Annual Report SWIAC - Harvey Waterharveywater.com.au/userfiles/Harvey Water SWIAC - Annual Report... · Annual Revenue $2.7M Lined ... the Annual Report for 2015/6, ... has carried

SWIAC

SOUTH WEST IRRIGATION ASSET MANAGEMENT COOPERATIVE LIMITED

Annu

al R

epor

t

2016

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Table of Contents

At a Glance ....................................................... 1

Chairman’s Report ........................................... 2

Board of Directors ........................................... 5

Company Secretary ......................................... 5

Corporate Governance .................................... 6

Directors’ Report ............................................. 9

Statutory Report of the Directors ................. 11

Certificate by the Directors ............................ 11

Financial Report .............................................. 12

Audit Report .................................................. 46

Auditor’s Independence Declaration ........... 48

Table of Contents

At a Glance ....................................................... 1

Chairman’s Report ........................................... 2

Board of Directors ........................................... 4

Company Secretary ......................................... 4

Corporate Governance .................................... 5

Directors’ Report ............................................. 8

Statutory Report of the Directors ................ 10

Certificate by the Directors ........................... 10

Financial Report .............................................. 11

Audit Report .................................................. 44

Auditor's Independence Declaration ........... 46

SWIAC

1

At a Glance

HEAD OFFICE

James Stirling Place (PO Box 456) HARVEY WA 6220 Telephone: 08 9729 0100 Facsimile: 08 9729 0111 Email: [email protected] Website: www.harveywater.com.au

BOARD OF DIRECTORS

Kevin Warburton Chairman Charlie Marino Deputy Chairman Mike Snell Non-Member Director Geoff Calder Company Secretary

ADVISORS

Corrs Chambers Westgarth Sceales & Co Mattila Corporate

AUDITORS

AMD Chartered Accountants 28-30 Wellington Street BUNBURY WA 6230

BANKERS

Westpac Banking Corporation 143 Victoria Street BUNBURY WA 6230

INSURANCE BROKERS

Marsh Pty Ltd Level 6, 225 St Georges Tce PERTH WA 6000

STATISTICS

Total Irrigation Area 112,000 ha Total Area of Farms 34,369 ha Total Irrigated Area (2015/6) 6224 ha Number of Members 721

Annual Revenue $2.7M Lined Channels* 85 km Unlined Channels* 171 km Pipelines* 495 km Number of Supply Points* 1,660 Total Number of Assets* 7,068 *statistics for entire irrigation system, some assets may actually be owned by SWIMCO.

SWIAC

1

At a Glance

HEAD OFFICE


BOARD OF DIRECTORS


ADVISORS


AUDITORS


BANKERS


INSURANCE BROKERS


STATISTICS



1

At a Glance

HEAD OFFICE


BOARD OF DIRECTORS


ADVISORS


AUDITORS


BANKERS


INSURANCE BROKERS


STATISTICS



2

Chairman’s Report

Kevin Warburton – Chairman

It is my pleasure to present the Annual Report for 2015/6, my first as Chairman of the South West Irrigation Asset Cooperative, with a steady as she goes financial performance. FINANCE

The mutual cooperative has a conservative investment policy that focuses on capital security to limit potential negative impacts on our shareholders funds. For the 2015/6 financial year the cooperative recorded an operating surplus of $760,023 with total funds of $24,615,824 invested in capital secure, interest bearing deposits with high rating banks. The growth of the investment fund has been affected by lower interest rates but SWIAC still has the ability and intention of using these funds to help fix the water quality problems from Wellington dam and to convert the open channel water delivery system to a piped gravity one in the Collie River Irrigation District (CRID), if the Collie Water proposal becomes a reality. COLLIE WATER PROPOSAL Last year we reported that Harvey Water and SWIAC would put an Expression of Interest (EoI) into a Water for Food Program that was targeting Myalup & Wellington. The EoI was reviewed by a Technical Advisory Group, in comparison to other EoI, and ours was referred to a Ministerial Advisory Committee which then accepted it for further development and investigation. The Minister for Water, Hon Mia Davies announced the Collie Water proposal in early 2016.

SWIAC

2

Chairman’s Report

Kevin Warburton – Chairman

It is my pleasure to present the Annual Report for 2015/6, my first as Chairman of the South West Irrigation Asset Cooperative, with a steady as she goes financial performance. FINANCE

The mutual cooperative has a conservative investment policy that focuses on capital security to limit potential negative impacts on our shareholders funds. For the 2015/6 financial year the cooperative recorded an operating surplus of $760,023 with total funds of $24,615,824 invested in capital secure, interest bearing deposits with high rating banks. The growth of the investment fund has been affected by lower interest rates but SWIAC still has the ability and intention of using these funds to help fix the water quality problems from Wellington dam and to convert the open channel water delivery system to a piped gravity one in the Collie River Irrigation District (CRID), if the Collie Water proposal becomes a reality. COLLIE WATER PROPOSAL Last year we reported that Harvey Water and SWIAC would put an Expression of Interest (EoI) into a Water for Food Program that was targeting Myalup & Wellington. The EoI was reviewed by a Technical Advisory Group, in comparison to other EoI, and ours was referred to a Ministerial Advisory Committee which then accepted it for further development and investigation. The Minister for Water, Hon Mia Davies announced the Collie Water proposal in early 2016.

3

That EoI was submitted in the name of Collie Water which is a partnership between Harvey Water, SWIAC and Aqua Ferre. Aqua Ferre are investors with interests in agricultural opportunities.

The Collie Water proposal targets three water problems, which are the need for increased reliability of supply of potable quality water for the Great Southern Towns, better quality water for CRID and more and better quality water for the Myalup Irrigated Agricultural Precinct (MIAP). It solves these problems by making better use of water that we already have access to.

The proposal includes above and below the Wellington dam and MIAP components. Of particular relevance to CRID members, is the proposal to construct a gravity driven, piped water supply as has been done for Waroona & Harvey.

There are a lot of studies on Managed Aquifer Recharge, engineering options, environmental assessments, licensing arrangements, water supply agreements and pricing with prospective users, approvals, designs, costing and so forth to complete the full pre-feasibility proposal which will be presented to the State Government for their decision on financial support by the end of 2016. It may then go on to the Commonwealth Government for their consideration. Suffice to say that SWIAC is using its best endeavours and its financial resources to take this opportunity to improve the water quality and delivery service to CRID irrigators.

This is a very large project that will require private and government funding at State and Commonwealth levels backed by a positive economic analysis and the political will to deliver the undoubted benefits.

ASSET MANAGEMENT

Our CRID assets are being kept in care and maintenance mode this year with the usual channel lining repair and refurbishment being carried out until we have more certainty on the Collie Water proposal. SWIAC, in agreement with SWIMCO, has carried out cathodic protection on our Harvey Central Pipe Scheme (HCPS) to protect our steel pipes from corrosion. This cost $308,842 and further investment will be made to complete the full task in the coming year. New meters and data loggers continue to be installed in the HCPS to bring the technology into line with that on the newer piped infrastructure. SWIMCO has carried out a wide range of R&M works under agreement with SWIAC that include maintenance, refurbishment and lining of channels and operating and metering devices amounting to $228,000 in direct cost to SWIAC and $213,000 to SWIMCO, not including overhead expenses.

SWIAC

3

That EoI was submitted in the name of Collie Water which is a partnership between Harvey Water, SWIAC and Aqua Ferre. Aqua Ferre are investors with interests in agricultural opportunities.

The Collie Water proposal targets three water problems, which are the need for increased reliability of supply of potable quality water for the Great Southern Towns, better quality water for CRID and more and better quality water for the Myalup Irrigated Agricultural Precinct (MIAP). It solves these problems by making better use of water that we already have access to.

The proposal includes above and below the Wellington dam and MIAP components. Of particular relevance to CRID members, is the proposal to construct a gravity driven, piped water supply as has been done for Waroona & Harvey.

There are a lot of studies on Managed Aquifer Recharge, engineering options, environmental assessments, licensing arrangements, water supply agreements and pricing with prospective users, approvals, designs, costing and so forth to complete the full pre-feasibility proposal which will be presented to the State Government for their decision on financial support by the end of 2016. It may then go on to the Commonwealth Government for their consideration. Suffice to say that SWIAC is using its best endeavours and its financial resources to take this opportunity to improve the water quality and delivery service to CRID irrigators.

This is a very large project that will require private and government funding at State and Commonwealth levels backed by a positive economic analysis and the political will to deliver the undoubted benefits.

ASSET MANAGEMENT

Our CRID assets are being kept in care and maintenance mode this year with the usual channel lining repair and refurbishment being carried out until we have more certainty on the Collie Water proposal. SWIAC, in agreement with SWIMCO, has carried out cathodic protection on our Harvey Central Pipe Scheme (HCPS) to protect our steel pipes from corrosion. This cost $308,842 and further investment will be made to complete the full task in the coming year. New meters and data loggers continue to be installed in the HCPS to bring the technology into line with that on the newer piped infrastructure. SWIMCO has carried out a wide range of R&M works under agreement with SWIAC that include maintenance, refurbishment and lining of channels and operating and metering devices amounting to $228,000 in direct cost to SWIAC and $213,000 to SWIMCO, not including overhead expenses.

4

Filling of redundant channels in consultation with Water Corporation cost $193,120 this year.

SUPPORT

SWIAC continues to provide strong support to SWIMCO in its endeavors to reduce the salinity in Wellington dam, bring some rationality to the fixed charges levied by Water Corporation and then to pipe the CRID, with the wide ranging and long lasting benefits those changes will bring to the co-operative, its members and the local economy. The majority of the funds provided to this project will be from SWIAC Asset Maintenance & Replacement funds. ACKNOWLEDGEMENTS Our relationship with SWIMCO remains harmonious and is operating smoothly to achieve the best benefits for all shareholders. I sincerely thank the Chairman and Directors of SWIMCO for their assistance to SWIAC. SWIMCO staff led by their untiring and committed General Manager Geoff Calder, Operations Manager Stephen Cook and Corporate Services Manager Alan Thornton, continue to provide dedicated, professional services to the Board and to the members. I thank all the staff and commend them for their efforts. The continuing support of my fellow Directors through the past year is much appreciated and I offer many thanks.

SWIAC

4

Filling of redundant channels in consultation with Water Corporation cost $193,120 this year.

SUPPORT

SWIAC continues to provide strong support to SWIMCO in its endeavors to reduce the salinity in Wellington dam, bring some rationality to the fixed charges levied by Water Corporation and then to pipe the CRID, with the wide ranging and long lasting benefits those changes will bring to the co-operative, its members and the local economy. The majority of the funds provided to this project will be from SWIAC Asset Maintenance & Replacement funds. ACKNOWLEDGEMENTS Our relationship with SWIMCO remains harmonious and is operating smoothly to achieve the best benefits for all shareholders. I sincerely thank the Chairman and Directors of SWIMCO for their assistance to SWIAC. SWIMCO staff led by their untiring and committed General Manager Geoff Calder, Operations Manager Stephen Cook and Corporate Services Manager Alan Thornton, continue to provide dedicated, professional services to the Board and to the members. I thank all the staff and commend them for their efforts. The continuing support of my fellow Directors through the past year is much appreciated and I offer many thanks.

5

Board of Directors Charlie Marino is a dairy and beef farmer from Harvey, after spending some years as a Bank Officer. He was a member of the previous South West Irrigation Management Committee, and served on the SWIMCO Board and the Audit Committee. Charlie was elected to the Board of SWIAC at the 2009 AGM and stepped down as Chairman at the 2015 AGM.

Kevin Warburton is a beef farmer from Brunswick Junction. He is an active and respected local community member, serving 18 years as President of the local kindergarten and primary school and serving on the school council. He has coached basketball and junior football and was previously president of the Brunswick Basketball Club. Kevin also served 15 years with the Kemerton Community Advisory Group and was past Vice-president of the Dairy Section of WAFF. Kevin was elected to the Board of SWIAC at the 2013 AGM and Chairman in 2015.

Mike Snell was elected to the SWIAC Board as a non-member Director at the 2008 AGM. Mike worked for over 30 years with Price Waterhouse Coopers and since retiring has served on the board of a variety of commercial and community organisations. He is also a Director of the South West Irrigation Management Co-operative Ltd. Mike is a Fellow of the Institute of Chartered Accountants in Australia and a Graduate Member of the Australian Institute of Company Directors.

