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Part 5Financial statements
192 ACCC and AER Annual Report 2011–12
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ACCC and AER Annual Report 2011–12 193
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194 ACCC and AER Annual Report 2011–12
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ACCC and AER Annual Report 2011–12 195
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196 ACCC and AER Annual Report 2011–12
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONSTATEMENT OF COMPREHENSIVE INCOMEfor the period ended 30 June 2012
2012 2011Notes $’000 $’000
EXPENSESEmployee benefits 3A 100,607 81,586Supplier expenses 3B 68,737 64,563Depreciation and amortisation 3C 4,664 4,836Finance costs 3D 74 61Write-down and impairment of assets 3E 406 23Losses from asset sales 3F 1 - Other expenses 3G 4,574 789Total expenses 179,063 151,858
LESS:OWN-SOURCE INCOMEOwn-source revenue Sale of goods and rendering of services 4A 587 602Other 4B 887 467Total own-source revenue 1,474 1,069
GainsSale of assets 4C 2 - Other 4D 73 107Total gains 75 107
Total own-source income 1,549 1,176
Net cost of services 177,514 150,682
Revenue from Government 4E 151,275 141,342
Surplus (Deficit) on continuing operations (26,239) (9,340)
OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus 142 - Total other comprehensive income 142 -
Total comprehensive income (loss) attributable to the Australian Government (26,097) (9,340)
The above statement should be read in conjunction with the accompanying notes.
ACCC and AER Annual Report 2011–12 197
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONBALANCE SHEETas at 30 June 2012
2012 2011Notes $’000 $’000
ASSETSFinancial assetsCash and cash equivalents 5A 1,792 1,626Trade and other receivables 5B 32,626 51,867Other financial assets - - Total financial assets 34,418 53,493Non-financial assetsLeasehold improvements 6A,C 14,296 14,236Property, plant and equipment 6B,C 6,621 7,678Intangibles 6D 3,453 2,029Inventories 6F 49 28Other non-financial assets 6G 1,782 1,313Total non-financial assets 26,201 25,284Total assets 60,619 78,777
LIABILITIESPayablesSuppliers 7A 6,615 7,236Other payables 7B 13,805 11,816Total payables 20,420 19,052ProvisionsEmployee provisions 8A 24,134 20,279Other provisions 8B 1,560 1,407Total provisions 25,694 21,686Total provisions 25,694 21,686Total Liabilities 46,114 40,738
Net assets 14,505 38,039
EQUITYParent Entity InterestContributed equity 45,205 42,642Reserves 3,680 3,538Retained surplus (accumulated deficit) 8A (34,380) (8,141)Total Parent Entity Interest 14,505 38,039Total Equity 14,505 38,039
The above statement should be read in conjunction with the accompanying notes.
198 ACCC and AER Annual Report 2011–12
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AU
STR
ALI
AN
CO
MPE
TITI
ON
& C
ON
SUM
ER C
OM
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14
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The
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ith th
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com
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note
s.
ACCC and AER Annual Report 2011–12 199
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONCASH FLOW STATEMENTfor the period ended 30 June 2012
2012 2011Notes $’000 $’000
OPERATING ACTIVITIESCash receivedAppropriations 152,979 146,411Sales of goods and rendering of services 428 741Net GST received 7,677 6,156Other 5,008 481Total cash received 166,092 153,789Cash usedEmployees (94,485) (82,862)Suppliers (77,445) (66,548)Other (4,574) (788)Total cash used (176,504) (150,198)Net cash from operating activities 9 (10,412) 3,591INVESTING ACTIVITIESCash receivedProceeds from sales of property, plant and equipment 2 - Total cash received 2 - Cash usedPurchase of property, plant and equipment (2,022) (3,846)Purchase of leasehold improvements (787) (1,656)Purchase of intangibles (2,126) (366)Total cash used (4,935) (5,868)Net cash from (used by) investing activities (4,933) (5,868)FINANCING ACTIVITIESFINANCING ACTIVITIESCash receivedContributed equity 15,511 2,500Total cash received 15,511 2,500Cash usedRepayment of borrowings - - Other - - Total cash used - - Net cash from financing activities 15,511 2,500Net increase (decrease) in cash held 166 223Cash and cash equivalents at the beginning of the reporting period 1,626 1,403Cash and cash equivalents at the end of the reporting period 5A 1,792 1,626
The above statement should be read in conjunction with the accompanying notes.
200 ACCC and AER Annual Report 2011–12
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONSCHEDULE OF COMMITMENTSas at 30 June 2012
2012 2011$’000 $’000
BY TYPECommitments receivable
Other 464 685Net GST recoverable on commitments 11,844 11,015
Total commitments receivable 12,308 11,700
Commitments payableOther commitmentsOperating leases ¹ (108,118) (116,733)Contract for IT services ² (16,070) (480)Other ³ (6,106) (3,956)GST payable on Commitments (42) (62)Total other commitments (130,336) (121,231)
Net commitments by type (118,028) (109,531)
BY MATURITYCommitments receivable
One year or less 12,073 11,237From one to five years 235 463Over five years - - Total commitments receivable 12,308 11,700
Commitments payableOperating lease commitmentsOne year or less (10,318) (9,559)One year or less (10,318) (9,559)From one to five years (46,902) (56,486)Over five years (50,898) (50,688)Total operating lease commitments (108,118) (116,733)
Other commitmentsOne year or less (15,539) (3,847)From one to five years (6,679) (651)Total other commitments (22,218) (4,498)
Net commitments by maturity (118,028) (109,531)
NB: All commitments are GST inclusive where relevant. 1 Operating leases included are effectively non-cancellable and comprise:
Leases for office accommodation
Agreement for the provision of motor vehicles to senior executive officersNo contingent rentals exist. There are no renewal or purchase options available to the Commission.
2 Various contracts for Information Technology services3 Other commitments mainly include contracts for the provision of consultancy services
The above schedule should be read in conjunction with the accompanying notes.
Lease payments are subject to annual increases of between 3% and 5% per annum. Lease terms are between two and fifteen years with the majority of leases containing an option to renew for a further term of up to ten years.
ACCC and AER Annual Report 2011–12 201
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONSCHEDULE OF CONTINGENCIESas at 30 June 2012
2012 2011$’000 $’000
Contingent liabilitiesClaims for damages or costs - - Total contingent liabilities - -
The above schedule should be read in conjunction with the accompanying notes.
Details of each class of contingent liabilities above are disclosed in Note 10: Contingent Liabilities and Assets, along withinformation on significant remote contingencies and contingencies that cannot be quantified. The Commission has nodepartmental contingent assets.
202 ACCC and AER Annual Report 2011–12
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONADMINISTERED SCHEDULE OF COMPREHENSIVE INCOMEfor the period ended 30 June 2012
2012 2011Notes $’000 $’000
EXPENSESWrite-down and impairment of assets 14 598 68Total expenses administered on behalf of Government 598 68
LESS:OWN-SOURCE INCOMEOwn-source revenueNon-taxation revenueFees and fines 15A 28,315 43,412Total non-taxation revenue 28,315 43,412Total own-source revenue administered on behalf of Government 28,315 43,412
GainsOther gains 15B 7 - Total gains administered on behalf of Government 7 - Total own-source income administered on behalf of Government 28,322 43,412
Net cost of (contribution by) services (27,724) (43,344)
Surplus on continuing operations 27,724 43,344
The above schedule should be read in conjunction with the accompanying notes.
ACCC and AER Annual Report 2011–12 203
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONADMINISTERED SCHEDULE OF ASSETS AND LIABILITIESas at 30 June 2012
2012 2011Notes $’000 $’000
ASSETSFinancial AssetsCash and cash equivalents 16A 9 18Trade and other receivables 16B 8,779 8,943Total financial assets 8,788 8,961Total assets administered on behalf of Government 8,788 8,961
LIABILITIESPayablesSuppliers 17 - - Total payables - - Total liabilities administered on behalf of Government - -
Net assets 8,788 8,961
This schedule should be read in conjunction with the accompanying notes.
204 ACCC and AER Annual Report 2011–12
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONADMINISTERED RECONCILIATION SCHEDULE FOR NON-PROFIT REPORTING ENTITIESas at 30 June 2012
2012 2011Notes $’000 $’000
8,961 22,835Surplus (deficit) items:
Plus: Administered income 28,322 43,412Less: Administered expenses (non CAC) (598) (68)
Administered transfers to/from Australian Government
Transfers to OPA (27,897) (57,218)
Closing administered assets less administered liabilities as at 30 June 8,788 8,961
Operating administered assets less administered liabilities as at 1 July
ACCC and AER Annual Report 2011–12 205
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONADMINISTERED CASH FLOW STATEMENTfor the period ended 30 June 2012
2012 2011Notes $’000 $’000
OPERATING ACTIVITIESCash receivedFines and costs 27,671 56,943Other fees 217 232Total cash received 27,888 57,175
Net cash flows from or (used by) operating activities 18 27,888 57,175
Net increase in cash held 27,888 57,175 Cash and cash equivalents at the beginning of the reporting period 18 61 Cash to Official Public Account for:
- Appropriations (27,897) (57,218)Cash and cash equivalents at the end of the reporting period 16A 9 18
This schedule should be read in conjunction with the accompanying notes.
206 ACCC and AER Annual Report 2011–12
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONSCHEDULE OF ADMINISTERED COMMITMENTSas at 30 June 2012
The commission has no administered commitments in the current or the immediately preceding reporting periods.
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONSCHEDULE OF ADMINISTERED CONTINGENCIESas at 30 June 2012
2012 2011$’000 $’000
Administered contingent assetsClaims for damages or costs 1,067 1,076Total administered contingent assets 1,067 1,076
The above schedule should be read in conjunction with the accompanying notes.
Details of each class of administered contingent liabilities and contingent assets above are disclosed in Note 19: AdministeredContingent Assets and Liabilities, along with information on significant remote contingencies and contingencies that cannot bequantified.
Administered activities conducted by the Commission are limited to the collection of fines, costs and fees levied under the Competition and Consumer Act.
ACCC and AER Annual Report 2011–12 207
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONINDEX TO THE NOTES OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
NoteNote 1: Summary of Significant Accounting PoliciesNote 2: Events After the Reporting PeriodNote 3: ExpensesNote 4: IncomeNote 5: Financial AssetsNote 6: Non-Financial AssetsNote 7: PayablesNote 8: Provisions Note 9: Cash Flow ReconciliationNote 10: Contingent Liabilities and AssetsNote 11: Senior Executive RemunerationNote 12: Remuneration of AuditorsNote 13: Financial InstrumentsNote 14: Administered - ExpensesNote 15: Administered - IncomeNote 16: Administered - Financial AssetsNote 17: Administered - PayablesNote 18: Administered - Cashflow ReconciliationNote 19: Administered - Contingent Assets and LiabilitiesNote 20: Administered - Financial InstrumentsNote 21: AppropriationsNote 22: Compliance with Statutory Conditions for Payments from the Consolidated Revenue FundNote 23: Special AccountsNote 24: Compensation and Debt ReliefNote 25: Reporting of OutcomesNote 25: Reporting of OutcomesNote 26: Net Cash Appropriation Arrangements
208 ACCC and AER Annual Report 2011–12
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 1: Summary of Significant Accounting Policies
• promote vigorous, lawful competition and informed markets;• encourage fair trading, protection of consumers and product safety; and
The Commission is an Australian Government controlled entity. The objectives of the Commission are to:1.1 Objectives of the Australian Competition and Consumer Commission (the Commission)
• regulate national infrastructure services (such as communications, bulk water, energy, rail, airports, post and wheat exports) and other markets where there is limited competition.
