions are represented by:
Current	1,309,597	588,111
Total employee provisions	1,309,597	588,111
Note 8A (i): Superannuation provisions
Net superannuation liability (asset) at start of year	(106,000)	102,000
Expense recognised in income statement	96,000	106,000
Amount directly recognised in statement of changes in equity	595,000	(215,000)
Employer contributions	(85,000)	(99,000)
Net superannuation liability (asset) at end of year	500,000	(106,000)
Note 8B: Other provisions
Restoration obligations	100,558	95,350
Total other provisions	100,558	95,350
Other provisions are represented by:
Non-current	100,558	95,350
Total other provisions	100,558	95,350
	Provision for restoration $	Provision for restoration $
Carrying amount 1 July 2007	95,350	90,412
Unwinding of discount or change in discount rate	5,208	4,938
Closing balance 2008	100,558	95,350

The AASB currently has one agreement for the leasing of premises which have provisions requiring the AASB to restore the premises to their original condition at the conclusion of the lease. The AASB has made a provision to reflect the present value of this obligation.

Note 9: Cash flow reconciliation

	2008 $	2007 $
Reconciliation of cash and cash equivalents as per balance sheet to cash flow statement
Report cash and cash equivalents as per:
Cash flow statement	3,691,295	3,173,831
Balance sheet	3,691,295	3,173,831
Difference	-	-
Reconciliation of operating result to net cash from operating activities:
Operating result	537,371	147,879
Other movement in retained surplus — superannuation
actuarial gains & losses	(595,000)	215,000
Depreciation /amortisation	145,354	139,179
Amortisation of lease	(71,013)	(65,095)
Unwinding of discount	5,208	4,938
(Increase)/decrease in net receivables	(39,753)	295,654
(Increase)/decrease in inventories	(21)	334
(Increase)/decrease in prepayments	3,439	102,986
(Increase)/decrease in superannuation provision	606,000	(208,000)
Increase/(decrease) in employee provisions —
(non superannuation)	106,831	87,280
Increase/(decrease) in supplier payables	(77,338)	25,399
Decrease/(increase) in subscriptions in advance	(18,535)	(25,314)
Increase/(decrease) in other payables	(750)	750
Increase/(decrease) in tax liabilities	8,655	(1,349)
Net cash from/(used by) operating activities	610,448	719,641

Note 10: Directors remuneration

	2008	2007
The number of directors of the authority included in these figures are shown below in the relevant remuneration bands:
$Nil — $14,999	17	19
$75,000 — $100,000	2	1
$225,000 — $239,999	-	-
Total number of directors of the authority	19	20
Total remuneration received or due and receivable by directors of the authority	124,756	131,497

Director's remuneration relates to the remuneration of the FRC Chairman and the sitting fees paid to members of the FRC. The members of the FRC are the Directors of both AASB and AUASB, however their remuneration, and all the FRC related expenses are met by the Department of Treasury.

# Eight (8) of the members in the nil — $14,999 range received no remuneration.

Note 11: Executive remuneration

	2008	2007
The number of senior executives who received or were due
to receive total remuneration of $130,000 or more:
$60,000 to $79,999	-	1
$80,000 to $94,999	-	1
$145 000 to $159,999	1	-
$280,000 to $294,999	-	1
$295,000 to $309,999	1	-
$310,000 to $324,999	1	-
$330,000 to $344,999		1
Total	3	4
The aggregate amount of total remuneration of senior executives shown above.	772,839	787,524
The aggregate amount of separation and redundancy/termination benefit payments during the year to executives shown above.	-	28,360

Note 12: Remuneration of auditors

	2008 $	2007 $
Remuneration to the Australian National Audit Office (ANAO) for auditing the financial statements for the reporting period
The fair value of the services provided was:	18,000	20,000
	18,000	20,000

No other services were provided by the ANAO.

Note 13: Financial instruments

	2008 $	2007 $
13A Categories of financial instruments
Financial assets
Held-to-maturity financial assets
Cash and cash equivalents	3,691,295	3,173,831
Trade receivables	12,715	35,748
	3,704,010	3,209,579
Carrying amount of financial assets	3,704,010	3,209,579
Financial liabilities
At amortised cost
Trade creditors	65,452	140,580
	65,452	140,580
Carrying amount of financial liabilities	65,452	140,580

13B Fair value of financial instruments

Financial assets

The net fair values of cash and cash equivalents and trade receivables approximate their carrying amounts.

Financial liabilities

The net fair value of trade creditors approximates their carrying amounts.

13C Credit risk

The AASB maximum exposure to credit risk at reporting date in relation to each class of recognised financial asset is the carrying amount of those assets as indicated in the balance sheet.

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

13D Liquidity risk

The exposure to liquidity risk is based on the probability that the AASB will encounter difficulty in meetings its obligations associated with financial liabilities. This is highly unlikely due to government funding and mechanisms available to the AASB and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

13E Market risk

The AASB holds basic financial instruments that do not expose the AASB to certain market risks. The AASB is not exposed 'currency risk' or 'other price risk'.