Company Secretary

Geoff Calder has been Company Secretary of SWIAC since its inception in 1996. Geoff holds a Bachelor of Agricultural Science from UWA, a Graduate Diploma in Business from Curtin University and a Graduate Certificate in Asian Business from Edith Cowan University.

SWIAC

5

Board of Directors Charlie Marino is a dairy and beef farmer from Harvey, after spending some years as a Bank Officer. He was a member of the previous South West Irrigation Management Committee, and served on the SWIMCO Board and the Audit Committee. Charlie was elected to the Board of SWIAC at the 2009 AGM and stepped down as Chairman at the 2015 AGM.

Kevin Warburton is a beef farmer from Brunswick Junction. He is an active and respected local community member, serving 18 years as President of the local kindergarten and primary school and serving on the school council. He has coached basketball and junior football and was previously president of the Brunswick Basketball Club. Kevin also served 15 years with the Kemerton Community Advisory Group and was past Vice-president of the Dairy Section of WAFF. Kevin was elected to the Board of SWIAC at the 2013 AGM and Chairman in 2015.

Mike Snell was elected to the SWIAC Board as a non-member Director at the 2008 AGM. Mike worked for over 30 years with Price Waterhouse Coopers and since retiring has served on the board of a variety of commercial and community organisations. He is also a Director of the South West Irrigation Management Co-operative Ltd. Mike is a Fellow of the Institute of Chartered Accountants in Australia and a Graduate Member of the Australian Institute of Company Directors.

Company Secretary

Geoff Calder has been Company Secretary of SWIAC since its inception in 1996. Geoff holds a Bachelor of Agricultural Science from UWA, a Graduate Diploma in Business from Curtin University and a Graduate Certificate in Asian Business from Edith Cowan University.

6

Corporate Governance Board Responsibilities The Board is accountable to members for the performance of the Co-operative. In carrying out its responsibilities, the Board undertakes to serve the interests of members, employees, customers and the broader community, honestly, fairly, diligently and in accordance with the Rules, Company Policy, Directors’ Code of Conduct and with applicable laws.

In particular, the Board:

• Sets and reviews strategic direction • Establishes and reviews policy • Ensures compliance with laws and all appropriate accounting standards • Monitors the operating and financial performance of the Company • Monitors risk management • Ensures adequate and inclusive communication with shareholders.

Board Structure The Rules provide for a maximum of five Directors. This includes no more than two member representatives from any of the Collie River, Harvey or Waroona district with no less than two districts represented. There can also be one non-member Director with skills, experience or knowledge in the engineering, industrial, legal, commercial or financial sectors.

The Board currently comprises two member Directors, sourced from the Harvey and Collie River districts, and one non-member Director. Details of the Directors, as at the date of this report, including their qualifications and experience are set out on page 5.

Meetings Under the Rules the Board is able to schedule and regulate meetings as they see fit. The Board met, for formal Board meetings, on nine occasions during the year. In addition to this, the Board meets whenever necessary to deal with specific matters. Details of Directors’ attendance at meetings are set out on page 9.

The Chairman and the Company Secretary establish meeting agendas to ensure adequate coverage of strategic, financial and risk areas. Directors are encouraged to participate and exercise their independent judgment.

Access to Information and Professional Advice Directors receive regular detailed financial and operational reports and have unrestricted access to Company records and information. The members of the Board have the authority to engage independent experts should it be considered necessary subject to the prior approval of the Chairman.

SWIAC

6

Corporate Governance Board Responsibilities The Board is accountable to members for the performance of the Co-operative. In carrying out its responsibilities, the Board undertakes to serve the interests of members, employees, customers and the broader community, honestly, fairly, diligently and in accordance with the Rules, Company Policy, Directors’ Code of Conduct and with applicable laws.

In particular, the Board:

• Sets and reviews strategic direction • Establishes and reviews policy • Ensures compliance with laws and all appropriate accounting standards • Monitors the operating and financial performance of the Company • Monitors risk management • Ensures adequate and inclusive communication with shareholders.

Board Structure The Rules provide for a maximum of five Directors. This includes no more than two member representatives from any of the Collie River, Harvey or Waroona district with no less than two districts represented. There can also be one non-member Director with skills, experience or knowledge in the engineering, industrial, legal, commercial or financial sectors.

The Board currently comprises two member Directors, sourced from the Harvey and Collie River districts, and one non-member Director. Details of the Directors, as at the date of this report, including their qualifications and experience are set out on page 5.

Meetings Under the Rules the Board is able to schedule and regulate meetings as they see fit. The Board met, for formal Board meetings, on nine occasions during the year. In addition to this, the Board meets whenever necessary to deal with specific matters. Details of Directors’ attendance at meetings are set out on page 9.

The Chairman and the Company Secretary establish meeting agendas to ensure adequate coverage of strategic, financial and risk areas. Directors are encouraged to participate and exercise their independent judgment.

Access to Information and Professional Advice Directors receive regular detailed financial and operational reports and have unrestricted access to Company records and information. The members of the Board have the authority to engage independent experts should it be considered necessary subject to the prior approval of the Chairman.

7

Corporate Governance (cont.) Directors and Officers Insurance and Deeds of Indemnity The Company provides Directors’ and Officers’ Insurance and access to Deeds of Indemnity Insurance to the maximum extent permitted by law.

Director Training All Directors are expected to maintain the skills required to discharge their obligations to the Company. Directors are encouraged to undertake continuing professional education involving industry seminars and approved education courses. All Directors are encouraged to attend industry specific conferences including the annual IAL Conference and the WA Co-operatives Conference.

Review of Board and Director Performance The Remuneration Committee is responsible for overseeing the annual evaluation of Board and Director performance. Evaluations are conducted every year and have produced continuing improvements in Board processes and overall efficiency.

Committees of the Board The Board has established one current standing committee to assist in the discharge of its responsibilities, being the Remuneration Committee, a joint Committee with the South West Irrigation Management Co-operative (SWIMCO). The Remuneration Committee has its own charter which describes its role and duties.

SWIAC has an Asset Committee which is responsible for reviewing the proposed asset management program drawn up in consultation with SWIMCO. The committee meets on an ad hoc basis at the discretion of the Board.

Minutes of standing committees are provided to all Directors and the proceedings of each meeting are reported by the Chairman of the committee at the next Board meeting. The Board reviews the composition of its committees annually at the first Board meeting following the Annual General Meeting.

Remuneration Committee The Remuneration Committee is a joint committee of both SWIAC and SWIMCO. Remuneration issues in respect to Directors are considered as a group rather than individually given the common shareholding. The primary functions of the Remuneration Committee are to:

• Make specific recommendations to the Board of SWIAC on the remuneration of

Directors and the Company Secretary. • Undertake a review of the performance of the Company Secretary at least annually,

setting goals for the coming year and reviewing progress in achieving these goals

SWIAC

7

Corporate Governance (cont.) Directors and Officers Insurance and Deeds of Indemnity The Company provides Directors’ and Officers’ Insurance and access to Deeds of Indemnity Insurance to the maximum extent permitted by law.

Director Training All Directors are expected to maintain the skills required to discharge their obligations to the Company. Directors are encouraged to undertake continuing professional education involving industry seminars and approved education courses. All Directors are encouraged to attend industry specific conferences including the annual IAL Conference and the WA Co-operatives Conference.

Review of Board and Director Performance The Remuneration Committee is responsible for overseeing the annual evaluation of Board and Director performance. Evaluations are conducted every year and have produced continuing improvements in Board processes and overall efficiency.

Committees of the Board The Board has established one current standing committee to assist in the discharge of its responsibilities, being the Remuneration Committee, a joint Committee with the South West Irrigation Management Co-operative (SWIMCO). The Remuneration Committee has its own charter which describes its role and duties.

SWIAC has an Asset Committee which is responsible for reviewing the proposed asset management program drawn up in consultation with SWIMCO. The committee meets on an ad hoc basis at the discretion of the Board.

Minutes of standing committees are provided to all Directors and the proceedings of each meeting are reported by the Chairman of the committee at the next Board meeting. The Board reviews the composition of its committees annually at the first Board meeting following the Annual General Meeting.

Remuneration Committee The Remuneration Committee is a joint committee of both SWIAC and SWIMCO. Remuneration issues in respect to Directors are considered as a group rather than individually given the common shareholding. The primary functions of the Remuneration Committee are to:

• Make specific recommendations to the Board of SWIAC on the remuneration of

Directors and the Company Secretary. • Undertake a review of the performance of the Company Secretary at least annually,

setting goals for the coming year and reviewing progress in achieving these goals

8

Corporate Governance (cont.)

• Oversee the annual evaluation of Board and Director performance • Review Board succession plans including the appointment of non-member Directors. Members of the Remuneration Committee are:

Mike Snell (Chairman) Kevin Warburton (Chair of SWIAC) Ian Eckersley (Chair of SWIMCO)

Disputes Panel In accordance with Rule 88, the Chairman has determined that the Disputes Panel shall comprise all Directors of the Company and three members who are not Directors. For the period ended 30 June 2016, the non-Director members were:

Frank Parravicini Vernon Pitter Terry Treasure

The Disputes Panel was not required to convene during the year.

Communication with Shareholders Directors recognise that shareholders, as the ultimate owners of the Company, are entitled to receive timely and relevant information about the Company. The Board has approved a Communication Policy that aims to promote open and effective communication with shareholders and other stakeholders of the Co-operative. A range of communication means are used including:

• Annual Report • Annual General Meeting • “Under the Trees” meetings with shareholders • Annual Irrigators meeting • website www.harveywater.com.au • Harvey Water Video/CD • Newspaper advertisements • Regular Shareholder mail outs (“The Furphy”) • General media releases and public comment.

SWIAC

8

Corporate Governance (cont.)

• Oversee the annual evaluation of Board and Director performance • Review Board succession plans including the appointment of non-member Directors. Members of the Remuneration Committee are:

Mike Snell (Chairman) Kevin Warburton (Chair of SWIAC) Ian Eckersley (Chair of SWIMCO)

Disputes Panel In accordance with Rule 88, the Chairman has determined that the Disputes Panel shall comprise all Directors of the Company and three members who are not Directors. For the period ended 30 June 2016, the non-Director members were:

Frank Parravicini Vernon Pitter Terry Treasure

The Disputes Panel was not required to convene during the year.

Communication with Shareholders Directors recognise that shareholders, as the ultimate owners of the Company, are entitled to receive timely and relevant information about the Company. The Board has approved a Communication Policy that aims to promote open and effective communication with shareholders and other stakeholders of the Co-operative. A range of communication means are used including:

• Annual Report • Annual General Meeting • “Under the Trees” meetings with shareholders • Annual Irrigators meeting • website www.harveywater.com.au • Harvey Water Video/CD • Newspaper advertisements • Regular Shareholder mail outs (“The Furphy”) • General media releases and public comment.

9

Directors’ Report Directors The following persons held office as Directors of South West Irrigation Asset Cooperative Limited at 30 June 2016:

Kevin Warburton Charlie Marino Mike Snell

Principal Activities The principal activities undertaken by the Company during the financial year consisted of supervising the asset maintenance program, including enhancements to the system, and organising the investment of reserves.

Directors’ Interests The relevant interests of the Directors in the share capital of the Company, appearing in the register maintained at the office under Section 232 of the Co-operatives Act 2009 were:

Director Shareholding Kevin Warburton 470 Charlie Marino 853 Mike Snell Nil

Meetings of Directors The following table sets out the numbers of meetings of the Directors held during the financial year to 30 June 2016 and the number of Board and Committee meetings attended by each Director.

Scheduled Board Meetings

Remuneration Committee

Director Eligible to Attend Attended Eligible

to attend Attended

C Marino 5 5 0 0 M Snell 5 4 2 2 K Warburton 5 5 2 1

SWIAC

9

Directors’ Report Directors The following persons held office as Directors of South West Irrigation Asset Cooperative Limited at 30 June 2016:

Kevin Warburton Charlie Marino Mike Snell

Principal Activities The principal activities undertaken by the Company during the financial year consisted of supervising the asset maintenance program, including enhancements to the system, and organising the investment of reserves.