The Commission's outcome is lawful competition, consumer protection, and regulated national infrastructure markets andservices through regulation, including enforcement, education, price monitoring and determining the terms of access toinfrastructure services.
1.2 Basis of Preparation of the Financial Statements
The continued existence of the Commission in its present form and with its present programs is dependent on Government Policyand on continuing funding by Parliament for the Commission's administration and programs.
The Commission's activities contributing towards these outcomes are classified as either departmental or administered.Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the Commission inits own right. Administered activities involve the management or oversight by the Commission, on behalf of the Government, ofitems controlled or incurred by the Government.The Commission does not conduct administered activities, however, fines and penalties collected are returned to theCommonwealth as administered items. Contingent gains are recognised as administered items, and contingent losses arerecognised as departmental items.
The financial statements are general purpose financial statements and are required by section 49 of the Financial Managementand Accountability Act 1997 .
• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that applyfor the reporting period.
The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unlessotherwise specified.
Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities arerecognised in the balance sheet when and only when it is probable that future economic benefits will flow to the Commission or afuture sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured.However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard.Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.
The financial statements and notes have been prepared in accordance with: • Finance Minister's Orders (or FMOs) for reporting periods ending on or after 1 July 2010; and
Unless an alternative treatment is specifically required by an accounting standard, income and expenses are recognised in thestatement of comprehensive income when and only when the flow, consumption or loss of economic benefits has occurred andcan be reliably measured.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except forcertain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or thefinancial position.
ACCC and AER Annual Report 2011–12 209
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
• The Australian Government shorthand method has been used to estimate the present value of long service leave liabilities.
1.3 Significant Accounting Judgements and Estimates
Adoption of new Australian Accounting Standard requirements
No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment tocarrying amounts of assets and liabilities within the next accounting period.
New standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date are applicable to the current reporting period did not have a material financial impact on the Commission and are not expected to have a future material financial impact on the Commission.
No accounting standard has been adopted earlier than the application date as stated in the standard.
1.4 Changes in Australian Accounting Standards
New standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date areapplicable to the future reporting period are not expected to have a future material financial impact on the Commission.
In the process of applying the accounting policies listed in this note, the Commission has made the following judgements thathave the most significant impact on the amounts recorded in the financial statements:
• The fair value of leasehold improvements has been taken to be the market value of similar properties as determined by anindependent valuer.
Future Australian Accounting Standard Requirements
applicable to the future reporting period are not expected to have a future material financial impact on the Commission.
210 ACCC and AER Annual Report 2011–12
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
1.5 Revenue
• It is probable that the economic benefits associated with the transaction will flow to the Commission.Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. Therevenue is recognised when:
• The risks and rewards of ownership have been transferred to the buyer;
• The revenue and transaction costs incurred can be reliably measured; and • The entity retains no managerial involvement nor effective control over the goods;
Revenue from Government
• The probable economic benefits with the transaction will flow to the Commission. • The amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) arerecognised as Revenue from Government when the Commission gains control of the appropriation, except for certain amountsthat relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.Appropriations receivable are recognised at their nominal amounts
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairmentallowance account. Collectability of debts is reviewed at balance date. Allowances are made when collectability of the debt is nolonger probable.
The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to datebear to the estimated total costs of the transaction.
Revenue from the sale of goods is recognised when:
Parental Leave Payments Scheme
Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined andthe services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.Resources received free of charge are recorded as either revenue or gains depending on their natureContributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when theasset qualifies for recognition, unless received from another government agency or authority as a consequence of restructuring ofadministrative arrangements (refer to Note 1.7).
Resources Received Free of Charge
Amount received under the Parental Leave Payments Scheme by the Commission not yet paid to employees were presented grossas cash and a liability (payable). The total amount received under this scheme is disclosed as a footnote to the Note 4E: Revenuefrom Government.
ACCC and AER Annual Report 2011–12 211
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
1.6 Gains
1.7 Transactions with the Government as Owner
Equity InjectionsAmounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and DepartmentalCapital Budgets (DCBs) are recognised directly in contributed equity in that year.
The FMOs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend. In 2011-12,the Commission made no such distributions.
Other Distributions to Owners
Resources received free of charge are recorded as either revenue or gains depending on their nature.
Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements areadjusted at their book value directly against contributed equity.
Resources Received Free of Charge
Restructuring of Administrative Arrangements
Sale of assetsGains from disposal of non-current assets are recognised when control of the asset has passed to the buyer.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when theasset qualifies for recognition, unless received from another government agency or authority as a consequence of a restructuringof administrative arrangements. (Refer to Note 1.7).
Resources received free of charge are recognised as gains when, and only when a fair value can be reliably determined and theservices would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
the Commission made no such distributions.
212 ACCC and AER Annual Report 2011–12
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
1.8 Employee benefits
Provision is made for separation and redundancy benefit payments. The Commission recognises a provision for terminationwhen it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry outthe terminations.
The liability for long service leave has been calculated using the Australian Government short hand method. The estimate ofpresent value of the liability takes into account attrition rates and pay increases through promotion and inflation.
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits ) and termination benefits due withintwelve months of balance date are measured at their nominal amounts.
Leave
Separation and Redundancy
Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end ofthe reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations areto be settled directly.
The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at thetime the leave is likely to be taken, including the entity's employer superannuation contribution rates to the extent that the leave islikely to be taken during service rather than paid out on termination.
The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made forsick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Commission isestimated to be less than the annual entitlement for sick leave.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and the other superannuation plansare defined contribution schemes.
The Commission's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector SuperannuationScheme (PSS) or the PSS accumulation plan (PSSap) and other superannuation plans.
The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.
The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by theAustralian Government in due course. This liability is reported in the Department of Finance and Deregulation's administeredschedules and notes.
The Commission makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to besufficient to meet the current cost to the Government. The Commission accounts for the contributions as if they werecontributions to defined contribution plans.
Superannuation
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
a) cash on hand
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to thelessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not afinance lease. In operating leases, the lessor effectively retains substantially all such risks and rewards.
All borrowing costs are expensed as incurred.
1.9 Leases
Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, iflower, the present value of minimum lease payments at the inception of the contract and a liability recognised at the same timeand for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Leasepayments are allocated between the principal component and the interest expense.
1.11 Cash
There are currently no finance leases within the Commission.
Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from theleased assets.
b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in valuec) cash held with outsiders: andd) cash in special accounts
1.10 Borrowing costs
1.12 Financial assets
Cash is recognised at its nominal amount. Cash and cash equivalents includes:
Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in profit orloss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset. Interest earned onfinancial assets at FVPL is included in line item ‘Change in fair value through profit and loss’ of Note 4K and not to be includedagain in Note 4C.
b) are derivatives that are not designated and effective as a hedging instrument; or
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.Financial assets are recognised and derecognised upon trade date.
a) have been acquired principally for the purpose of selling in the near future;Financial assets are classified as financial assets at fair value through profit or loss where the financial assets:
Assets in this category are classified as current assets.
c) are a parts of an identified portfolio of financial instruments that the entity manages together and has a recent actual pattern of short-term profit-taking.
The Commission classifies its financial assets as loans and receivables.
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest incomeover the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through theexpected life of the financial asset, or, where appropriate, a shorter period.
Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profitor loss.
Financial Assets at Fair Value Through Profit or Loss
1.12 Financial assets
Effective interest method
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Financial assets are assessed for impairment at the end of each reporting period.· Financial assets carried at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.
Financial liabilities are recognised and derecognised upon 'trade date'.
Loans and receivables
Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments arerecognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financialliability.
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active marketare classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest methodless impairment. Interest is recognised by applying the effective interest rate.
Impairment of financial assets
Financial Liabilities at Fair Value Through Profit or Loss
Financial liabilities are classified as either financial liabilities 'at fair value through profit or loss' or other financial liabilities.1.13 Financial Liabilities
· Financial assets carried at cost - If there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.
1.14 Contingent Liabilities and Contingent Assets
Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or serviceshave been received (and irrespective of having been invoiced).
Other Financial Liabilities
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interestexpense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash paymentsthrough the expected life of the financial liability, or, where appropriate, a shorter period.
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities aresubsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effectiveyield basis.
Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules andnotes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect ofwhich the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtuallycertain and contingent liabilities are disclosed when settlement is greater than remote.
ACCC and AER Annual Report 2011–12 215
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1.15 Acquisition of Assets
1.16 Property, Plant and Equipment
Asset Class
Fair value of each class of asset are determined as shown below:
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assetstransferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costswhere appropriate.
Fair value measured at
Leasehold improvements Depreciated replacement cost
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which itis located. This is particularly relevant to ‘makegood’ provisions in property leases taken up by the Commission where thereexists an obligation to restore the property to its original condition. These costs are included in the value of the Commission’sleasehold improvements with a corresponding provision for the ‘makegood’ recognised.
Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing lessthan $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which aresignificant in total).
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at thedate of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assetsare initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accountsimmediately prior to the restructuring.
Asset Recognition Threshold
Revaluations
Market selling price
Following initial recognition at cost, property plant and equipment were carried at fair value less subsequent accumulateddepreciation and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carryingamounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independentvaluations depended upon the volatility of movements in market values for the relevant assets.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the assetrestated to the revalued amount.
Revaluation adjustments were made on a class basis. Any revaluation increment was credited to equity under the heading ofasset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that waspreviously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in thesurplus/deficit except to the extent that they reverse a previous revaluation increment for that class.
Leasehold improvements Depreciated replacement cost
Infrastructure, plant and equipment
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Depreciation
Asset ClassLeasehold improvements
Furniture and fittingsOffice equipmentComputer hardwareComputer software
5 years3 to 5 years3 to 7 years
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the presentvalue of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is notprimarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Commission wasdeprived of the asset, its value in use is taken to be its depreciated replacement cost.
3 to 7 years
5 years3 to 5 years
All assets were assessed for impairment at 30 June 2012. Where indications of impairment exist, the asset’s recoverable amountis estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.
Impairment
Derecognition
2011
Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated usefullives to the Commission using, in all cases, the straight line method of depreciation. Leasehold improvements are depreciated ona straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments arerecognised in the current, or current and future reporting periods, as appropriate.
2012
10 years10 years
Lesser of the term ofthe lease or 15 years the lease or 15 years
Lesser of the term of
Depreciation rates applying to each class of depreciable asset are based on the useful lives in the table below.
1.17 Intangibles
Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Commission’s software are 3years to 7 years. (2010-11: 3 to 7 years).
Costs incurred in bringing each item of inventory to its present location and condition relate solely to printing and delivery. These costs are assigned to inventory at purchase cost and recognised on a first-in-first-out basis.
Inventories held for distribution are valued at cost, adjusted for any loss of service potential.Inventories (publications) held for sale are valued at the lower of cost or net realisable value.
DerecognitionAn item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits areexpected from its use or disposal.
All software assets were assessed for impairment as at 30 June 2012. There were no indicators of impairment.
1.18 Inventories
The Commission's intangibles comprises purchased and internally developed software for internal use. These assets are carriedat cost less accumulated amortisation and accumulated impairment losses. These assets are carried at cost above thecapitalisation threshold of $10,000, below this amount they are expensed in the year of purchase.
ACCC and AER Annual Report 2011–12 217
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Competitive Neutrality
Revenue collected by the Commission for use by the Government rather than the Commission is administered revenue.Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Deregulation.Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. Thesetransfers to and from the OPA are adjustments to the administered cash held by the Commission on behalf of the Government and reported as such in the schedule of administered cash flows in administered reconciliation schedule.
• for receivables and payables.
1.20 Reporting of Administered Activities
Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as fordepartmental items, including the application of Australian Accounting Standards.
The Commission is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).
Revenues, expenses and assets are recognised net of GST except:
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.
