Cemetery Annual Reporting Guidelines for 2008 - 2009 (2,590kb

Department of Human Services

CemeteryAnnual Reporting Guidelinesfor 2008-2009

Under Financial Management Act 1994

Table of ContentsTable of Contents

IntroductionIntroduction....................................................................................................................................................................................................................11

Recent Relevant Professional DevelopmentsRecent Relevant Professional Developments................................................................................................................33

Financial Reporting Directions (FRDs)Financial Reporting Directions (FRDs)..............................................................................3Summary of New and Revised Accounting PronouncementsSummary of New and Revised Accounting Pronouncements...........................................4

Yearly TimetableYearly Timetable......................................................................................................................................................................................................66

Financial StatementsFinancial Statements.......................................................................................................6Annual ReportsAnnual Reports.................................................................................................................7

Printing and Publication of Annual Report to be tabled in ParliamentPrinting and Publication of Annual Report to be tabled in Parliament....................................88

Inconsistencies Found in Published Annual ReportsInconsistencies Found in Published Annual Reports......................................................................................1010

Report of OperationsReport of Operations......................................................................................................................................................................................1111

Responsible Bodies DeclarationResponsible Bodies Declaration.....................................................................................11Reporting CommentsReporting Comments.....................................................................................................12Additional information (FRD 22B Appendix)Additional information (FRD 22B Appendix)...................................................................14Other InformationOther Information..........................................................................................................14Attestation on Compliance with Australian/New Zealand Risk Management StandardAttestation on Compliance with Australian/New Zealand Risk Management Standard. .16Disclosure IndexDisclosure Index.............................................................................................................17

Financial Statements and Explanatory NotesFinancial Statements and Explanatory Notes..........................................................................................................1919

IntroductionIntroduction....................................................................................................................19Board member’s, accountable officer’s and chief finance & accounting officer’s Board member’s, accountable officer’s and chief finance & accounting officer’s declarationdeclaration..................................................................................................................... 21Auditor-General’s ReportAuditor-General’s Report...............................................................................................22Operating Statement.....................................................................................................23Balance Sheet................................................................................................................24Statement of Changes in Equity.....................................................................................26Cash Flow Statement Flow Statement.....................................................................................................29

Notes to the Financial Statements......................................................................31

ii

Introduction

These guidelines are provided to assist Cemeteries in the presentation of their annual report as

required under the Financial Management Act 1994 (the Act), section 4.2 of the Standing

Directions of the Minister for Finance under the Act and Financial Reporting Directions. The Act

and Directions apply to all entities. Each annual report is to be divided into two sections:

Report of operations.

Financial statements including explanatory notes.

These guidelines have been developed to illustrate as widely as possible the minimum disclosure requirements for entities. You are expected to use the guideline as a basis for preparing your financial report, subject to each entities individual circumstances.

These guidelines provide guidance for entities to complete their financial statements, while

further information can be found in the following documents:

Financial Management Act 1994.

Standing Directions of the Minister for Finance.

Financial Reporting Directions issued by the Department of Treasury and Finance.

Australian Accounting Standards.

Australian Interpretations.

It is recommended that the reporting process commence in early June 2009 with a mock run

using 31 May, 2009 data, incorporating June data in early July in order to meet the 25 August

2009 deadline for financial statements (Refer to Timetable on page 7). Balance date for entities

is 30 June 2009.

Abbreviations in these guidelines refer to Australian Accounting Standards (AAS), AASB

Australian Accounting Standards Board (AASB), Victorian Auditor General Office (VAGO) and the

Financial Management Act 1994 (the Act).

The guidelines include all requirements that are effective for financial periods beginning on or

after 1 July 2008.

You are advised that it is the primary responsibility of the entities governing board to ensure

that these requirements are complied with.

There are separate requirements for the State’s Annual Financial Report (AFR) under the Act (Refer s24 of the Act as results from the requirements of AASB 1049 ‘Whole of Government and General Government Sector Financial Reporting’). Each entity needs to complete the prescribed formats in Microsoft Excel to meet the AFR reporting requirements. AFR information from entities will be consolidated by the Department of Human Services (The Department or DHS) to produce a Portfolio return to the Department of Treasury and Finance (DTF). DTF will then consolidate the Portfolio returns to produce the State’s AFR report to be tabled in Parliament.

Separate AFR instructions will be issued by the Department in June 2009.

11

Queries regarding the contents of these guidelines should be emailed to the Department of

Humans Services, Manager, Financial Accounting at [email protected]

22

mailto:[email protected]

Recent Relevant Professional Developments

Financial Reporting Directions (FRDs)Financial Reporting Directions (FRDs)

During 2008-09, the following FRDs were added by DTF are that is operative for current and

future reporting periods.

FRD

103D Non-Current Physical Assets118 Land Under Roads119 Contribution by Owners (replacing FRD 2A)

114B/116A Financial Instruments

A copy of the FRDs can be obtained from the DTF’s Budget and Financial Management website

https://www.bfm2.dtf.vic.gov.au

Username: DHS User/BFM

Password: TNPPVHN1

33

https://www.bfm2.dtf.vic.gov.au/

Summary of New and Revised Accounting Summary of New and Revised Accounting PronouncementsPronouncements

The AASB has issued a number of Exposure Drafts (ED) and Accounting Standards since 30 June

2008.

A table listing the new and revised accounting pronouncements are outlined in the tables below.

Entities need to be cognisant of changes and where relevant incorporate these issues into the

annual reports.

Australian InterpretationsBeginning on or after

Interpretation 15 Agreements for the Construction of Real Estate 1 January 2009Interpretation 16 Hedges of a Net Investment in a Foreign Operation

Minimum Funding Requirements and their Interaction1 October 2008

Interpretation 17 Distributions of Non-cash Assets to Owners 1 July 2009

AASB 7 Financial Instruments: Disclosures 1 July 2007AASB 139 Financial Instruments: Recognition and Measurement 1 July 2007AASB 1039 Concise Financial Reports 1 January 2009AASB 1048 Interpretation and Application of Standards 30 September

2008AASB 2008-5 Amendments to Australian Accounting Standards arising

from the Annual Improvements Project.[AASB 5, 7, 101, 102, 107, 108, 110, 116, 118, 119, 120, 123, 127, 128, 129, 131, 132, 134, 136, 138, 139, 140, 141, 1023 &1038

1 July 2008

AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project[AASB 1 & 5]

1 Jul 2009

AASB 2008-7 Amendments to Australian Accounting Standards – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate.[AASB 1, 118, 121, 127 & 136]

1 January 2009

AASB 2008-8 Amendments to Australian Accounting Standards – Eligible Hedged Items[AASB 139]

1 July2009

AASB 2008-9 Amendments to AASB 1049 for Consistency with AASB 101 1 January 2009AASB 2008-11 Amendments to Australian Accounting Standard – Business

Combinations Among Not-For-Profit Entities[AASB 3]

1 July 2009

AASB 2008-12 Amendments to Australian Accounting Standards – Reclassification of Financial Assets – Effective Date and Transition[AASB 7, 139 & 2008-10

1 July 2008

AASB 2008-13 Amendments to Australian Accounting Standards arising from AASB Interpretation 17

[AASB 3, AASB 5, AASB 8, AASB 101, AASB 114, AASB 116, AASB 127 & AASB 137]

1 July 2008

44

ED 157 Joint ArrangementsED 158 Proposed Amendments to AASB 139 Financial Instrument Recognition and

Measurement – Exposures Qualifying for Hedge AccountingED 159 Proposed Improvements to Australian Accounting StandardsED 160 Proposed Amendments to AASB 1 First-time Adoption of Australian

Equivalents to International Financial Reporting Standards and AASB 127 Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate

ED 161 Proposed Amendments to AASB 2 Share-based Payment and AASB Interpretation 11 AASB 2 – Group and Treasury Share Transactions – Group Cash-Settled Share-based Payment Transactions

ED164 An improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information

ED165 Improvements to Australian Accounting StandardsED166 Simplifying Earnings per Share: Proposed Amendments to AASB 133ED167 Discontinued Operations: Proposed Amendments to AASB 5ED168 Additional Exemptions for First-time Adopters: Proposed Amendments to

AASB 1ED169 Improving Disclosures about Financial Instruments: Proposed Amendments

to AASB 7ED173 Investments in Debt Instruments (Proposed Amendments to AASB 7)ED170 Relationships with the State (Proposed Amendments to AASB 124)ED171 Consolidated Financial StatementsED172 Embedded Derivatives (Proposed Amendments to AASB Interpretation 9

and AASB 139)ED174 Amendments to Australian Accounting Standards to facilitate GAAP/GFS

Harmonisation for Entities within the GGS [AASBs 101, 107 and 1052] ED175 Post Implementation Revisions to AASB InterpretationED176 Proposed amendments to Australian Accounting Standards – Borrowing

Costs of Not-For-Profit Public Sector Entities

Please refer to AASB website www.aasb.com.au for updates and details to all existing AASB,

AASB Interpretations and other accounting pronouncements.

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http://www.aasb.com.au/

Yearly Timetable

Financial Statements Financial Statements

DHS strongly encourages entities undertake a May hard close that involves the preparation of

full financial statements, for audit as at 31 May 2009 with June movements being reviewed by

audit for consistency and reasonableness. Entities are also encouraged to bring forward the

calculation of certain items into May 2009 provided that there are no material changes in June

2009 (this should be discussed with your Victorian Auditor-General’s Office (VAGO)

representative) i.e. the calculation of LSL

Other areas for pre reporting date work to be performed include (and should be discussed with

your VAGO representative):

Contingent liabilities, contingent assets and commitments may be compiled as at 31 May

provided there are no material changes from May to June.

Wage inflation and discount rates for Long Service Leave will be issued by 2 June, thus

enabling the calculation of LSL as at 31 May.

Entities are requested to discuss their plan for the preparation of their financial statements with

their VAGO representative to identify and address any areas which may impede the completion

of the AFR templates and annual report by the due dates. It is recommended that entities agree

a timetable for the preparation and audit of their financial statements with their VAGO

representative. Entities should also advise their VAGO representative of any contentious,

unusual or other one-off material transactions (or accounting policies) that they are aware of as

soon as possible, in order to ensure early agreement/resolution.

The key dates for preparation of the 2008-09 financial statements are as follows:

Deadline* Task

May onwards Confirm audit process and timeframes with VAGO representative. Note that VAGO is required to audit all controlled entities under Audit Act 1994.

24 July Submit AFR schedules templates via email to [email protected]. (refer to separate AFR guidelines).

25 Aug Provide VAGO representative with complete final draft financial statements that have passed internal quality assurance scrutiny by no later than this date (or earlier in accordance with the timetable agreed with your VAGO representative).

22 Sep Sign audited financial statements (subject to audit clearance). The Audit Committee and Governing Board should have already adopted the audited financial statements for signing by this date.

* These are legislative requirements

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mailto:[email protected]

Annual ReportsAnnual ReportsAnnual reports for 2008-09 will be tabled in Parliament on or before 15 October 2009. Cemeteries are requested to implement a plan to ensure the process of completing for tabling by that date.

The key dates for preparation of the annual report are as follows:

Deadline* Task

From 9 May Start to prepare annual report (excluding financial statements – refer separate timing above for availability).

10 Aug 30 June financial statements submitted to VAGO (non material entities)

12 Aug onwards Advise the relevant DHS Divisional/Regional contact when VAGO signs off on financial statements.

14 Sep Prepare a final printers proof (bromide, PDF etc) of the annual report that contains an exact copy of the audited and approved (by the health service) financial statements, VAGO audit report and submit it to VAGO for final review. Once reviewed, arrange printing of annual report and forward copy of final bromide to the relevant Divisional contact.

14 to 21 Sep Check and forward 10 copies of the complete and final annual reports to DHS Division.

21 Sep Forward 60 hard copies of annual reports (including audited financial statements and VAGO audit report) that requires tabling to Divisional Contact. If an annual report is to be receipted then no extra copies are required (see page 8 for details).

Nov Ensure that annual report is replicated on the health services website and that the VAGO audit report is attached.

*Although these are DHS recommended timelines, if they are not met, the annual report may

be tabled/receipted late in Parliament that is, after 15 October 2009, and will require a

Ministerial Briefing specifying the reason(s) why the annual report was late.

NOTE:The annual report should be tabled in Parliament before the entities Annual

General Meeting. Speaker Andrianopoulos made a ruling about the release of an

annual report before it was tabled in Parliament. His ruling can be found in Hansard,

Vol 452, 22-22 November 2001, pp 1777 and 1873-4. The Speaker ruled that where

such a disclosure takes place, it is not a breach of privilege, but is a gross

discourtesy to the House.

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Printing and Publication of Annual Report to be tabled in Parliament

It is the responsibility of each entity to ensure that the annual report includes the financial

report and audit report issued by VAGO.

All details in the published annual report must appear exactly as per the

audited financial statements and accompanying notes cleared by VAGO.

- No information should be added to or removed from the financial

statements, doing so would imply that the amended information has

been audited by VAGO.

The format and presentation must be the same as agreed with VAGO.

VAGO’s audit report must be included in the annual report. It is important that

this is an exact copy of VAGO’s audit report.

Entities are therefore required to ensure that if the financial reports are provided to an external

printer that they are proof read to ensure that the completed document agrees with the format,

content and presentation as audited by VAGO.

Failure to comply with the above will delay the tabling of the entities annual report and may

necessitate an addendum, erratum or in extreme cases a reproduction and re-tabling of the

entities annual report to Parliament. Any amended financial statements must be submitted to

VAGO for audit review.

Please note: For ease of reading the financial statements, it is recommended that a font size

of no less than 10 be used in the printing of these statements and for ease of storing it is

recommended that the size of the annual report should be A4 size.

The financial statements must be processed in accordance with the yearly timetable to ensure

compliance with the requirements under the Financial Management Act 1994. 21 September

2009 is the deadline for Regions to collect from entities and to submit to the Minister the annual

report, that is (report of operations, financial statements and Audit Report).

Entities should provide the required number of copies of the annual report as audited by VAGO

to the Manager, Food Safety and Regulatory Activities, Level 14, 50 Lonsdale St, Hawthorn:

The required number of copies each entity is to provide to their division is as per below:

Entities that have expenses and obligations (liabilities and commitments) totalling $5

million or more are required to submit 70 copies of their annual report (60 to be tabled

in Parliament, and 10 for division).

Entities that have expenses and obligations (liabilities and commitments) totalling less

than $5 million are required to submit 10 copies of their annual report (for the

division/region), as no copies are required for receipting in Parliament. (Annual reports

are receipted in Parliament by formally presenting a letter to both Houses of

Parliament informing that the Minister has received the report of operations and

financial statements of the public body)

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The Minister is required to have the reports tabled/receipted in Parliament on or before 15

October 2009. The Minister must report to Parliament any failure to comply with the

time requirements under the Act and reasons for the delay.

99

Inconsistencies Found in Published Annual Inconsistencies Found in Published Annual

ReportsReports

In reviewing both VAGO's copy and DHS portfolio agencies’ published annual reports for 2007-2008, some inconsistencies have been found. These include:

VAGO’s audit report published in the annual report was not the exact copy of the audit report provided (eg. Differences in VAGO’s details, signature and wording).

VAGO’s audit report, financial statements, and or notes missing from the published annual report.

The Accountable Officer’s, chief finance & accounting officer’s and member of responsible body’s declaration published in the annual report was not the exact copy of what was provided to VAGO (ie. different signatures and wording, dates were handwritten in copy provided to VAGO but typed in the published annual report, dates left off, different officers names between VAGO’s copy and the published annual report).

Disclosure Statement, Responsible Bodies Declaration and Attestation of Compliance with Australian /New Zealand Risk Management Standard statements being omitted.

Incorrect referencing to notes in the published annual report.

The financial statements were missing or using incorrect headings in the published annual report.

Sentences, words/letters omitted/added in the published annual report.

Spelling, typing, grammatical and formatting errors found in the published annual report.

Figures different between VAGO's copy and the published annual report.

Notes missing from the published report that were included in the version signed by VAGO.

Words from the Annual Reporting Guidelines (commentary) included in the published annual report. e.g. using The ABC Cemetery Trust

Incorrect formatting resulting in ### to be displayed instead of numbers.

Disclosure index was omitted in Published Annual Report

5 Year Summary was not included in the Published Annual Report

Entities are reminded that the annual report should be published verbatim to what was signed off by VAGO.

1010

Report of Operations

The following guidelines amplify the minimum requirements for the report of operations under

the Financial Management Act 1994. Entities are to disclose this information in their annual

reports and are to ensure consistency with the financial statements.

Consideration should be given to the most effective way of presenting information in the context

of additional disclosures made by the entity. A separate ‘statutory' report of operations required

by the Act in one part of the annual report is often less effective than inclusion of the required

information in the body of the non-financial section of the report. Cross-referencing can be used

to ensure compliance with the minimum disclosures in the Act. The report of operations should

be presented to VAGO’s representative for comparison with the financial statements.

The following are the items requiring disclosure in order to provide readers with background and

general information about the entity and their organisation structure. This information is

required by the Standing Directions of the Minister for Finance and Financial Reporting

Directions (specifically FRD 22B Standard Disclosures in the Report of Operations), and any

updates from time to time.

Responsible Bodies DeclarationResponsible Bodies Declaration

In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for the <ABC Cemetery Trust> for the year ending 30 June 2009.

< Signature >

<Donald Duck>

Board Member

<Big Town>25 August 2009

Commentary – Responsible Bodies DeclarationSD 4.2(j) requires the Report of Operations to be signed and dated by a member of the board of the entity.

1111

Reporting CommentsReporting Comments

The following information is required under FRD 22B. Other information is also required under

FRD 11 Disclosure of Ex-Gratia Payments, FRD 21A Responsible Person and Executive Officer

Disclosures and FRD 25 Victorian Industry Participation Policy Disclosure in the Report of

Operations. This information needs to be indexed in the Disclosure Index found at page 25 of

these guidelines.

(i) Relevant general information should include:

(a) the manner in which the entity was established and its relevant Minister;

(b) the objectives, functions, powers and duties of the entity. These should be linked to a summary of it activities, programs and achievements for the reporting period;

(c) the nature and range of services provided by the entity including the persons or section of the community served by the entity;

(d) the administrative structure of the entity including:

(i) the names of the members of the governing board, Audit Committee and Chief Executive Officer;

(ii) the names of occupants of senior offices and a brief description of the area of responsibility of each office;

(iii) a chart setting out the organisational structure of the entity. The organisational chart should be sufficiently detailed to provide users with an understanding of the accountabilities for the entities main activities;

(e) To ensure consistency in annual reporting, cemeteries will be required, as a minimum, to report the following workforce statistics in their Annual Report in the following format (the labour categories below are an example and may differ for each cemetery):

Labour Category YTD FTE

Indoor Staff

Outdoor Staff

Executive

Total

The FTE figures required in the table above are those excluding overtime. Do not

include contracted staff (eg. Consultants) as they are not regarded as employees.