Directors’ Interests The relevant interests of the Directors in the share capital of the Company, appearing in the register maintained at the office under Section 232 of the Co-operatives Act 2009 were:

Director Shareholding Kevin Warburton 470 Charlie Marino 853 Mike Snell Nil

Meetings of Directors The following table sets out the numbers of meetings of the Directors held during the financial year to 30 June 2016 and the number of Board and Committee meetings attended by each Director.

Scheduled Board Meetings

Remuneration Committee

Director Eligible to Attend Attended Eligible

to attend Attended

C Marino 5 5 0 0 M Snell 5 4 2 2 K Warburton 5 5 2 1

10

Directors’ Report (cont.) Significant Changes There were no significant changes in the state of affairs of the Company that occurred during the year which are not otherwise in this report and the accounts.

Directors’ Benefits No Director of the Company has received, or has become entitled to receive, a benefit (other than a remuneration benefit included in Note 14 to the accounts) because of a contract that the Director, or a firm in which the Director is a member, or an entity in which the Director has a substantial financial interest, has made with the Company.

Auditor AMD Chartered Accountants of Bunbury, were appointed auditors of the Company at the Annual General Meeting held 18 November 2015.

This report is made in accordance with a resolution of the Directors.

Kevin Thomas Warburton Carmelo Marino Chairman Director Harvey, Western Australia 19 October 2016

SWIAC

10

Directors’ Report (cont.) Significant Changes There were no significant changes in the state of affairs of the Company that occurred during the year which are not otherwise in this report and the accounts.

Directors’ Benefits No Director of the Company has received, or has become entitled to receive, a benefit (other than a remuneration benefit included in Note 14 to the accounts) because of a contract that the Director, or a firm in which the Director is a member, or an entity in which the Director has a substantial financial interest, has made with the Company.

Auditor AMD Chartered Accountants of Bunbury, were appointed auditors of the Company at the Annual General Meeting held 18 November 2015.

This report is made in accordance with a resolution of the Directors.


11

Statutory Report of the Directors In accordance with the requirements of s.295 (4) of the Corporations Act 2001 and Rule 74, the Directors declare that that: (a) in the directors’ opinion, there are reasonable grounds to believe that the Co-

operative will be able to pay its debts as and when they become due and payable; (b) in the directors’ opinion, the attached financial statements and notes thereto are in

accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the Co-operative; and

(c) no dividend is recommended. Signed in accordance with a resolution of the Directors made pursuant to s.295 (5) of the Corporations Act 2001. On behalf of the Directors


Certificate by the Directors We, (Kevin Thomas Warburton and Carmelo Marino), being two of the Directors of South West Irrigation Asset Cooperative Limited do hereby certify on behalf of the Board that, in our opinion, the accompanying Statement of Financial Position is drawn up so as to exhibit a true and correct view of the state of the Company’s affairs and that, in our opinion, the Statement of Financial Performance is drawn up so as to exhibit a true and correct view of the results of the business of the Company for the year.


SWIAC

11

Statutory Report of the Directors In accordance with the requirements of s.295 (4) of the Corporations Act 2001 and Rule 74, the Directors declare that that: (a) in the directors’ opinion, there are reasonable grounds to believe that the Co-

operative will be able to pay its debts as and when they become due and payable; (b) in the directors’ opinion, the attached financial statements and notes thereto are in

accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the Co-operative; and

(c) no dividend is recommended. Signed in accordance with a resolution of the Directors made pursuant to s.295 (5) of the Corporations Act 2001. On behalf of the Directors


Certificate by the Directors We, (Kevin Thomas Warburton and Carmelo Marino), being two of the Directors of South West Irrigation Asset Cooperative Limited do hereby certify on behalf of the Board that, in our opinion, the accompanying Statement of Financial Position is drawn up so as to exhibit a true and correct view of the state of the Company’s affairs and that, in our opinion, the Statement of Financial Performance is drawn up so as to exhibit a true and correct view of the results of the business of the Company for the year.


12

SOUTH WEST IRRIGATION ASSET CO-OPERATIVE LIMITED

Financial Report

30 June 2016

SWIAC

13

SOUTH WEST IRRIGATION ASSET COOPERATIVE LIMITED

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2016

2016 2015Notes $ $

Revenue 2 2,667,664 2,781,099

Expenses Depreciation – Irrigation System 3 793,259 787,372Depreciation – Property, Plant & Equipment 3 8,427 7,467Management Fees 3 338,878 339,732Maintenance Expenses – Irrigation System 3 227,498 276,209Administration Costs 359,814 214,651

1,727,876 1,625,431

Surplus before Income Tax 3 939,788 1,155,668Income Tax Expense 4 (179,765) (274,524)Surplus for the Year 760,023 881,144

Other Comprehensive Income:Items that will not be reclassified subsequently to profit or loss:Net gain / (loss) on revaluation of Irrigation Assets 8,264,831 -Items that will be reclassified subsequently to profit or loss when specific conditions are met - -Items that have been reclassified to profit or loss - -Total Other Comprehensive Income for the Year 8,264,831 -Total Comprehensive Income for the year 9,024,854 881,144Surplus Attributable to:Members of the Cooperative 9,024,854 881,144Total Comprehensive Income Attributable to:Members of the Cooperative 9,024,854 881,144

The accompanying notes form part of these financial statements.

13


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME


2016 2015Notes $ $

Revenue 2 2,667,664 2,781,099

Expenses Depreciation – Irrigation System 3 793,259 787,372Depreciation – Property, Plant & Equipment 3 8,427 7,467Management Fees 3 338,878 339,732Maintenance Expenses – Irrigation System 3 227,498 276,209Administration Costs 359,814 214,651

1,727,876 1,625,431

Surplus before Income Tax 3 939,788 1,155,668Income Tax Expense 4 (179,765) (274,524)Surplus for the Year 760,023 881,144

Other Comprehensive Income:Items that will not be reclassified subsequently to profit or loss:Net gain / (loss) on revaluation of Irrigation Assets 8,264,831 -Items that will be reclassified subsequently to profit or loss when specific conditions are met - -Items that have been reclassified to profit or loss - -Total Other Comprehensive Income for the Year 8,264,831 -Total Comprehensive Income for the year 9,024,854 881,144Surplus Attributable to:Members of the Cooperative 9,024,854 881,144Total Comprehensive Income Attributable to:Members of the Cooperative 9,024,854 881,144


14


STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

2016 2015Notes $ $

CURRENT ASSETSCash and Cash Equivalents 1,855,476 1,161,498Trade and Other Receivables 5 482,984 559,265Financial Assets 7 19,564,982 15,000,045TOTAL CURRENT ASSETS 21,903,442 16,720,808

NON-CURRENT ASSETSTrade and Other Receivables 5 19,021 28,532Financial Assets 7 5,050,842 8,811,444Property, Plant & Equipment 8 50,245,876 39,015,547TOTAL NON-CURRENT ASSETS 55,315,739 47,855,523

TOTAL ASSETS 77,219,181 64,576,331

CURRENT LIABILITIESTrade and Other Payables 9 397,295 22,943Current Tax Liabilities 10 49,010 100,491TOTAL CURRENT LIABILITIES 446,305 123,434

NON-CURRENT LIABILITIESDeferred Tax Liabilities 10 13,443,265 10,147,930TOTAL NON-CURRENT LIABILITIES 13,443,265 10,147,930

TOTAL LIABILITIES 13,889,570 10,271,364

NET ASSETS 63,329,611 54,304,967

EQUITYIssued Capital 11 99,344 99,556Reserves 60,483,675 51,414,509

Accumulated Surplus 2,746,592 2,790,902

TOTAL EQUITY 63,329,611 54,304,967


14


STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

2016 2015Notes $ $

CURRENT ASSETSCash and Cash Equivalents 1,855,476 1,161,498Trade and Other Receivables 5 482,984 559,265Financial Assets 7 19,564,982 15,000,045TOTAL CURRENT ASSETS 21,903,442 16,720,808

NON-CURRENT ASSETSTrade and Other Receivables 5 19,021 28,532Financial Assets 7 5,050,842 8,811,444Property, Plant & Equipment 8 50,245,876 39,015,547TOTAL NON-CURRENT ASSETS 55,315,739 47,855,523

TOTAL ASSETS 77,219,181 64,576,331

CURRENT LIABILITIESTrade and Other Payables 9 397,295 22,943Current Tax Liabilities 10 49,010 100,491TOTAL CURRENT LIABILITIES 446,305 123,434

NON-CURRENT LIABILITIESDeferred Tax Liabilities 10 13,443,265 10,147,930TOTAL NON-CURRENT LIABILITIES 13,443,265 10,147,930

TOTAL LIABILITIES 13,889,570 10,271,364

NET ASSETS 63,329,611 54,304,967

EQUITYIssued Capital 11 99,344 99,556Reserves 60,483,675 51,414,509

Accumulated Surplus 2,746,592 2,790,902

TOTAL EQUITY 63,329,611 54,304,967


15

SOU

TH W

EST IRR

IGA

TION

ASSET C

OO

PERA

TIVE LIMITED

ST

AT

EM

EN

T O

F CH

AN

GE

S IN

EQ

UIT

Y

FOR

TH

E Y

EA

R E

ND

ED

30JU

NE

2016Issued C

apitalAccum

ulated Surplus

Asset Revaluation

Reserve

Asset Maintenance

and Renew

al FundTotal

$$

$$

$B

alance at 1 July 2014100,318

3,900,25127,603,020

21,820,99653,424,585

Com

prehensive Income:

Surplus for the year-

881,144-

-881,144

Other com

prehensive income for the year

--

--

-Total C

omprehensive Incom

e for the year attributable to m

embers of the cooperative

-881,144

--

881,144Transactions w

ith owners in their capacity as

owners and other transfers:

Shares buy back during the year(762)

--

-(762)

Application of AASB

112 on Asset R

evaluation Reserves

--

--

-Transfers from

accumulated surplus to

reserves-

(1,990,493)-

1,990,493-

Balance at 30 June 2015

99,5562,790,902

27,603,02023,811,489

54,304,967C

omprehensive Incom

e:Surplus for the year

-760,023

--

760,023O

ther Com

prehensive income for the year

--

--

-Total C

omprehensive Incom

e for the year attributable to m

embers of the cooperative

-760,023

--

760,023Transactions w

ith owners in their capacity as

owners and other transfers:

Shares buy back during the year (212)

--

-(212)

Application of AASB

112 on Asset R

evaluation Reserves

--

8,264,831-

8,264,831Transfers from

accumulated surplus to

reserves-

(804,333)-

804,333-

Balance at 30 June 2016

99,3442,746,592

35,867,85124,615,822

63,329,611

The accompanying notes form

part of these financial statements.

16


STATEMENT OF CASH FLOWS


2016 2015Notes $ $

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Members/Related Parties 1,888,955 1,838,457Interest Received 941,137 894,241Payments to Suppliers & Directors (299,314) (407,954)Payments of Management Fee (338,878) (387,448)Income Tax Paid (324,532) (122,055)

Net Cash provided by Operating Activities 17(b) 1,867,368 1,815,241

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for Irrigation Asset Purchases (308,841) (365,724)Payments for Assets (69,725) -Repayments of Related Party Loans - 500,000Repayment of Member Loans 9,511 (28,243)Net Cash provided by Investing Activities (369,055) 106,033

CASH FLOWS FROM FINANCING ACTIVITIES

Transfers to Deposits (804,335) (1,990,493)Net Cash Flows used in Financing Activities (804,335) (1,990,493)

Net Increase/(Decrease) in Cash Held 693,978 (69,222)

Cash at Beginning of Financial Year 1,161,498 1,230,720

Cash at End of Financial Year 17(a) 1,855,476 1,161,498


16


STATEMENT OF CASH FLOWS


2016 2015Notes $ $

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Members/Related Parties 1,888,955 1,838,457Interest Received 941,137 894,241Payments to Suppliers & Directors (299,314) (407,954)Payments of Management Fee (338,878) (387,448)Income Tax Paid (324,532) (122,055)

Net Cash provided by Operating Activities 17(b) 1,867,368 1,815,241

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for Irrigation Asset Purchases (308,841) (365,724)Payments for Assets (69,725) -Repayments of Related Party Loans - 500,000Repayment of Member Loans 9,511 (28,243)Net Cash provided by Investing Activities (369,055) 106,033

CASH FLOWS FROM FINANCING ACTIVITIES

Transfers to Deposits (804,335) (1,990,493)Net Cash Flows used in Financing Activities (804,335) (1,990,493)

Net Increase/(Decrease) in Cash Held 693,978 (69,222)

Cash at Beginning of Financial Year 1,161,498 1,230,720

Cash at End of Financial Year 17(a) 1,855,476 1,161,498


17


NOTES TO THE FINANCIAL STATEMENTS


1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

South West Irrigation Asset Cooperative Limited (‘the Company’) is a co-operative limited by shares, incorporated and domiciled in Australia.