Administered Cash Transfers to and from Official Public Account
• where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
Revenue
1.19 Taxation/ Competitive Neutrality
The Commission provides services on a not-for-profit basis which are not subject to Competitive Neutrality arrangements.
Administered fee revenue is recognised at its nominal amount due less any allowance for bad or doubtful debts. Collectability ofdebts is reviewed at balance date. Allowances are made when collection of the debt is judged to be less rather than more likely.
The court costs awarded against the Commission are recorded as a departmental expense.
Revenue is generated from fines and costs applied by the courts, or by agreement between the Commission and the defendant. Itis recognised when awarded by the courts, or when agreement has been executed.
Authorisation and notification fees and other revenue are applied when required under the relevant legislation, and are recognisedupon payment.
All administered revenues are revenues relating to ordinary activities performed by the Commission on behalf of the AustralianGovernment. As such, administered appropriations are not revenues of the individual entity that oversees distribution orexpenditure of the funds as directed.
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Note 2: Events After the Reporting Period
Departmental
Administered
Note 3: Expenses
2012 2011$’000 $’000
Note 3A: Employee BenefitsWages and salaries 74,621 64,478Superannuation:
Defined contribution plans 5,606 4,436Defined benefit plans 6,566 6,565
Leave and other entitlements 10,404 5,490Separation and redundancies 2,843 251Other 567 366Total employee benefits 100,607 81,586
Note 3B: Supplier Expenses
There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of theCommission.
On 31 July 2012, the Federal Court Australia ordered a penalty and cost settlements to the value of $850,000. The financial effecton the Commission's result is an addition to administered revenues and administered receivables of $850,000.
Note 3B: Supplier ExpensesGoods and services
Legal expenses 26,277 25,348Consultants and contracted services 9,588 9,491Information technology and communications 7,850 6,615Property operating expenses 3,221 3,902Travel expenses 5,041 3,735Employee related expenses 2,582 2,366Information management expenses 2,344 2,323Other administration expenses 2,242 1,409
Total goods and services 59,146 55,189
Goods and services are made up of:Provision of goods - related entities 15 - Provision of goods - external parties 2,289 2,085Rendering of services - related entities 17,386 18,234Rendering of services - external parties 39,456 34,870
Total goods and services 59,146 55,189
Other supplier expensesOperating lease rentals – related entities:
Minimum lease payments - - Operating lease rentals – external parties:
Minimum lease payments 9,098 9,057Workers' compensation premiums 493 317Total other supplier expenses 9,591 9,374Total supplier expenses 68,737 64,563
ACCC and AER Annual Report 2011–12 219
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
2012 2011$’000 $’000
Note 3C: Depreciation and AmortisationDepreciation
Property, plant and equipment 1,779 1,688Total depreciation 1,779 1,688Amortisation
Leasehold improvements 1,897 1,888Intangibles 988 1,260
Total amortisation 2,885 3,148
Total depreciation and amortisation 4,664 4,836
Note 3D: Finance CostsUnwinding of discount 74 61Total finance costs expense 74 61
Note 3E: Write down and impairment of assetsAsset write-downs and impairment from:
Property, plant & equipment 186 16Leasehold improvements 210 4Intangibles 10 3Inventory - -
Total write-down and impairment of assets 406 23
Note 3F: Losses from asset salesNote 3F: Losses from asset salesProperty, plant and equipment:
Proceeds from sale - - Carrying value of assets sold 1 -
Leasehold improvementsProceeds from sale - - Carrying value of assets sold - -
IntangiblesProceeds from sale - - Carrying value of assets sold - -
Total losses from asset sales 1 -
Note 3G: Other ExpensesSettlement of litigation 4,574 789Total other expense 4,574 789
220 ACCC and AER Annual Report 2011–12
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Note 4: Income
2012 2011$’000 $’000
Note 4A: Sale of goods and rendering of servicesProvision of goods - related entities - - Provision of goods - external parties 3 2Rendering of services - related entities 203 224Rendering of services - external parties 381 376Total sale of goods and rendering of services 587 602
Note: 4B Other RevenueRebates and expense refunds 887 467Other miscellaneous revenues - - Resources received free of charge - - Total other revenue 887 467
Note: 4C Sale of AssetsProperty, plant and equipment:
Proceeds from sale 2 - Carrying value of assets sold - - Selling expense - -
Net Gains from sale of assets 2 -
Note: 4D Other GainsResources received free of charge 73 71Gain on payout of make good provision - 36Gain on payout of make good provision - 36Write back of litigation provision - - Total Other Gains 73 107
Note 4E: Revenues from Government *Appropriations
Departmental appropriation 151,275 141,342Total revenues from government 151,275 141,342
* The commission also received $166,000 (2011: $0) under the Paid Parental Leave Scheme.
ACCC and AER Annual Report 2011–12 221
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Note 5: Financial Assets
2012 2011$’000 $’000
Note 5A: Cash and cash equivalentsCash on hand or on deposit 1,792 1,626Total cash and cash equivalents 1,792 1,626
Note 5B: Trade and other receivables Goods and Services:Goods and services - related entities 549 31Goods and services - external parties 140 4,691Total receivables for goods and services 689 4,722Appropriations receivable:
For existing programs 30,516 45,168For departmental supplementations - -
Total appropriations receivable 30,516 45,168Other receivables:
GST receivable from the Australian Taxation Office 1,421 1,977Total other receivables 1,421 1,977Total trade and other receivables (gross) 32,626 51,867
Less impairment allowance account:Goods and services - - Other - -
Total impairment allowance account - - Total impairment allowance account - - Total trade and other receivables (net) 32,626 51,867
Receivables are expected to be recovered in:No more than 12 months 32,626 51,867More than 12 months - -
Total trade and other receivables (net) 32,626 51,867
Receivables are aged as follows:Not overdue 32,587 51,853Overdue by:
Less than 30 days - 931 to 60 days 31 361 to 90 days - - More than 90 days 7 2
Total receivables (gross) 32,626 51,867
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2012 2011$’000 $’000
The impairment allowance account is aged as follows:Not overdue - - Overdue by:
Less than 30 days - - 31 to 60 days - - 61 to 90 days - - More than 90 days - -
Total impairment allowance account - -
Reconciliation of the impairment allowance account:
Movements in relation to 2012Goods and services Other receivables Total
$'000 $'000 $'000- - - - - - - - -
- - - - - -
Movements in relation to 2011Goods and services Other receivables Total
Amounts written offOpening balance
Closing balance
Amounts recovered and reversedIncrease/decrease recognised in net surplus
$'000 $'000 $'000Opening balance - - -
Amounts written off - - - Amounts recovered and reversed - - -
- - - Closing balance - - -
Increase/decrease recognised in net surplus
ACCC and AER Annual Report 2011–12 223
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AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 6: Non-Financial Assets
2012 2011$’000 $’000
Note 6A: Leasehold ImprovementsLeasehold improvements
Fair Value 14,296 17,134Work in progress - 12Less: Accumulated depreciation - (2,910)Less: Accumulated impairment losses - -
Total leasehold improvements 14,296 14,236
No indicators of impairment were found for leasehold improvements.
Note 6B: Property, Plant and EquipmentProperty, plant and equipment
Fair Value 6,689 10,803Less: Accumulated depreciation (68) (3,125)Less: Accumulated impairment losses - -
Total property, plant and equipment 6,621 7,678
Revaluations of non-financial assets
No indicators of impairment were found for property, plant and equipment. No property, plant and equipment is expected to be
All revaluations are independent and are conducted in accordance with the revaluation policy stated at Note 1. On 30 June 2012 a full revaluation of property plant and equipment was carried out by the Australian Valuation Office.
No indicators of impairment were found for property, plant and equipment. No property, plant and equipment is expected to be sold or disposed within the next 12 months.
A revaluation increment of $1,371,409 for leasehold improvements (2011: $0) was credited to the asset revaluation surplus by asset class and included in the equity section of the balance sheet. A revaluation decrement of $1,229,706 for plant and equipment (2011: $0 ) was debited to the asset revaluation surplus by asset class and included in the equity section of the balance sheet. Decrements of $178,438 were also expensed (2011: $0 expensed).
224 ACCC and AER Annual Report 2011–12
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AU
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ALI
AN
CO
MPE
TITI
ON
& C
ON
SUM
ER C
OM
MIS
SIO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
STA
TEM
ENTS
for t
he y
ear e
nded
30
June
201
2
Not
e 6C
: Rec
onci
liatio
n of
the
Ope
ning
and
Clo
sing
Bal
ance
s of P
rope
rty,
Pla
nt &
Equ
ipm
ent (
2011
-12)
Prop
erty
,Le
aseh
old
plan
t and
impr
ovem
ents
equi
pmen
tTo
tal
$’00
0$’
000
$’00
0A
s at 1
Jul
y 20
11G
ross
boo
k va
lue
17,1
4610
,803
27,9
49A
ccum
ulat
ed d
epre
ciat
ion
& im
pairm
ent
(2,9
10)
(3,1
25)
(6,0
35)
Net
boo
k va
lue
1 Ju
ly 2
011
14,2
367,
678
21,9
14A
dditi
ons:
By
purc
hase
717
2,13
92,
856
Rev
alua
tions
and
impa
irmen
t rec
ogni
sed
in o
ther
com
preh
ensi
ve in
com
e1,
450
(1,2
30)
220
Impa
irmen
ts re
cogn
ised
in th
e op
erat
ing
resu
lt-
(178
)(1
78)
Dep
reci
atio
n ex
pens
e(1
,897
)(1
,779
)(3
,676
)D
ispo
sals
/writ
e do
wns
:Fr
om d
ispo
sal o
f ent
ities
or o
pera
tions
(inc
ludi
ng re
stru
ctur
ing)
-
-
-
O
ther
dis
posa
ls/w
rite
dow
ns (g
ross
boo
k va
lue)
(340
)(3
79)
(720
)O
ther
dis
posa
ls/w
rite
dow
ns (a
ccum
ulat
ed d
epre
ciat
ion)
130
371
502
Net
boo
k va
lue
30 J
une
2012
14,2
966,
621
20,9
17N
et b
ook
valu
e 30
Jun
e 20
1214
,296
6,62
120
,917
Net
boo
k va
lue
as a
t 30
June
201
2 re
pres
ente
d by
:G
ross
boo
k va
lue
14,2
966,
689
20,9
85A
ccum
ulat
ed d
epre
ciat
ion/
amor
tisat
ion
& im
pairm
ent
-
(6
8)(6
8)14
,296
6,62
120
,917
ACCC and AER Annual Report 2011–12 225
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SUM
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MIS
SIO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
STA
TEM
ENTS
for t
he y
ear e
nded
30
June
201
2
Not
e 6C
(con
tinue
d): R
econ
cilia
tion
of th
e O
peni
ng a
nd C
losin
g B
alan
ces o
f Pro
pert
y, P
lant
& E
quip
men
t (20
10-1
1)
Prop
erty
,Le
aseh
old
plan
t and
impr
ovem
ents
equi
pmen
tTo
tal
$’00
0$’
000
$’00
0A
s at 1
Jul
y 20
10G
ross
boo
k va
lue
14,2
349,
200
23,4
34A
ccum
ulat
ed d
epre
ciat
ion
and
impa
irmen
t(1
,603
)(1
,478
)(3
,081
)N
et b
ook
valu
e 1
July
201
012
,631
7,72
220
,353
Add
ition
s:B
y pu
rcha
se3,
496
1,66
15,
157
Rev
alua
tions
and
impa
irmen
t rec
ogni
sed
in o
ther
com
preh
ensi
ve in
com
e-
-
-
Impa
irmen
ts re
cogn
ised
in th
e op
erat
ing
resu
lt-
-
-
Dep
reci
atio
n ex
pens
e(1
,888
)(1
,688
)(3
,576
)D
ispo
sals
/writ
e do
wns
:Fr
om d
ispo
sal o
f ent
ities
or o
pera
tions
(inc
ludi
ng re
stru
ctur
ing)
-
-
-
O
ther
dis
posa
ls/w
rite
dow
ns (g
ross
boo
k va
lue)
(584
)(5
8)(6
42)
Oth
er d
ispo
sals
/writ
e do
wns
(acc
umul
ated
dep
reci
atio
n)58
142
623
Net
boo
k va
lue
30 J
une
2011
14,2
367,
678
21,9
14N
et b
ook
valu
e 30
Jun
e 20
1114
,236
7,67
821
,914
Net
boo
k va
lue
as a
t 30
June
201
1 re
pres
ente
d by
:G
ross
boo
k va
lue
17,1
4610
,803
27,9
49A
ccum
ulat
ed d
epre
ciat
ion
& im
pairm
ent
(2,9
10)
(3,1
25)
(6,0
35)
14,2
367,
678
21,9
14
226 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
2012 2011$’000 $’000
Note 6D: IntangiblesComputer software:
Purchased software 7,184 5,702 Internally developed - in use 733 723 Internally developed - in progress - - Accumulated amortisation (4,464) (4,396)Accumulated impairment loss - -
Total intangibles (non-current) 3,453 2,029
No indicators of impairment were found for intangible assets.No intangibles are expected to be sold or disposed within the next 12 months.