(ii) Relevant financial and other information in respect of a financial year should include:

(a) a summary of the financial results for the year, from annual financial reports, with

comparative results for the preceding four financial years. Previous years data needs to

be included and on the same basis for comparative purpose. Entities should footnote

where changes to audited comparative information has been made to aid comparisons.

This summary of the financial results needs to be included in the report of

operations and not in the audited financial statements.

1212

2009$000

2008$000

2007$000

2006$000

2005$000

Total Revenue

Total Expenses

Operating Surplus/ (deficit)

Retained Surplus/

(Accumulated Deficit)

Total Assets

Total Liabilities

Net Assets

Total Equity

Other (list)

(b) a summary of significant changes in financial position during the year. The report of

operations should complement the information presented in the financial statements by

providing a discussion and analysis of the entities operating results and financial

position. This should include details about any significant factors that affect the entities

performance.

(c) the operational and budgetary objectives of the entity for the financial year and performance against those objectives including significant activities and achievements during the year;

(d) a summary of major changes or factors which have affected the achievement of the operational objectives for the year;

(e) events subsequent to balance date which may have a significant effect on the operations of the entity in subsequent years;

(f) for consultancies (not contractors) during the year costing in excess of $100,000 (exclusive of GST) per consultancy, a schedule listing the consultants engaged, particulars of the projects involved, the total project fees approved (exclusive of GST), the total fees incurred (exclusive of GST) and future commitments in relation to each consultant;

(g) for consultancies during the year costing less than $100,000 (exclusive of GST) per consultancy, the number and total cost (exclusive of GST) of engagements;

(h) a statement on occupational health and safety matters, including appropriate performance indicators adopted to monitor such matters and how the entity performs under those indicators;

(i) a statement on the extent of compliance with the building and maintenance provisions of the Building Act 1993. Refer (Minister for Finance Guideline Building Act 1993/Standards for Publicly Owned Buildings/November, 1994);

(j) a summary of the application and operation of the Freedom of Information Act 1982 in relation to the entity;

(k) a summary of the application and operation of the Whistleblowers Protection Act 2001 (the Act), including disclosures required by the Act;

(l) a disclosure index identifying the extent of compliance with statutory disclosure and other requirements (Refer FRD 10 Disclosure Index. Appendix 1 of FRD 10 contains example disclosures for the financial report);

(m) a statement, to the degree applicable, on the extent of progress in implementation and compliance with National Competition Policy, including:i) the requirements of the Government policy statement, Competitive Neutrality

Policy Victoria; and(ii) subsequent reforms;

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Additional information (FRD 22B Appendix)Additional information (FRD 22B Appendix)

The following information, where it relates to the <ABC Cemetery Trust> is relevant to the financial year 2008-09 is available upon request by relevant Ministers, members of Parliament and the public:

(a) A statement of pecuniary interest has been completed.

(b) Details of shares held by senior officers as nominee or held beneficially.

(c)Details of publications produced by the department about the activities of the entity and where they can be obtained.

(d) Details of changes in prices, fees, charges, rates and levies charged by the entity.

(e) Details of any major external reviews carried out on the entity.

(f) Details of major research and development activities undertaken by the entity that are not otherwise covered either in the Report of Operations or in a document that contains the financial report and Report of Operations.

(g) Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit.

(h) Details of major promotional, public relations and marketing activities undertaken by the entity to develop community awareness of the entity and its services.

(i) Details of assessments and measures undertaken to improve the occupational health and safety of employees.

(j) General statement on industrial relations within the entity and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations.

(k)A list of major committees sponsored by the entity, the purposes of each committee and the extent to which the purposes have been achieved.

Other InformationOther Information(a) FRD 11 Disclosure of Ex-Gratia Payments require an entity to disclose in aggregate, in

the notes to the financial statements, the nature and amount of any ex-gratia payments incurred and written off during the reporting period.

(b) FRD 21A Responsible Person and Executive Officer Disclosures prescribes the disclosure requirements and procedures in respect of Responsible Persons. Relevant Ministers and Executive Officers.

(c) the following information for contracts commenced and/or completed in the financial year must be disclosed under the Victorian Industry Participation Policy (VIPP) Act 2003 (Refer to FRD 25 Victorian Industry Participation Policy Disclosure in the Report of Operations):i. the number and total value of contracts commenced and/or completed in the

financial year to which the VIPP applied;ii. the regional or metropolitan split by number and value of commenced and/or

completed contracts;iii. for contracts commenced during the financial year, a statement of total VIPP

commitments (local content, employment and skill/technology transfer commitments) made as a result of these contracts; and

iv. for contracts completed during the financial year, a statement of total VIPP outcomes (local content, employment and skill/technology transfer outcomes) achieved as a result of these contracts.

1414

Attestation on Compliance with Australian/New Attestation on Compliance with Australian/New Zealand Risk Management StandardZealand Risk Management Standard

I, Donald Trump certify that the <ABC Cemetery Trust> has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard and an internal control system is in place that enables the executives to understand, manage and satisfactorily control risk exposures. The audit committee verifies this assurance and that the risk profile of the ABC Cemetery Trust has been critically reviewed within the last 12 months.

< Signature >

<Donald Trump>

Accountable Officer

<Big Town>25 August 2009

Commentary – Attestation on Compliance with Commentary – Attestation on Compliance with Australian/New Zealand Risk Management StandardAustralian/New Zealand Risk Management StandardTo ensure that risks are being managed in a consistent manner, entities are required to attest in annual reports that:

services have risk management processes in place consistent with the Australian/New Zealand Risk Management Standard (or equivalent designated standard);

these processes are effective in controlling the risks to a satisfactory level; and

a reasonable body or audit committee verifies that view

Attestation of compliance should be made annually in the report of operations and the person making the attestation, usually the chief executive officer or accountable officer, should not make the attestation unless the audit committee or responsible body (for instance the board of a statutory authority) agrees that such an assurance can be given.

Entities are strongly encouraged to read the Victorian Government Risk Management Framework published by the Department of Treasury and Finance for more information on Risk Management Standard.

1515

Disclosure IndexDisclosure Index

The Annual Report of the <ABC Cemetery Trust> is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

Legislation Requirement Page Reference

Ministerial DirectionsMinisterial DirectionsReport of Operations – FRD Guidance

Charter and purposeFRD 22B Manner of establishment and the relevant Ministers 12, 87

FRD 22B Objectives, functions, powers and duties 12FRD 22B Nature and range of services provided 12

Management and structureFRD 22B Organisational structure 12

Financial and other informationFRD 10 Disclosure index 17

FRD 11 Disclosure of ex-gratia payments 14FRD 21A Responsible person and executive officer disclosures 87FRD 22B Operational and budgetary objectives and performance against

objectives 13

FRD 22B Statement of merit and equity 12

FRD 22B Workforce Data Disclosures 12FRD 22B Occupational health and safety 13FRD 22B Summary of the financial results for the year 13

FRD 22B Significant changes in financial position during the year 13FRD 22B Major changes or factors affecting performance 13FRD 22B Subsequent events 90FRD 22B Application and operation of Freedom of Information Act 1982 14FRD 22B Compliance with building and maintenance provisions of Building Act

199313

FRD 22B Statement on National Competition Policy 14FRD 22B Application and operation of the Whistleblowers Protection Act 2001 13FRD 22B Details of consultancies over $100,000 13

FRD 22B Details of consultancies under $100,000 13FRD 22B Statement of availability of other information 14FRD 25 Victorian Industry Participation Policy disclosures 14

Financial Statements – FRD Guidance

Financial statements required under Part 7 of the FMA

SD 4.2(b) Operating Statement 23

SD 4.2(b) Balance Sheet 25SD 4.2(b) Statement of Changes in Equity 27SD 4.2(b) Cash Flow Statement 29

1616

SD 4.2(c) Accountable officer’s declaration 21SD 4.2(c) Compliance with Australian accounting standards and other

authoritative pronouncements21

SD 4.2(c) Compliance with Ministerial Directions 21SD 4.2(d) Rounding of amounts 33SD 4.2(j) Accountable officer, signed of report of operations 21SD 4.5.5 Risk Management Compliance 16

LegislationFreedom of Information Act 1982 14Whistleblowers Protection Act 2001 13Victorian Industry Participation Policy Act 2003 14Building Act 1993 13Financial Management Act 1994 1Audit Act 1994 21

1717

Financial Statements and Explanatory NotesFinancial Statements and Explanatory Notes

IntroductionIntroduction

The following financial statements and explanatory notes have been prepared to assist entities

in preparing their 2008-09 annual report.

The explanatory notes deal with a range of particular matters that are intended to provide

guidance to entities. The formats and notes for the annual report should not be seen as

restrictive; they are intended to guide entity management in determining the type and level of

information required. However, to ensure consistency in report presentation, entities should not

adopt a format substantially different from the format described in these guidelines.

It is emphasised that the formats and notes for the annual report are the minimum requirements

and entities are encouraged to provide additional information where necessary in the interests

of presenting fairly their results and financial position and achieving informative disclosure.

These Guidelines do not, and cannot be expected to cover all situations that may be

encountered in practice. There may be unusual events or transactions that are not

illustrated, where officers will need to use their professional judgement to make

appropriate disclosures. On the other hand, some disclosures exampled may not be

relevant and should be omitted where appropriate. Care should be taken to ensure

that disclosures represent accurately each entities actual accounting policies and not

repeated verbatim from these guidelines unless appropriate. Therefore, knowledge

of the disclosure provisions of Australian Accounting Standards and Australian

Interpretations are pre-requisites for the preparation of financial statements.

These guidelines provide formats for:

Operating Statement.

Balance Sheet.

Statement of Changes in Equity.

Cash Flow Statement.

Accountable officer’s, chief finance & accounting officer’s and member of responsible

body’s declaration.

Notes to the financial statements.

The Operating Statement, Balance Sheet, Statement of Changes in Equity and Cash Flow Statement must be cross-referenced to the explanatory notes to relevant items included in these statements.

VAGO’s audit report on the financial statements will be signed and dated on the basis of the

final set of accounts signed by the entity.

Financial statements, having been subject to an entity’s quality assurance processes, are to be

submitted for audit by VAGO within 8 weeks of the end of the financial year (s45 (2) of the Act),

by 25 August 2009 (though to meet Ministerial tabling timelines non-material entities

should aim for 10 August 2009). VAGO will audit the financial statements to meet annual

reporting requirements under the Act.

1818

Commentary – Financial ReportMateriality and AggregationMateriality and AggregationEach material class of similar items shall be presented separately in the financial report.

Items of a similar nature or function shall be presented separately unless they are immaterial.

ConsistencyConsistency

The presentation and classification of items in the financial report shall be retained from one

period to the next unless:

(a) it is apparent, following a significant change in the nature of the entities operations or

a review of its financial report, that another presentation or classification would be

more appropriate having regard to the criteria for the selection and application of

accounting policies in AASB 108 Accounting Policies, Changes in Accounting Estimates

and Errors; or

(b) an Australian Accounting Standard requires a change in presentation.

Goods and Services Tax (GST)Goods and Services Tax (GST)Interpretation 1031 Accounting for Goods and Services Tax (GST) provides that assets shall

be recognised net of the amount of goods and services tax (GST), except where:

the amount of GST incurred by a purchaser that is not recoverable from the taxation

authority shall be recognised as part of the cost of acquisition of an asset or as part of

an item of expense.

the interpretation provides that receivables and payables shall be stated with the

amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority shall be

included as part of receivables or payables in the balance sheet.

OffsettingOffsettingIncome, expenses, assets and liabilities can only be set-off where required or permitted by an

Accounting Standard, for example, AASB 132 Financial Instruments: Presentation and

Financial Reporting Directions issued by DTF.

1919

ABC Cemetery TrustABC Cemetery Trust

Board member’s, accountable officer’s andBoard member’s, accountable officer’s and chief finance & accounting officer’s declarationchief finance & accounting officer’s declaration

We certify that the attached financial report for <ABC Cemetery Trust> has been

prepared in accordance with Standing Direction 4.2 of the Financial Management Act

1994, applicable Financial Reporting Directions, Australian Accounting Standards,

Interpretations and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the Operating

Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and

notes forming part of the financial report, presents fairly the financial transactions

during the year ended 30 June 2009 and financial position of <ABC Cemetery Trust>

at 30 June 2009.

We are not aware of any circumstance which would render any particulars included in

the financial report to be misleading or inaccurate.

We authorise the attached financial report for issue on this day.

<Signature> <Signature> <Signature>

<Donald Duck>

Board Member

<Big Town>

25 August 2009

<Donald Trump>

Accountable Officer

<Big Town>

25 August 2009

<Robin Hood>

Chief Finance & Accounting

Officer

<Big Town>

25 August 2009

N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure thatN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.their accounting policies are presented in their financial statements.

2020

Auditor-General’s ReportAuditor-General’s Report

Please insert a copy of the VAGO’s original audit report.

A reproduction of the audit report is not acceptable.

VAGO’s report comprises 2 pages.


2121

Operating SABC Cemetery TrustOperating Statement For The Year Ended 30 June 2009

Note 2009 2008$ 000 $ 000

RevenueRevenue 2 25,603 23,114Cost of Sales (3,005) (3,433)

22,598 19,681Investment Income 2 10,372 10,647

32,970 30,328

ExpensesEmployee Benefits (9,474) (8,635)Depreciation & Amortisation 4 (2,188) (2,103)Maintenance and Operating Costs (2,439) (1,909)Administrative Costs (1,764) (1,711)Impairment of Intangible Assets - (177)Impairment of Non Financial Assets - -Impairment of Financial Assets - -Other Operating expenses (898) (794)Audit Fees: Auditor-General (47) (44)

3 (16,810) (15,372)

Operating Result Prior to Cemetery Land Revaluation 16,160 14,956

Cemetery Land Revaluation Increment/(Decrement) - (21,542)

Operating Surplus/(Deficit) for the Year 16,160 (6,586)


2222

Commentary – Operating Statement

Accounting Standard AASB 101 Presentation of Financial Statements sets out the presentation of the

Operating Statement.

The Operating Statement has been developed to be consistent with existing Government,

Departmental and Cemetery sector requirements.

Revenues / gains should be reported as a positive amount and expenses / losses should be reported

as a negative amount (ie. in brackets).

Recognition of RevenueRecognition of Revenue

Note 1(aa) of these guidelines, contains a broad statement in relation to revenue recognition that each entity needs to elaborate upon, in order to fully disclose material revenue recognition policy for each revenue source.

AASB 118 Revenue details the recognition of revenue depending on whether it is classified as a sale of goods (para 14) or rendering of services (para 20). Cemeteries should use AASB 118 as a basis for recognition of revenue.

Bal


2323

ABC Cemetery TrustBalance Sheet As At 30 June 2009

Note 2009 2008$ 000 $ 000

Current AssetsCash and Cash Equivalents 6 1,175 1,702Receivables 7 10,891 3,056Prepayments 21 69Other Financial Assets 8 46 13,015Inventories 9 2,428 3,204

Total Current Assets 14,561 21,046

Non-Current AssetsOther Financial Assets 8 100,490 101,364Inventories 9 4,925 4,374Intangible Assets 11 258 385Land - Investment Property 12 2,600 2,400Land - Cemetery Use 10 43,744 34,160Buildings 10 28,506 28,560

Plant & Equipment 10 4,256 4,433Total Non-Current Assets 184,779 175,676

Total Assets 199,340 196,722

Current LiabilitiesUnearned Income 12,249 11,136Payables 13 1,640 1,436Provision for Employee Benefits 14 1,966 1,799

Total Current Liabilities 15,855 14,371

Non-Current LiabilitiesProvision for Employee Benefits 14 559 575

Total Non-Current Liabilities 559 575

Total Liabilities 16,414 14,946

Net Assets 182,926 181,776

EquityContributed Capital 15 59,331 59,331Accumulated Funds 15a 12,487 (4,776)Property, Plant & Equipment Revaluation Reserve 15b 11,846 11,846Investment Revaluation Reserve 15c (9,021) 15,372Perpetual Maintenance Reserve 15d 108,283 100,003

Total Equity 182,926 181,776

Commitments for Expenditure 18Contingent Liabilities and Contingent Assets 19


2424

Commentary - Balance SheetBalance SheetAccounting Standard AASB 101 Presentation of Financial Statements sets out the presentation of the

Balance Sheet.

Presentation of Assets and LiabilitiesPresentation of Assets and LiabilitiesAssets and liabilities must be categorised as either current or non-current categories, except when a

presentation based on liquidity provides information that is reliable and is more relevant. Where the

assets or liabilities are aggregated, amounts expected to be recovered or settled both before and after

twelve months from the reporting date must be separately disclosed.

Additional DisclosuresAdditional DisclosuresWhere relevant, further sub-classifications of amounts should be disclosed separately in accordance with

AASB 101 (74) on either the face of the Balance Sheet or in the notes.

Line items, sub-headings and sub-totals in addition to those required by AASB 101 (68, 68A) must be

separately disclosed on the face of the Balance Sheet when required by an Accounting Standard, or

when necessary for an understanding of the cemetery’s financial position.

Presentation of a Non-Current Asset Classified as Held for SalePresentation of a Non-Current Asset Classified as Held for SaleAn entity shall not reclassify or re-present amounts presented for non-current assets as held for sale in

the balance sheets for prior periods to reflect the classification in the balance sheet for the latest period

presented.

Statement of Changes

ABC Cemetery Trust


2525

Statement Of Changes In Equity Year Ended 30 June 2009

Note 2009 2008$ 000 $ 000

Total Equity at the Beginning of the Year 181,776 241,089Effects of changes in accounting policy

Accumulated Surpluses/(Deficits) - -Effects of correction of errors

(specify each component of equity adjusted) - -

Restated total equity at beginning of financial year 181,776 241,089

Asset Revaluation Reserve Movements 15bBuilding, Infrastructure Increment/(Decrement) - 2,681Cemetery Land Increment/(Decrement) - (61,279)

Available for Sale Investments 15cRevaluation Gain/(Loss) Taken to Equity (17,091) 8,320Transferred to Profit/Loss for the Year (7,303) (2,449)

Net Income Recognised Directly in Equity (24,394) (52,727)

Operating Surplus/(Deficit) for the Year 25,544 (6,586)

Total Recognised Income and Expense for the Year 1,150 (59,313)

Total Equity at the End of the Year 182,926 181,776


2626

Commentary – Statement of Changes in Equity

Accounting Standard AASB 101 Presentation of Financial Statements sets out the presentation of

the Statement of Changes in Equity.