Basis of PreparationThe financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards of the Australian Accounting Standards Board and the Cooperatives Act 2009.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of the financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historical costs, modified where applicable by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

(a) Income TaxThe income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income). Current income tax expense (income) charged (or credited) to the profit or loss is the tax payable (receivable) on taxable income for the year adjusted for any non-assessable or disallowed items, including mutual income as defined below. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Current and deferred income tax expense (income) is calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date.

In 1996 a tax ruling was received from the Australian Taxation Office defining income that is assessable under the Income Tax Assessment Act:

Mutual IncomeMutual Income relates to monies paid to the Company by its members.

Taxable IncomeTaxable Income relates to monies received from other sources that do not meet the mutuality requirements and are taxable. A major source of this income is interest received.

Deferred TaxDeferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.

Current and deferred income tax expense (income) is charged (or credited) outside profit or loss when the tax relates to items that are recognised outside profit or loss.

17




1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

South West Irrigation Asset Cooperative Limited (‘the Company’) is a co-operative limited by shares, incorporated and domiciled in Australia.

Basis of PreparationThe financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards of the Australian Accounting Standards Board and the Cooperatives Act 2009.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of the financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historical costs, modified where applicable by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

(a) Income TaxThe income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income). Current income tax expense (income) charged (or credited) to the profit or loss is the tax payable (receivable) on taxable income for the year adjusted for any non-assessable or disallowed items, including mutual income as defined below. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Current and deferred income tax expense (income) is calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date.

In 1996 a tax ruling was received from the Australian Taxation Office defining income that is assessable under the Income Tax Assessment Act:

Mutual IncomeMutual Income relates to monies paid to the Company by its members.

Taxable IncomeTaxable Income relates to monies received from other sources that do not meet the mutuality requirements and are taxable. A major source of this income is interest received.

Deferred TaxDeferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.

Current and deferred income tax expense (income) is charged (or credited) outside profit or loss when the tax relates to items that are recognised outside profit or loss.

18




1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont)

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

(b) Fair Value of Assets and Liabilities The Company measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.

Fair value is the price the Company would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).

18





Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

(b) Fair Value of Assets and Liabilities The Company measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.

Fair value is the price the Company would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).

19





For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.

The fair value of liabilities and the entity’s own equity instruments may be valued, where there is no observable market price in relation to the transfer of such financial instrument, by reference to observable market information where such instruments are held as assets. Where this information is not available, other valuation techniques are adopted and, where significant, are detailed in the respective note to the financial statements.

(c) Property, Plant and EquipmentEach class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Irrigation SystemsThe irrigation systems comprising channels, water control structures and associated assets are recorded at fair value.

Fair value is determined by an independent valuation estimating the replacement cost of the irrigation systems less, where applicable, subsequent depreciation and impairment losses.

Revaluation adjustments are made against asset revaluation reserves, where appropriate.

PropertyFreehold land and buildings are measured on the cost basis less depreciation and impairment losses for buildings.

Plant and EquipmentPlant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present.

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in the statement of profit or loss and other comprehensive income during the financial period in which they are incurred.

DepreciationThe depreciable amount of all fixed assets including buildings but excluding freehold land is depreciated on a straight line basis over their useful lives to the Company commencing from the time the asset is held ready for use.

19





For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.

The fair value of liabilities and the entity’s own equity instruments may be valued, where there is no observable market price in relation to the transfer of such financial instrument, by reference to observable market information where such instruments are held as assets. Where this information is not available, other valuation techniques are adopted and, where significant, are detailed in the respective note to the financial statements.

(c) Property, Plant and EquipmentEach class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Irrigation SystemsThe irrigation systems comprising channels, water control structures and associated assets are recorded at fair value.

Fair value is determined by an independent valuation estimating the replacement cost of the irrigation systems less, where applicable, subsequent depreciation and impairment losses.

Revaluation adjustments are made against asset revaluation reserves, where appropriate.

PropertyFreehold land and buildings are measured on the cost basis less depreciation and impairment losses for buildings.

Plant and EquipmentPlant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present.

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in the statement of profit or loss and other comprehensive income during the financial period in which they are incurred.

DepreciationThe depreciable amount of all fixed assets including buildings but excluding freehold land is depreciated on a straight line basis over their useful lives to the Company commencing from the time the asset is held ready for use.

20





The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation RateBuildings 2.5%Irrigation Assets

– Piping Assets 1%– Channelled Assets 2.5%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of profit or loss and other comprehensive income. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.

(d) Financial InstrumentsInitial Recognition and MeasurementFinancial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is equivalent to the date that the Company commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified ‘at fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately.

Classification and Subsequent MeasurementFinancial instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances valuation techniques are adopted.

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and then adjusted for any cumulative amortisation of the difference between the initial amount and the maturity amount calculated using the effective interest rate method.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

20





The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation RateBuildings 2.5%Irrigation Assets

– Piping Assets 1%– Channelled Assets 2.5%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of profit or loss and other comprehensive income. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.

(d) Financial InstrumentsInitial Recognition and MeasurementFinancial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is equivalent to the date that the Company commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified ‘at fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately.

Classification and Subsequent MeasurementFinancial instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances valuation techniques are adopted.

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and then adjusted for any cumulative amortisation of the difference between the initial amount and the maturity amount calculated using the effective interest rate method.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

21





Fair value is determined based on current bid prices for all quoted investments. Valuationtechniques are applied to determine the fair value for all unlisted securities, including recent arms’ length transactions, reference to similar instruments and option pricing models.

(i) Financial Assets at Fair Value through Profit or LossFinancial assets are classified at ‘fair value through profit or loss’ when they are either held for trading for the purpose of short term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.

(ii) Loans and ReceivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

(iii) Held-to-maturity InvestmentsHeld-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Company’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

(iv) Available-for-sale Financial AssetsAvailable-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with any remeasurements other than impairment losses and foreign exchange gains and losses recognised in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.

Available-for-sale financial assets are included in non-current assets, except for those which are expected to be disposed of within 12 months after the end of the reporting period, which will be classified as current assets.

(v) Financial Liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

21





Fair value is determined based on current bid prices for all quoted investments. Valuationtechniques are applied to determine the fair value for all unlisted securities, including recent arms’ length transactions, reference to similar instruments and option pricing models.

(i) Financial Assets at Fair Value through Profit or LossFinancial assets are classified at ‘fair value through profit or loss’ when they are either held for trading for the purpose of short term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.

(ii) Loans and ReceivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

(iii) Held-to-maturity InvestmentsHeld-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Company’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

(iv) Available-for-sale Financial AssetsAvailable-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with any remeasurements other than impairment losses and foreign exchange gains and losses recognised in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.

Available-for-sale financial assets are included in non-current assets, except for those which are expected to be disposed of within 12 months after the end of the reporting period, which will be classified as current assets.

(v) Financial Liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

22





ImpairmentAt the end of each reporting period, the Company assesses whether there is objective evidence that a financial instrument has been impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial instruments, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit and loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account.

When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the Company recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.

Financial Guarantees Where material, financial guarantees issued which require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due, are recognised as a financial liability at fair value on the initial recognition.

The fair value of financial guarantee contracts has been assessed using the probability weighted discounted cash flow approach. The probability has been based on:

- The likelihood of the guaranteed party defaulting in a year’s period;- The proportion of the exposure that is not expected to be recovered due to the

guaranteed party defaulting; and- The maximum loss exposed if the guaranteed party were to default.

Financial guarantees are subsequently measured at the higher of the best estimate of the obligation in accordance with AASB 137: Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less, when appropriate, cumulative amortisation

22





ImpairmentAt the end of each reporting period, the Company assesses whether there is objective evidence that a financial instrument has been impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial instruments, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit and loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account.

When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the Company recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.

Financial Guarantees Where material, financial guarantees issued which require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due, are recognised as a financial liability at fair value on the initial recognition.

The fair value of financial guarantee contracts has been assessed using the probability weighted discounted cash flow approach. The probability has been based on:

- The likelihood of the guaranteed party defaulting in a year’s period;- The proportion of the exposure that is not expected to be recovered due to the

guaranteed party defaulting; and- The maximum loss exposed if the guaranteed party were to default.

Financial guarantees are subsequently measured at the higher of the best estimate of the obligation in accordance with AASB 137: Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less, when appropriate, cumulative amortisation

23





in accordance with AASB 118: Revenue. Where the entity gives guarantees in exchange for a fee, revenue is recognised under AASB 118.

DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

(e) Impairment of AssetsAt the end of each reporting period, the Company assesses whether there is any indication that an asset may be impaired. The assessment will include considering external sources and internal sources of information. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use to the asset’s carrying value.

Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g.: in accordance with the revaluation model in AASB 116.) Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other standard. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(f) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

(g) RevenueRevenue from levies and contributions is recognised on the due date.

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets is the rate inherent in the instrument.

Revenue from contracts performed is brought to account on the basis of the percentage completion of the relevant contracts and taking account of any future losses that may be incurred.

All revenue is stated net of the amount of goods and services tax (GST).

(h) Trade and Other ReceivablesTrade and other receivables include amounts due from customers for levies and contributions charged in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.

23





in accordance with AASB 118: Revenue. Where the entity gives guarantees in exchange for a fee, revenue is recognised under AASB 118.

DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

(e) Impairment of AssetsAt the end of each reporting period, the Company assesses whether there is any indication that an asset may be impaired. The assessment will include considering external sources and internal sources of information. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use to the asset’s carrying value.

Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g.: in accordance with the revaluation model in AASB 116.) Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other standard. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(f) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

(g) RevenueRevenue from levies and contributions is recognised on the due date.

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets is the rate inherent in the instrument.

Revenue from contracts performed is brought to account on the basis of the percentage completion of the relevant contracts and taking account of any future losses that may be incurred.

All revenue is stated net of the amount of goods and services tax (GST).

(h) Trade and Other ReceivablesTrade and other receivables include amounts due from customers for levies and contributions charged in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.

24





collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. Trade and other receivables are initially recognised at fair trade value and subsequently measured at amortised cost using effective interest method, less any provision for impairment.

(i) Trade and Other PayablesTrade and other payables represent the liabilities for goods and services received by the Company that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(j) Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amounts of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows including in receipts from customers or payments to suppliers.

(k) Comparative FiguresWhen required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(l) New Accounting Standards for Application in Future PeriodsThe AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods, some of which are relevant to the Company. The Company has decided not to early adopt any of the new and amended pronouncements. The Company’s assessment of the new and amended pronouncements that are relevant to the Company but applicable in future reporting periods is set out below:

– AASB 9: Financial Instruments and associated Amending Standards (applicable to annual reporting periods beginning on or after 1 January 2018).

The Standard will be applicable retrospectively (subject to the provisions on hedge accounting outlined below) and includes revised requirements for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial instruments and simplified requirements for hedge accounting.

24





collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. Trade and other receivables are initially recognised at fair trade value and subsequently measured at amortised cost using effective interest method, less any provision for impairment.

(i) Trade and Other PayablesTrade and other payables represent the liabilities for goods and services received by the Company that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(j) Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amounts of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows including in receipts from customers or payments to suppliers.