ACCC and AER Annual Report 2011–12 227
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AU
STR
ALI
AN
CO
MPE
TITI
ON
& C
ON
SUM
ER C
OM
MIS
SIO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
STA
TEM
ENTS
for t
he y
ear e
nded
30
June
201
2
Not
e 6E
: Rec
onci
liatio
n of
the
Ope
ning
and
Clo
sing
Bal
ance
s of I
ntan
gibl
es (2
011-
12)
Com
pute
rso
ftwar
eC
ompu
ter
inte
rnal
lyso
ftwar
ede
velo
ped
purc
hase
dTo
tal
$’00
0$’
000
$’00
0A
s at 1
Jul
y 20
11G
ross
boo
k va
lue
723
5,70
26,
425
Acc
umul
ated
am
ortis
atio
n &
impa
irmen
t(4
68)
(3,9
28)
(4,3
96)
Net
boo
k va
lue
1 Ju
ly 2
011
255
1,77
42,
029
Add
ition
s:B
y pu
rcha
se o
r int
erna
lly d
evel
oped
102,
414
2,42
3R
eval
uatio
ns a
nd im
pairm
ent r
ecog
nise
d in
oth
er c
ompr
ehen
sive
inco
me
-
-
-
Im
pairm
ents
reco
gnis
ed in
the
oper
atin
g re
sult
-
-
-
D
epre
ciat
ion/
amor
tisat
ion
expe
nse
(125
)(8
63)
(988
)D
ispo
sals
/writ
e do
wns
:-
From
dis
posa
ls o
f ent
ities
or o
pera
tions
(inc
ludi
ng re
stru
ctur
ing)
-
-
-
O
ther
writ
e do
wns
(gro
ss b
ook
valu
e)-
(932
)(9
32)
Oth
er w
rite
dow
ns (a
ccum
ulat
ed a
mor
tisat
ion)
-
92
192
1O
ther
writ
e do
wns
(acc
umul
ated
am
ortis
atio
n)-
921
921
Net
boo
k va
lue
30 J
une
2012
140
3,31
43,
453
Net
boo
k va
lue
as a
t 30
June
201
2 re
pres
ente
d by
:G
ross
boo
k va
lue
733
7,18
47,
917
Acc
umul
ated
dep
reci
atio
n/am
ortis
atio
n &
impa
irmen
t(5
93)
(3,8
70)
(4,4
64)
140
3,31
43,
453
228 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AU
STR
ALI
AN
CO
MPE
TITI
ON
& C
ON
SUM
ER C
OM
MIS
SIO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
STA
TEM
ENTS
for t
he y
ear e
nded
30
June
201
2
Not
e 6E
(con
tinue
d): R
econ
cilia
tion
of th
e O
peni
ng a
nd C
losin
g B
alan
ces o
f Int
angi
bles
(201
0-11
)
Com
pute
rso
ftwar
eC
ompu
ter
inte
rnal
lyso
ftwar
ede
velo
ped
purc
hase
dTo
tal
$’00
0$’
000
$’00
0A
s at 1
Jul
y 20
10G
ross
boo
k va
lue
723
5,39
76,
120
Acc
umul
ated
dep
reci
atio
n/am
ortis
atio
n an
d im
pairm
ent
(256
)(2
,937
)(3
,193
)N
et b
ook
valu
e 1
July
201
046
72,
460
2,92
7A
dditi
ons:
By
purc
hase
or i
nter
nally
dev
elop
ed-
365
365
Rev
alua
tions
and
impa
irmen
t rec
ogni
sed
in o
ther
com
preh
ensi
ve in
com
e-
-
-
Impa
irmen
ts re
cogn
ised
in th
e op
erat
ing
resu
lt-
-
-
Dep
reci
atio
n/am
ortis
atio
n ex
pens
e(2
12)
(1,0
48)
(1,2
60)
Dis
posa
ls/w
rite
dow
ns:
-
Fr
om d
ispo
sals
of e
ntiti
es o
r ope
ratio
ns (i
nclu
ding
rest
ruct
urin
g)-
-
-
Oth
er w
rite
dow
ns (g
ross
boo
k va
lue)
-
(6
0)(6
0)O
ther
writ
e do
wns
(acc
umul
ated
am
ortis
atio
n)-
5757
Oth
er w
rite
dow
ns (a
ccum
ulat
ed a
mor
tisat
ion)
-
57
57N
et b
ook
valu
e 30
Jun
e 20
1125
51,
774
2,02
9
Net
boo
k va
lue
as a
t 30
June
201
1 re
pres
ente
d by
:G
ross
boo
k va
lue
723
5,70
26,
425
Acc
umul
ated
dep
reci
atio
n/am
ortis
atio
n &
impa
irmen
t(4
68)
(3,9
28)
(4,3
96)
255
1,77
42,
029
ACCC and AER Annual Report 2011–12 229
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
2012 2011$’000 $’000
Note 6F: InventoriesInventories held for salePublications held for sale 49 28Total inventories held for sale 49 28
No items of inventory were recognised at fair value less costs to sell.All inventory is expected to be sold in the next 12 months.
Note 6G: Other Non-Financial AssetsPrepayments 1,782 1,313
Total other non-financial assets 1,782 1,313
Total other non-financial assets - are expected to be recovered in:No more than 12 months 1,757 1,280More than 12 months 25 33
Total other non-financial assets 1,782 1,313
No indicators of impairment were found for other non-financial assets.
230 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 7: Payables
2012 2011$’000 $’000
Note: 7A Supplier PayablesTrade creditors and accruals 6,615 7,236Total supplier payables 6,615 7,236
Supplier payables expected to be settled within 12 months: Related entities 1,537 2,739
External parties 5,078 4,497
Supplier payables expected to be settled in greater than 12 months: Related entities - -
External parties - -
Total supplier payables 6,615 7,236Settlement is usually made net 30 days.
Note 7B: Other PayablesLease incentives 6,213 6,944Operating lease payment increases 3,249 2,690Wages and salaries 4,054 1,508Unearned revenue 275 398Superannuation - 256Salary sacrifice payable 14 20Total other payables 13,805 11,816
Total other payables are expected to be settled in: No more than 12 months 5,222 3,094 More than 12 months 8,583 8,722
Total other payables 13,805 11,816
ACCC and AER Annual Report 2011–12 231
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 8: Provisions
2012 2011$’000 $’000
Note 8A: Employee ProvisionsLeave 24,134 20,279Separation and redundancies - - Other - - Total Employee Provisions 24,134 20,279
Employee provisions are expected to be settled in:No more than 12 months 18,881 11,393More than 12 months 5,253 8,886
Total Employee Provisions 24,134 20,279
Note 8B: Other ProvisionsProvision for 'Makegood' on leasehold improvements 1 1,560 1,407
1,560 1,407
A remeasurement of Employee Provisions (Annual Leave & Long Service Leave) occurred to include Senior Executive motor vehicle allowances. The impact of the remeasurement was in increase in Employee Provisions of $216,000, and a reduction in Retained Earnings of $216,000.
1,560 1,407
Other provisions are expected to be settled in:No more than 12 months 54 - More than 12 months 1,506 1,407
Total Other Provisions 1,560 1,407
Provision for restoration
Total
$'000 $'000Carrying amount 1 July 2011 1,407 1,407Additional provisions made 79 79Amounts used - - Amounts reversed - - Unwinding of discount or change in discount rate 74 74Closing balance 30 June 2012 1,560 1,560
1 The Commission has 11 agreements (2011: 11) for the leasing of premises which have provisions requiring it to restate the premises to their original condition at the conclusion of the lease. The Commission has made a provision to reflect the present value of this obligation.
232 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 9: Cash Flow Reconciliation
2012 2011$’000 $’000
Cash and cash equivalents as per:Cash flow statement 1,792 1,626Balance Sheet 1,792 1,626Difference - -
Reconciliation of net cost of services to net cash from operating activitiesNet cost of services (177,514) (150,682)Add revenue from Government 151,275 141,342
Adjustments for non-cash itemsDepreciation and amortisation 4,664 4,836Net write down of non-financial assets 406 23Loss on disposal of assets 1 - Gain on disposal of assets (2)
Changes in assets/liabilities(Increase) / decrease in appropriation receivable 1,704 5,069(Increase) / decrease in GST receivable 1,002 587(Increase) / decrease in other receivables 4,033 (3,043)(Increase) / decrease in inventories (21) 8(Increase) / decrease in prepayments (469) 51
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement
(Increase) / decrease in prepayments (469) 51(Increase) / decrease in other assets - - Increase / (decrease) in employee provisions 3,855 (1,057)Increase / (decrease) in supplier payables (1,411) 1,410Increase / (decrease) in prepayments received - 66Increase / (decrease) in other provisions 74 47Increase / (decrease) in unearned income (123) - Increase / (decrease) in other payables 2,114 4,934Net cash from / (used by) operating activities (10,412) 3,591
ACCC and AER Annual Report 2011–12 233
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 10: Contingent Liabilities and Assets
2012 2011 2012 2011$'000 $'000 $'000 $'000
Contingent liabilitiesBalance from previous period - 45 - 45New - - - - Re-measurement - - - - Liabilities recognised (45) - (45)Obligations expired - - - - Total contingent liabilities - - - -
Unquantifiable Contingencies
Quantifiable Contingencies
TotalClaims for damages or costs
Significant Remote ContingenciesThe Commission had no significant remote contingencies.
The Schedule of Contingencies reports contingent liabilities in respect of claims for damages/costs of $nil (2011: $nil).
As at 30 June 2012, the Commission has 2 matters (2011: 1 matter) before the Courts alleging breaches of the Competition and Consumer Act. It was not possible to estimate the amounts of any eventual payments that may be required in relation to these claims. These were not included in the schedule of contingencies.