Information to be disclosedInformation to be disclosed

On the face of the statementOn the face of the statement

A Statement of Changes in Equity should show the following on the face of the statement:

a) profit or loss for the period;

b) each item of income and expense for the period that, as required by other Standards, is

recognised directly in equity, and the total of these items;

c) total income and expense for the period (calculated as the sum of (a) and (b)), showing

separately the total amounts attributable to equity holders of the parent and to minority

interest; and

d) for each component of equity, the effects of changes in accounting policies and

corrections of errors recognised in accordance with AASB 108 Accounting Policies,

Changes in Accounting Estimates and Errors.

Where an entity recognises actuarial gains and losses with respect to defined benefit plans outside profit or loss, the entity shall present a Statement of Recognised Income and Expense containing only the items listed above. The entity cannot present the more detailed statement as illustrated in these guidelines.

Either on the face of the statement or in the notesEither on the face of the statement or in the notes

An entity should also present, either on the face of the Statement of Changes in Equity or in the

notes to the financial statements:

a) the amounts of transactions with equity holders acting in their capacity as equity holders,

showing separately distributions to equity holders;

b) the balance of accumulated funds at the beginning of the period and at the reporting

date, and the changes during the period; and

c) a reconciliation between the carrying amount of each class of contributed equity and each

reserve at the beginning and the end of the period, separately disclosing each change.

Full reconciliation of each class of equity should be included in the equity note.

These disclosures have not been illustrated in the example on the face of the Statement of Changes in Equity. These disclosure requirements are illustrated in Note 15 in the guide.

OtherOtherChanges in a entities equity between two reporting dates reflect the increase or decrease in its

net assets during the period. Except for changes resulting from transactions with equity holders

acting in their capacity as equity holders and transaction costs directly related to such

transactions, the overall change in equity during a period represents the total amount of income

and expenses, including gains and losses, generated by the entities activities during that period

(whether those items of income and expenses are recognised in profit or loss or directly as

changes in equity).

Note that where a entity has no amounts applicable to any individual line item, that line item

should not be included in the Statement of Changes in Equity.


2727

Cash Flow Statement Flow Statement

ABC Cemetery TrustCash Flow Statement For The Year Ended 30 June 2009

Note 2009 2008$ 000 $ 000

Inflows / Inflows /( Outflows ) ( Outflows )

Cash Flows from Operating ActivitiesReceipts from Customers 29,197 26,226Payments to Suppliers and Employees (18,757) (17,395)Payments to the Australian Taxation Office for GST (1,714) (1,373)Investment Income Receipts 8,661 6,470

Net Cash from Operating Activities 16b 17,387 13,928

Cash Flows from Investing ActivitiesPayment for Property, Plant and Equipment (2,173) (1,612)Proceeds from Sale of Assets 121 120Redeemed Investments (Excluding Earnings) 84,575 28,479Payments for Investments (100,437) (40,269)

Net Cash used in Investing Activities (17,914) (13,282)

Net Increase/(Decrease) in Cash and Cash Equivalents (527) 646Cash and Cash Equivalents at Beginning of the Year 1,702 1,056Cash and Cash Equivalents at the End of the Year 16a 1,175 1,702


2828

Commentary - Cash Flow Statement

Accounting Standards for the Cash Flow Statement are set out in AASB 107 Cash Flow Statements.The financial statements shall disclose by way of note, the policy adopted for determining which items are classified as cash in the Cash Flow Statement.

Cash and cash equivalents Cash and cash equivalents Cash assets include cash on hand and cash equivalents, where;

Cash on hand means notes and coins held, and deposits held at call with a financial institution Cash equivalents are short-term, highly liquid investments that are readily convertible to known

amounts of cash and which are subject to an insignificant risk of changes in value. The cash equivalents are restrictive as to maturity periods and risk of changes in value. A short

period to maturity generally means that an investment qualifies as a cash equivalent only when it has a maturity of three months or less from the date of acquisition.

Reporting of gross or net cash flowsReporting of gross or net cash flowsGross cash inflows and outflows must be separately disclosed, except for the following items which may be reported on a net basis:

Items where the entity is, in substance, holding or disbursing cash on behalf of its customers (eg. funds held for customers by a fund manager); and

Items where turnover is quick, the amounts are large, and the maturities are short (quick turnover means that transactions occur on virtually a day-to-day basis)

Furthermore, the amounts of cash at the beginning and end of the reporting period shall be shown in the Cash Flow Statement. The cash balance as at the end of the reporting year shown in the Cash Flow Statement shall be reconciled by way of note in the financial statements to the related items in the Balance Sheet of the same reporting period.

A reconciliation of cash and net cash used in operating activities to net results must be disclosed as a note.

If entities merge or acquire entities, the cash in bank from the acquired entities will be a cash inflow to the entity. A note to the statement will be required to describe the acquisition as a non-cash transaction if no purchase amount is paid. Acquisitions that do not involve cash, for example an asset swap or liability undertaking, must be reported as a note.

Classification of cash flowsClassification of cash flowsCash flows must be classified as arising from operating, investing or financing activities, as appropriate. Other classifications are not permitted.

Interest and dividendsInterest and dividendsAs per FRD 110 Cash Flow Statements, interest paid and interest and dividends received must be classified as operating cash flows.

Goods and Services Tax (GST)Goods and Services Tax (GST)Cash flows relating to GST must be included in the Cash Flow Statement on a gross basis in accordance with AASB 107 Cash flow Statements.

The GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority must be, classified as operating cash flows.Additional guidance on accounting for GST is provided in Interpretation 1031 Accounting for the Goods and Services Tax (GST).


2929

<ABC Cemetery Trust><ABC Cemetery Trust>Notes to the Financial StatementsNotes to the Financial Statements

30 June 200930 June 2009

Notes to the Financial Statements 30 June 2009

Table of ContentsNote1 Statement of Significant Accounting Policies.......................................................332 Revenue...............................................................................................................513 Expenses by Source.............................................................................................534 Depreciation & Amortisation................................................................................545 Finance Costs.......................................................................................................556 Cash and Cash Equivalents..................................................................................557 Receivables..........................................................................................................568 Available for Sale Assets......................................................................................579 Inventories...........................................................................................................5910 Property, Plant & Equipment................................................................................6111 Intangible Assets..................................................................................................6312 Investment Properties..........................................................................................6413 Payables..............................................................................................................6514 Employee Benefits and Related On-Costs Provisions..........................................6615 Equity................................................................................................................... 6916 Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from

Operating Activities.............................................................................................7217 Financial Instruments...........................................................................................7318 Commitments for Expenditure.............................................................................8319 Contingent Assets and Contingent Liabilities.......................................................8520a Responsible Person Disclosures...........................................................................8720b Executive Officer Disclosures...............................................................................8821 Events occurring after the Balance Sheet Date...................................................9022 Correction of Error and Revision of Estimates......................................................91

N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.

3030


30 June 200930 June 2009

Commentary – Notes to the Financial Statements

A contents page for notes is not mandatory; however it may assist readers to understand the financial report.

Content

The notes to the financial statements of an entity shall:

a) Present information about the basis of preparation of the financial report and the specific accounting policies used in accordance with paragraphs 108-115 of AASB 101 Presentation of Financial Statement;

b) Disclose the information required by Australian Accounting Standards that is not presented on the face of the balance sheet, operating statement, statement of changes in equity or cash flow statement; and

c) Provide additional information that is not presented on the face of the balance sheet, operating statement, statement of changes in equity or cash flow statement, but is relevant to an understanding of any of them.

Systematic structure

Notes shall, as far as practicable, be presented in a systematic manner. Each item on the face of the balance sheet, operating statement, statement of changes in equity and cash flow statement shall be cross referenced to any related information in the notes.

Notes are normally presented in the following order, which assists users in understanding the financial report and comparing them with financial reports of other entities:

a) A statement of compliance with IFRSs (refer to paragraph 14 of AASB 101);

b) A summary of significant accounting policies applied (refer to paragraph 108 of AASB 101);

c) Supporting information for items presented on the face of the balance sheet, operating statement, statement of changes in equity and cash flow statement, in order in which each statement and each line item is presented; and

d) Other disclosures, including:

i. Contingent liabilities (refer to AASB 137) and unrecognised contractual commitments; and

ii. Non-financial disclosures; for example, the entity’s financial risk management objectives and policies (refer to AASB 7).

In some circumstances, it may be necessary or desirable to vary the ordering of specific items within the notes. For example, information on changes in fair value recognised in profit or loss may be combined with information on maturities of financial instruments, although the former disclosures relate to the operating statement and the latter relate to the balance sheet. Nevertheless, a systematic structure for the notes is retained as far as practicable.

Note 1: Statement of Significant Accounting PoliciesNote 1: Statement of Significant Accounting PoliciesN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity

should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.3131


30 June 200930 June 2009

(a) Statement of compliance(a) Statement of complianceThe financial report of <ABC Cemetery Trust> is a general purpose financial report prepared

on an accrual basis in accordance with the Financial Management Act 1994, applicable

Australian Accounting Standards (AAS), which includes the Australian accounting standards

issued by the Australian Accounting Standards Board (AASB), Interpretations and other

mandatory professional requirements. The financial report also complies with relevant

Financial Reporting Directions (FRD) issued by the Department of Treasury and Finance, and

relevant Standing Directions (SD) authorised by the Minister for Finance.

(b) Basis of preparation(b) Basis of preparation

The financial report is prepared in accordance with the historical cost convention, except for

the revaluation of certain non-financial assets and financial instruments, as noted. Cost is

based on the fair values of the consideration given in exchange for assets.

In the application of AASs management is required to make judgments, estimates and

assumptions about carrying values of assets and liabilities that are not readily apparent from

other sources. The estimates and associated assumptions are based on historical experience

and various other factors that are believed to be reasonable under the circumstance, the

results of which form the basis of making the judgments. Actual results may differ from these

estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised if the

revision affects only that period or in the period of the revision, and future periods if the

revision affects both current and future periods.

Accounting policies are selected and applied in a manner which ensures that the resulting

financial information satisfies the concepts of relevance and reliability, thereby ensuring that

the substance of the underlying transactions or other events is reported.

The accounting policies set out below have been applied in preparing the financial report for

the year ended 30 June 2009, and the comparative information presented in these financial

statements for the year ended 30 June 2008.

(c)(c) Reporting Entity Reporting Entity

The financial report includes all the controlled activities of the <ABC Cemetery Trust>. <ABC

Cemetery Trust> was established under the Cemeteries Act 1890 and the operations are

governed by the Cemeteries and Crematoria Act 2003. The financial statements of <ABC

Cemetery Trust> includes Glen Waverley, Hawthorn, Sunbury and Cranbourne cemeteries.

(d)(d) Rounding Of AmountsRounding Of AmountsAll amounts shown in the financial report are expressed to the nearest $1,000 (if total assets,

or revenue, or expenses are less than $10 million, amounts must be rounded off to the

nearest dollar) unless otherwise stated.

(e)(e) Cash and Cash EquivalentsCash and Cash Equivalents


3232


30 June 200930 June 2009

Cash and cash equivalents comprise cash on hand and cash at bank, deposits at call and

highly liquid investments with an original maturity of 3 months or less, which are readily

convertible to known amounts of cash and are subject to insignificant risk of changes in

value.

For the cash flow statement presentation purposes, cash and cash equivalents includes bank

overdrafts, which are included as current borrowings in the balance sheet.

(f)(f) ReceivablesReceivablesTrade debtors are carried at nominal amounts due and are due for settlement within 30 days

from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and

debts which are known to be uncollectible are written off. A provision for doubtful debts is

raised where doubt as to collection exists. Bad debts are written off when identified.

Receivables are recognised initially at fair value and subsequently measured at amortised

cost, using the effective interest rate method, less any accumulated impairment.

(g)(g) Inventories Inventories

Inventories are stated at the lower of cost or net realisable value. Stock held in maintenance

stores is valued at average cost. Stocks of precast concrete lined graves, pre-poured

foundations for graves, memorial wall niches, mausoleum crypts and granite are valued at

average cost. Inventories expected to be sold/utilised within 12 months are recorded as

current, with the balance as non-current assets.

Cost for all other inventory is measured on the basis of weighted average cost.

Inventories acquired for no cost or nominal consideration is measured at current replacement

cost at the date of acquisition.

Inventories include land allocated for interment purposes held for sale. Inventory of land

allocated for interment purposes is measured at the lower of cost and net realisable value on

the basis of weighted average cost and includes adjacent land and landscaping that add to

the amenity of the land.

Cost of Goods Sold

Costs of goods sold are recognised when the sale of an item or right of interment occurs by

transferring the cost or value of the item/s or value of land related to the right of interment

from inventories.

(h)(h) Other Financial AssetsOther Financial Assets

Other financial assets are recognised and derecognised on trade date where purchase or sale

of an investment is under a contract whose terms require delivery of the investment within

the timeframe established by the market concerned, and are initially measured at fair value,

net of transaction costs.

The <ABC Cemetery Trust> classifies its other financial assets between current and non-

current assets based on the purpose for which the assets were acquired. Management

determines the classification of its other financial assets at initial recognition.

The <ABC Cemetery Trust> assesses at each balance sheet date whether a financial asset or

group of financial assets is impaired.


3333


30 June 200930 June 2009

Financial assets at fair value through profit or loss

Financial assets held for trading purposes are classified as current assets and are stated at

fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss

recognised in profit or loss incorporates any dividend or interest earned on the financial

asset. Fair value is determined in the manner described in Note 17.

(omit if not applicable)

Loans and receivables

Trade receivables, loans and other receivables are recorded at amortised cost, using the

effective interest method, less impairment.

The effective interest method is a method of calculating the amortised cost of a financial

asset and of allocating interest income over the relevant period. The effective interest rate is

the rate that exactly discounts estimated future cash receipts through the expected life of

the financial asset, or, where appropriate, a shorter period.


Held-to-maturity investments

Where the entity has the positive intent and ability to hold investments to maturity, they are

stated at amortised cost less impairment losses.


Available-for-sale financial assets

Other financial assets held by the entity are classified as being available-for-sale and are

stated at fair value. Gains and losses arising from changes in fair value are recognised

directly in equity until the investment is disposed of or is determined to be impaired, at which

time the cumulative gain or loss previously recognised in equity is included in profit or loss

for the period. Fair value is determined in the manner described in Note 17.

(Omit if not applicable)

(i)(i) Intangible AssetsIntangible Assets

Intangible assets represent identifiable non-monetary assets without physical substance such

as patents, trademarks, computer software and development costs (where applicable).

Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite

useful lives are carried at cost less accumulated amortisation and accumulated impairment

losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected

that additional future economic benefits will flow to the entity.

(j)(j) Property, Plant and EquipmentProperty, Plant and EquipmentCrown Land is measured at fair value with regard to the property’s highest and best use

after due consideration is made for any legal or constructive restrictions imposed on the

asset, public announcements or commitments made in relation to the intended use of the

asset. Theoretical opportunities that may be available in relation to the asset(s) are not taken

into account until it is virtually certain that any restrictions will no longer apply.

Land and Buildings are recognised initially at cost and subsequently measured at fair value

less accumulated depreciation and impairment.


3434


30 June 200930 June 2009

Plant, Equipment and Vehicles are recognised initially at cost and subsequently measured

at fair value less accumulated depreciation and impairment.

Cultural, Collections, Heritage Assets and Other Non-Current Physical Assets that

the State intends to preserve because of their unique historical, cultural or environmental

attributes are measured at the cost of replacing the asset less, where applicable,

accumulated depreciation calculated on the basis of such cost to reflect the already

consumed or expired future economic benefits of the asset.

Restrictive nature of cultural and heritage assets and infrastructures

During the reporting period, the entity may hold cultural assets, heritage assets and

infrastructures.

Such assets are deemed worthy of preservation because of the social rather than financial

benefits they provide to the community. The nature of these assets means that there are

certain limitations and restrictions imposed on their use and/or disposal.

(k)(k) Revaluations of Non-current Physical AssetsRevaluations of Non-current Physical AssetsNon-current physical assets measured at fair value are revalued in accordance with FRD

103D. This revaluation process normally occurs every five years, based upon the asset’s

Government Purpose Classification. Revaluation increments or decrements arise from

differences between an asset’s carrying value and fair value.

Revaluation increments are credited directly to the asset revaluation reserve, except that, to

the extent that an increment reverses a revaluation decrement in respect of that class of

asset previously recognised at an expense in net result, the increment is recognised as

income in the net result.

Revaluation decrements are recognised immediately as expenses in the net result, except

that, to the extent that a credit balance exists in the asset revaluation reserve in respect of

the same class of assets, they are debited directly to the asset revaluation reserve.

Revaluation increases and revaluation decreases relating to individual assets within an asset

class are offset against one another within that class but are not offset in respect of assets in

different classes.

Revaluation reserves are not transferred to accumulated funds on derecognition of the

relevant asset.

In accordance with FRD 103D all <ABC Cemetery Trust’s> non-current physical assets are

scheduled for revaluation in the year commencing 1 July 2011 but need to be revalued in the

interim if a material movement in their value becomes apparent.

(l)(l) Investment PropertyInvestment Property

Investment properties represent properties held to earn rentals or for capital appreciation or

both. Investment properties exclude properties held to meet service delivery objectives of the

State of Victoria.

Investment properties are initially recognised at cost. Costs incurred subsequent to initial

acquisition are capitalised when it is probable that future economic benefits in excess of the

originally assessed performance of the asset will flow to the entity.

Subsequent to initial recognition at cost, investment properties are revalued to fair value with

changes in the fair value recognised as income or expenses in the period that they arise. The

properties are not depreciated.


3535


30 June 200930 June 2009

Rental revenue from the leasing of investment properties is recognised in the Operating

Statement in the periods in which it is receivable, as this represents the pattern of service

rendered through the provision of the properties.

(m)(m) Non Current Assets Classified as Held for SaleNon Current Assets Classified as Held for Sale

Non-current assets (and disposal groups) classified as held for sale are measured at the lower

of carrying amount and fair value less costs to sell, and are not subject to depreciation.

Non-current assets and disposal groups are classified as held for sale if their carrying amount

will be recovered through a sale transaction rather than through continuing use. This

condition is regarded as met only when the sale is highly probable and the asset’s sale (or

disposal group) is expected to be completed within one year from the date of classification.

(n)(n) Depreciation and AmortisationDepreciation and AmortisationAssets with a cost in excess of $3,000 (2007-08 and 2008-09) are capitalised and

depreciation has been provided on depreciable assets so as to allocate their cost—or

valuation—over their estimated useful lives using the straight-line method. Estimates of the

remaining useful lives and depreciation method for all assets are reviewed at least annually.