(k) Comparative FiguresWhen required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(l) New Accounting Standards for Application in Future PeriodsThe AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods, some of which are relevant to the Company. The Company has decided not to early adopt any of the new and amended pronouncements. The Company’s assessment of the new and amended pronouncements that are relevant to the Company but applicable in future reporting periods is set out below:

– AASB 9: Financial Instruments and associated Amending Standards (applicable to annual reporting periods beginning on or after 1 January 2018).

The Standard will be applicable retrospectively (subject to the provisions on hedge accounting outlined below) and includes revised requirements for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial instruments and simplified requirements for hedge accounting.

25





The changes to this standard are not expected to impact the Company’s financial statements.

– AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods commencing on or after 1 January 2018).

When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principles-based model. Except for a limited number of exceptions, including leases, the new revenue model in AASB 15 willapply to all contracts with customers as well as non-monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers.

The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. To achieve this objective, AASB 15 provides the following five-step process:

o identify the contract(s) with a customer;

o identify the performance obligations in the contract(s);

o determine the transaction price;

o allocate the transaction price to the performance obligations in the contract(s); and

o recognise revenue when (or as) the performance obligations are satisfied.

This Standard will require retrospective restatement, as well as enhanced disclosures regarding revenue.

Although the directors anticipate that the adoption of AASB 15 may have an impact on the Company's financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.

25





The changes to this standard are not expected to impact the Company’s financial statements.

– AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods commencing on or after 1 January 2018).

When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principles-based model. Except for a limited number of exceptions, including leases, the new revenue model in AASB 15 willapply to all contracts with customers as well as non-monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers.

The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. To achieve this objective, AASB 15 provides the following five-step process:

o identify the contract(s) with a customer;

o identify the performance obligations in the contract(s);

o determine the transaction price;

o allocate the transaction price to the performance obligations in the contract(s); and

o recognise revenue when (or as) the performance obligations are satisfied.

This Standard will require retrospective restatement, as well as enhanced disclosures regarding revenue.

Although the directors anticipate that the adoption of AASB 15 may have an impact on the Company's financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.

26





– AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 2019).

When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 117: Leases and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as operating or finance leases.

The main changes introduced by the new Standard include:o recognition of a right-to-use asset and liability for all leases (excluding short-

term leases with less than 12 months of tenure and leases relating to low-value assets);

o depreciation of right-to-use assets in line with AASB 116: Property, Plant and Equipment in profit or loss and unwinding of the liability in principal and interest components;

o variable lease payments that depend on an index or a rate are included in the initial measurement of the lease liability using the index or rate at the commencement date;

o by applying a practical expedient, a lessee is permitted to elect not to separate non-lease components and instead account for all components as a lease; and

o additional disclosure requirements.

The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors or recognise the cumulative effect of retrospective application as an adjustment to opening equity on the date of initial application.

Although the directors anticipate that the adoption of AASB 16 will impact the company's financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.

26





– AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 2019).

When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 117: Leases and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as operating or finance leases.

The main changes introduced by the new Standard include:o recognition of a right-to-use asset and liability for all leases (excluding short-

term leases with less than 12 months of tenure and leases relating to low-value assets);

o depreciation of right-to-use assets in line with AASB 116: Property, Plant and Equipment in profit or loss and unwinding of the liability in principal and interest components;

o variable lease payments that depend on an index or a rate are included in the initial measurement of the lease liability using the index or rate at the commencement date;

o by applying a practical expedient, a lessee is permitted to elect not to separate non-lease components and instead account for all components as a lease; and

o additional disclosure requirements.

The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors or recognise the cumulative effect of retrospective application as an adjustment to opening equity on the date of initial application.

Although the directors anticipate that the adoption of AASB 16 will impact the company's financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.

27




2. OPERATING REVENUE2016

$2015

$Operating ActivitiesServices to Members 1,864,099 1,875,128Interest Revenue 776,116 878,433Rent Revenue 27,537 27,538Total Revenue 2,667,664 2,781,099

(a) Interest Revenue fromMembers 2,088 2,587Financial Institutions 774,027 849,673Related Party - SWIMCO - 26,173Total Interest Revenue 776,116 878,433

3. SURPLUS BEFORE INCOME TAX

Surplus before income tax from continuing operations includes the following specific expenses:

Depreciation on Irrigation System 793,259 787,372Depreciation on Property, Plant & Equipment 8,427 7,467Maintenance Expenses on Irrigation System 227,498 276,209Directors’ Fees 62,200 62,180Management Fees 338,878 339,732

27




2. OPERATING REVENUE2016

$2015

$Operating ActivitiesServices to Members 1,864,099 1,875,128Interest Revenue 776,116 878,433Rent Revenue 27,537 27,538Total Revenue 2,667,664 2,781,099

(a) Interest Revenue fromMembers 2,088 2,587Financial Institutions 774,027 849,673Related Party - SWIMCO - 26,173Total Interest Revenue 776,116 878,433

3. SURPLUS BEFORE INCOME TAX

Surplus before income tax from continuing operations includes the following specific expenses:

Depreciation on Irrigation System 793,259 787,372Depreciation on Property, Plant & Equipment 8,427 7,467Maintenance Expenses on Irrigation System 227,498 276,209Directors’ Fees 62,200 62,180Management Fees 338,878 339,732

28




4. INCOME TAX2016

$2015

$(a) The components of tax expense comprise:Current Tax 273,048 261,182Deferred Tax (93,283) 13,342

179,765 274,524

(b) The prima facie tax payable on Surplus from Ordinary Activities before Income Tax is reconciled to the Income Tax Expense as follows:

Surplus from Ordinary Activities before Income Tax 939,788 1,155,668

Prima Facie Tax at 30% (2015: 30%) 281,936 346,700

Add: Tax effect of permanent differences -- Mutual Income (net of applicable expenditures) which is not assessable (105,066) (72,010)- Allowable Deductions / Non-assessable Income (140,950) (131,576)-Other Non-allowable Deductions/Other Assessable Income

143,845 131,410

Income Tax Expense attributable to entity 179,765 274,524

The applicable weighted average effective tax expense (benefit) is as follows: 19% 24%

The weighted average effective tax rates for 2015 and 2016 reflect differences in the amounts of mutual Income (non-assessable) compared to non-mutual Income (assessable) from year to year, in accordance with the principle of mutuality.

(c) Mutual and Non-Mutual FundsMutual FundsBalance brought forward 45,841,574 45,615,648Change in equity for the year 8,700,818 225,926Balance carried forward 54,542,392 45,841,574Non-Mutual FundsBalance brought forward 8,463,393 7,808,938Change in equity for the year 323,828 654,455Balance carried forward 8,787,219 8,463,393TOTAL 63,329,611 54,304,967The changes in equity during the year comprise:Mutual Funds 8,700,817 225,926Non-Mutual Funds 323,827 654,455

9,024,644 880,381

28




4. INCOME TAX2016

$2015

$(a) The components of tax expense comprise:Current Tax 273,048 261,182Deferred Tax (93,283) 13,342

179,765 274,524

(b) The prima facie tax payable on Surplus from Ordinary Activities before Income Tax is reconciled to the Income Tax Expense as follows:

Surplus from Ordinary Activities before Income Tax 939,788 1,155,668

Prima Facie Tax at 30% (2015: 30%) 281,936 346,700

Add: Tax effect of permanent differences -- Mutual Income (net of applicable expenditures) which is not assessable (105,066) (72,010)- Allowable Deductions / Non-assessable Income (140,950) (131,576)-Other Non-allowable Deductions/Other Assessable Income

143,845 131,410

Income Tax Expense attributable to entity 179,765 274,524

The applicable weighted average effective tax expense (benefit) is as follows: 19% 24%

The weighted average effective tax rates for 2015 and 2016 reflect differences in the amounts of mutual Income (non-assessable) compared to non-mutual Income (assessable) from year to year, in accordance with the principle of mutuality.

(c) Mutual and Non-Mutual FundsMutual FundsBalance brought forward 45,841,574 45,615,648Change in equity for the year 8,700,818 225,926Balance carried forward 54,542,392 45,841,574Non-Mutual FundsBalance brought forward 8,463,393 7,808,938Change in equity for the year 323,828 654,455Balance carried forward 8,787,219 8,463,393TOTAL 63,329,611 54,304,967The changes in equity during the year comprise:Mutual Funds 8,700,817 225,926Non-Mutual Funds 323,827 654,455

9,024,644 880,381

29

SOU

TH W

EST IRR

IGA

TION

ASSET C

OO

PERA

TIVE LIMITED

NO

TE

S T

O T

HE

FINA

NC

IAL S

TA

TE

ME

NT

S

FOR

TH

E Y

EA

R E

ND

ED

30 JUN

E 2016

(d) Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are attributable to the follow

ing: AssetsLiabilities

Net

2016 $

2015 $

2016$

2015$

2016 $

2015 $

Fair value adjustments of assets

--

(13,401,653)(10,013,035)

(13,401,653)(10,013,035)

Income not yet assessable for taxation purposes

--

(96,121)(139,320)

(96,121)(139,320)

Expenses not yet deductible for taxation purposes54,510

4,425-

-54,510

4,425Tax Assets / (Liabilities)

54,5104,425

(13,497,774)(10,152,355)

(13,443,265)(10,147,930)

Balance

1 July 2015$

Charged to Incom

e$

Charged directly

to Equity$

Balance

30 June 2016$

Movem

ent in temporary differences during the

yearFair value adjustm

ents of assets(10,013,035)

-(3,388,618)

(13,401,653)Incom

e not yet assessable for taxation purposes(139,320)

43,198-

(96,121)Expenses not yet deductible for taxation purposes

4,42550,085

-54,510

(10,147,930)93,283

(3,388,618)(13,443,265)

Balance

1 July 2014$

Charged to Incom

e$

Charged directly

to Equity$

Balance

30 June 2015$

Movem

ent in temporary differences during the

yearFair value adjustm

ents of assets(10,013,035)

--

(10,013,035)Incom

e not yet assessable for taxation purposes(127,037)

(12,283)-

(139,320)Expenses not yet deductible for taxation purposes

5,483(1,058)

-4,425

(10,134,589)(13,341)

-(10,147,930)

30




4. INCOME TAX (Cont)

Deferred tax assets not brought to account, the benefits of which will only be realised if the conditions for deductibility set out in Note 1(a) occur:

- Temporary differences $Nil (2015: $Nil)

- Tax losses: operating losses $Nil (2015: $Nil)

5. TRADE AND OTHER RECEIVABLES2016

$2015

$CURRENTTrade Receivables 2,039 20,575Accrued Interest 320,407 464,504Prepayments 14,070 13,932GST Receivable 31,425 1,904Related Party Receivable - SWIMCO 105,532 48,839Member Loans 9,511 9,511Total Current Trade and Other Receivables 482,984 559,265NON-CURRENTMember Loans 19,021 28,532Total Non-Current Trade and Other Receivables 19,021 28,532

(a) Trade ReceivablesTrade receivables relate to asset levies and access charges receivable by the Company.

(b) Member Loans

Member loans relate to amounts not yet paid by members in respect of the irrigation systems expansion programs. Interest is receivable on the loans.

2016$

2015$

Beginning of the year 38,043 9,800Loans Advanced - 47,554Loan Repayments Received (9,511) (19,311)Interest Charged 2,081 2,587Interest Received (2,081) (2,587)End of year 28,532 38,043

Unsecured loans are made to members on an arm’s length basis. Repayment terms are set for each loan, which have a term of five years (unless paid upfront). The interest rate is set when the loan is entered into and remains constant for the life of the loan, with annual principal and interest repayments made over the term of the loan.

30




4. INCOME TAX (Cont)

Deferred tax assets not brought to account, the benefits of which will only be realised if the conditions for deductibility set out in Note 1(a) occur:

- Temporary differences $Nil (2015: $Nil)

- Tax losses: operating losses $Nil (2015: $Nil)

5. TRADE AND OTHER RECEIVABLES2016

$2015

$CURRENTTrade Receivables 2,039 20,575Accrued Interest 320,407 464,504Prepayments 14,070 13,932GST Receivable 31,425 1,904Related Party Receivable - SWIMCO 105,532 48,839Member Loans 9,511 9,511Total Current Trade and Other Receivables 482,984 559,265NON-CURRENTMember Loans 19,021 28,532Total Non-Current Trade and Other Receivables 19,021 28,532

(a) Trade ReceivablesTrade receivables relate to asset levies and access charges receivable by the Company.