234 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 11: Senior Executive Remuneration
Note 11A: Senior Executive Remuneration Expense of the Reporting Period
2012 2011$ $
Short-term employee benefits:Salary 10,686,371 8,772,452Annual leave accrued 1,013,737 569,980Performance bonus 694,138 488,006Other ¹ 1,051,356 1,269,783
Total short-term employee benefits 13,445,602 11,100,221
Post Employment benefits:Superannuation 1,568,919 1,471,270Severance payments - 81,052
Total post-employment employee benefits 1,568,919 1,552,322
Other long-term benefits:Long-service leave 1,305,215 120,373
Total other long-term benefits 1,305,215 120,373Total 16,319,736 12,772,916
1. Includes motor vehicle allowances and other allowances
Note 11A is prepared on an accrual basis and the performance bonus expense disclosed above may differ from the cash 'Bonus paid' in Note 11Bpaid' in Note 11BNote 11A excludes acting arrangements and part-year service where remuneration expensed for a senior executive was less than $150,000.
ACCC and AER Annual Report 2011–12 235
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
Ave
rage
ann
ual r
epor
tabl
e re
mun
erat
ion¹
Seni
or
Exec
utiv
esR
epor
tabl
e sa
lary
²C
ontr
ibut
ed
supe
rann
uatio
n³R
epor
tabl
e al
low
ance
s⁴ ⁴⁴⁴Bo
nus p
aid⁵ ⁵⁵⁵
Tota
lN
o.$
$$
$$
Tota
l rem
uner
atio
n (in
clud
ing
part
-tim
e ar
rang
emen
ts):
less
than
$15
0,00
0 -
- -
- -
-$1
50,0
00 to
$17
9,99
92
139,
718
15,6
29
-8,
093
163,
440
$180
,000
to $
209,
999
12
164,
532
23,7
41
-9,
897
198,
170
$210
,000
to $
239,
999
18
183,
851
27,5
69
-14
,616
22
6,03
6 $2
40,0
00 to
$26
9,99
95
204,
788
28,6
87
176
19,6
75
253,
326
$270
,000
to $
299,
999
5 21
9,02
6 43
,690
55
22
,903
28
5,67
4 $3
00,0
00 to
$32
9,99
91
245,
035
36,5
23
-29
,225
31
0,78
3 $3
30,0
00 to
$35
9,99
91
263,
676
40,1
91
-33
,100
33
6,96
7 $3
60,0
00 to
$38
9,99
91
282,
744
42,3
90
-35
,050
36
0,18
4 $3
90,0
00 to
$41
9,99
93
352,
914
59,3
84
- -
412,
298
$420
,000
to $
449,
999
3 36
3,27
5 76
,442
2,
432
-44
2,14
9 $4
50,0
00 to
$47
9,99
91
424,
714
48,5
72
- -
473,
286
$480
,000
to $
509,
999
1 45
4,39
7 29
,225
1,
323
-48
4,94
5 $5
40,0
00 to
$56
9,99
9 -
- -
- -
-$6
00,0
00 to
$62
9,99
91
515,
306
111,
574
- -
626,
880
Tota
l54
Ave
rage
ann
ual r
epor
tabl
e re
mun
erat
ion¹
Seni
or
Exec
utiv
esR
epor
tabl
e sa
lary
²C
ontri
bute
d su
pera
nnua
tion³
Rep
orta
ble
allo
wan
ces⁴
Bon
us p
aid⁵
Tota
lN
o.$
$$
$$
Tota
l rem
uner
atio
n (in
clud
ing
part
-tim
e ar
rang
emen
ts):
less
than
$15
0,00
0 -
- -
- -
-$1
50,0
00 to
$17
9,99
96
128,
588
29,8
38
-4,
717
163,
143
$180
,000
to $
209,
999
21
160,
766
24,9
83
74
10,5
68
196,
391
$210
,000
to $
239,
999
5 17
8,82
1 27
,242
69
15
,069
22
1,20
1 $2
40,0
00 to
$26
9,99
95
200,
967
36,5
62
-16
,720
25
4,24
9 $2
70,0
00 to
$29
9,99
93
216,
529
50,3
71
-16
,332
28
3,23
2 $3
00,0
00 to
$32
9,99
93
246,
473
73,6
40
3,21
2 -
323,
325
$330
,000
to $
359,
999
2 30
6,67
8 41
,737
22
4 -
348,
639
$360
,000
to $
389,
999
3 31
0,05
4 63
,667
-
-37
3,72
1 $3
90,0
00 to
$41
9,99
91
276,
916
86,6
08
-29
,824
39
3,34
8 $4
20,0
00 to
$44
9,99
9 -
- -
- -
-$4
50,0
00 to
$47
9,99
9 -
- -
- -
-$4
80,0
00 to
$50
9,99
9 -
- -
- -
-$5
40,0
00 to
$56
9,99
91
503,
052
49,9
99
- -
553,
051
$600
,000
to $
629,
999
- -
- -
- -
Tota
l50
Not
es:
1. T
his t
able
repo
rts o
n su
bsta
ntiv
e se
nior
exe
cutiv
es w
ho re
ceiv
ed re
mun
erat
ion
durin
g th
e re
porti
ng p
erio
d. E
ach
row
is a
n av
erag
e fig
ure
base
d on
hea
dcou
nt fo
r the
indi
vidu
als i
n th
e ba
nd.
2. 'R
epor
tabl
e sa
lary
' inc
lude
s the
follo
win
g:
Not
e 11
B: A
vera
ge A
nnua
l Rep
orta
ble
Rem
uner
atio
n Pa
id to
Sub
stan
tive
Seni
or E
xecu
tives
Dur
ing
the
Rep
ortin
g Pe
riod 2
012
201
1
a) g
ross
pay
men
ts (l
ess a
ny b
onus
es p
aid,
whi
ch a
re se
para
ted
out a
nd d
iscl
osed
in th
e 'b
onus
pai
d' c
olum
nb)
repo
rtabl
e fr
inge
ben
efits
(at t
he n
et a
mou
nt p
rior t
o 'gr
ossi
ng u
p' to
acc
ount
for t
ax b
enef
its);
and
236 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
5. 'B
onus
pai
d' re
pres
ents
ave
rage
act
ual b
onus
es p
aid
durin
g th
e re
porti
ng p
erio
d in
that
repo
rtabl
e re
mun
erat
ion
band
. The
'bon
us p
aid'
with
in a
par
ticul
ar b
and
may
var
y be
twee
n fin
anci
al y
ears
due
to v
ario
us
fact
ors s
uch
as in
divi
dual
s com
men
cing
with
or l
eavi
ng th
e en
tity
durin
g th
e fin
anci
al y
ear.
6.
Var
ious
sala
ry sa
crifi
ce a
rran
gem
ents
wer
e av
aila
ble
to se
nior
exe
cutiv
es in
clud
ing
supe
rann
uatio
n, m
otor
veh
icle
and
exp
ense
pay
men
t frin
ge b
enef
its.
Sala
ry sa
crifi
ce b
enef
its a
re re
porte
d in
the
'repo
rtabl
e sa
lary
' col
umn,
exc
ludi
ng sa
lary
sacr
ifice
d su
pera
nnua
tion,
whi
ch is
repo
rted
in th
e 'co
ntrib
uted
supe
rann
uatio
n' c
olum
n.
4. 'R
epor
tabl
e al
low
ance
s' ar
e th
e av
erag
e ac
tual
allo
wan
ces p
aid
as p
er th
e 'to
tal a
llow
ance
s' lin
e on
indi
vidu
als'
paym
ent s
umm
arie
s.
3. T
he 'c
ontri
bute
d su
pera
nnua
tion'
am
ount
is th
e av
erag
e ac
tual
supe
rann
uatio
n co
ntrib
utio
ns p
aid
to se
nior
exe
cutiv
es in
that
repo
rtabl
e re
mun
erat
ion
band
dur
ing
the
repo
rting
per
iod,
incl
udin
g an
y sa
lary
sa
crifi
ced
amou
nts,
as p
er th
e in
divi
dual
s' pa
yslip
s.
c) e
xem
pt fo
reig
n in
com
e.
ACCC and AER Annual Report 2011–12 237
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
Ave
rage
ann
ual r
epor
tabl
e re
mun
erat
ion¹
Staf
fR
epor
tabl
e sa
lary
²C
ontr
ibut
ed
supe
rann
uatio
n³R
epor
tabl
e al
low
ance
s⁴ ⁴⁴⁴Bo
nus p
aid⁵ ⁵⁵⁵
Tota
lN
o.$
$$
$$
Tota
l rem
uner
atio
n (in
clud
ing
part
-tim
e ar
rang
emen
ts):
$150
,000
to $
179,
999
34
133,
682
23,2
25
221
-15
7,12
8 $1
80,0
00 to
$20
9,99
93
168,
656
25,9
73
- -
194,
629
$210
,000
to $
239,
999
1 19
2,15
1 29
,839
-
-22
1,99
0 $2
40,0
00 to
$26
9,99
9 -
- -
- -
-To
tal
38
Ave
rage
ann
ual r
epor
tabl
e re
mun
erat
ion¹
Staf
fR
epor
tabl
e sa
lary
²C
ontri
bute
d su
pera
nnua
tion³
Rep
orta
ble
allo
wan
ces⁴
Bon
us p
aid⁵
Tota
lN
o.$
$$
$$
Tota
l rem
uner
atio
n (in
clud
ing
part
-tim
e ar
rang
emen
ts):
$150
,000
to $
179,
999
15
131,
752
26,3
46
375
-15
8,47
3 $1
80,0
00 to
$20
9,99
92
162,
304
24,9
95
- -
187,
299
$210
,000
to $
239,
999
1 18
9,33
9 29
,374
-
-21
8,71
3 $2
40,0
00 to
$26
9,99
9 -
- -
- -
-To
tal
18
Not
es:
1. T
his t
able
repo
rts st
aff:
6. V
ario
us sa
lary
sacr
ifice
arr
ange
men
ts w
ere
avai
labl
e to
oth
er h
ighl
y pa
id st
aff i
nclu
ding
supe
rann
uatio
n, m
otor
veh
icle
and
exp
ense
pay
men
t frin
ge b
enef
its.
Sala
ry sa
crifi
ce b
enef
its a
re re
porte
d in
the
'repo
rtabl
e sa
lary
' col
umn,
exc
ludi
ng sa
lary
sacr
ifice
d su
pera
nnua
tion,
whi
ch is
repo
rted
in th
e 'co
ntrib
uted
supe
rann
uatio
n' c
olum
n.
5. 'B
onus
pai
d' re
pres
ents
ave
rage
act
ual b
onus
es p
aid
durin
g th
e re
porti
ng p
erio
d in
that
repo
rtabl
e re
mun
erat
ion
band
. The
'bon
us p
aid'
with
in a
par
ticul
ar b
and
may
var
y be
twee
n fin
anci
al y
ears
due
to v
ario
us
fact
ors s
uch
as in
divi
dual
s com
men
cing
with
or l
eavi
ng th
e en
tity
durin
g th
e fin
anci
al y
ear.
4. 'R
epor
tabl
e al
low
ance
s' ar
e th
e av
erag
e ac
tual
allo
wan
ces p
aid
as p
er th
e 'to
tal a
llow
ance
s' lin
e on
indi
vidu
als'
paym
ent s
umm
arie
s.
3. T
he 'c
ontri
bute
d su
pera
nnua
tion'
am
ount
is th
e av
erag
e ac
tual
supe
rann
uatio
n co
ntrib
utio
ns p
aid
to st
aff i
n th
at re
porta
ble
rem
uner
atio
n ba
nd d
urin
g th
e re
porti
ng p
erio
d, in
clud
ing
any
sala
ry sa
crifi
ced
amou
nts,
as p
er th
e in
divi
dual
s' pa
yslip
s.
2. 'R
epor
tabl
e sa
lary
' inc
lude
s the
follo
win
g:
a
) gro
ss p
aym
ents
(les
s any
bon
uses
pai
d, w
hich
are
sepa
rate
d ou
t and
dis
clos
ed in
the
'bon
us p
aid'
col
umn)
;
b) r
epor
tabl
e fr
inge
ben
efits
(at t
he n
et a
mou
nt p
rior t
o 'gr
ossi
ng u
p' to
acc
ount
for t
ax b
enef
its);
and
c
) exe
mpt
fore
ign
empl
oym
ent i
ncom
e.