Depreciation is provided on property, plant and equipment, including freehold buildings, but

excluding land and investment properties. Depreciation begins when the asset is available for

use, that is when it is in the location and condition necessary for it to be capable of operating

in a manner intended by management.

The following table indicates the depreciation rates in use.

2009 2008Buildings 2% to 5% 2% to 5%Plant & Equipment 10% to 20% 10% to 20%Infrastructure and Improvements 2% to 10% 2% to 10%Office Equipment, Furniture and Fittings 10% to 33% 10% to 33%

Amortisation is allocated to intangible assets with finite useful lives on a systematic (typically

straight-line) basis over the asset’s useful life. The amortisation period and the amortisation

method for an intangible asset with a finite useful life are reviewed at least at the end of each

annual reporting period. In addition, an assessment is made at each reporting date to

determine whether there are indicators that the intangible asset concerned is impaired. If so,

the assets concerned are tested as to whether their carrying value exceeds their recoverable

amount.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment

annually or whenever there is an indication that the asset may be impaired. The useful lives

of intangible assets that are not being amortised are reviewed each period to determine

whether events and circumstances continue to support an indefinite useful life assessment

for that asset. In addition, the entity tests all intangible assets with indefinite useful lives for

impairment by comparing its recoverable amount with its carrying amount:

annually, and

whenever there is an indication that the intangible asset may be impaired.

Any excess of the carrying amount over the recoverable amount is recognised as an

impairment loss.


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30 June 200930 June 2009

Intangible assets with finite useful lives are amortised over a 3-10 year period (2008, 3-10

years).

(o)(o) Net Gain/(Loss) on Non-Financial AssetsNet Gain/(Loss) on Non-Financial Assets

Net gain/(loss) on non-financial assets includes realised and unrealised gains and losses from

revaluations, impairments and disposals of all physical assets and intangible assets.

Disposal of Non-Financial Assets

Any gain or loss on the sale of non-financial assets is recognised at the date that control of

the asset is passed to the buyer and is determined after deducting from the proceeds the

carrying value of the asset at that time.

Impairment of Non-Financial Assets

Intangible assets with indefinite useful lives (and intangible assets not yet available for use)

are tested annually for impairment (i.e. as to whether their carrying value exceeds their

recoverable amount, and so require write-downs) and whenever there is an indication that

the asset may be impaired. All other assets are assessed annually for indications of

impairment, except for (delete items if not applicable to the entity):

inventories;

financial assets;

certain biological assets related to agricultural activity;

investment properties that are measured at fair value;

non-current physical assets held for sale;

assets arising from construction contracts.

If there is an indication of impairment, the assets concerned are tested as to whether their

carrying value exceeds their possible recoverable amount. Where an asset’s carrying value

exceeds its recoverable amount, the difference is written-off as an expense except to the

extent that the write-down can be debited to an asset revaluation reserve amount applicable

to that class of asset.

It is deemed that, in the event of the loss of an asset, the future economic benefits arising

from the use of the asset will be replaced unless a specific decision to the contrary has been

made. The recoverable amount for most assets is measured at the higher of depreciated

replacement cost and fair value less costs to sell. Recoverable amount for assets held

primarily to generate net cash inflows is measured at the higher of the present value of

future cash flows expected to be obtained from the asset and fair value less costs to sell.

(p) Net Gain/(Loss) on Financial Instruments(p) Net Gain/(Loss) on Financial Instruments

Net gain/(loss) on financial instruments includes realised and unrealised gains and losses

from revaluations of financial instruments that are designated at fair value through profit or

loss or held-for-trading, impairment and reversal of impairment for financial instruments at

amortised cost, and disposals of financial assets.

Revaluations of Financial Instruments at Fair Value

The revaluation gain/(loss) on financial instruments at fair value excludes dividends or

interest earned on financial assets, which is reported as part of income from transactions.


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30 June 200930 June 2009

Impairment of Financial Assets

Bad and doubtful debts are assessed on a regular basis. Those bad debts considered as

written off are classified as an expense.

Financial Assets have been assessed for impairment in accordance with Australian

Accounting Standards. Where a financial asset’s fair value at balance date has reduced by 20

per cent or more than its cost price; or where its fair value has been less than its cost price

for a period of 12 or more months, the financial instrument is treated as impaired.

In order to determine an appropriate fair value as at 30 June 2009 for its portfolio of financial

assets, <ABC Cemetery Trust> obtained a valuation based on the best available advice using

an estimated [insert appropriate valuation method] through a reputable financial institution.

This value was compared against valuation methodologies provided by the issuer as at 30

June 2009. These methodologies were critiqued and considered to be consistent with

standard market valuation techniques.

Prices obtained from both sources were compared and were generally consistent with the full

portfolio. The above valuation process was used to quantify the level of impairment on the

portfolio of financial assets as at year end.

(q)(q) Unearned IncomeUnearned IncomeUnearned income represent moneys received in advance of service provision for services

including interment, cremation and certain memorialisation products such as granite and

plaques. These monies are recorded as revenue in the year that the goods or services are

provided.

(r)(r) PayablesPayablesThese amounts consist predominantly of liabilities for goods and services.

Payables are initially recognised at fair value, then subsequently carried at amortised cost

and represent liabilities for goods and services provided to the Cemetery Trust prior to the

end of the financial year that are unpaid, and arise when the cemetery becomes obliged to

make future payments in respect of the purchase of these goods and services.

The normal credit terms are usually Nett 30 days.

(s)(s) ProvisionsProvisions

Provisions are recognised when either a legal or constructive obligation, as a result of a past

event, exists at the balance sheet date and where the amount of the obligation can be

reliably estimated. A provision will also be recognised for onerous contracts where the

unavoidable costs of meeting the obligations under the contract exceed the economic

benefits that expect to be received under it.

The amount recognised as a provision is the best estimate of the consideration required to

settle the present obligation at reporting date, taking into account the risks and uncertainties

surrounding the obligation. Where a provision is measured using the cashflows estimated to

settle the present obligation, its carrying amount is the present value of those cashflows.

Provision for loss on pre-paid goods/services

A provision is recognised in relation to pre-paid fees where the cost of providing the

purchased goods and/or services is expected to be greater than the amount

received/revenue to be recognised and the current service cost can be reliably measured.


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30 June 200930 June 2009

The provision represents the present value of the expenditure required to provide the goods

and/or service, less the amount of revenue to be recognised.

(t)(t) Resources Provided and Received Free of Charge or for Nominal Resources Provided and Received Free of Charge or for Nominal

ConsiderationConsideration

Resources provided or received free of charge or for nominal consideration are recognised at

their fair value when the transferee obtains control over them, irrespective of whether

restrictions or conditions are imposed over the use of the contributions, unless received from

another entity or agency as a consequence of a restructuring of administrative arrangements.

In the latter case, such transfer will be recognised at carrying value. Contributions in the

form of services are only recognised when a fair value can be reliably determined and the

services would have been purchased if not donated.

(u)(u) Interest Bearing LiabilitiesInterest Bearing Liabilities

Interest bearing liabilities in the Balance Sheet are recognised at fair value upon initial

recognition. Subsequent to initial recognition, interest bearing liabilities are measured at

amortised cost with any difference between the initial recognised amount and the

redemption value being recognised in profit and loss over the period of the interest bearing

liability using the effective interest rate method. Fair value is determined in the manner

described in Note 17.

(v)(v) Functional and Presentation CurrencyFunctional and Presentation Currency

The presentation currency of the <ABC Cemetery Trust> is the Australian dollar, which has

also been identified as the functional currency of the entity.

(w)(w) Goods and Services Tax Goods and Services Tax Income, expenses and assets are recognised net of the amount of associated GST, unless the

GST incurred is not recoverable from the taxation authority. In this case it is recognised as

part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable.

The net amount of GST recoverable from, or payable to, the taxation authority is included

with other receivables or payables in the balance sheet.

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 taxation

authority, are presented as operating cash flow.

(x)(x) Employee BenefitsEmployee Benefits

Wages and Salaries, Annual Leave, Sick Leave and Accrued Days OffLiabilities for wages and salaries, including non-monetary benefits, annual leave accumulating sick leave and accrued days off expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee’s services up to the reporting date, classified as current liabilities and measured at nominal values.

Those liabilities that the entity are not expected to be settled within 12 months are recognised in the provision for employee benefits as current liabilities, measured at present


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30 June 200930 June 2009

value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

Long Service Leave

Current Liability – unconditional LSL (representing 10 or more years of continuous service) is disclosed as a current liability even where the <ABC Cemetery Trust> does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:

present value – component that the <ABC Cemetery Trust> does not expect to settle within 12 months; and

nominal value – component that the <ABC Cemetery Trust> expects to settle within 12 months.

Non-Current Liability – conditional LSL (representing less than 10 years of continuous service) is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. Conditional LSL is required to be measured at present value.

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates of Commonwealth Government guaranteed securities in Australia.

Termination BenefitsTermination Benefits

Liabilities for termination benefits are recognised when a detailed plan for the termination

has been developed and a valid expectation has been raised with those employees affected

that the terminations will be carried out. The liabilities for termination benefits are recognised

in other creditors unless the amount or timing of the payments is uncertain, in which case

they are recognised as a provision.

On-CostsOn-Costs

Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual

leave and LSL accrued while on LSL taken in service) are recognised separately from

provision for employee benefits.

(y)(y) Finance CostsFinance CostsFinance costs are recognised as expenses in the period in which they are incurred.

Finance costs include:

– interest on bank overdrafts and short-term and long-term borrowings;

– amortisation of discounts or premiums relating to borrowings;

– amortisation of ancillary costs incurred in connection with the arrangement of

borrowings; and

– finance charges in respect of finance leases recognised in accordance with AASB 117

Leases.

(z)(z) Leases Leases


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30 June 200930 June 2009

Leases of property, plant and equipment are classified as finance leases whenever the terms

of the lease transfer substantially all the risks and rewards of ownership to the lessee. All

other leases are classified as operating leases.

Finance Lease

Entity as lessor

Rental income from operating lease is recognised on a straight-line basis over the term of the

relevant lease.

Entity as lessee

Finance leases are recognised as assets and liabilities at amounts equal to the fair value of

the lease property or, if lower, the present value of the minimum lease payment, each

determined at the inception of the lease. The lease asset is depreciated over the shorter of

the estimated useful life of the asset or the term of the lease. Minimum lease payments are

allocated between the principal component of the lease liability, and the interest expense

calculated using the interest rate implicit in the lease, and charged directly to the operating

statement.

Operating Lease

Operating lease payments, including any contingent rentals, are recognised as an expense in

the operating statement on a straight line basis over the lease term, except where another

systematic basis is more representative of the time pattern of the benefits derived from the

use of the leased asset.

Lease Incentives

All incentives for the agreement of a new or renewed operating lease shall be recognised as

an integral part of the net consideration agreed for the use of the leased asset, irrespective of

the incentive’s nature or form or the timing of payments.

In the event that lease incentives are received to enter into operating leases, such incentives

are recognised as a liability. The aggregate benefits of incentives are recognised as a

reduction of rental expense on a straight-line basis, except where another systematic basis is

more representative of the time pattern in which economic benefits from the leased asset are

consumed.

Leasehold improvements

The cost of leasehold improvements are capitalised as an asset and depreciated over the

remaining term of the lease or the estimated useful life of the improvements, whichever is

the shorter.

(aa)(aa) Income RecognitionIncome Recognition

Fees received for the rights of interment for graves, cremation memorials and mausoleum

crypts are recognised as revenue at the time of purchase except for the memorialisation

portion which is recognised at the time of interment.

Fees received for interment, cremation and certain memorialisation products such as granite

and plaques are recognised as revenue in the year that the goods or services are provided.

Fees received in advance of service provision are recorded as unearned income in

accordance with Note 1(q).


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30 June 200930 June 2009

Income is recognised in accordance with AASB 118 Revenue and is recognised as to the

extent it is earned. Unearned income at reporting date is reported as income received in

advance.

Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties

and taxes.

Dividend RevenueDividend Revenue

Dividend revenue is recognised on a receivable basis.

Interest RevenueInterest Revenue

Interest revenue is recognised on a time proportionate basis that takes in account the

effective yield of the financial asset.

Sale of investmentsSale of investments

The profit/loss on the sale of investments is recognised when the investment is realised.

Movements in the fair value of investments are recognised in accordance with Note 1(l).

(ab)(ab) Comparative InformationComparative InformationWhere necessary the previous year’s figures have been reclassified to facilitate

comparisons.

(When comparative amounts are reclassified, disclose:

(a) the nature of the classification;

(b) the amount of each item or class of items that is reclassified; and

(c) the reason for the classification.

When it is impracticable to reclassify comparative amounts, disclose:

(d) the reason for not reclassifying the amounts; and

(e) the nature of the adjustments that would have been made if the amounts had been

reclassified.)

(ac)(ac) Change in Accounting PolicyChange in Accounting Policy

Fair Value of Plant, Equipment and VehiclesFair Value of Plant, Equipment and Vehicles

In accordance with FRD 103D Non-Current Physical Assets, <ABC Cemetery Trust> measures

plant, equipment and vehicles at fair value from 1 July 2008. Previously these assets were

measured at cost. This change in accounting policy is required to ensure that Victoria’s Whole

of Government financial report, to which <ABC Cemetery Trust> is consolidated into,

complies with the requirements of AASB1049 Whole of Government and General Government

Sector Financial Reporting. As this change is the initial application of a policy to revalue

assets in accordance with AASB116 Property, Plant and Equipment the change is treated as a

revaluation in the current year.

Asset CapitalisationAsset Capitalisation


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30 June 200930 June 2009

On 1 July 2008 the <ABC Cemetery Trust> changed its accounting policy in relation to its

asset capitalisation threshold, increasing it from $x,xxx to $3,000. This change in policy was

required for compliance with policies released by the Cemeteries Financial Policy Committee

(CFPC) convened by the Department of Human Services which are designed to provide

consistent accounting treatment across Victorian Cemetery Trusts.

The change in accounting policy has been applied retrospectively and comparative

information in relation to the 2007-08 financial year has been restated accordingly. The table

below details the changes in comparative information in regard to the change in

capitalisation threshold.

30-Jun-08 Increase/(Decrease)

30/06/2008 Restated

Impact on 2008/09 without policy

change ‘000s ‘000s ‘000s ‘000sBalance Sheet Extract Plant and Equipment 33,093 (100) 32,993 155Total Assets 196,822 (100) 196,722 155 Changes in Accumulated Funds - Change in Asset Capitalisation Policy - (100) (100) 155Accumulated Funds (4,576) (100) (4,676) 155 Total Equity 181,976 (100) 181,876 155

Operating Statement Extract Depreciation Expense 2,014 (10) 2,004 15Maintenance and Operating Costs 1,869 40 1,909 (55)Total Expenses 18,725 30 18,755 40 Net Result 6,666 (30) 6,636 (40)

Inventories – Land allocated for interment purposesInventories – Land allocated for interment purposes.

On 1 July 2008 the <ABC Cemetery Trust> changed its accounting policy in relation to how it

accounts for interment land. This change in policy was required for compliance with policies

released by the CFPC. Land allocated for interment purposes was previously accounted for as

a non-current physical asset, however this was not appropriate as cemeteries lost control of

the interment site (land) upon sale of a right of interment. Land for interment purposes is

more appropriately treated as inventory thereby indicating that cemetery land is consumed

in the provision of services by cemeteries. This treatment is more representative of the value

of the remaining assets (land) of a cemetery and more accurate reporting of cost of sales

where the value of the land used for interment is offset against revenue received for the sale

of rights of interment.

The change in accounting policy has been applied retrospectively and comparative

information in relation to the 2007-08 financial year has been restated accordingly. Each

line item that is adjusted must be represented. The following table details the changes in

comparative information in regard to the change in land accounting.


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30 June 200930 June 2009 30-Jun-08 Increase/

(Decrease)30/06/2008 Restated

Impact on 2008/09

without policy change

‘000s ‘000s ‘000s ‘000sBalance Sheet Extract Inventories 7,528 50 7,578 (348)Land - Cemetery Use 34,310 (150) 34,160 498Total Assets 196,822 (100) 196,722 150 Changes in Accumulated Funds - Change in Interment Land Accounting - (100) (100) 150Accumulated Funds (4,576) (100) (4,676) 150 Total Equity 181,976 (100) 181,876

Operating Statement Extract Other Operating Costs (Write Downs) 754 40 794 (50)COGS 3,423 10 3,433 (15)Total Expenses 18,725 50 18,775 (65)Net Result 6,666 (50) 6,616 65

Cumulative Impact of Changes in Accounting Policies

30-Jun-08 Increase/(Decrease)

30/06/2008 Restated

Impact on 2008/09 without

policy change ‘000s ‘000s ‘000s ‘000sBalance Sheet Extract

Total Assets 196,922 (200) 196,722 305 Total Equity 181,976 (200) 181,776 305

Operating Statement Extract Total Expenses 18,725 80 18,805 (25)Net Result 6,666 (80) 6,586 25

(ad)(ad) Amalgamations and MergersAmalgamations and MergersAssets and liabilities of the acquired (amalgamated) entities are taken up at book value at

date of acquisition (amalgamation). Crown assets acquired remain the property of the Crown,

however they are reported as assets of the entity, because effective control passes to the

entity along with a substantial benefit. (This note only applies for the first year of integration.)

(ae)(ae) Property, Plant & Equipment Revaluation ReserveProperty, Plant & Equipment Revaluation ReserveThe asset revaluation reserve is used to record increments and decrements on the

revaluation of non-current assets.

(af)(af) Available-for-Sale Investment Revaluation ReserveAvailable-for-Sale Investment Revaluation ReserveThe available-for-sale revaluation reserve arises on the revaluation of available-for-sale

financial assets. Where a revalued financial asset is sold that portion of the reserve which


4444


30 June 200930 June 2009

relates to that financial asset, and is effectively realised, is recognised in the operating

statement . Where a revalued financial asset is impaired that portion of the reserve which

relates to that financial asset is recognised in the operating statement.

(ag)(ag) General ReservesGeneral Reserves(Details of the nature and purpose of any such reserves.)

(ah)(ah) Perpetual Maintenance ReservePerpetual Maintenance ReserveFees received in respect of the memorial gardens, cemetery gardens and mausoleum crypts

include amounts for perpetual maintenance to be carried out in future years. Such amounts

are transferred to the relevant reserve and released in equal amounts over the periods for

which the maintenance has been contracted.

(ai)(ai) Contributed CapitalContributed CapitalConsistent with Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public

Sector Entities and FRD 119 Contributions by Owners, appropriations for additions to the net

asset base have been designated as contributed capital. Other transfers that are in the

nature of contributions or distributions, that have been designated as contributed capital are

also treated as contributed capital.