(b) Member Loans

Member loans relate to amounts not yet paid by members in respect of the irrigation systems expansion programs. Interest is receivable on the loans.

2016$

2015$

Beginning of the year 38,043 9,800Loans Advanced - 47,554Loan Repayments Received (9,511) (19,311)Interest Charged 2,081 2,587Interest Received (2,081) (2,587)End of year 28,532 38,043

Unsecured loans are made to members on an arm’s length basis. Repayment terms are set for each loan, which have a term of five years (unless paid upfront). The interest rate is set when the loan is entered into and remains constant for the life of the loan, with annual principal and interest repayments made over the term of the loan.

31




5. TRADE AND OTHER RECEIVABLES (Cont)

(c) Provision for Impairment of ReceivablesCurrent trade and term receivables are non-interest bearing loans and generally on 30-day terms. Non-current trade and term receivables are assessed for recoverability based on the underlying terms of the contract. A provision for impairment is recognised when there is objective evidence that an individual trade or term receivable is impaired. These amounts have been included in the Other Expenses item.

Movement in the provision for impairment of receivables is as follows:

Opening Balance

1 July 2015

Charge for the Year

Amounts written

Off

ClosingBalance

30 June 2016$ $ $ $

Amounts Receivable from members - - - -

Opening Balance

1 July 2014

Charge for the Year

Amounts written

Off

ClosingBalance

30 June 2015$ $ $ $


Credit RiskThe Company has no significant concentration of credit risk with respect to any single counterparty or group of counterparties. The main source of credit risk to the Company is considered to relate to the class of assets described as ‘Trade and Other Receivables’.

All trade receivables which are 90 plus days outstanding relate to asset levies and access charges receivable by the Company. No debtor impairment is considered necessary as a result of the measures that can be undertaken by the Company to recover the debt, being lodgement of a caveat over land

(d) Financial Assets classified as Trade and Other ReceivablesNote 2016

$2015

$Trade and Other Receivables

- Total Current 482,984 559,265- Total Non-Current 19,021 28,532

502,005 587,797

Financial Assets 19 502,005 587,797

(e) Collateral PledgedNo collateral is held over trade and other receivables.

31




5. TRADE AND OTHER RECEIVABLES (Cont)

(c) Provision for Impairment of ReceivablesCurrent trade and term receivables are non-interest bearing loans and generally on 30-day terms. Non-current trade and term receivables are assessed for recoverability based on the underlying terms of the contract. A provision for impairment is recognised when there is objective evidence that an individual trade or term receivable is impaired. These amounts have been included in the Other Expenses item.

Movement in the provision for impairment of receivables is as follows:

Opening Balance

1 July 2015

Charge for the Year

Amounts written

Off

ClosingBalance

30 June 2016$ $ $ $


Opening Balance

1 July 2014

Charge for the Year

Amounts written

Off

ClosingBalance

30 June 2015$ $ $ $


Credit RiskThe Company has no significant concentration of credit risk with respect to any single counterparty or group of counterparties. The main source of credit risk to the Company is considered to relate to the class of assets described as ‘Trade and Other Receivables’.

All trade receivables which are 90 plus days outstanding relate to asset levies and access charges receivable by the Company. No debtor impairment is considered necessary as a result of the measures that can be undertaken by the Company to recover the debt, being lodgement of a caveat over land

(d) Financial Assets classified as Trade and Other ReceivablesNote 2016

$2015

$Trade and Other Receivables

- Total Current 482,984 559,265- Total Non-Current 19,021 28,532

502,005 587,797

Financial Assets 19 502,005 587,797

(e) Collateral PledgedNo collateral is held over trade and other receivables.

32




6. CURRENT TAX ASSET2016

$2015

$

CURRENTIncome Tax - -

7. FINANCIAL ASSETS

Financial assets include investments with Financial Institutions with a term greater than 14 days and related party loans earning commercial interest rates as per a loan agreement.

CURRENTHeld To Maturity Financial Assets 19,564,982 15,000,045Loans and Receivable Financial Assets - -Total Current Financial Assets 19,564,982 15,000,045

NON-CURRENTHeld to Maturity Financial Assets 5,050,842 8,811,444Total Non- Current Financial Assets 5,050,842 8,811,444

8. PROPERTY, PLANT & EQUIPMENT

(a) Irrigation Assets

Channeled Irrigation Assets at Fair Value 15,901,146 18,285,497Accumulated Depreciation - (914,276)

15,901,146 17,371,221

Piping Irrigation Assets at Fair Value 33,382,352 21,036,403Accumulated Depreciation - (419,520)

33,382,352 20,616,883

Other Irrigation Assets at Fair Value 758,949 758,949Accumulated Depreciation (267,081) (140,719)

491,868 618,230

Total Irrigation Systems 49,775,366 38,606,334

The Company’s irrigation assets are recorded at fair value at 30 June 2016 based on an independent valuation obtained in June 2016 plus capital works in progress as at 30 June 2016.

Maintenance expenses associated with irrigation assets were capitalised to the year ending 30 June 2006, in accordance with the renewals accounting methodology adopted by the Board. Subsequent to June 2006, being the first year irrigation assets were recorded based on independent valuation, maintenance expenses of a non-capital nature are expensed as incurred.

32




6. CURRENT TAX ASSET2016

$2015

$

CURRENTIncome Tax - -

7. FINANCIAL ASSETS

Financial assets include investments with Financial Institutions with a term greater than 14 days and related party loans earning commercial interest rates as per a loan agreement.

CURRENTHeld To Maturity Financial Assets 19,564,982 15,000,045Loans and Receivable Financial Assets - -Total Current Financial Assets 19,564,982 15,000,045

NON-CURRENTHeld to Maturity Financial Assets 5,050,842 8,811,444Total Non- Current Financial Assets 5,050,842 8,811,444

8. PROPERTY, PLANT & EQUIPMENT

(a) Irrigation Assets

Channeled Irrigation Assets at Fair Value 15,901,146 18,285,497Accumulated Depreciation - (914,276)

15,901,146 17,371,221

Piping Irrigation Assets at Fair Value 33,382,352 21,036,403Accumulated Depreciation - (419,520)

33,382,352 20,616,883

Other Irrigation Assets at Fair Value 758,949 758,949Accumulated Depreciation (267,081) (140,719)

491,868 618,230

Total Irrigation Systems 49,775,366 38,606,334

The Company’s irrigation assets are recorded at fair value at 30 June 2016 based on an independent valuation obtained in June 2016 plus capital works in progress as at 30 June 2016.

Maintenance expenses associated with irrigation assets were capitalised to the year ending 30 June 2006, in accordance with the renewals accounting methodology adopted by the Board. Subsequent to June 2006, being the first year irrigation assets were recorded based on independent valuation, maintenance expenses of a non-capital nature are expensed as incurred.

33




8. PROPERTY, PLANT & EQUIPMENT (Cont)2016

$2015

$(b) Land & BuildingsLand at Cost 245,812 245,812Buildings and Furniture at Cost 319,850 250,126Accumulated Depreciation (95,152) (86,725)Total Buildings and Furniture 224,698 163,401Total Land, Buildings and Furniture 470,510 409,213

Total Property, Plant & Equipment (8a + 8b) 50,245,876 39,015,547

(c) Movements in carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Irrigation Systems

Freehold Land

Buildingsand

FurnitureTotal

$ $ $ $Balance – 30 June 2014 39,027,982 245,812 170,868 39,444,662

Additions 365,724 - - -

Disposals - - - -

Revaluation - - - -

Depreciation Expense (787,372) - (7,467) (794,839)

Balance – 30 June 2015 38,606,334 245,812 163,401 39,015,547

Additions 308,841 - 69,725 378,567

Disposals - - - -

Revaluation 11,653,449 - - 11,653,448


Balance – 30 June 2016 49,775,366 245,812 224,698 50,245,876

33




8. PROPERTY, PLANT & EQUIPMENT (Cont)2016

$2015

$(b) Land & BuildingsLand at Cost 245,812 245,812Buildings and Furniture at Cost 319,850 250,126Accumulated Depreciation (95,152) (86,725)Total Buildings and Furniture 224,698 163,401Total Land, Buildings and Furniture 470,510 409,213

Total Property, Plant & Equipment (8a + 8b) 50,245,876 39,015,547

(c) Movements in carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Irrigation Systems

Freehold Land

Buildingsand

FurnitureTotal

$ $ $ $Balance – 30 June 2014 39,027,982 245,812 170,868 39,444,662

Additions 365,724 - - -

Disposals - - - -

Revaluation - - - -


Balance – 30 June 2015 38,606,334 245,812 163,401 39,015,547

Additions 308,841 - 69,725 378,567

Disposals - - - -

Revaluation 11,653,449 - - 11,653,448


Balance – 30 June 2016 49,775,366 245,812 224,698 50,245,876

34




9. TRADE AND OTHER PAYABLES

Note 2016$

2015$

CURRENTUnsecured LiabilitiesTrade Payables and Accrued Expenses 397,295 22,943

19 397,295 22,943

10. TAX LIABILITIES

CURRENTIncome Tax 49,010 100,491

NON-CURRENTProvision for Deferred Tax Liability 13,443,265 10,147,930

11. ISSUED CAPITAL

99,344 (2015 – 99,556) Fully Paid Ordinary Shares 99,344 99,556

(a) Ordinary SharesNo. No.

At the Beginning of Reporting Period 99,556 100,318Shares Issued During the Year - -Share Buy Back (212) (762)At Reporting Date 99,344 99,556

At the members Annual General Meeting each voting member is entitled to one vote when a poll is called.

(b) Capital ManagementManagement and the Directors control the capital of the Company to ensure the Company funds its operations for members.

The Company’s capital includes ordinary share capital. There are no externally imposed capital requirements.

Management effectively manages the Company’s capital by assessing financial risks and adjusting its capital structure in response to member share transfers. There have been no changes in the strategy adopted by management to control the capital of the Company since the prior year.

34




9. TRADE AND OTHER PAYABLES

Note 2016$

2015$

CURRENTUnsecured LiabilitiesTrade Payables and Accrued Expenses 397,295 22,943

19 397,295 22,943

10. TAX LIABILITIES

CURRENTIncome Tax 49,010 100,491

NON-CURRENTProvision for Deferred Tax Liability 13,443,265 10,147,930

11. ISSUED CAPITAL

99,344 (2015 – 99,556) Fully Paid Ordinary Shares 99,344 99,556

(a) Ordinary SharesNo. No.

At the Beginning of Reporting Period 99,556 100,318Shares Issued During the Year - -Share Buy Back (212) (762)At Reporting Date 99,344 99,556

At the members Annual General Meeting each voting member is entitled to one vote when a poll is called.

(b) Capital ManagementManagement and the Directors control the capital of the Company to ensure the Company funds its operations for members.

The Company’s capital includes ordinary share capital. There are no externally imposed capital requirements.

Management effectively manages the Company’s capital by assessing financial risks and adjusting its capital structure in response to member share transfers. There have been no changes in the strategy adopted by management to control the capital of the Company since the prior year.

35




12. CAPITAL AND LEASING COMMITMENTS

(a) Finance Lease CommitmentsThere were no contractual finance lease commitments at 30 June 2015 or 30 June 2016.

(b) Operating Lease CommitmentsThere were no contractual operating lease commitments at 30 June 2015 or 30 June 2016.

(c) Capital Expenditure CommitmentsCapital expenditure commitments as at 30 June 2016 are estimated to be $14,000 for a new telephone system, which was approved as at 30 June 2016.

13. AUDITORS REMUNERATION

Remuneration of the Auditors of the Company for:2016

$2015

$- Audit or reviewing of the financial report 18,700 18,280- Other Services 3,600 3,500- Taxation Services provided by related practice of

auditor 4,410 4,320

26,710 26,100

14. RELATED PARTY TRANSACTIONS

(a) Directors NamesThe Directors of the Company during the financial year were:Chairman K Warburton Director C MarinoDirector M Snell

(b) Remuneration of DirectorsIncome paid to the Directors of the Company totaled $62,200 (2015: $62,160) for the year from 1 July 2015 to 30 June 2016. The number of Directors whose total income was within the specified bands was as follows:

$ $ 2016 20150 - 9,999 - -10,000 - 19,999 1 220,000 - 29,999 2 -30,000 - 39,999 - 1

Remuneration paid to Directors during the year ending 30 June 2016 was in accordance with the Directors resolution approved at the Annual General Meeting.