Not
e 11
C: O
ther
Hig
hly
Paid
Sta
ff 2
012
201
1
b) w
hose
repo
rtabl
e re
mun
erat
ion
was
$15
0,00
0 or
mor
e fo
r the
fina
ncia
l per
iod;
and
Each
row
is a
n av
erag
ed fi
gure
bas
ed o
n he
adco
unt f
or in
divi
dual
s in
the
band
.
a) w
ho w
ere
empl
oyed
by
the
entit
y du
ring
the
repo
rting
per
iod
c) w
ere
not r
equi
red
to b
e di
sclo
sed
in T
able
s A, B
or d
irect
or d
iscl
osur
es.
238 ACCC and AER Annual Report 2011–12
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ENTS
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AGEM
ENT
AND
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BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 12: Remuneration of Auditors
2012 2011$'000 $'000
Financial statement audit services 73 71
No other services were provided by the Auditor-General during the reporting period.
Note 13: Financial Instruments
2012 2011$'000 $'000
Note 13A: Categories of financial instruments
Financial AssetsLoans and receivables:
Cash and cash equivalents 1,792 1,626 Goods and services receivables 689 4,722
Carrying amount of financial assets 2,481 6,348
Financial Liabilities at amortised costOther Liabilities:
Financial statement audit services are provided free of charge to the Commission by the Australian National Audit Office (ANAO).
Fair value of services provided
Other Liabilities:Payables - suppliers 6,615 7,236
Carrying amount of financial liabilities 6,615 7,236
Note 13B: Net income and expense from financial assets
Loans and receivables:Other - 36
- 36
Note 13C: Fair value of financial instruments
Carrying Fair Carrying Fairamount value amount value
2012 2012 2011 2011$'000 $'000 $'000 $'000
Financial AssetsCash and cash equivalents 1,792 1,792 1,626 1,626 Goods and services receivables 689 689 4,722 4,722 Total 2,481 2,481 6,348 6,348 Financial LiabilitiesPayables - suppliers 6,615 6,615 7,236 7,236 Total 6,615 6,615 7,236 7,236
The Commission received $0 (2011: $36,000 ) in income and expenses from financial assets and financial liabilities.
ACCC and AER Annual Report 2011–12 239
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ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 13D: Credit risk
Not Past Due Nor Impaired
Not Past Due Nor Impaired
Past due or impaired
Past due or impaired
2012 2011 2012 2011$'000 $'000 $'000 $'000
Loans and receivablesCash and cash equivalents 1,792 1,626 - -Goods and services receivables 651 4,708 38 14
Total 2,443 6,334 38 14
Ageing of financial assets that are past due but not impaired for 20120 to 30 31 to 60 61 to 90 90+
days days days days Total$'000 $'000 $'000 $'000 $'000
Loans and receivables
The Commission is exposed to minimal credit risk as loans and receivables are cash and trade receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade receivables (2012: 636,000 and 2011: $4,722,000). The Commission has assessed the risk of the default on payment and has allocated $Nil in 2011 (2011: $Nil) to an impairment allowance account.
The Commission holds no collateral to mitigate against credit risk.
Credit quality of financial instruments not past due or individually determined as impaired
The Commission manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, the Commission has policies and procedures that guided employees debt recovery techniques that are to be applied.
Loans and receivablesGoods and services receivables - 31 - 7 38
Total - 31 - 7 38
Ageing of financial assets that are past due but not impaired for 20110 to 30 31 to 60 61 to 90 90+
days days days days Total$'000 $'000 $'000 $'000 $'000
Loans and receivablesGoods and services receivables 9 3 2 14
Total 9 3 - 2 14
240 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 13E: Liquidity risk
Note 13F: Market risk
Note 13G: Financial Assets Reconciliation2012 2011
$'000 $'000Financial assets Notes
34,418 53,493
5B 30,516 45,168 GST receivable 5B 1,421 1,977
31,937 47,145 2,481 6,348
The Commission is appropriated funding from the Australian Government. The Commission manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the Commission has policies in place to ensure timely payment are made when due and has no past experience of default. All of the Commission's financial liabilities are due within one year.
The Commission holds basic financial instruments that do not expose the Commission to certain market risks. The Commission is not exposed to Currency risk, Interest rate risk or Other price risk.
The Commission's financial liabilities are payables. The exposure to liquidity risk is based on the notion that the Commission will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the Entity (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.
Total financial assets as per balance sheet
Total financial assets as per financial instruments noteTotal non-financial instrument components
Less: non-financial instrument components:Appropriations receivable
2,481 6,348 Total financial assets as per financial instruments note
ACCC and AER Annual Report 2011–12 241
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ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 14: Administered - Expenses
EXPENSES
Write-Down and Impairment of Assets Asset write-downs and impairments from:
Impairment of receivables 598 68Total write-down and impairment of assets 598 68
Note 15: Administered - Income
2011 2010$'000 $'000
REVENUE
Non-taxation revenueNote 15A: Fees and FinesFines and costs 28,098 43,180Authorisation fees 148 121Notifications 64 79Arbitration fees 5 32Other - - Total fees and fines 28,315 43,412
GAINS
Note 15B: Other GainsNote 15B: Other GainsReversal of previously written-off amounts 2 - Resources received free of charge 5 - Total other gains 7 -
242 ACCC and AER Annual Report 2011–12
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AGEM
ENT
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UNTA
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TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 16: Administered - Financial Assets
2012 2011$'000 $'000
FINANCIAL ASSETS
Note 16A: Cash and Cash EquivalentsCash at bank 9 18Total cash and cash equivalents 9 18
Note 16B: Trade and Other ReceivablesOther Receivables:
Fines and costs 10,927 12,415Total other receivables 10,927 12,415Total receivables (gross) 10,927 12,415
Less: impairment allowance accountFines and costs (2,148) (3,472)
Total impairment allowance account (2,148) (3,472)Total receivables (net) 8,779 8,943
Receivables are expected to be recovered in:No more than 12 months 8,779 8,943More than 12 months - -
Total receivables (net) 8,779 8,943
Receivables are aged as follows:Not overdue 6,441 8,037Not overdue 6,441 8,037Overdue by:
0 to 30 days 3 331 to 60 days 200 40361 to 90 days 20 9More than 90 days 4,263 3,963
Total receivables (gross) 10,927 12,415
The impairment allowance account is aged as follows:Not overdue - - Overdue by:
0 to 30 days - - 31 to 60 days - - 61 to 90 days - - More than 90 days (2,148) (3,472)
Total impairment allowance account (2,148) (3,472)
Total Assets Administered on Behalf of Government 8,788 8,961
Credit terms were within 30 days (2011: 30 days).
ACCC and AER Annual Report 2011–12 243
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Reconciliation of the impairment allowance account:
Movements in relation to 2012Advances & loans Other receivables Total
2012 2012 2012$'000 $'000 $'000
- 3,472 3,472- (1,324) (1,324)- - -
- - - - 2,148 2,148
Movements in relation to 2011Goods and services Other receivables Total
2011 2011 2011$'000 $'000 $'000
Opening balance - 7,587 7,587Amounts written off - (68) (68)Amounts recovered and reversed - (4,047) (4,047)
- - - Closing balance - 3,472 3,472
Note 17: Administered - Payables
Increase (decrease) recognised in net surplus
Amounts written offAmounts recovered and reversed
Opening balance
Increase (decrease) recognised in net surplus
Closing balance
2012 2011$'000 $'000
Note 17A: SuppliersTrade creditors and accruals - - Total Liabilities Administered on Behalf of Government - -
All liabilities are expected to be settled within 12 months of balance date.
244 ACCC and AER Annual Report 2011–12
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AGEM
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TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 18: Administered - Cashflow Reconciliation
2012 2011$’000 $’000
Report cash and cash equivalents as per:Schedule of administered cash flows 9 18Schedule of administered assets & liabilities 9 18Difference - -
Reconciliation of net cost of services to net cash from operating activities:Net cost of services 27,724 43,412
Adjustments for non-cash itemsDepreciation and amortisation - - Net write down of non-financial assets - -
Changes in assets/liabilities(Increase) / decrease in net receivables 164 13,763(Increase) / decrease in inventories - - (Increase) / decrease in prepayments - - (Increase) / decrease in other assets - - Increase / (decrease) in supplier payables - - Increase / (decrease) in prepayments received - - Increase / (decrease) in other provisions - - Increase / (decrease) in other payables - -
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement
Increase / (decrease) in other payables - - Net cash from / (used by) operating activities 27,888 57,175
ACCC and AER Annual Report 2011–12 245
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 19: Administered - Contingent Assets and Liabilities
2012 2011 2012 2011$'000 $'000 $'000 $'000
Contingent assetsBalance from previous period 1,076 1,224 1,076 1,224New contingent assets recognised 1,067 66 1,067 66Re-measurement 5 - 5 - Assets recognised (1,071) (214) (1,071) (214)Expired (10) - (10) -
Total contingent assets 1,067 1,076 1,067 1,076
Contingent liabilitiesBalance from previous period - - - - New - - - - Re-measurement - - - - Assets recognised - - - - Expired - - - -
Total contingent liabilities - - - - Net contingent assets (liabilities) 1,067 1,076 1,067 1,076
Quantifiable Administered Contingencies
Claims for damages or costs Total
The Schedule of Contingencies reports contingent assets in respect of claims for damages/costs of $1,067,000 (2011: $1,076,000). The Commission is expecting to succeed in 4 alleged breaches (2011: 4 alleged breaches) of the Competition and Consumer Act, although the cases are continuing. The estimate is based on legal advice and the precedents in such cases.
Unquantifiable Administered Contingencies
Remote Administered ContingenciesAs at 30 June 2012, the Commission has no remote Administered Contingencies.
Consumer Act, although the cases are continuing. The estimate is based on legal advice and the precedents in such cases.
As at 30 June 2012, the Commission has 31 matters (2011: 32 matters) considered unquantifiable. In the event of favourable judgment by the court, the Commission stands to gain by way of penalties or costs awarded. It is not possible to determine the amounts in relation to these matters. These were not included in the schedule of contingencies.
246 ACCC and AER Annual Report 2011–12
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ATEM
ENTS
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AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 20: Administered - Financial Instruments
2012 2011$'000 $'000
Note 20A: Categories of financial instruments
Loans and receivablesLoans and receivables
Cash and cash equivalents 9 18 Fines and costs receivable 8,779 8,943
Carrying amount of financial assets 8,788 8,961
Financial Liabilities - -Carrying amount of financial liabilities - -
Note 20B: Net income and expense from financial assets
Loans and receivablesInterest revenue - -Exchange gains/(loss) - -Impairment (598) (68)Gain/loss on disposal - -
Net loss from loans and receivables (598) (68)
Note 20C: Fair value of financial instruments
Carrying Fair Carrying FairCarrying Fair Carrying Fairamount value amount value
2012 2012 2011 2011$'000 $'000 $'000 $'000
Financial AssetsCash & cash equivalents 9 9 18 18 Fines and costs receivable 8,779 8,779 8,943 8,943
Total Financial Assets 8,788 8,788 8,961 8,961
ACCC and AER Annual Report 2011–12 247
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 20D: Credit risk
Not Past Due Nor Impaired
Not Past Due Nor Impaired
Past due or impaired
Past due or impaired
2012 2011 2012 2011$'000 $'000 $'000 $'000
Loans and receivablesCash and cash equivalents 9 18 - -Fines and costs receivable 6,441 8,037 4,486 906
Total 6,450 8,055 4,486 906
Ageing of financial assets that were past due but not impaired for 20120 to 30 31 to 60 61 to 90 90+
days days days days Total$'000 $'000 $'000 $'000 $'000
Loans and receivablesFines and costs receivable 3 200 20 2,115 2,338
Total 3 200 20 2,115 2,338
Ageing of financial assets that are past due but not impaired for 2011
The Commission is exposed to minimal credit risk as loans and receivables are cash and receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of receivables (2012: $10,927,000 and 2011: $12,415,000). The Commission has assessed the risk of the default on payment and has allocated $2,148,000 in 2011 (2011: $3,472,000) to an allowance for doubtful debts account.The Commission holds no collateral to mitigate against credit risk.