(aj) New Accounting Standards and Interpretations(aj) New Accounting Standards and InterpretationsCertain new accounting standards and interpretations have been published that are not

mandatory for 30 June 2009 reporting period. As at 30 June 2009, the following standards

and interpretations had been issued but were not mandatory for financial years ending 30

June 2009. <ABC Cemetery Trust> has not and does not intend to adopt these standards

early.

Standard / Interpretation Summary Applicable for reporting periods beginning on or ending on

Impact on Entities Annual Statements

AASB 8 Operating Segments.

Supersedes AASB 114 Segment Reporting.

Beginning 1 January 2009

Not applicable

AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 and AASB 1038]

An accompanying amending standard, also introduced consequential amendments into other Standards.


Impact expected to be not significant.

AASB 123 Borrowing Costs Option to expense borrowing cost related to a qualifying asset had been removed. Entities are now required to capitalise borrowing cost relevant to qualifying assets.


All Australian government jurisdictions are currently still actively pursuing an exemption for government from capitalising borrowing costs.


4545


30 June 200930 June 2009

Standard / Interpretation Summary Applicable for reporting periods beginning on or ending on

Impact on Entities Annual Statements

AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12]

An accompanying amending standard, also introduced consequential amendments into other Standards.


All Australian government jurisdictions are currently still actively pursuing an exemption for government from capitalising borrowing costs.

AASB 2008-2 Amendments to AAS Puttable Financial Instruments and Obligations arising on Liquidation [AASB 7, AASB 101, AASB 132, AASB 139 & Interpretation 2]

This amending Standard introduces an exception to the definition of financial liability to classify as equity instruments certain puttable financial instruments and certain instruments that impose on an entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation of the entity.


Not applicable to not-for-profit entities

AASB 2008-3 Amendments to AAS arising from AASB 3 & AASB 127 [AASB 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138 & 139 and Interpretation 9 & 107]

This Standard gives effect to consequential changes arising from revised AASB 3 and amended AASB 127. The Prefaces to those Standards summarise the main requirements of those Standards.


Impact expected to be insignificant.

AASB 2008-5 Amendments to AASs arising from the Annual Improvements Project [AASBs 5, 7, 101, 102, 107, 108, 110, 116, 118, 119, 120, 123, 127, 128, 129, 131, 132, 134, 136, 138, 140, 141, 1023 & 1308]

A suite of amendments to existing standards following issuance of IASB Standard Improvements to IFRSs in May 2008. Some amendments result in accounting changes for presentation, recognition and measurement purposes.


Impact is being evaluated.

AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements project [AASB 1 & AASB 5]

The amendments require all the assets and liabilities of a for-sale subsidiary’s to be classified as held for sale and clarify the disclosures required when the subsidiary is part of a disposal group that meets the definition of a discontinued operation.



AASB 2008-7 Amendments to AAS Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate [AASB 1, AASB 118, AASB 121, AASB 127 & AASB 136]

Changes mainly relate to treatment of dividends from subsidiaries or controlled entities



AASB 2008-8 Amendments to Australian Accounting Standards – Eligible Hedged Items [AASB 139]

The amendments to AASB 139 clarify how the principles that determine whether a hedged risk or portion of cash flows is eligible for designation as a hedged item, should be applied in particular situations.


Impact is being evaluated.

AASB 2008-9 Amendments to AASB 1049 for Consistency with AASB 101

Amendments to AASB 1049 for consistency with AASB 101 (September 2007) version.


Impact expected to be insignificant


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30 June 200930 June 2009

Commentary - Summary of Significant Accounting Policies

The accounting policies illustrated above are examples only, and do not necessarily represent

the only treatment which may be appropriate for the item concerned and do not cover all items

that may be considered for inclusion in the summary of accounting policies.

a) Note 1 to the financial statements, which is the statement of accounting policies, should

disclose in detail significant accounting principles and policies applied in preparing the

financial statements. It should be stated that the financial statements are general purpose

financial statements and that they adhere to the Financial Management Act 1994, Accounting

Standards issued by the Australian Accounting Standards Board and Urgent Issues Group

Interpretations.

b) An accounting policy is material or significant if its omission, non-disclosure or mis-statement

would cause the financial statements to mislead users when making evaluations or decisions.

c) The entity should include sufficient notes to provide explanatory material so as to present

fairly the financial statements of the entity.

d) Any changes in accounting policies which materially affect the financial statements for the

reporting period should be disclosed in a note stating the:

– nature of the change;

– reason (s) for the change; and

– financial effect of the change.

e) Any change in accounting policy which does not have a material effect on the financial

statements for the reporting period but which may have a significant effect on the financial

statements in subsequent periods should be disclosed in a note which states the:

– nature of the change;

– reason(s) for the change;

– change does not materially effect the current reporting period; and

– financial effect of the change in subsequent years.

f) The statement of accounting policies should include disclosure of:

The overall valuation policy for each class of assets, date of last valuation, name and

qualifications of valuer.

The method of inventory valuation, for example:

– first-in, first-out (FIFO);

– weighted average cost.

The depreciation policy adopted.

The basis of accounting for employee benefits.

The policy for disclosure of superannuation and accounting for superannuation costs.

The basis for distinguishing between capital funds, funds held for restricted purposes,

funds held in perpetuity and operating funds.

The method of accounting for leases.

The treatment of assets and liabilities acquired during the fiscal year in association with

either the integration of psychiatric services or amalgamation of cemeteries.

Principles of consolidation.

The basis of accounting for investments.


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30 June 200930 June 2009

The policy of capitalisation and measurement of intangible assets, including patents,

trademarks, goodwill and development costs.

New Accounting Standards and InterpretationsAustralian Accounting Standards Issued but not yet effective

When an entity has not applied a new Australian Accounting Standard that has been issued but

is not yet effective, the entity shall disclose:

(a) this fact: and

(b) known or reasonably estimable information relevant to assessing the possible impact

that application of the new Australian Accounting Standard will have on the entities

financial report in the period of initial application.

In complying with the requirement above, a entity considers disclosing:

(a) the title of the new Australian Accounting Standard;

(b) the nature of the impending change or changes in accounting policy;

(c) the date by which application of the standard is required;

(d) the date as at which it plans to apply the standard initially; and

(e) either:

i. discussion of the impact that initial application of the Standard is expected to

have on the entities financial report; or

ii. if that impact is not known or reasonably estimable, a statement to that effect

The disclosures as described above must be made even if the impact on the entity is not

expected to be material. However, there is no need to mention a standard or interpretation if it

is clearly not applicable to the entity.

MaterialityMateriality

In accordance with Accounting Standard AASB 1031 Materiality, accounting policies need only

be identified in the summary of accounting policies where they are considered ‘material’.

Accounting policies will be considered material if their omission, misstatement or non-disclosure

has the potential, individually or collectively, to:

a) Influence the economic decisions of users taken on the basis of the financial report; and

b) Affect the discharge of accountability by the management or governing body of the

entity.

Additional StatementAdditional Statement

In the basis of preparation section the following statement must be included if only when

relevant.

‘Judgments made by management in the application of AAS that have significant effects on the

financial statements and estimates with a significant risk of material adjustments in the next

year are disclosed throughout the notes in the financial statements.’

Comparative AmountsComparative Amounts

When the presentation or classification of items in the financial report is amended,

comparative amounts shall be reclassified unless the reclassification is impracticable.

When comparative amounts are reclassified, an entity shall disclose:

(a) the nature of the reclassification;


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30 June 200930 June 2009

(b) the amount of each item or class of items that is reclassified; and

(c) the reason for the reclassification.

When it is impracticable to reclassify comparative amounts, disclose:

(d) the reason for not reclassifying the amounts; and

(e) the nature of the adjustments that would have been made if the amounts had been

reclassified.)


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30 June 200930 June 2009

2. RevenueNote 2009 2008

$ 000 $ 000Cemetery Operations Income

Grave and Interments 10,099 8,369Mausoleum Crypts 4,639 4,467Cremation 3,785 3,801Cremation Memorial 5,147 5,099Other Operating Income 1,587 1,394Merger Contribution 369 -Profit/(Loss) on Disposal of Fixed Assets 2a (23) (16)Total Cemetery Operations Income 25,603 23,114

Investment Income

Interest IncomeInterest from Cash and Cash Equivalents 78 129Interest from Available for Sale Investments 2,950 2,487

3,028 2,616

Net Gain on Disposal of Available For Sale InvestmentsGain/(Loss) on Disposal of Available for Sale Investments Recognised Directly in the Operating Statement During the Financial Year

(5,087) 2,389

Gain/(Loss) on Disposal of Available for Sale Financial Investments Removed from Equity and Recognised in the Operating Statement for the Financial Year

7,303 2,449

2,216 4,838Dividends 4,500 2,656Net Gain/(Loss) due to Fair Value Adjustments of Investment Properties

200 100

Other Investment Income 1,138 91011,082 11,120

Less Management Fees in Managing Investments (710) (473)Total Investment Income 10,372 10,647

(a) Profit/(Loss) on Disposal of Fixed Assets

Proceeds 121 120Written Down Value of Assets (144) (136)Profit/(Loss) on Disposal of Fixed Assets (23) (16)

N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.that their accounting policies are presented in their financial statements.

5050


30 June 200930 June 2009

Commentary – Note 2: Revenue

Revenue

AASB 118 shall be applied in accounting for revenue arising from the following transactions and

events:

(a) the sale of goods;

(b) the rendering of services; and

(c) the use of entity assets yielding interest, royalties and dividends

Disclosure is therefore required for revenue recognised during the period, including revenue

arising from the sale of goods, rendering of services, interest, royalties and dividends..

Other Income

Income that is received by the service that does not form part of the above revenue categories

is required to be disclosed under Other Income. Effectively other incomes are not earned by the

service through their operations and maybe of an irregular nature due to them being outside

the control of the service. Other income items are accounting gains/losses and include::

(a) donations and bequests;

(b) asset revaluations; and

(c) extinguishment of liabilities

N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.

5151


30 June 200930 June 2009

3. Expenses2009 2008

Note $ 000 $ 000

Employee Benefits 9,474 8,635Depreciation 4 2,004 1,931Amortisation 4 184 171Maintenance and Operating Costs 2,439 1,909Administrative Costs 1,764 1,711Impairment of Intangible Asset - 177Impairment of Non Financial Assets - -Impairment of Financial Assets - -Other Operating Costs 898 794Audit Fees: Auditor-General 47 44Total Expenses 16,810 15,372

Commentary – Note 3: Expenses from ordinary activities

ExpensesExpensesIncludes any outlay of payments needed to generate income. An expense must be recognised inthe operating statement when and only when:(a) it is probable that the consumption or loss of future economic benefits resulting in a reduction in assets or an increase in liabilities has occurred(b) the consumption or loss of future economic benefits can be measured reliably.

Items of Expenses and Losses Arising from Financial InstrumentsItems of Expenses and Losses Arising from Financial InstrumentsCemeteries shall disclose items of expense, gains and losses either in this note or on the face of the operating statement. Please refer to AASB 7 Financial Instruments Disclosure, for requirements in relation to items of expenses and losses arising from financial instruments.


5252

ABC Cemetery TrustABC Cemetery TrustNotes to the Financial StatementsNotes to the Financial Statements

30 June 200930 June 2009

4. Depreciation and Amortisation2009 2008$ 000 $ 000

DepreciationBuildings, Infrastructure and Improvements 1,121 1154Motor Vehicles, Plant and Equipment 529 487Office Equipment, Furniture and Fittings 354 290Total Depreciation 2,004 1,931

AmortisationCapitalised Computer Software 184 171Others (List) - -Total Amortisation 184 171

Total Depreciation & Amortisation 2,188 2,102

Commentary – Depreciation and Amortisation

DepreciationDepreciationDepreciation is generally provided on a straight-line basis at rates calculated to allocate the cost

or valuation of an asset, less any estimated residual value over its estimated ‘useful life’ (refer

AASB 116 Property, Plant and Equipment). It is calculated for all controlled/owned depreciable

physical assets.

The useful lives illustrated in the guidelines are for illustrative purposes only. Entities should

determine the useful lives of assets by consideration of the nature and characteristics of

specific assets.

AmortisationAmortisationAmortisation is generally provided on assets that are leased and is calculated in accordance with

AASB 117 Leases. If a entity has items such as patents, trademarks, computer software or

development expenses that are being amortised, these should be included under ‘Intangible

Assets’ (refer AASB 138 Intangible Assets).


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30 June 200930 June 2009

5. Finance Costs 2009 2008 $'000 $'000 Finance Charges on Finance Leases - -Interest on Short Term Borrowings - -Interest on Long Term Borrowings - -Other (List) - -TOTAL - -

Commentary – Finance Costs

Finance costs must be disclosed separately on the Operating Statement as per AASB 101 Presentation of Financial Statements and should be reported according to the requirements in AASB 123 Borrowing Costs and FRD 105 Borrowing Costs.

AASB 123 requires the immediate expensing of finance costs but allows as an alternative treatment, the capitalisation of finance costs that are directly attributable to the acquisition, construction or production of a qualifying asset. However, FRD 105 limits the choice available under AASB 123 by requiring all finance costs to be expensed in the period incurred.

6. Cash and Cash EquivalentsFor the purposes of the Cash Flow Statement, cash assets includes cash on hand and in banks, and short-term deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of change in value, net of outstanding bank overdrafts.

2009 2008$'000 $'000

Cash on Hand 2 2Cash at Bank 1,173 1,700Total Cash and Cash Equivalents 1,175 1,702

Commentary – Cash and Cash Equivalents

Cash Assets include cash on hand and cash equivalents, where; Cash on hand means notes and coins held, and deposits held at call with a financial

institution; and Cash equivalents means highly liquid investments with short periods to maturity which

are readily convertible to cash on hand and are subject to an insignificant risk of changes in value.

The cash equivalents are restrictive as to maturity periods, and risk of changes in value. A short period to maturity generally means that an investment qualifies as a cash equivalent only when it has a maturity of three months or less from the date of acquisition.


5454


30 June 200930 June 2009

7. Receivables 2009 2008$ 000 $ 000

CurrentTrade Debtors 930 813Accrued Interest and Dividends 1,230 1,225Sundry Debtors 994 1,018Other Receivables 7,737 -

Total Receivables 10,891 3,056

No impairment for credit losses has been booked in a separate account during either financial years reported. The nature and extent of risk arising from receivables and ageing of receivables is contained in Note 17b.

Commentary- Receivables

Receivables are to be recorded at the amounts expected to be ultimately collected in cash

and, therefore, net of any provision for bad and doubtful debts. This is to include accrued

investment income.

Statutory Receivables: Assets that are not contractual (such as assets that arise as a result

of statutory requirements), are not financial assets. Therefore, although these assets are

similar to financial instruments, they are in fact not within the scope of AASB 7. However,

entities who wish to apply requirements from AASB 7 to such assets may do so at their own

discretion.

Financial Instruments Disclosures

Significance of financial instruments

AASB 7 requires an entity to disclose information that enables users of financial report to

evaluate the significance of financial instruments for its financial position and performance.

Allowance account for credit losses

When financial assets are impaired by credit losses and the entity records the impairment in

a separate account rather than directly reducing the carrying amount of the asset, it shall

disclose a reconciliation of changes in that account during the period for each class of

financial assets.

Nature and extent of risks arising from financial instruments

An entity shall also disclose information that enables users of its financial report to evaluate

the nature and extent of risks arising from financial instruments to which the entity is

exposed at the reporting date.


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30 June 200930 June 2009

8. Other Financial Assets2009 2008$ 000 $ 000

CurrentInterest Bearing Investments 46 13,015

46 13,015Non-Current

Interest Bearing Investments 28,515 17,870Managed Share/Units Portfolio 71,975 83,494

100,490 101,364

Total Other Financial Assets 100,536 114,379

(a) Ageing analysis of other financial assetsPlease refer to Note 17 for the ageing analysis of other financial assets

(b)Nature and extent of risk arising from investmentsPlease refer to Note 17 for nature and extent of credit risk arising from other financial assets

Commentary- Other Financial Assets

The entity can classify its other financial assets into the following categories: financial assets

at fair value through profit or loss, loans and receivables, held-to-maturity investments, and

available-for-sale financial assets. The classification depends on the purpose for which the

investments were acquired. Clarification of the classification of financial assets into the four

categories is prescribed by FRD114 ‘Financial Instruments – General Government Entities and

Public Non Financial Corporations’.

Should a category other than available for sale be utilised, the entity must disclose in the above note the items and values for those categories used, and included appropriate disclosure in note 1(h) for example:

‘Investments held for trading purposes are classified as current assets and are stated at fair value, with any resultant gain or loss recognised in the operating statement.’

Other Financial Assets can only be classified as “Investments Held to Maturity” if the entity has approval from the Minister for Finance.

Impairment of financial assets

For impaired financial assets, an entity shall disclose:

(a) Interest income on impaired financial assets accrued in accordance with paragraph AG93 of AASB 139; and

(b)The amount of any impairment loss for each class of financial assets.

Derecognition of financial assets: An entity may have transferred financial assets in such a

way that part or all of the financial assets do not qualify for derecognition (see paragraphs 15-37

of AASB 139). The entity shall disclose for each class of such financial assets:

(a) the nature of the assets;

(b) the nature of the risks and rewards of ownership to which the entity remains exposed;

(c) when the entity continues to recognise all of the asset, the carrying amounts of the asset

and of the associated liability; and


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30 June 200930 June 2009

(d) when the entity continues to recognise the asset to the extent of its continuing

involvement, the total amount of the asset, the amount of the asset that the entity

continues to recognise and the carrying amount of the associated liability.

Instead of disclosing this information in a separate note, it may be more appropriate to include such disclosures in the relevant asset notes.


5757


30 June 200930 June 2009

9. Inventories 2009 2008$ 000 $ 000

CurrentConsumables/Maintenance Stores 117 92Work in Progress - 192Grave Foundations/Beams 770 783Mausoleum Crypts 1,397 2,076Interment Land 73 20Other 71 61

2,428 3,204Non-Current

Grave Foundations/Beams 1,240 1,385Mausoleum Crypts 2,404 2,853Interment Land 275 30Other 1,006 136

4,925 4,374

Total Inventories 7,353 7,578

* All categories are to be valued at Cost and/or Net Realisable Value. They also have to be assessed for Loss of Service Potential

Commentary - Inventories

Inventories are to be valued at the lower of cost and net realisable value. Inventories held for distribution are to be valued at the lower of cost and current replacement cost.

Under FRD 102 Inventories:

Land held for sale inventories must be measured on a ‘specific identification of cost’ basis.

High value, low volume inventory items must be measured on a ‘specific identification of

cost’ basis.

All other inventories must be measured using the ‘weighted average cost (WAC) formula.