35




12. CAPITAL AND LEASING COMMITMENTS

(a) Finance Lease CommitmentsThere were no contractual finance lease commitments at 30 June 2015 or 30 June 2016.

(b) Operating Lease CommitmentsThere were no contractual operating lease commitments at 30 June 2015 or 30 June 2016.

(c) Capital Expenditure CommitmentsCapital expenditure commitments as at 30 June 2016 are estimated to be $14,000 for a new telephone system, which was approved as at 30 June 2016.

13. AUDITORS REMUNERATION

Remuneration of the Auditors of the Company for:2016

$2015

$- Audit or reviewing of the financial report 18,700 18,280- Other Services 3,600 3,500- Taxation Services provided by related practice of

auditor 4,410 4,320

26,710 26,100

14. RELATED PARTY TRANSACTIONS

(a) Directors NamesThe Directors of the Company during the financial year were:Chairman K Warburton Director C MarinoDirector M Snell

(b) Remuneration of DirectorsIncome paid to the Directors of the Company totaled $62,200 (2015: $62,160) for the year from 1 July 2015 to 30 June 2016. The number of Directors whose total income was within the specified bands was as follows:

$ $ 2016 20150 - 9,999 - -10,000 - 19,999 1 220,000 - 29,999 2 -30,000 - 39,999 - 1

Remuneration paid to Directors during the year ending 30 June 2016 was in accordance with the Directors resolution approved at the Annual General Meeting.

36




14. RELATED PARTY TRANSACTIONS (cont)

(c) Directors ShareholdingsThe aggregate number of fully paid and ordinary shares of the Company held by the Directors in office at 30 June 2016, or their related entities, was 1,331 (2015 – 1,331).

(d) Transactions of Directors Concerning SharesThere were no shares purchased or sold by Directors in office at balance date, during the year ended 30 June 2016.

(e) Other Transactions of DirectorsDuring the financial year, the following Directors, or their related entities, paid asset levies and access charges to the Company under normal trading terms and conditions:

- C Marino- K Warburton - M Snell

2016$

2015$

Aggregate amount paid for asset levies and access charges 16,122 15,910

15. KEY MANAGEMENT PERSONNEL COMPENSATION

Key management personnel are paid by SWIMCO in accordance with the MOU.

16. SEGMENT INFORMATION

The Company operates in the Harvey Water Irrigation Area of Western Australia and its main functions are to own and maintain irrigation assets and to manage the investments of the Asset Maintenance and Renewal Fund.

36




14. RELATED PARTY TRANSACTIONS (cont)

(c) Directors ShareholdingsThe aggregate number of fully paid and ordinary shares of the Company held by the Directors in office at 30 June 2016, or their related entities, was 1,331 (2015 – 1,331).

(d) Transactions of Directors Concerning SharesThere were no shares purchased or sold by Directors in office at balance date, during the year ended 30 June 2016.

(e) Other Transactions of DirectorsDuring the financial year, the following Directors, or their related entities, paid asset levies and access charges to the Company under normal trading terms and conditions:

- C Marino- K Warburton - M Snell

2016$

2015$

Aggregate amount paid for asset levies and access charges 16,122 15,910

15. KEY MANAGEMENT PERSONNEL COMPENSATION

Key management personnel are paid by SWIMCO in accordance with the MOU.

16. SEGMENT INFORMATION

The Company operates in the Harvey Water Irrigation Area of Western Australia and its main functions are to own and maintain irrigation assets and to manage the investments of the Asset Maintenance and Renewal Fund.

37




17. CASH FLOW RECONCILIATION2016

$2015

$(a) Reconciliation of CashCash at end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows:Cash on Hand 1,855,476 1,161,498

(b) Reconciliation of cash flow from operations with surplus after income tax:

Surplus after Income Tax 760,023 881,144Depreciation 801,686 794,839Change in Operating Assets and LiabilitiesIncrease / (Decrease) in Provision for Income Tax (51,482) 139,127Increase / (Decrease) in Trade and Other Payables 296,202 75,774(Increase) / Decrease in Trade and Other Receivables 154,223 (88,985)Increase / (Decrease) in Provisions for Deferred Tax (93,284) 13,342Net Cash provided by Operating Activities 1,867,368 1,815,241

18. RESERVES

(a) Asset Revaluation Reserve The asset revaluation reserve records revaluation of non-current assets, specifically the irrigation system.

(b) Asset Maintenance and Renewal FundThe asset maintenance and renewal fund records funds set aside for the future maintenance of the irrigation system.

37




17. CASH FLOW RECONCILIATION2016

$2015

$(a) Reconciliation of CashCash at end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows:Cash on Hand 1,855,476 1,161,498

(b) Reconciliation of cash flow from operations with surplus after income tax:

Surplus after Income Tax 760,023 881,144Depreciation 801,686 794,839Change in Operating Assets and LiabilitiesIncrease / (Decrease) in Provision for Income Tax (51,482) 139,127Increase / (Decrease) in Trade and Other Payables 296,202 75,774(Increase) / Decrease in Trade and Other Receivables 154,223 (88,985)Increase / (Decrease) in Provisions for Deferred Tax (93,284) 13,342Net Cash provided by Operating Activities 1,867,368 1,815,241

18. RESERVES

(a) Asset Revaluation Reserve The asset revaluation reserve records revaluation of non-current assets, specifically the irrigation system.

(b) Asset Maintenance and Renewal FundThe asset maintenance and renewal fund records funds set aside for the future maintenance of the irrigation system.

38




19. FINANCIAL RISK MANAGEMENT

The Company’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, loans to and from members and related parties.

The Company does not have any derivative instruments at 30 June 2016.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

Note 2016$

2015$

Financial AssetsCash and Cash Equivalents 17(a) 1,855,476 1,161,498Trade and Other Receivables 5 502,005 587,797Financial Assets 7 24,615,824 23,811,489

26,973,305 25,560,784

Financial LiabilitiesFinancial Liabilities at amortised cost:

- Trade and Other Payables 9 397,295 22,943397,295 22,943

Financial Risk Management PoliciesThe Board meets on a regular basis to analyse financial risk exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts.

The Board’s overall risk management strategy seeks to assist the Company in meeting its financial targets, whilst minimising potential adverse effects on financial performance.

Management operates under policies approved by the Board of Directors. Risk management policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements.

38




19. FINANCIAL RISK MANAGEMENT

The Company’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, loans to and from members and related parties.

The Company does not have any derivative instruments at 30 June 2016.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

Note 2016$

2015$

Financial AssetsCash and Cash Equivalents 17(a) 1,855,476 1,161,498Trade and Other Receivables 5 502,005 587,797Financial Assets 7 24,615,824 23,811,489

26,973,305 25,560,784

Financial LiabilitiesFinancial Liabilities at amortised cost:

- Trade and Other Payables 9 397,295 22,943397,295 22,943

Financial Risk Management PoliciesThe Board meets on a regular basis to analyse financial risk exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts.

The Board’s overall risk management strategy seeks to assist the Company in meeting its financial targets, whilst minimising potential adverse effects on financial performance.

Management operates under policies approved by the Board of Directors. Risk management policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements.

39




19. FINANCIAL RISK MANAGEMENT (Cont)

Specific Financial Risk Exposures and ManagementThe main risks the Company is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk, which are further detailed below:

(a) Interest Rate RiskExposure to interest rate risk arises on financial assets and financial liabilities recognised at reporting date whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The Company is also exposed to earnings volatility on floating rate instruments.

The Company has no borrowings at balance date and is not exposed to fluctuations in interest rates on borrowings.

(b) Liquidity riskThe Company manages liquidity risk by budgeting and monitoring forecast cash flows.

Financial Liability and Financial Asset Maturity AnalysisThe table below reflects the undiscounted contractual maturity for financial liabilities.

Cash flows realised from financial assets reflect management expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflect the earliest contractual settlement dates and do not reflect management expectations that banking facilities will be rolledforward.

39





Specific Financial Risk Exposures and ManagementThe main risks the Company is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk, which are further detailed below:

(a) Interest Rate RiskExposure to interest rate risk arises on financial assets and financial liabilities recognised at reporting date whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The Company is also exposed to earnings volatility on floating rate instruments.

The Company has no borrowings at balance date and is not exposed to fluctuations in interest rates on borrowings.

(b) Liquidity riskThe Company manages liquidity risk by budgeting and monitoring forecast cash flows.

Financial Liability and Financial Asset Maturity AnalysisThe table below reflects the undiscounted contractual maturity for financial liabilities.

Cash flows realised from financial assets reflect management expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflect the earliest contractual settlement dates and do not reflect management expectations that banking facilities will be rolledforward.

40

SOU

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19.

FIN

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Tota

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1 Y

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2016 $

2015 $

2016 $

2015 $

2016 $

2015 $

2016 $

2015 $

Fina

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Cas

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Equi

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1,85

5,47

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--

--

1,85

5,47

61,

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Rec

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482,

984

559,

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19,0

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,532

--

502,

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587,

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Inve

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19,5

64,9

8215

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,045

5,05

0,84

28,

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444

--

24,6

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2423

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,489

Tota

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21,9

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,720

,808

5,06

9,86

38,

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976

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,784

Ove

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Tota

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1 to

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2016 $

2015 $

2016 $

2015 $

2016 $

2015 $

2016 $

2015 $

Fina

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397,

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Tota

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d O

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397,

295

22,9

43-

--

-39

7,29

522

,943

Net

(Out

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on

Fina

ncia

l Ins

trum

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21,5

06,1

4716

,697

,865

5,06

9,86

38,

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976

--

26,5

76,0

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,537

,841

40

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2016 $

2015 $

2016 $

2015 $

2016 $

2015 $

2016 $

2015 $

Fina

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Cas

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Equi

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1,85

5,47

61,

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--

--

1,85

5,47

61,

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Rec

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482,

984

559,

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19,0

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,532

--

502,

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587,

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Inve

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64,9

8215

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,045

5,05

0,84

28,

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--

24,6

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2423

,811

,489

Tota

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Inflo

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,720

,808

5,06

9,86

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26,9

73,3

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,560

,784

Ove

r 5 y

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Tota

lW

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2016 $

2015 $

2016 $

2015 $

2016 $

2015 $

2016 $

2015 $

Fina

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397,

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,943

Tota

l Exp

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d O

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397,

295

22,9

43-

--

-39

7,29

522

,943

Net

(Out

flow

) / In

flow

on

Fina

ncia

l Ins

trum

ents

21,5

06,1

4716

,697

,865

5,06

9,86

38,

839,

976

--

26,5

76,0

1025

,537

,841

41





(c) Foreign Currency RiskThe Company is not exposed to fluctuations in foreign currencies.

(d) Credit RiskThe maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements.

There are no material amounts of collateral held as security at 30 June 2016.

Credit risk is managed by management and reviewed regularly by the Board of Directors. It arises from exposures to customers and deposits with financial institutions.

Management monitors credit risk by actively assessing the rating quality and liquidity of counter parties:

- Only banks and financial institutions with ratings as outlined within the investment policy are utilised; and

- Customers that do not pay on a timely basis are subject to recovery actions in accordance with Board policy and may ultimately have services restricted.

The Company does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into.

The trade receivables balances at 30 June 2015 and 30 June 2016 do not include any counter parties with external credit ratings. Customers credit worthiness is monitored monthly and actions taken where applicable in accordance with Board policy.

(e) Price RiskThe Company is not exposed to any material commodity price risk.

Sensitivity AnalysisThe following table illustrates sensitivities to the Company’s exposures to changes in interest rates. The table indicates the impact on how profit and equity values reported at balance date would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables.

Profit$

Equity$

Year ended 30 June 2016+/- 2% in interest rates +/- 529,426 +/- 529,426


The above interest rate sensitivity analysis has been performed on the assumption that all other variables remain unchanged.