Credit quality of financial instruments not past due or individually determined as impaired
Ageing of financial assets that are past due but not impaired for 20110 to 30 31 to 60 61 to 90 90+
days days days days Total$'000 $'000 $'000 $'000 $'000
Loans and receivablesFines and costs receivable 3 403 9 491 906
Total 3 403 9 491 906
Note 20E: Liquidity risk
Note 20F: Market risk
The Commission's administered activities relate to fines and costs awarded by courts or through agreements. The Commission manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the Commission has policies in place to ensure timely payments are made when due and has no past experience of default.
The Commission holds basic financial instruments that do not expose the Commission to certain market risks. The Commission is not exposed to 'Currency risk,' 'Interest rate risk' or 'Other price risk'.
The Commission's has no administered financial liabilities that are payables. Accordingly the Commission is not exposed to significant liquidity risk.
248 ACCC and AER Annual Report 2011–12
FINA
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ATEM
ENTS
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AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 20G: Administered Financial Assets Reconciliation
2012 2011$'000 $'000
Financial assets Notes
16 8,788 8,961
Other Receivables - -Total non-financial instrument components - -
8,788 8,961
Total financial assets as per Schedule of Administered Assets and Liabilities
Total financial assets as per financial instruments note
Less: non-financial instrument components:
ACCC and AER Annual Report 2011–12 249
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AU
STR
ALI
AN
CO
MPE
TITI
ON
& C
ON
SUM
ER C
OM
MIS
SIO
Nfo
r the
per
iod
ende
d 30
Jun
e 20
12
Not
e 21
: App
ropr
iatio
ns
Ann
ual
App
ropr
iatio
nsA
ppro
pria
tions
re
duce
d (a)
AFM
(b)
Sect
ion
30Se
ctio
n 31
Sect
ion
32$'
000
$'00
0$'
000
$'00
0$'
000
$'00
0$'
000
$'00
0$'
000
DEP
AR
TMEN
TAL
Ord
inar
y an
nual
serv
ices
153,
783
- -
-6,
618
-16
0,40
1 16
2,10
5 (1
,704
)O
ther
serv
ices
Equi
ty55
-
- -
- -
55
13,0
03
(12,
948)
Loan
s -
- -
- -
- -
- -
Tota
l dep
artm
enta
l 15
3,83
8 -
- -
6,61
8 -
160,
456
175,
108
(14,
652)
AD
MIN
ISTE
RED
Ord
inar
y an
nual
serv
ices
Adm
inis
tere
d ite
ms
- -
- -
- -
- -
-Pa
ymen
ts to
CA
C A
ct b
odie
s -
- -
- -
- -
- -
Oth
er se
rvic
esSt
ates
, AC
T, N
T an
d Lo
cal g
over
nmen
t -
- -
- -
- -
- -
New
adm
inis
tere
d ou
tcom
es -
- -
- -
- -
- -
Adm
inis
tere
d as
sets
and
liab
ilitie
s -
- -
- -
- -
- -
Paym
ents
to C
AC
Act
bod
ies
- -
- -
- -
- -
-To
tal a
dmin
ister
ed -
- -
- -
- -
- -
Not
es:
Tabl
e A
: Ann
ual A
ppro
pria
tions
('R
ecov
erab
le G
ST e
xclu
sive'
)
2012
App
ropr
iatio
nsA
ppro
pria
tion
appl
ied
in
2012
(cur
rent
an
d pr
ior
year
s)V
aria
nce
(d)
tcA
AM
Ftc
A noitairporppA
Tota
l ap
prop
riat
ion
(a)
App
ropr
iatio
ns re
duce
d un
der A
ppro
pria
tion
Act
s (N
o. 1
,3 &
5) 2
011-
12: s
ectio
ns 1
0, 1
1, a
nd 1
2 an
d un
der A
ppro
pria
tion
Act
s (N
o. 2
,4,6
) 201
1-12
: sec
tions
12,
13, a
nd 1
4. D
epar
tmen
tal
appr
opria
tions
do
not l
apse
at f
inan
cial
yea
r-end
. How
ever
, the
resp
onsi
ble
Min
iste
r may
dec
ide
that
par
t or a
ll of
a d
epar
tmen
tal a
ppro
pria
tion
is n
ot re
quire
d an
d re
ques
t the
Fin
ance
Min
iste
r to
redu
ce th
at a
ppro
pria
tion.
The
redu
ctio
n in
the
appr
opria
tion
is e
ffec
ted
by th
e Fi
nanc
e M
inis
ter's
det
erm
inat
ion
and
is d
isal
low
able
by
Parli
amen
t. In
201
2, th
ere
was
no
redu
ctio
n in
dep
artm
enta
l and
no
n-op
erat
ing
depa
rtmen
tal a
ppro
pria
tions
.(b
) Adv
ance
to th
e Fi
nanc
e M
inis
ter (
AFM
) - A
ppro
pria
tion
Act
s (N
o. 1
,3,5
) 201
1-12
: sec
tion
13 a
nd A
ppro
pria
tion
Act
s (N
o. 2
,4,6
) 201
1-12
: sec
tion
15.
(c) I
n 20
11-1
2, th
ere
wer
e no
adj
ustm
ents
that
met
the
reco
gniti
on c
riter
ia o
f a fo
rmal
add
ition
or r
educ
tion
in re
venu
e (in
acc
orda
nce
with
FM
O D
iv 1
01) b
ut a
t law
the
appr
opria
tions
had
not
bee
n am
ende
d be
fore
the
end
of th
e re
porti
ng p
erio
d.
(d
) The
var
ianc
e be
twee
n to
tal a
nnua
l app
ropr
iatio
n av
aila
ble
and
tota
l app
ropr
iatio
n ap
plie
d in
201
2 re
late
s to
paym
ents
fund
ed fr
om u
nspe
nt p
rior y
ear a
ppro
pria
tion
item
s.
250 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AU
STR
ALI
AN
CO
MPE
TITI
ON
& C
ON
SUM
ER C
OM
MIS
SIO
Nfo
r the
per
iod
ende
d 30
Jun
e 20
12
Ann
ual
App
ropr
iatio
nA
ppro
pria
tions
re
duce
d (a)
AFM
(b)
Sect
ion
30Se
ctio
n 31
Sect
ion
32$'
000
$'00
0$'
000
$'00
0$'
000
$'00
0$'
000
$'00
0$'
000
DEP
AR
TMEN
TAL
Ord
inar
y an
nual
serv
ices
147,
304
- -
985
2,83
8 -
151,
127
152,
454
(1,3
27)
Oth
er se
rvic
esEq
uity
40
- -
- -
-40
-
40
Loan
s -
- -
- -
- -
- -
Tota
l dep
artm
enta
l 14
7,34
4 -
-98
5 2,
838
-15
1,16
7 15
2,45
4 (1
,287
)A
DM
INIS
TER
EDO
rdin
ary
annu
al se
rvic
esA
dmin
iste
red
item
s -
- -
- -
- -
- -
Paym
ents
to C
AC
Act
bod
ies
- -
- -
- -
- -
-O
ther
serv
ices
Stat
es, A
CT,
NT
and
Loca
l gov
ernm
ent
- -
- -
- -
- -
-N
ew a
dmin
iste
red
outc
omes
- -
- -
- -
- -
-A
dmin
iste
red
asse
ts a
nd li
abili
ties
- -
- -
- -
- -
-Pa
ymen
ts to
CA
C A
ct b
odie
s -
- -
- -
- -
- -
Tota
l adm
inist
ered
- -
- -
- -
- -
-
Not
es:
(a)
App
ropr
iatio
ns re
duce
d un
der A
ppro
pria
tion
Act
s (N
o. 1
,3,5
) 201
0-11
: sec
tions
10,
11,
12
and
15 a
nd u
nder
App
ropr
iatio
n A
cts (
No.
2,4
,6) 2
010-
11: s
ectio
ns 1
2,13
, 14
and
17. D
epar
tmen
tal
appr
opria
tions
do
not l
apse
at f
inan
cial
yea
r-end
. How
ever
, the
resp
onsi
ble
Min
iste
r may
dec
ide
that
par
t or a
ll of
a d
epar
tmen
tal a
ppro
pria
tion
is n
ot re
quire
d an
d re
ques
t the
Fin
ance
Min
iste
r to
redu
ce th
at a
ppro
pria
tion.
The
redu
ctio
n in
the
appr
opria
tion
is e
ffec
ted
by th
e Fi
nanc
e M
inis
ter's
det
erm
inat
ion
and
is d
isal
low
able
by
Parli
amen
t. In
201
1, th
ere
was
no
redu
ctio
n in
dep
artm
enta
l and
no
n-op
erat
ing
depa
rtmen
tal a
ppro
pria
tions
.(b
) Adv
ance
to th
e Fi
nanc
e M
inis
ter (
AFM
) - A
ppro
pria
tion
Act
s (N
os. 1
&3)
201
0-11
: sec
tion
12 a
nd A
ppro
pria
tion
Act
s (N
o. 2
& 4
) 201
0-11
: sec
tion
15.
(c) I
n 20
10-1
1, th
ere
wer
e no
adj
ustm
ents
that
met
the
reco
gniti
on c
riter
ia o
f a fo
rmal
add
ition
or r
educ
tion
in re
venu
e (in
acc
orda
nce
with
FM
O D
iv 1
01) b
ut a
t law
the
appr
opria
tions
had
not
bee
n am
ende
d be
fore
the
end
of th
e re
porti
ng p
erio
d.
(d) T
he v
aria
nce
betw
een
tota
l ann
ual a
ppro
pria
tion
avai
labl
e an
d to
tal a
ppro
pria
tion
appl
ied
in 2
011
rela
tes t
o pa
ymen
ts fu
nded
from
uns
pent
prio
r yea
r app
ropr
iatio
n ite
ms.
Tabl
e A
(con
tinue
d): A
nnua
l App
ropr
iatio
ns ('
Rec
over
able
GST
exc
lusi
ve')
2011
App
ropr
iatio
nsA
ppro
pria
tion
appl
ied
in
2011
(cur
rent
an
d pr
ior
year
s)V
aria
nce
(d)
App
ropr
iatio
n A
ctF
MA
Act
Tota
l ap
prop
riat
ion
ACCC and AER Annual Report 2011–12 251
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AU
STR
ALI
AN
CO
MPE
TITI
ON
& C
ON
SUM
ER C
OM
MIS
SIO
Nfo
r the
per
iod
ende
d 30
Jun
e 20
12
FMA
Act
Ann
ual C
apita
l B
udge
tA
ppro
pria
tions
re
duce
d2Se
ctio
n 32
$'00
0$'
000
$'00
0$'
000
$'00
0$'
000
$'00
0$'
000
DEP
AR
TMEN
TAL
Ord
inar
y an
nual
serv
ices
- D
epar
tmen
tal
Capi
tal B
udge
t12,
508
- -
2,50
8 2,
508
-2,
508
-A
DM
INIS
TER
EDO
rdin
ary
annu
al se
rvic
es -
Adm
inist
ered
Ca
pita
l Bud
get1
- -
- -
- -
- -
Not
es:
Tabl
e B
: Dep
artm
enta
l and
Adm
inist
ered
Cap
ital B
udge
ts ('
Rec
over
able
GST
exc
lusiv
e')
2012
Cap
ital B
udge
t App
ropr
iatio
nsC
apita
l Bud
get A
ppro
pria
tions
app
lied
in 2
012
Var
ianc
e
Appr
opria
tion
Act
Tota
l Cap
ital
Bud
get
App
ropr
iatio
ns
Paym
ents
for
non-
finan
cial
as
sets
3Pa
ymen
ts fo
r ot
her
purp
oses
Tota
l pay
men
ts
1. D
epar
tmen
tal a
nd A
dmin
ister
ed C
apita
l Bud
gets
are
appr
opria
ted
thro
ugh
App
ropr
iatio
n A
cts (
No.