An exception is allowed for the inventories of entities that prior to the date of transition to

A-IFRS were using inventory systems configured to measure such inventories using the FIFO

method. If material, inventory measured on this basis must be separately disclosed in the

entities financial report. It is expected that entities that have applied this concession to use

the FIFO method will change to the WAC method when they upgrade/replace their inventory

systems.

Paragraph 36.1 of AASB 102 Inventories, requires not-for-profit entities to disclose the following:

(a) the accounting policies adopted in measuring inventories held for distribution, including the

cost formula used;

(b) the total carrying amount of inventories held for distribution and the carrying amount in

classifications appropriate to the entity;

(c) the amount of inventories held for distribution recognised as an expense during the period in

accordance with paragraph Aus34.1;

(d) the amount of any write-down of inventories held for distribution recognised as an expense


5858


30 June 200930 June 2009

in the period in accordance with paragraph Aus34.1;

(e) the amount of any reversal of any write-down that is recognised as a reduction in the

amount of inventories held for distribution recognised as expense in the period in accordance

with paragraph Aus34.1;

(f) the circumstances or events that led to the reversal of a write-down of inventories held for

distribution in accordance with paragraph Aus34.1;

(g) the carrying amount of inventories held for distribution pledged as security for liabilities; and

(h) the basis on which any loss of service potential of inventories held for distribution is

assessed, or the bases when more than one basis is used.

The assessment of loss of service potential for inventories held for distribution is a new

measurement basis required by revised AASB 102, applicable for the reporting period beginning

on or after 1 July 2007. The AASB has provided transitional arrangement for entities applying

the new measurement basis for the first time. Under AASB 102.Aus42.1 not-for-profit entities

shall make any necessary adjustments to the opening balance of inventories held for

distribution, previously carried at the lower of cost and current replacement cost, against

opening retained earnings for the current annual reporting period. Accordingly, comparative

information is not adjusted.

Interment and undeveloped land

Interment and undeveloped land must be treated as inventory and accounted for under

AASB102 Inventories and FRD102 Inventories.

Inventories include land allocated for interment purposes held for sale. Inventory of land

allocated for interment purposes is measured at the lower of cost and net realisable value on

the basis of weighted average cost and includes adjacent land and landscaping that add to the

amenity of the land for interment.

10. Property, Plant and Equipment2009 2008$ 000 $ 000


5959


30 June 200930 June 2009

Land at Fair Value 43,744 34,160Less Impairment - -Total Land 43,744 34,160

Buildings, Infrastructure and Improvements at Fair Value 29,628 27,406Less Accumulated Depreciation 1,122 (1,154)

28,506 28,560

Motor Vehicles, Plant and Equipment at Fair value 5,332 4,899Less Accumulated Depreciation 2,832 2,303

2,500 2,596

Office Equipment, Furniture and Fittings at Fair Value 2,770 2,718Less Accumulated Depreciation 2,121 1,831

649 887

Capital Works in Progress at Cost 1,107 950

Total 76,506 67,153

Reconciliation of Property, Plant and Equipment

Cemetery Infrastruct

ureLand

Buildings, Infrastructu

re & Improveme

nts

Motor Vehicles,

Plant & Equipme

nt

Office Equipmen

t, Furniture & Fittings

Capital Works in Progress

Total

$ 000 $ 000 $ 000 $ 000 $ 000 $ 000

Balance at 1 July 2007 116,980 26,881 2,293 417 1,118 147,689

Additions - - 621 4 - 625

Expenditure on Capital Works - - - - 1,721 1,721

Transfers to Completed Assets - 1,133 - 756 (1,889) -

Disposals - - (136) - - (136)

Depreciation Expense - (1,154) (487) (290) - (1,931)

Reclassification of Assets - (305) 305 - - -

Other Adjustments - (676) - - - (676)

Valuation Adjustment (82,820) 2,681 - - - (80,139)

Balance at 1 July 2008 34,160 28,560 2,596 887 950 67,153

Additions 200 49 573 78 - 900

Expenditure on Capital Works - - - - 1,216 1,216

Transfers to Completed Assets - 1,021 - 38 (1,059) -

Disposals - (3) (140) - - (143)

Depreciation Expense - (1,121) (529) (354) - (2,004)

Valuation Adjustment 9,384 - - - - 9,384

Balance at 30 June 2009 43,744 28,506 2,500 649 1,107 76,506


6060


30 June 200930 June 2009

Commentary – Property, Plant and Equipment

Land, Buildings and Cultural Assets: Subsequent to initial recognition as assets, land,

buildings and cultural assets are measured at fair value.

Infrastructure Land: Is land that supports the operations of the cemetery and is available for

continuing use. They shall be treated as property, plant and equipment and accounted for under

AASB 116 Property, Plant and Equipment. Where there are restrictions preventing the land being

used for the right of interments, then the land shall be classified as infrastructure land and be

considered for impairment in accordance with AASB 136 Impairment of Assets.

Crown Land: Generally accepted accounting principles suggest that Crown land should be

valued and included in the Balance Sheet of the entity occupying the land. Where control of land

is formally vested in an entity, the value of the land should be recorded as a non-current asset.

However, where an entity pays an economic rental for use of the land, the land value should not

be reported as a non-current asset in the entities Balance Sheet. Where a peppercorn rental

applies or the land is not formally vested but controlled by the entity, the land should be

recognised as an asset. The date of last valuation, name and qualifications of valuer should be

included.

Plant and Equipment, Computers and Communications, Furniture and Fittings and

Motor Vehicles: These are measured initially at cost and subsequently measured at fair value

less accumulated depreciation and impairment.

Valuation of Library Books & Technical Data (Material): Library books should be valued at

cost and a depreciation charge calculated on a straight-line basis.

Impairment: Property, plant and equipment measured on the fair value basis should also be

tested for impairment. Refer to AASB 136 Impairment of Assets for further details.

Expenditures recognised in assets under construction

AASB 116 requires disclosure of the amount of expenditure recognised in the carrying amount of

an item of property, plant and equipment in the course of its construction. Where assets under

construction are not identified as an asset class, separate disclosure is required.

Restrictive Nature of Assets

There may be restrictions on the use and/or disposal of cultural and heritage assets, Crown land

and infrastructure. Disclosure should be made to identify those assets that are subject to

restrictions and the nature of those encumbrances/restrictions.

11. Intangible Assets2009 2008$ 000 $ 000

Capitalised Computer Software 1,064 1,007Accumulated Amortisation (806) (622)Total Written Down Value 258 385


6161


30 June 200930 June 2009

Balance at 1 July 2008 385 614Additions 57 119Disposals - -Impairment Losses - (177)Amortisation Expense (184) (171)Balance at 30 June 2009 258 385

Commentary – Intangible Assets

FRD 109 Intangibles requires all intangible assets to be recognised on a cost basis. Refer to FRD 109 for further details on recognition of intangible assets.

Research Activities

AASB 138 Intangible Assets prohibits the recognition of research activities as an asset and requires them to be expensed as incurred.

Impairment of Intangible Assets

Entities should disclose information on impaired intangible assets in accordance with AASB 136 Impairment of Assets in addition to the information required by AASB 138 Intangible Assets.

Capitalisation Threshold

FRD 109 requires expenditure on intangibles to be capitalised only if the amount involved meets the capitalisation threshold that is material to the entity (refer AASB 1031 Materiality for guidance on materiality). In addition, an entity should consider the following in determining the capitalisation threshold:

the impact of the capitalisation threshold on the Operating Statement and Balance Sheet, taking into consideration the pattern of investment and that an intangible asset may have a relatively short useful life (e.g. useful life of software is usually only 3-5 years); and

the administrative burden of conducting annual impairment tests of intangible assets.

Additional disclosures for intangible assets acquired by way of government grant and

initially recognised at fair value

For intangible assets acquired by way of a government grant and initially recognised at fair value, a entity shall disclose:

(a) the fair value initially recognised for these assets;(b) their carrying amount; and(c) whether they are measured after recognition under the cost model or the revaluation

model.


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30 June 200930 June 2009

Commentary – Investment Property

This represents land acquired as an investment for capital appreciation. Investment properties

are initially recorded at cost. Costs incurred subsequent to initial acquisition are capitalised when

it is probable that future economic benefits in excess of the originally assessed performance of

the asset will flow to <ABC Cemetery Trust>.

Subsequent to initial recognition at cost, investment properties are revalued to fair value with

changes in the fair value recognised, in the Operating Statement in the period that they arise.

The property is not depreciated.


12. Investment Property - Land2009 2008$ 000 $ 000

Balance at 1 July 2008 2,400 2,300 Net Gain/(Loss) from Fair Value Adjustments 200 100Balance at 30 June 2009 2,600 2,400

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30 June 200930 June 2009

13. Payables2009 2008$ 000 $ 000

CurrentTrade Creditors 1,064 1,007Other Creditors and Accruals (806) (622)Net GST Payable 258 385

Total Payables 258 385

(a) Ageing analysis of payablesPlease refer to Note 17 for the ageing analysis of payables

(b)Nature and extent of risk arising from payablesPlease refer to Note 17 for nature and extent of credit risk arising from payables

Commentary – Payables

Payables are to include payables for supplies and services, capital expenditure and interest accrued.

The disclosure of payables should include the following:

Classification of the outstanding debts into ageing periods. Public borrowing or financial accommodation transactions must be clearly indicated. Secured liabilities and the nature of the security.

Financial Instrument Disclosures

Significance of financial instrumentsAASB 7 requires an entity to disclose information that enables users of financial report to evaluate the significance of financial instruments for its financial position and performance.

Nature and extent of risks arising from financial instrumentsAn entity shall also disclose information that enables users of its financial report to evaluate the nature and extent of risks arising from financial instruments to which the entity is exposed at the reporting date.

Financial GuaranteeAn entity shall disclose the fair value of any financial guarantee that it provides to third parties, should the fair value of the liability become greater than zero either as part of this note for payables or in the note for other payables.

Statutory PayablesLiabilities that are not contractual (such as liabilities that arise as a result of statutory requirements), are not financial liabilities. Therefore, these liabilities though may seem to be financial instruments, in fact are not within the scope of AASB 7. However, entities who wish to apply requirements from AASB 7 to such liabilities can do so at their own discretion.


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30 June 200930 June 2009

14: Employee Benefits and Related On-Costs Provisions2009 2008$'000 $'000

Current Provisions Employee Benefits - Unconditional and expected to be settled within 12 months 119 103- Unconditional and expected to be settled after 12 months 1,010 901

Employee Termination Benefits - Unconditional and expected to be settled within 12 months - - - Unconditional and expected to be settled after 12 months - - Other (List) - -

1,129 1,004Provisions related to employee benefit on-costs - Unconditional and expected to be settled within 12 months (nominal value)

837 795

- Unconditional and expected to be settled after 12 months (present value) - -

837 795Total Current Provisions 1,966 1,799

Non-Current Provisions Employee Benefits 559 575Employee Termination Benefits - - Provisions related to employee benefit on-costs - - Other (List) - - Total Non-Current Provisions 559 575

Current Employee Benefits Unconditional LSL entitlement 1,129 1,004Annual leave entitlements 769 739Staff Continuity of Service 14 15Sick Leave - -Rostered Days off Short Term 54 41Other (List) - - Non-Current Employee Benefits Conditional long service leave entitlements (present value) 131 172Staff Continuity of Service at PV 428 403Total Employee Benefits 2,525 2,374On-Costs Current On-Costs - - Non-Current On-Costs - - Total On-Costs - -Total Employee Benefits and Related On-Costs 2,525 2,374

Movement in Long Service Leave: Balance at start of year 50,875 44,559 Provision made during the year - Revaluations 1,818 2,144 - Expense recognising employee service 6,541 7,712

Settlement made during the year (4,804) (3,540)Balance at end of year 54,430 50,875


6565


30 June 200930 June 2009

Commentary –Employee Benefits and Related On-Costs Provisions

A provision is a present legal, equitable or constructive obligation to make a sacrifice of future

economic benefits to other entities as a result of past transactions and the amount or timing of

the sacrifice of future benefits is uncertain.

A brief description of the nature of the present obligation and any significant uncertainties about

each class of provisions must be disclosed (including relevant major assumptions about future

events). Amounts of any expected recovery related to each class of provision must also be

disclosed.

AASB 137 Provisions, Contingent Liabilities and Contingent Assets defines provisions as ‘liabilities

of uncertain timing or amount’. AASB 137 indicates provisions can be distinguished from other

liabilities such as trade payables and accruals because there is uncertainty about the timing or

amount of the future expenditure required in settlement. Although it is sometimes necessary to

estimate the amount or timing of accruals, the uncertainty is generally much less than for

provisions.

Provisions exist when:

the entity has a present legal or constructive obligation to make a sacrifice of future

economic benefits to other entities as a result of past transactions or past events;

the amount or timing of the sacrifice of future economic benefits is uncertain;

it is probable that an outflow of resources embodying economic benefits will be required to

settle the obligation; and

a reliable estimate can be made of the amount of the obligation.

A present value approach is required to the measurement of provisions where the effect of the

time value of money is material. A best estimate of the consideration required to settle the

present obligation as at the reporting date may be required.

For each class of provisions, the following must be disclosed:

a brief description of the nature of the obligation and the expected timing of any resulting

outflows of economic benefits;

an indication of the uncertainties about the amount or timing of those outflows. Where

necessary to provide adequate information, an entity shall disclose the major assumptions

made concerning future events, as addressed in paragraph 48 of AASB 137; and

the amount of any expected reimbursement, stating the amount of any asset that has been

recognised for that expected reimbursement.

Refer to AASB 137 for further guidance.

AASB 119 Employee Benefits sets out the reporting requirements for employee benefits.

Employee benefits include long service leave, accrued wages and salaries, annual leave, accrued

days off, post employment benefits and termination benefits. On-costs such as WorkCover and

superannuation provision should be included in the calculation of leave provisions.

Provision is made in the accounts for obligations in respect of long service leave and annual

leave entitlements not taken at balance date. The amounts are to be accrued annually at


6666


30 June 200930 June 2009

remuneration rates expected to apply when the obligation is settled, that is the expected future

increase in remuneration rate and comply with the requirements of AASB 119.

FRD 17A ‘Long Service Leave Wage Inflation and Discount Rates’ permits agencies to use other

wage inflation rates in the calculation of LSL where agencies can clearly demonstrate that for

industry-specific reasons, the use of the alternative rates will result in more relevant and reliable

LSL calculations. It is currently envisaged that the Department will not provide the industry-

specific rates to entities and payroll bureaus as it has done in previous years, and that the DTF

defined rate will be applied.

All staff, including S.97 staff, are deemed to be employees of the entity whether employed

directly or indirectly. As such all employee benefits are to be accrued by the entity.

Long Service LeaveLong Service Leave

Long service leave provisions are reported as current and non-current liabilities.

A current provision is any LSL that the entity does not have an unconditional right to defer the

settlement of the entitlement should an employee take leave. This represents 10 or more years

of continuous service. The current provision for LSL has 2 parts, the first being the part which is

expected to settle within 12 months and measured at nominal value and the second being that

which is expected to settle after 12 months and which is measured at present value

A non-current provision is any LSL that the entity has an unconditional right to defer the

settlement of the entitlement until 10 years of service has been completed by the employee and

is measured at present value.

Accrued Wages and Salaries, Annual Leave, Accrued Wages and Salaries, Annual Leave, Continuity of ServiceContinuity of Service and Accrued Days Off and Accrued Days Off

Provisions for employee entitlements are reported as a liability in the Balance Sheet with details

disclosed in a note. The liability is calculated on what is owed at 30 June.

Sick LeaveSick Leave

A current liability should only be recognised if it is probable that sick leave expected to be taken

in future reporting periods will be greater than entitlements which are expected to accrue in

those periods.


6767


30 June 200930 June 2009

15. Equity 2009 2008$ 000 $ 000

Composition of EquityContributed Capital 59,331 59,331Accumulated Funds 12,487 (4,776)Property, Plant and Equipment Revaluation Reserve 11,846 11,846Available for Sale Investment Revaluation Reserve (9,021) 15,372Perpetual Maintenance Reserve 108,283 100,003Total Equity 182,926 181,776

(a) Movement in Accumulated FundsBalance at the Beginning of the Year (4,776) 8,884Net Result for the Year 25,544 (6,586)Transfer to Future Preservation Reserve (8,281) (7,074)Balance at the End of the Year 12,487 (4,776)

(b) Property, Plant and Equipment ReserveBuildings, Infrastructure & Improvements 11,846 11,846Plant and Equipment - -Infrastructure Land - -

11,846 11,846Buildings, Infrastructure and ImprovementsBalance at the Beginning of the Year 11,846 9,165Revaluation Increment/(Decrement) - 2,681Balance at the End of the Year 11,846 11,846

Plant and EquipmentBalance at the Beginning of the Year - -Revaluation Increment/(Decrement) - -Balance at the End of the Year - -

Infrastructure LandBalance at the Beginning of the Year - 61,279Revaluation Increment/(Decrement) - (61,279)Balance at the End of the Year - -

Total Property, Plant & Equipment Revaluation Reserve 11,846 11,846

(c) Available for Sale Investment Revaluation ReserveBalance at the Beginning of the Year 15,372 9,501

Valuation Gain/(Loss) Recognised (17,090) 8,320(Gain)/Loss Transferred to the Operating Statement on the Sale of Investments

(7,303) (2,449)

Reserve at the End of the Year (9,021) 15,372


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30 June 200930 June 2009

15. Equity (continued)2009 2008$ 000 $ 000

(d) Perpetual Maintenance ReservesGlen Waverley

Memorial Gardens - Opening Balance 19,752 18,478Transfers from Accumulated Funds 1,095 1,274Memorial Gardens - Closing Balance 20,847 19,752

Cemetery Gardens - Opening Balance 40,636 37,447Transfers from Accumulated Funds 3,966 3,189Cemetery Gardens - Closing Balance 44,602 40,636

Mausoleum Crypts - Opening Balance 22,922 21,148Transfers from Accumulated Funds 1,769 1,774Mausoleum Crypts - Closing Balance 24,691 22,922


6969


30 June 200930 June 2009

90,140 83,310Hawthorn

Memorial Gardens - Opening Balance 74 46Transfers from Accumulated Funds 24 28Memorial Gardens - Closing Balance 98 74

Cemetery Gardens - Opening Balance 2,163 2,211Transfers from Accumulated Funds (48) (48)Cemetery Gardens - Closing Balance 2,115 2,163

Mausoleum Crypts - Opening Balance 13,658 12,809Transfers from Accumulated Funds 917 849Mausoleum Crypts - Closing Balance 14,575 13,658

16,788 15,895Sunbury

Memorial Gardens - Opening Balance 72 62Transfers from Accumulated Funds 26 10Memorial Gardens - Closing Balance 98 72

Cemetery Gardens - Opening Balance 726 728Transfers from Accumulated Funds 515 (2)Cemetery Gardens - Closing Balance 1,241 726

1,339 798Cranbourne

Cemetery Gardens - Opening Balance - -Transfers from Accumulated Funds 16 -Cemetery Gardens - Closing Balance 16 -Total Perpetual Maintenance Reserve 108,283 100,003


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30 June 200930 June 2009

Commentary – Equity

Contributed CapitalContributed CapitalTransfers between wholly-owned public sector entities and the Victorian State Government or

another entity that is wholly-owned and controlled by the Government must be classified and

recognised as contributed capital when they satisfy the definition of ’contribution by owners’.