41





(c) Foreign Currency RiskThe Company is not exposed to fluctuations in foreign currencies.

(d) Credit RiskThe maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements.

There are no material amounts of collateral held as security at 30 June 2016.

Credit risk is managed by management and reviewed regularly by the Board of Directors. It arises from exposures to customers and deposits with financial institutions.

Management monitors credit risk by actively assessing the rating quality and liquidity of counter parties:

- Only banks and financial institutions with ratings as outlined within the investment policy are utilised; and

- Customers that do not pay on a timely basis are subject to recovery actions in accordance with Board policy and may ultimately have services restricted.

The Company does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into.

The trade receivables balances at 30 June 2015 and 30 June 2016 do not include any counter parties with external credit ratings. Customers credit worthiness is monitored monthly and actions taken where applicable in accordance with Board policy.

(e) Price RiskThe Company is not exposed to any material commodity price risk.

Sensitivity AnalysisThe following table illustrates sensitivities to the Company’s exposures to changes in interest rates. The table indicates the impact on how profit and equity values reported at balance date would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables.

Profit$

Equity$



The above interest rate sensitivity analysis has been performed on the assumption that all other variables remain unchanged.

42





Net Fair ValuesFair Value EstimationThe fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on theamounts estimated. Areas of judgment and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly used by market participants.

2016 2015Footnote

Carrying Amount

$

Net Fair Value

$

Carrying Amount

$

Net Fair Value

$Financial AssetsCash and Cash Equivalents

(i) 1,855,479 1,855,479 1,161,498 1,161,498

Trade and Other Receivables

(i) 502,005 502,005 587,797 587,797

2,357,484 2,357,484 1,749,295 1,749,295Financial LiabilitiesTrade and Other Payables (i) 397,295 397,295 22,943 22,943

397,295 397,295 22,943 22,943

The fair values disclosed in the above table have been determined on the following methodologies:

(i) Cash and cash equivalents, trade and other receivables and trade and other payables are short term instruments in nature whose carrying value is equivalent to fair value. Trade and other payables exclude amounts provided for relating to annual leave which is not considered a financial instrument. Fair values are in line with carrying values.

42





Net Fair ValuesFair Value EstimationThe fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on theamounts estimated. Areas of judgment and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly used by market participants.

2016 2015Footnote

Carrying Amount

$

Net Fair Value

$

Carrying Amount

$

Net Fair Value

$Financial AssetsCash and Cash Equivalents

(i) 1,855,479 1,855,479 1,161,498 1,161,498

Trade and Other Receivables

(i) 502,005 502,005 587,797 587,797

2,357,484 2,357,484 1,749,295 1,749,295Financial LiabilitiesTrade and Other Payables (i) 397,295 397,295 22,943 22,943

397,295 397,295 22,943 22,943

The fair values disclosed in the above table have been determined on the following methodologies:

(i) Cash and cash equivalents, trade and other receivables and trade and other payables are short term instruments in nature whose carrying value is equivalent to fair value. Trade and other payables exclude amounts provided for relating to annual leave which is not considered a financial instrument. Fair values are in line with carrying values.

43




20. FAIR VALUE MEASUREMENTS

The company measures and recognises the following assets at fair value on a recurring basis after initial recognition:

- Irrigation systems assets.

The company does not subsequently measure any liabilities at fair value on a recurring basis, or any assets or liabilities at fair value on a non-recurring basis.

a. Fair Value Hierarchy

AASB 13: Fair Value Measurement requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurements into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows:

Level 1 Level 2 Level 3Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Measurements based on unobservable inputs for the asset or liability.

The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.

Valuation techniquesThe company selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured. The valuation techniques selected by the Company are consistent with one or more of the following valuation approaches:

- Market approach: valuation techniques that use prices and other relevant information generated by market transactions for identical or similar assets or liabilities.

- Income approach: valuation techniques that convert estimated future cash flows or income and expenses into a single discounted present value.

- Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service capacity.

43




20. FAIR VALUE MEASUREMENTS

The company measures and recognises the following assets at fair value on a recurring basis after initial recognition:

- Irrigation systems assets.

The company does not subsequently measure any liabilities at fair value on a recurring basis, or any assets or liabilities at fair value on a non-recurring basis.

a. Fair Value Hierarchy

AASB 13: Fair Value Measurement requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurements into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows:

Level 1 Level 2 Level 3Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Measurements based on unobservable inputs for the asset or liability.

The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.

Valuation techniquesThe company selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured. The valuation techniques selected by the Company are consistent with one or more of the following valuation approaches:

- Market approach: valuation techniques that use prices and other relevant information generated by market transactions for identical or similar assets or liabilities.

- Income approach: valuation techniques that convert estimated future cash flows or income and expenses into a single discounted present value.

- Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service capacity.

44




20. FAIR VALUE MEASUREMENTS (cont.)

Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Company gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable.

The following tables provide the fair values of the Company’s assets and liabilities measured and recognised on a recurring basis after initial recognition and their categorisation within the fair value hierarchy:

30 June 2016Note Level 1

$Level 2

$Level 3

$Total

$Non-financial assetsIrrigation systems 8 - 49,775,366 - 49,775,366Total non-financial assets recognised at fair value - 49,775,366 - 49,775,366

i) IQE Pty Ltd was engaged by the Company to perform a valuation of irrigation assets held at 30 June 2016. The method adopted to calculate the current construction costs is the Building Index as prepared by Rawlinsons Quantity Surveyors, with an allowance determined to take into account depreciation based on present condition at the time of the fair value assessment, depreciated over their remaining useful life in subsequent years. This represents the cost approach valuation technique as per AASB13.


$Level 2

$Level 3

$Total


There were no transfers between Level 1 and Level 2 for assets measured at fair value on a recurring basis during the reporting period (2015: no transfers).

44





Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Company gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable.

The following tables provide the fair values of the Company’s assets and liabilities measured and recognised on a recurring basis after initial recognition and their categorisation within the fair value hierarchy:


$Level 2

$Level 3

$Total


i) IQE Pty Ltd was engaged by the Company to perform a valuation of irrigation assets held at 30 June 2016. The method adopted to calculate the current construction costs is the Building Index as prepared by Rawlinsons Quantity Surveyors, with an allowance determined to take into account depreciation based on present condition at the time of the fair value assessment, depreciated over their remaining useful life in subsequent years. This represents the cost approach valuation technique as per AASB13.


$Level 2

$Level 3

$Total


There were no transfers between Level 1 and Level 2 for assets measured at fair value on a recurring basis during the reporting period (2015: no transfers).

45





b. Valuation Techniques and Inputs Used to Measure Level 2 Fair Values

DescriptionFair Value at30 June 2016 Valuation Technique(s) Inputs Used

$

Irrigation System 49,775,366Calculation of the current

construction costs using theBuilding Index as prepared by

Rawlinsons the Quantity Surveyors.

- Building Index- Original Cost

of Construction

i) The fair value of irrigation assets is determined at least every three years based on valuations by an independent valuer. At the end of each intervening period, the Directors review the independent valuation and, when appropriate, update the fair value measurement to reflect current market conditions using a range of valuation techniques, including recent observable market data and discounted cash flow methodologies.

There were no changes during the period in the valuation techniques used by the Company to determine Level 2 fair values.

21. COLLIE WATER PROJECT PROPOSAL.

Harvey Water, in agreement with SWIAC, has joined with Aqua Ferre to propose the Collie Water Project in which three significant water problems are resolved by making better use of water resources we already have available to us.

The issues are supply of reliable quality and quantity of potable water to the Great Southern Towns, supply of much better quality water to Collie River Irrigation District irrigators through a gravity driven piped delivery system and the supply of both more and better quality water to the Myalup Irrigated Agriculture Precinct through a Managed Aquifer Recharge process.

Complementary proposals include catchment reforestation for forest product supply and increased access to sand resources.

The project is based around the problem of poor quality of water coming into and out of Wellington dam due to clearing in the catchment. This is a long standing problem of around 50 years and one that has engaged Harvey Water since it started 20 years ago.

The core of the project has been in development for a number of years and the detailed project plan and business case are now well developed. The project is costed at approximately $350 million with about half of these funds coming from private debt and equity, including $30 million from SWIAC through Harvey Water. The balance is intended to come from State and Commonwealth government sources.

Harvey Water is hopeful that there will be a positive signal about State support and funding before the end of December 2016

45





b. Valuation Techniques and Inputs Used to Measure Level 2 Fair Values

DescriptionFair Value at30 June 2016 Valuation Technique(s) Inputs Used

$

Irrigation System 49,775,366Calculation of the current

construction costs using theBuilding Index as prepared by

Rawlinsons the Quantity Surveyors.

- Building Index- Original Cost

of Construction

i) The fair value of irrigation assets is determined at least every three years based on valuations by an independent valuer. At the end of each intervening period, the Directors review the independent valuation and, when appropriate, update the fair value measurement to reflect current market conditions using a range of valuation techniques, including recent observable market data and discounted cash flow methodologies.

There were no changes during the period in the valuation techniques used by the Company to determine Level 2 fair values.

21. COLLIE WATER PROJECT PROPOSAL.

Harvey Water, in agreement with SWIAC, has joined with Aqua Ferre to propose the Collie Water Project in which three significant water problems are resolved by making better use of water resources we already have available to us.

The issues are supply of reliable quality and quantity of potable water to the Great Southern Towns, supply of much better quality water to Collie River Irrigation District irrigators through a gravity driven piped delivery system and the supply of both more and better quality water to the Myalup Irrigated Agriculture Precinct through a Managed Aquifer Recharge process.

Complementary proposals include catchment reforestation for forest product supply and increased access to sand resources.

The project is based around the problem of poor quality of water coming into and out of Wellington dam due to clearing in the catchment. This is a long standing problem of around 50 years and one that has engaged Harvey Water since it started 20 years ago.

The core of the project has been in development for a number of years and the detailed project plan and business case are now well developed. The project is costed at approximately $350 million with about half of these funds coming from private debt and equity, including $30 million from SWIAC through Harvey Water. The balance is intended to come from State and Commonwealth government sources.

Harvey Water is hopeful that there will be a positive signal about State support and funding before the end of December 2016

46

Auditors Report

Auditors Independence Declaration

62

Auditors Report

AMD Audit & Assurance Pty LtdACN 145 719 259 t/a AMD

62

Auditors Report

47

SOUTH WEST IRRIGATION MANAGEMENT COOPERATIVE LIMITED



10. PROPERTY, PLANT AND EQUIPMENT2016

$2015

$

Land – at Cost 32,485 32,485

Computer Equipment – at Cost 186,476 151,795Less Accumulated Depreciation (159,647) (141,030)

26,829 10,765

Motor Vehicles – at Cost 106,132 106,132Less Accumulated Depreciation (95,045) (91,453)

11,087 14,679

Other Plant & Equipment – at Cost 2,201,804 2,097,555Less Accumulated Depreciation (1,630,204) (1,452,196)

571,600 645,359

Harvey Pipe Project – at Cost (Refer Note 23) 58,525,988 58,525,988Less Accumulated Depreciation (8,390,747) (7,805,500)

50,135,241 50,720,488

Benger Pipe Project – at Cost 7,978,894 7,978,894Less Accumulated Depreciation (796,757) (716,968)

7,182,137 7,261,926

Logue Brook Pipeline Project (Refer Note 24) - at Cost 5,550,309 5,550,309Less Accumulated Depreciation (437,798) (383,074)

5,112,511 5,167,235

Brunswick Pipe Project - at Cost 2,570,603 2,570,603Less Accumulated Depreciation (162,032) (136,326)

2,408,571 2,434,277

Somers Pipe Project - at Cost 3,288,754 3,288,754Less Accumulated Depreciation (149,211) (116,360)

3,139,543 3,172,394

Wokalup Pipe Project – at Cost 50,219 50,219Less Accumulated Depreciation (2,013) (1,510)

48,207 48,709

68,668,210 69,508,317

48

Documents

Annual Report SWIAC - Harvey Waterharveywater.com.au/userfiles/Harvey Water SWIAC - Annual Report... · Annual Revenue $2.7M Lined ... the Annual Report for 2015/6, ... has carried