Contributed capital can also be recognised after two or more entities have amalgamated to form

a new entity.

FRD 119 ‘Contributions by Owners’ provides guidance and clarification on the application of

paragraph 7(c) of Interpretation 1038 ‘Contributions by Owners to Wholly-Owned Public Sector

Entities’.

Perpetual Maintenance ReservesPerpetual Maintenance Reserves

Are created as reserves which deal with the maintenance of burial spaces once burial land is

extinguished.

Treatment of Accumulated DepreciationTreatment of Accumulated DepreciationAASB 116 Property, Plant and Equipment permits an entity to account for the accumulated

depreciation at the date of the revaluation either by:·

increasing proportionately the accumulated depreciation balance with the increase in the

gross carrying amount of the asset so that the net carrying amount of the asset after

revaluation equals its revalued amount (gross approach); or·

eliminating the accumulated depreciation balance against the gross carrying amount of

the asset and increasing the net carrying amount to the revalued amount of the asset

(net approach).

To ensure consistency on a whole-of-state reporting basis, FRD 103D Non-current Physical

Assets requires, entities to account for the accumulated depreciation at the date of the

revaluation by applying the net approach


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30 June 200930 June 2009

16. Reconciliation Of Net Cash Inflow From Operating Activities To Operating Result

2009 2008$ 000 $ 000

Net Result for the Reporting Period 25,544 (6,586)

Non-Cash Flows in Operating SurplusDepreciation/Amortisation 2,188 2,103Cemetery Land Revaluation (Revenue)/Expense (9,384) 21,542Net (Gain)/Loss from Sale of Investments (2,216) (4,838)Net (Gain)/Loss due to Fair Value Adjustments of Investment Properties

(200) (100)

Merger Income (excluding cash/investments) (211) -Net (Gain)/Loss from Sale of Assets 23 16

Changes in Assets and Liabilities(Increase)/Decrease in Trade and Sundry Debtors (93) (226)(Increase)/Decrease in Accrued Interest/Dividends (5) 288(Increase)/Decrease in Prepayments 48 103(Increase)/Decrease in Inventories 225 953Increase/(Decrease) in Creditors/Accruals 204 (300)Increase/(Decrease ) in Provisions 151 (25)Increase/(Decrease) in Pre-paid Fees 1,113 998

Net Cash Provided by Operating Activities 17,387 13,928


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30 June 200930 June 2009

17. Financial Instruments

(a) Categorisation of Financial Assets and Financial Liabilities

2009 2008Account Balance Not

eCategory

$ 000 $ 000Financial AssetsCash and Cash Equivalents 5 Cash 1,175 1,702Receivables 6 Receivables (at Amortised Cost) 10,891 3,056Available for Sale Investments

7 Available for Sale Investments (at Fair Value Through Equity)

100,536 114,379

Total Financial Assets 112,602 119,137

Financial LiabilitiesPayables 9 Financial Liabilities Measured at

Amortised Cost1,532 1,291

Total Financial Liabilities 1,532 1,291

(b) Credit Risk

Credit risk arises from the financial assets of <ABC Cemetery Trust>, which comprise cash and cash equivalents, trade and other receivables and available for sale investments. The exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to <ABC Cemetery Trust>. Credit risk is measured at fair value and is monitored on a regular basis.

(i) Policy in Managing Credit Risk<ABC Cemetery Trust> does not have any material credit risk exposure to a single debtor or group of debtors. In respect to trade and sundry receivables, <ABC Cemetery Trust> minimises concentrations of credit risk by undertaking transactions with a large number of customers. Trade debtors are normally paid within 30 days of end of month. Sundry debtor terms are normally up to a maximum of 6 months.

In addition, management reviews on an ongoing basis the age analysis of receivables to assess the quality of them and apply any action required to ensure the collectability of the debt. According to successful past experience in managing the credit risk on receivables, <ABC Cemetery Trust> has assessed this risk as low.

Management have assessed the credit risk associated with the cash and cash equivalents as minimal. The amounts are allocated to reputable financial institutions which have a high credit rating.

Investments are managed in accordance with our investment policy, which stipulates, where applicable minimum credit ratings. The investment policy is reviewed regularly by management in conjunction with independent investment advisors.

<ABC Cemetery Trust> uses external advisers to manage most of the funds allocated as available for sale financial assets. The total funds invested are diversified across a range of reputable and experienced external managers and financial institutions. This mitigates the credit risk on this class of financial assets.


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17. Financial Instruments (continued)

(b) Credit Risk (continued)(ii) Maximum Exposure to Credit Risk<ABC Cemetery Trust> maximum exposure to credit risk at balance date in relation to each class of financial asset is represented below:

2009 2008Financial Assets $ 000 $ 000Cash and Cash Equivalents 1,175 1,702Receivables 10,891 3,056Available for Sale Investments 100,536 114,379Total 112,602 119,137

Currently <ABC Cemetery Trust> does not hold any collateral as security nor credit enhancements relating to any of its financial assets.

(iii) Interest Rate Exposure and Ageing Analysis of Financial Assets as at 30 June 2009

Financial Assets Weighted Average Effective Interest Rate %

Carrying

Amount $000

Interest Rate Exposure Not Past Due

and Not Impaire

d

Past Due but Not Impaired Impaired

Financial

Assets

Fixed Intere

st Rate

Variable

Interest Rate

Non-Interest Bearing

Less Than

1 Mont

h

1-3 Mont

h

3 Month

s - 1 Year

1-5 Year

s

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000Cash and Cash Equivalents: - Cash on Hand 0.0% 2 - - 2 2 - - - - - - Cash at Bank 5.0% 1,173 - 1,173 - 1,173 - - - - -Receivables 0.0% 10,891 - - 10,891 10,397 467 15 12 - -Available for Sale Investments: - Interest Bearing 6.9% 28,561 10,788 17,773 - 28,561 - - - - - - Managed Share/Units Portfolio 0.0% 71,975 - - 71,975 71,975 - - - - -

Total 112,602 10,788 18,946 82,868 112,108 467 15 12 - -

N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.their financial statements.

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30 June 200930 June 2009


7575


30 June 200930 June 2009


(b) Credit Risk (continued)

(iii) Interest Rate Exposure and Ageing Analysis of Financial Assets as at 30 June 2008

Financial Assets Weighted Average Effective Interest Rate %

Carrying Amount

Interest Rate Exposure Not Past Due and

Not Impaired

Past Due but Not Impaired Impaired

Financial

Assets

Fixed Intere

st Rate

Variable

Interest

Rate


Less Than

1 Month

1-3 Mont

h

3 Months - 1 Year

1-5 Years

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000Cash and Cash Equivalents: - Cash on Hand 0.0% 2 - - 2 2 - - - - - - Cash at Bank 5.5% 1,700 - 1,700 - 1,700 - - - - -Receivables 0.0% 3,056 - - 3,056 2,788 258 6 4 - -Available for Sale Investments: - Interest Bearing 7.1% 30,885 14,613 16,272 - 30,885 - - - - - - Managed Share/ Units Portfolio

0.0% 83,494 - - 83,494 83,494 - - - - -

Total 119,137 14,613 17,972 86,552 118,869 258 6 4 - -

(c) Liquidity RiskLiquidity risk arises when <ABC Cemetery Trust> is unable to meet obligations associated with financial liabilities when they fall due.

(i) Policy in Managing Liquidity Risk<ABC Cemetery Trust> objectives in managing liquidity risk is to ensure that all obligations will be met as they fall due, while ensuring maximum funds are available for investment to meet longer term perpetual maintenance requirements.

<ABC Cemetery Trust> manages liquidity risk by monitoring cash flows to ensure sufficient funds are maintained in the transactional bank account to meet liabilities as they fall due. This is done while ensuring that surplus funds are transferred for investment. Daily monitoring occurs, with monthly reports delivered to management regarding the cash flow position and cash flow forecasts. <ABC Cemetery Trust> believes that this policy ensures sufficient funds are held to allow for the proper administration of the cemetery.


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30 June 200930 June 2009

<ABC Cemetery Trust> has assessed this risk as minimal considering the positive current position of current assets compared against the current liabilities.


(c) Liquidity Risk (continued)

(ii) Maximum Exposure to Liquidity RiskThe maximum exposure to liquidity risk is the carrying amounts of financial liabilities as follows:

2009 2008Financial Liabilities $ 000 $ 000Payables 1,532 1,291Total 1,532 1,291

(iii) Interest Rate Exposure and Maturity Analysis of Financial LiabilitiesThe following table discloses the contractual maturity analysis for financial liabilities at the respective reporting dates:

Financial Liabilities Weighted

Average Effective Interest Rate %

Carrying Amount

$ 000

Interest Rate Exposure Nominal Amount

Maturity Dates Fixed

Interest Rate

Variable Interest

Rate


Less Than 1 Month

1-3 Months

3 Months - 1 Year

1-5 Years

$000 $000 $000 $000 $000 $000 $000 $000 $0002009 Payables 0.00% 1,532 - - 1,532 1,532 1,438 61 33 -

Total 1,532 - - 1,532 1,532 1,438 61 33 -

2008 Payables 0.00% 1,291 - - 1,291 1,291 1,085 170 36 -Total 1,291 - - 1,291 1,291 1,085 170 36 -

The amounts above disclosed are the contractual undiscounted cash flows of each class of financial


7777


30 June 200930 June 2009liabilities.


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30 June 200930 June 2009


(d) Market Risk Exposure

<ABC Cemetery Trust> has diversified investments across a range of investments, including investments in the Australian and International share market, in order to fund pre-paid fees and long-term perpetual maintenance obligations. These markets are subject to volatility. It is accepted that the share market is cyclical and that there is inherent volatility.

Investments are managed in accordance with our investment policy, which stipulates, asset allocation ranges to diversify and mitigate risk. The investment policy is reviewed regularly by management in conjunction with independent investment advisors. Management have appointed external investment advisors to manage our investment portfolio. The performance of investments and investment managers is regularly monitored by management.

<ABC Cemetery Trust>'s exposure to market risk is through currency risk, interest rate risk, and other price related risks. Objectives, policies and processes used to manage each of these risks are disclosed as follows:

(i) Currency Risk and Policy in Managing Currency Risk<ABC Cemetery Trust>'s exposure to foreign currency risk arises mainly from the investments held in overseas shares and listed property trusts.

<ABC Cemetery Trust> manages its currency risk by appointing experienced external managers to manage these investments on its behalf and diversifying the allocation of the investment in shares of overseas companies, which operates in stable economies throughout Europe, the United States of America and Asia.

To minimise volatility in overseas investments due to fluctuations in foreign currency exchange rates, our investment managers hedge a proportion of its exposure to overseas investments back to the Australian dollar. Currency hedging is implemented through the use of forward foreign exchange contracts.

(ii) Interest Rate Risk and Policy in Managing Interest RiskFinancial LiabilitiesExposure to interest rate risk is minimal as <ABC Cemetery Trust> does not hold interest bearing liabilities.

Available for Sale InvestmentsThe objective of managing interest rate risk is to minimise and control the risks of losses due to interest rate changes and to take advantage of potential profits.

Interest risk is managed by diversifying investment in a range of securities including investments with fixed interest rate, floating interest rates and CPI linked bonds.

(iii) Other Market Risk and Policy in Managing Other Market RiskExposure to other price risk arises due to the inherent risk associated with the possibility of a fall in the market value of available for sale financial assets.

<ABC Cemetery Trust> objective of managing other price (primarily equity market) risk is to minimise negative impacts on investment value due to the volatility of the stock markets.

<ABC Cemetery Trust> has appointed external, independent investment managers to monitor the value and volatility of stock market investments. The investment manager is expected to manage this risk, through the appropriate diversification of specific stocks and diversification through different sectors within the market in accordance with our investment parameters (including ethical guidelines).


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30 June 200930 June 2009


(d) Market Risk Exposure (continued)(iv) Sensitivity Analysis on Other Price Risk

Based on advice from independent investment managers, who have taken into consideration past performance, future expectations and economic forecasts <ABC Cemetery Trust> has estimated that the analysis presented below is reasonably possible in the forthcoming 12 months. This sensitivity analysis has been prepared for the next 12 months. Management does not believe that it is possible to reasonably estimate the variables used further than for 12 months.

<ABC Cemetery Trust> has appointed external, independent investment managers to monitor the value and volatility of stock market investments. The investment manager is expected to manage this risk, through the appropriate diversification of specific stocks and diversification through different asset classes in accordance with our investment parameters (including ethical guidelines).

<ABC Cemetery Trust> maximum exposure to currency and other market risk, and related sensitivity analysis for the forthcoming 12 months is reflected in the following table.

Carrying Amount

Foreign Currency Risk (a) Interest Rate Risk (b) Other Price Risk (c)

-8% -10% -0.25% -0.50% 6% 8%

2009

Net Result

Equity Net Result

Equity Net Result

Equity Net Result

Equity Net Result

Equity Net Result

Equity

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Financial Assets Cash and Cash Equivalents

1,175 - - - - - - (3) (6) - - - -

Receivables 10,891 - - - - - - - - - - - -Available for Sale Investments:

- Interest Bearing 28,561 - - - - (44) (27) (89) (54) - - - - - Managed Share/ Units Portfolio

71,975 (476) - (596) - - - - - 3,794 - 5,058 -

Financial Liabilities

Payables 1,532 - - - - - - - - - - - -Total Increase/(Decrease)

(476) - (596) - (44) (27) (92) (60) 3,794 - 5,058 -

(a): Overseas shares and listed property trusts are subject to foreign currency, predominately the US dollar, Euro and Japanese Yen. The amount subject to foreign currency risk as at balance date is $5.956 million.

(b): Interest bearing investments as at balance date comprise fixed interest rate investments ($10.788 million) and variable interest rate investments ($17.774 million).(c): Domestic shares and other investments subject to other price risk amount to $63.228 million as at balance date.


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30 June 200930 June 2009

Carrying Amount

Foreign Currency Risk (a) Interest Rate Risk (b) Other Price Risk (c)

-8% -10% -0.25% -0.50% 6% 8%

2008

Net Result

Equity Net Result

Equity Net Result

Equity Net Result

Equity Net Result

Equity Net Result

Equity

$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

Financial Assets Cash and Cash Equivalents

1,702 - - - - - - (5) (9) - - - -

Receivables 3,056 - - - - - - - - - - - -Available for Sale Investments:

- Interest Bearing 30,885 - - - - (33) (28) (67) (56) - - - - - Managed Share/ Units Portfolio

83,494 (387) - (484) - - - - - 4,380 - 5,839 -

Financial Liabilities

Payables 1,291 - - - - - - - - - - - -Total Increase/(Decrease)

(387) - (484) - (33) (28) (92) (60) 3,794 - 5,058 -

(a): Overseas shares and listed property trusts are subject to foreign currency, predominately the US dollar, Euro and Japanese Yen. The amount subject to foreign currency risk as at balance date is $4.842 million.

(b): Interest bearing investments as at balance date comprise fixed interest rate investments ($11.252 million) and variable interest rate investments ($13.345 million).(c): Domestic shares and other investments subject to other price risk amount to $72.993 million as at balance date.

(e) Fair Value Management is of the opinion that there are no differences between the fair values and the carrying amounts of financial assets and financial liabilities as at 30 June 2009 and 30 June 2008, respectively.

The fair values and net fair values of financial assets and financial liabilities are determined as follows: - the fair values of the available for sale investments are determined with reference to quoted market prices in the respective active liquid markets and valuations by independent investment experts; and - the fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models including discounted cash flow analysis.


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30 June 200930 June 2009

Commentary - Financial Instruments

Significant accounting policies

In accordance with paragraph 109 of AASB 101 Presentation of Financial Statements, an entity

discloses, in the summary of significant accounting policies, the measurement basis (or bases)

used in preparing the financial report and the other accounting policies that are relevant to an

understanding of the financial report.

The newly applicable AASB 7, requires comprehensive disclosure requirements for financial

instruments including, but not limited to, the following:

(a)the measurement basis (bases) and the criteria used to determine classification for

different types of financial instruments;

(b) the movement in fair value for financial instruments classified as fair value through profit

or loss;

(c) an entity’s objectives, policies and processes for managing capital; and

(d) the qualitative and quantitative disclosures for each type of risk (e.g.: credit risk, liquidity

risk, and market risk) that the entity is exposed to.

Nature and extent of risk disclosures

AASB 7 requires that an entity provides qualitative and quantitative disclosures for each type of

risk arising from financial instruments.

An entity shall disclose information that enables users of its financial report to evaluate the

nature and extent of risks arising from financial instruments to which the entity is exposed at the

reporting date.

Qualitative disclosure

For each type of risk arising from financial instruments, an entity shall disclose:

(a) the exposures to risk and how they arise;

(b) its objectives, policies and processes for managing the risk and the methods used to

measure the risk; and

(c) any changes in (a) or (b) from the previous reporting period.

Quantitative disclosure

For each type of risk arising from financial instruments, an entity shall disclose:

(a) summary quantitative data about its exposure to that risk at the reporting date. This

disclosure shall be based on the information provided internally to key management

personnel of the entity (as defined by AASB 124 Related Party Disclosures); and

(b) specific disclosures as required for each type of risk (see credit, liquidity and market

risks), to the extent not provided in (a), unless the risk is not material

Disclosures in this model only cover credit, liquidity and market risk. Entities should

consider whether there may be other type of risks that they may need to disclose,

specific to their own circumstances.


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30 June 200930 June 2009

Credit risk exposuresIn addition to the required quantitative disclosures above, an entity shall disclose:

(a) the amount that best represents its maximum exposure to credit risk at the reporting

date without taking account of any collateral held or other credit enhancements (e.g.

netting agreements that do not qualify for offset in accordance with AASB 132), either in

narrative or tabular format;

(b) in respect of the amount disclosed in (a), a description of collateral held as security and

other credit enhancements;

(c) information about the credit quality of financial assets that are neither past due nor

impaired; and

(d) the carrying amount of financial assets that would otherwise be past due or impaired

whose terms have been renegotiated.

Financial assets that are either past due or impaired

An entity shall disclose by class of financial asset:

(a) an analysis of the age of the financial assets that are past due as at the reporting date

but not impaired;

(b) the amount of any impairment loss

(c) an analysis of financial assets that are individually determined to be impaired as at the

reporting date, including the factors the entity considered in determining that they are

impaired; and

(d) for the amounts disclosed in (a) and (b), a description of collateral held by the entity as

security and other credit enhancements and, unless impracticable, an estimate of their

fair value.

Collateral and other credit enhancements obtained

When an entity obtains financial or non-financial assets during the period by taking possession of

collateral it holds as security or calling on other credit enhancements (e.g. guarantees), and such

assets meet the recognition criteria in other Australian Accounting Standards, an entity shall

disclose:

(a) the nature and carrying amount of the assets obtained; and

(b) when the assets are not readily convertible into cash, its policies for disposing of such

assets or for using them in its operations.

Consolidated Carrying Amount

The consolidated carrying amount is required to be sub-classified according to the following

three categories:

- Not Past Due and Not Impaired

- Past Due but Not Impaired

- Impaired Financial Assets

Liquidity risk exposuresAn entity shall disclose:

(a) a maturity analysis for financial liabilities that shows the remaining contractual maturities; and

(b) a description of how it manages the liquidity risk inherent in (a).

The amounts disclosed in the maturity analysis are the contractual undiscounted cash flows.

Market risk exposures

Market risk comprises of foreign currency risk, interest rate risk, and other price risk.

Unless an entity prepares a sensitivity analysis, such a value-at-risk (VaR), that reflects

interdependencies between risk variables (e.g. interest rates and exchange rates) and uses it to


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30 June 200930 June 2009

manage financial risks, an entity shall disclose:

(a) a sensitivity analysis for each type of market risk to which the entity is exposed at the

reporting date, showing how profit or loss and equity would have been affected by

changes in the relevant risk variable that were reasonably possible at that date;

(b) the methods and assumptions used in preparing the sensitivity analysis; and

(c) changes from the previous period in the methods and assumptions used, and the reasons

for such changes.

Carrying amount and fair value disclosure

If management considers that the carrying amount of financial assets and financial liabilities

recorded in the financial report does not approximate fair vales for each class of financial asset

or financial liability, an entity shall disclose the fair value of that class of assets and liabilities in a

way that permits it to be compared with the corresponding carrying amount in the balance

sheet. (AASB 139 provides guidance for determining fair value)

If changes in fair value have been estimated using a valuation technique, entities are required to

disclose the resulting total amount of changes in fair value that was recognised in net operating

result during the period.

Financial instruments at fair value through profit or loss

If the entity has designated a loan or receivable as at fair value through profit or loss, it shall

disclose:

(a) the maximum exposure to credit risk of the loan or receivable at the reporting date;

(b) the amount by which any related credit derivatives or similar instruments mitigate that

maximum exposure to credit risk;

(c) the amount of change, during the period and cumulatively, in the fair value of the loan or

receivable that is attributable to changes in the credit risk of the financial asset

determined either:

o as the amount of change in its fair value that is not attributable to changes in market

conditions that give rise to market risk; or

o using an alternative method the entity believes more faithfully represents the amount of

change in its fair value that is attributable to changes in the credit risk of the asset;

o Changes in market conditions that give rise to market risk include changes in an observed

(benchmark) interest rate, commodity price, foreign exchange rate or index of prices or

rates; and

(d) The amount of change in the fair value of any related credit derivatives or similar

instruments that has occurred during the period and cumulatively since the loan or

receivable was designated.


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30 June 200930 June 2009

18. Commitments

2009 2008$ 000 $ 000

Capital CommitmentsNot Longer Than 1 Year 1,505 648Longer Than 1 Year and Not Longer Than 5 years - -Longer Than 5 Years - -

Total Capital Commitments 1,505 648

Operating Expenditure CommitmentsNot Longer Than 1 Year 245 355Longer Than 1 Year and Not Longer Than 5 years - -Longer Than 5 Years - -

Total Operating Expenditure Commitments 245 355*All amounts shown in the commitments note are nominal amounts inclusive of GST.

The weighted average interest rate implicit in leases is xx% (2008 - xx%)

Under the terms of a particular lease, the <ABC Cemetery Trust> has an option to acquire the leased asset for xx% of its agreed fair value on expiry of the lease.

Under the terms of a particular lease, the terms of renewal / escalation clauses are_________.

Commentary – Commitments for ExpenditureAll amounts shown in the commitments note are nominal amounts inclusive of GST.

Commitments disclosed are to include those operating and capital commitments arising from

non-cancellable contractual or statutory obligations and any finance lease liabilities.

Finance LeasesFinance leases transfer to the entities, as lessees, substantially all the risks and rewards

incidental to the ownership of a leased asset. The obligations under such leases are to be

capitalised at the fair value of the leased asset, or if lower, the present value of the minimum

lease payments, each determined at the inception of the lease. The capitalised values are to be

amortised over the period in which the entities expect to receive benefits from their use.

Operating Leases

Operating leases, where the lessors substantially retain the risks and rewards of ownership, are

to be recognised as expenses on a straight-line basis over the lease term unless another

systematic basis is more representative of the time pattern of the user’s benefit. The cost of

leasehold improvements is to be capitalised and amortised over the remaining term of the lease

or estimated useful life of the improvements, whichever is the shorter.

For both Operating and Finance Leases a general description (at end of note) of the lessee's

leasing arrangements including, but not limited to the following:

the basis on which contingent rental payments are determined;

the existence and terms of renewal or purchase options and escalation clauses; and

restrictions imposed by lease arrangements, such as those concerning dividends,

additional debts and further leasing.

If it is an Operating Lease, the following expenses need to be disclosed if applicable:

Rental expense recognised in the year


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30 June 200930 June 2009

Represented by:

Minimum lease payments

Contingent rentals

Rental expenses/revenues arising from sub-leases

If it is a Finance Lease, the following needs to be disclosed if applicable:

Contingent rentals recognised as expenses in the year

Future minimum lease payments expected to be received on non-cancellable sub leases.

Other Commitments

These can include:

Operating commitments, which are commitments under contracts for operating

expenditure (excluding operating lease liabilities) outstanding at reporting date but not

recognised as liabilities.

Outsourcing human resources at the reporting date but not recognised as liabilities.

Remuneration commitments, where there are long-term employment contracts with

employees under which the entity is committed to pay salaries and other remuneration

benefits and is obligated to pay out the residual of the contracted amount or some other

amount, other than accrued employee entitlements, in the event the employment of an

individual is terminated by either party.


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30 June 200930 June 2009

19. Contingent Assets and Contingent Liabilities

2009 2008$ 000 $ 000

Contingent Assets Quantifiable (Detail Each Quantifiable Asset) - -Total Quantifiable Contingent Assets - -

Non-Quantifiable (Detail Each Non Quantifiable Asset) Contingent Liabilities Quantifiable (Detail Each Quantifiable Liability) - -Total Quantifiable Liabilities - -

Non-Quantifiable

Perpetual Maintenance

The <ABC Cemetery Trust> has an obligation under the Cemeteries and Crematoria Act 2003 to

manage and maintain each public cemetery for which it is responsible. As stated in section 12 of

the Act in exercising its functions the <ABC Cemetery Trust> must have regard to its obligations

in relation to the funding of the perpetual maintenance of the public cemetery.

At this time the <ABC Cemetery Trust> is aware that there will be ongoing significant cash

outflows for future expenditure on perpetual maintenance of the public cemetery but is unable to

calculate a sufficiently reliable estimate of any related present obligation which may arise under

the accounting standards and accordingly has not recognised a value for this obligation in these

financial statements.

The <ABC Cemetery Trust> has nevertheless created a reserve, which is cash and investment

backed, as a source of future contributions towards perpetual maintenance obligations, which is

disclosed as a Perpetual Maintenance Fund Reserve in Note 15.

All amounts shown in the contingents note are nominal amounts inclusive of GST.


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30 June 200930 June 2009

Commentary - Contingent Assets and Contingent Liabilities Commentary - Contingent Assets and Contingent Liabilities

A contingency includes a possible asset/liability, the existence of which is likely to have a

material effect on the Balance Sheet, and will only be confirmed by the occurrence or non-

occurrence of one or more uncertain future events not wholly within the control of the entity.

Material contingent liabilities and assets are NOT recognised in the Balance Sheet. They are

recorded at the point at which the contingency is evident. Disclosures required in the financial

report for each class of contingent asset/liability include:

A brief description of the nature of the class of contingent liabilities or class of contingent

assets

An indication of the uncertainties relating to the amount or timing of any future sacrifice or

inflow of economic benefits

An estimate of the potential financial effect, or statement that it is not practicable to make

such an estimate

The existence and amount of any possible recovery

The extent to which material contingent assets and contingent liabilities are secured must also

be disclosed.

Financial Guarantee

Entities are encouraged to disclose the underlying nominal amounts of any loan, for which it

provided financial guarantees, in this note under contingent liabilities.


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30 June 200930 June 2009

20a. Responsible Persons Disclosures

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.following disclosures are made regarding responsible persons for the reporting period.

PeriodResponsible Ministers: The Honourable Daniel Andrews, MLA, Minister for Health 1/07/2008 - 30/06/2009

Governing Boards I. Thorpe 1/07/2008 - 30/06/2009M. Klim 1/07/2008 - 30/06/2009L. Jones 1/07/2008 - 30/06/2009G.Hackett 1/07/2008 - 30/06/2009J. Henry 1/07/2008 - 30/06/2009S. O'Neil 1/07/2008 - 30/06/2009J. Schipper 1/07/2008 - 30/06/2009L. Lenton 1/07/2008 - 30/06/2009B. Rickard 1/07/2008 - 31/12/2008G. Rooney 1/01/2009 - 30/06/2009Accountable Officers Mr Donald Trump 1/07/2008 - 30/06/2009

Remuneration of Responsible Persons The number of Responsible Persons are shown in their relevant income bands;

2009 2008 2009 2008Income Band No. No. No. No.$0 - $9,999 2 - 2 -$10,000 - $19,999 3 7 3 7$20,000 - $29,999 4 - 4 -$30,000 - $39,999 1 1 1 1$250,000 - $259,999 1 1 1 1Total Numbers 11 9 11 9Total remuneration received or due and receivable by Responsible Persons from the reporting entity amounted to: $464,582

$412,789 $464,582

$412,789

Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Premier and Cabinet

$'000 $'000 $'000 $'000Other Transactions of Responsible Persons and their Related Parties.

L. Lenton is a director of L.Lenton Pty Ltd which provides landscaping services to the Cemetery on normal commercial terms and conditions. 62 59 62 59G. Hackett is a director of ABC Motor Vehicles Pty Ltd which provides motor vehicle serving and repairs for the Cemetery on normal commercial terms and conditions. 11 6 11 6

20b. Executive Officer Disclosures


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Executive Officers' Remuneration The numbers of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits.

(List any factors that may have affected total remuneration payable to executives over the year. Eg, contract

renegotiations, bonus payments during the year, etc)

Total Remuneration Base Remuneration 2009 2008 2009 2008 No. No. No. No.$100,000 - $109,999 - 1 - 1$110,000 - $119,999 - - - 1$120,000 - $129,999 - - - -$130,000 - $139,999 - - - -$140,000 – $149,999 1 - 1 1$150,000 – $159,999 - - - -$160,000 – $169,999 - - - 1$170,000 – $179,999 - - 2 2$180,000 – $189,999 1 1 1 -$190,000 – $199,999 2 2 - -$200,000 – $209,999 - 1 - -$210,000 – $219,999 2 - 2 1$220,000 – $229,999 - - - -$230,000 – $239,999 - 1 - -Total 6 6 6 7Total Remuneration $ 1,144,587 $ 1,114,524 $ 1,104,975 $ 1,088,624


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Commentary - Responsible Person Related Disclosures

FRD 21A Responsible Person and Executive Officer Disclosures in the Financial Report require as

notes, details of transactions between the Responsible Persons of an entity, or a Responsible

person related party, and the entity. Responsible Persons of entities are the responsible

Minister, Accountable Officer and Board members including anyone acting during the year.

Responsible PersonResponsible PersonThe Act requires "... Responsible Person's remuneration, in bands of $10,000 listing the number

of Responsible persons whose actual remuneration for the period falls within each band."

The responsible Minister for all cemetery services is the Minister for Health who does not have a

remuneration paid by the entity. However, if any other transactions between the entity and the

Minister exist they must be reported.

The Accountable Officer for a entity is the Chief Executive Officer (CEO). The remuneration of a

CEO is reported Remuneration of Responsible Persons.

CEO's must disclose total remuneration received including access to motor vehicles,

superannuation and other entitlements by way of salary package. Any other transactions of a

remuneration nature between the entity and the CEO must be reported.

All transactions between Board members, their related parties and the entity must be reported.

Employees of the entity who are members of the governing Board must disclose, under other

transactions, that are in receipt of remuneration for services provided and not for their role on

the Board.

Executive OfficerExecutive Officer"An executive officer includes a person employed as an executive officer at an annual

remuneration rate not less than an executive employed by a department." (FRD21A Responsible

Person and Executive Officer Disclosures in the Financial Report).

For disclosure purposes, entities are required to include as Executive Officers the following:

(officers on remuneration packages in excess of $100,000).

Deputy CEO; and

Other administration.

Remuneration includes all benefits received or receivable. Accordingly, remuneration needs to

be determined on an accrual basis. Base remuneration (amounts paid or payable during the

reporting period excluding bonuses, redundancy payments, long service leave and retirement

benefits) must be separately disclosed from total remuneration. Where the difference between

base and total remuneration is material, the reason for the variance should be supported by

explanatory commentary.

Disclosure is required of the number of executive officers whose total remuneration for the year


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falls within each successive $10,000 band, commencing at $100,000. However, in accordance

with FRD 21, the base remuneration of executive officers should be disclosed separately. This

will require disclosure of the number of executives whose base remuneration is less than

$100,000, but their total remuneration is greater than this amount. It does not require

disclosure by name. Where a Responsible Person already has a remuneration disclosed it does

not need to be duplicated under Executive Officers disclosures.

Doctors should not be included unless they are involved in the executive and management

functions of the entity. Where doctors are included the total remuneration must include

payments from Special Trust funds under the control of the reporting entity.


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21. Events Occurring after the Balance Sheet Date

Cemetery Sector Reform

In July 2008, the State Government announced reforms to the 14 major metropolitan and regional cemetery trusts that report to Parliament under the Financial Management Act 1994.The changes primarily affect the 10 reporting trusts in the metropolitan area. In particular two new metropolitan cemetery trusts would be created. One trust will cover the north, west and eastern metropolitan areas and will be made up of Fawkner Crematorium and Memorial Park,Altona Memorial Park, Keilor Cemetery Trust, Preston Cemetery Trust, Wyndham Cemeteries Trust, Anderson’s Creek Cemetery Trust, Lilydale Cemetery Trust and Templestowe Cemetery Trust. The second trust will cover the southern metropolitan areas and will include Cheltenhamand Regional Cemeteries Trust and The Trustees of The Necropolis Springvale.

The Ballarat General Cemeteries Trust, Bendigo Cemeteries Trust, Geelong Cemeteries Trust and Mildura Cemetery Trust will remain as separate legal entities.

The reforms require changes to the Cemeteries and Crematoria Act 2003, legislation is expected to be submitted to Parliament in 2009 with the restructure expected to be completed by January 2010. The financial impact of the reform cannot be reliably measured as at balance date.

Commentary - Events Occurring after the Balance Sheet Date

Non-adjusting events after reporting date

A non-adjusting event is an event that is indicative of conditions that arose after the reporting

date. For examples of non-adjusting events refer to AASB 110 Events after the Balance Sheet

Date.

Updating disclosures about conditions at the reporting date

If a entity receives information after the reporting date about conditions that existed at the

reporting date, it shall update disclosures that relate to these conditions, in light of the new

information. For example, if evidence becomes available after the reporting date about a

contingent liability that existed at the reporting date, in addition to considering whether to

recognise or change a provision under AASB 137 Provisions, Contingent Liabilities and

Contingent Assets, the entity should update its disclosures about the contingent liability in light

of the evidence.


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22. Correction of error and revision of estimates

Correction of errorCorrection of error

(Disclose the following:(a) the nature of the prior period error.(b) for each prior period presented, to the extent practicable, the amount of the correction for each financial statement line item affected.(c) the amount of the correction at the beginning of the earliest prior period presented, and (d) if retrospective restatement is impracticable for a particular prior period, the circumstances that led to an existence of that condition and a description of how and from when the error has been corrected.)

The error has been corrected by restating each of the affected financial statement line items for the prior year(s), as described above.

Revision of estimates

(Disclose the nature and amount of a change in accounting estimate that has an effect in the current period or is expected to have an effect in future periods, except for the disclosure of the effect on future periods when it is impracticable to estimate the effect. If the amount of the effect in future periods is not disclosed because estimating it is impracticable, that fact shall be disclosed.)

* If this note is applicable, then becomes note 2 (if there is no discontinued operation), if there is a discontinued operation then becomes note 3

Correction of error and revision of estimates

Prior Period Errors

Under AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, entities are

required to correct material prior period errors retrospectively in the first financial report

authorised for issue after their discovery by:

restating the comparative amounts for the prior period(s) presented in which the error

occurred, or

if the error occurred before the earliest prior period presented, restating the opening

balances of assets, liabilities and equity for the earliest prior period presented.

A prior period error shall be corrected by retrospective restatement except to the extent that it is

impracticable to determine either the period-specific effects or the cumulative effect of the error.

Retrospective restatement is correcting the recognition, measurement and disclosure of amounts

of elements of financial statements as if a prior period error had never occurred.

When it is impracticable to determine the period-specific effects of an error on comparative

information for one or more prior periods presented, the entity should restate the opening

balances of assets, liabilities and equity for the earliest period for which retrospective

restatement is practicable (which may be the current period).


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When it is impracticable to determine the cumulative effect, at the beginning of the current

period, of an error on all prior periods, the entity should restate the comparative information to

correct the error prospectively from the earliest date practicable.

In applying paragraph above, an entity shall disclose the following:

(a) the nature of the prior period error

(b) for each prior period presented, to the extent practicable, the amount of the

correction:

o for each financial statement line item affected; and

o if AASB 133 Earnings per share applies to the entity, for basic and diluted earnings

per share.

(c) the amount of the correction at the beginning of the earliest period presented; and

(d) if retrospective restatement is impracticable for a particular prior period, the

circumstances that led to the existence of that condition and a description of how

and from when the error has been corrected.

Financial reports of subsequent periods need not repeat these disclosures.


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Documents

Cemetery Annual Reporting Guidelines for 2008 - 2009 (2,590kb