1,3,
5). T
hey
form
par
t of o
rdin
ary
annu
al se
rvic
es, a
nd a
re n
ot se
para
tely
iden
tifie
d in
the
App
ropr
iatio
n A
cts.
For m
ore
info
rmat
ion
on o
rdin
ary
annu
al se
rvic
es a
ppro
pria
tions
, ple
ase
see
Tabl
e A
: Ann
ual a
ppro
pria
tions
. 2.
App
ropr
iatio
ns re
duce
d un
der A
ppro
pria
tion
Act
s (N
o.1,
3,5)
201
1-12
: sec
tions
10,
11,
12
and
15 o
r via
a d
eter
min
atio
n by
the
Fina
nce
Min
iste
r.3.
Pay
men
ts m
ade
on n
on-f
inan
cial
ass
ets i
nclu
de p
urch
ases
of a
sset
s, ex
pend
iture
on
asse
ts w
hich
has
bee
n ca
pita
lised
, cos
ts in
curr
ed to
mak
e go
od a
n as
set t
o its
orig
inal
con
ditio
n, a
nd th
e ca
pita
l rep
aym
ent c
ompo
nent
of
finan
ce le
ases
.
252 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AU
STR
ALI
AN
CO
MPE
TITI
ON
& C
ON
SUM
ER C
OM
MIS
SIO
Nfo
r the
per
iod
ende
d 30
Jun
e 20
12
FMA
Act
Ann
ual C
apita
l B
udge
tA
ppro
pria
tions
re
duce
d2Se
ctio
n 32
$'00
0$'
000
$'00
0$'
000
$'00
0$'
000
$'00
0$'
000
DEP
AR
TMEN
TAL
Ord
inar
y an
nual
serv
ices
- D
epar
tmen
tal
Capi
tal B
udge
t12,
500
- -
2,50
0 2,
500
-2,
500
-A
DM
INIS
TER
EDO
rdin
ary
annu
al se
rvic
es -
Adm
inist
ered
Ca
pita
l Bud
get1
- -
- -
- -
- -
Not
es:
1. D
epar
tmen
tal a
nd A
dmin
ister
ed C
apita
l Bud
gets
are
appr
opria
ted
thro
ugh
App
ropr
iatio
n A
cts (
No.
1,3,
5). T
hey
form
par
t of o
rdin
ary
annu
al se
rvic
es, a
nd a
re n
ot se
para
tely
iden
tifie
d in
the
App
ropr
iatio
n A
cts.
For m
ore
info
rmat
ion
on o
rdin
ary
annu
al se
rvic
es a
ppro
pria
tions
, ple
ase
see
Tabl
e A
: Ann
ual a
ppro
pria
tions
. 2.
App
ropr
iatio
ns re
duce
d un
der A
ppro
pria
tion
Act
s (N
o.1,
3,5)
201
0-11
: sec
tions
10,
11,
12
and
15 o
r via
a d
eter
min
atio
n by
the
Fina
nce
Min
iste
r.3.
Pay
men
ts m
ade
on n
on-f
inan
cial
ass
ets i
nclu
de p
urch
ases
of a
sset
s, ex
pend
iture
on
asse
ts w
hich
has
bee
n ca
pita
lised
, cos
ts in
curr
ed to
mak
e go
od a
n as
set t
o its
orig
inal
con
ditio
n, a
nd th
e ca
pita
l rep
aym
ent c
ompo
nent
of
finan
ce le
ases
.
Tabl
e B:
(con
tinue
d) D
epar
tmen
tal a
nd A
dmin
ister
ed C
apita
l Bud
gets
('Rec
over
able
GST
exc
lusiv
e')
2011
Cap
ital B
udge
t App
ropr
iatio
nsC
apita
l Bud
get A
ppro
pria
tions
app
lied
in 2
011
Var
ianc
e
Appr
opria
tion
Act
Tota
l Cap
ital
Bud
get
App
ropr
iatio
ns
Paym
ents
for
non-
finan
cial
as
sets
3Pa
ymen
ts fo
r ot
her
purp
oses
Tota
l pay
men
ts
ACCC and AER Annual Report 2011–12 253
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AU
STR
ALI
AN
CO
MPE
TITI
ON
& C
ON
SUM
ER C
OM
MIS
SIO
Nfo
r the
per
iod
ende
d 30
Jun
e 20
12
DEP
AR
TMEN
TAL
2,0
1220
11$'
000
$'00
020
04/0
5 - A
ct 2
- N
on O
pera
ting
- Equ
ity In
ject
ion
6,87
1 19
,779
20
05/0
6 - A
ppro
pria
tion
Act
13,
286
3,28
6 20
05/0
6 - A
ppro
pria
tion
Act
34,
130
4,13
0 20
06/0
7 - A
ppro
pria
tion
Act
14,
484
4,48
4 20
06/0
7 - A
ppro
pria
tion
Act
32,
534
2,53
4 20
07/0
8 - A
ppro
pria
tion
Act
32,
012
2,01
2 20
08/0
9 - A
ppro
pria
tion
Act
12,
200
2,20
0 20
08/0
9 - A
ct 4
- N
on O
pera
ting
- Equ
ity In
ject
ion
5,00
0 5,
000
2009
/10
- App
ropr
iatio
n A
ct 3
- Se
ctio
n 31
Rec
eipt
s -
-20
10/1
1 - A
ppro
pria
tion
Act
1 S
ectio
n 31
Rec
eipt
s -
1,20
4 20
10/1
1 - A
ct 2
- N
on O
pera
ting
- Equ
ity In
ject
ion
-40
To
tal
30,5
16
44,6
68
Tabl
e D
: Spe
cial
App
ropr
iatio
ns ('
Rec
over
able
GST
exc
lusiv
e')
2012
2011
Aut
hori
tyTy
pePu
rpos
e$'
000
$'00
0Fi
nanc
ial M
anag
emen
t and
Acc
ount
abili
ty A
ct
1997
s.28
(2),
Adm
inis
tere
dR
efun
d 10
4 25
App
ropr
iatio
n ap
plie
d
To p
rovi
de a
n ap
prop
riatio
n w
here
an
Act
or o
ther
law
requ
ires o
r pe
rmits
the
repa
ymen
t of a
n am
ount
rece
ived
by
the
Com
mon
wea
lth a
nd a
part
from
this
sect
ion
ther
e is
no
spec
ific
appr
opria
tion
for t
he re
paym
ent
Tabl
e C
: Uns
pent
Ann
ual A
ppro
pria
tions
('R
ecov
erab
le G
ST e
xclu
sive'
)
Aut
hori
ty
254 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 22: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund
• 1 special appropriation; and• 1 special account.
Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. The Department of Finance and Deregulation provided information to all agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts. The possibility of this being an issue for the agency was reported in the notes to the 2010-11 financial statements and the agency undertook to investigate the issue during 2011-12.
During 2011-12, the agency developed a plan to review exposure to risks of not complying with statutory conditions on payments from appropriations. The plan involved:
• identifying each special appropriation and special account; • determining the risk of non-compliance by assessing the difficulty of administering the statutory conditions and assessing the extent to which existing payment systems and processes satisfy those conditions;• determining procedures to confirm risk assessments in medium risk cases and to quantify the extent of non-compliance, if any, in higher risk situations;• an external review of all payments in 2010-11 and 2011-12 from the special appropriation and special account to ensure statutory conditions were met. Payment processes were also reviewed to ensure adequate controls are in place and that an assessment of statutory conditions is undertaken for each payment.
The agency identified 2 appropriations involving statutory conditions for payment, comprising:
As at 30 June 2012 this work had been completed in respect of all appropriations with statutory conditions for payment in 2010-
The work conducted to date has identified no issues of compliance with Section 83.
As at 30 June 2012 this work had been completed in respect of all appropriations with statutory conditions for payment in 2010-11 and 2011-12 totalling $836,359 (representing $731,659 in 2010-11 and $104,700 in 2011-12).
ACCC and AER Annual Report 2011–12 255
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 23: Special Accounts
2012 2011 2012 2011$'000 $'000 $'000 $'000
- 749 54 -
- 14 1 - - - 54
- 14 1 54 - 763 55 54
Decreases:- 708 1 - 54 - -
- 763 1 -
- - 54
54
Available for payments
1 Establishing Instrument: Financial Management and Accountability Act 1997; s20
Total balance to be carried to the next period
Services for Other Entities and Trust Moneys 3, 4
Balance carried forward from previous period
Other receipts
Other Trust Moneys Special Account 1,
2
Transfer of funds to Services for Other Entities and Trust Moneys Account
Total increase
Increases:
Transfer of funds from Other Trust Monies Special Account
Payments made
Total decrease
Administered
3 Establishing Instrument: Financial Management and Accountability Act 1997; s204 The purpose of the account is (a) amounts to be held on trust or otherwise for the benefit of a person other than the Commonwealth; (b) amounts received in the course of the performance of functions that relate to the purposes of the Services for Other Entities and Trust Moneys - Australian Competition and Consumer Commission Special Account; (c) amounts received from any person for the purposes of the Services for Other Entities and Trust Moneys - Australian Competition and Consumer Commission Special Account; and (d) amounts to be held on trust or otherwise for the benefit of a person other than the Commonwealth.
Establishing Instrument: Financial Management and Accountability Act 1997; s202 The purpose for this account is the receipt of monies temporarily held on trust or otherwise for the benefit of another person other than the Australian Government.
256 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 24: Compensation and Debt Relief
Compensation and Debt Relief - Departmental 2012 2011$ $
- -
- -
- -
- -
- -
- -
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997.(2011: No waiver)
No ‘Act of Grace’ expenses were incurred during the reporting period (2011: No expenses).
No ex-gratia payments were provided for during the reporting period. (2011: No payments).
No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period. (2011: No payments).
Compensation and Debt Relief - Administered
No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period. (2011: No payments)
No ‘Act of Grace’ expenses were incurred during the reporting period (2011: No expenses).
- -
- -
- -
- -
- -
No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period. (2011: No payments).
expenses).
No ex-gratia payments were provided for during the reporting period. (2011: No payments).
No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period. (2011: No payments)
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997.(2011: No waiver)
ACCC and AER Annual Report 2011–12 257
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AU
STR
ALI
AN
CO
MPE
TITI
ON
& C
ON
SUM
ER C
OM
MIS
SIO
NN
OTE
S TO
AN
D F
OR
MIN
G P
AR
T O
F TH
E FI
NA
NC
IAL
STA
TEM
ENTS
for t
he y
ear e
nded
30
June
201
2
Not
e 25
: Rep
ortin
g of
Out
com
es
Not
e 25
A: N
et C
ost o
f Out
com
e D
eliv
ery
2012
2011
2012
2011
$'00
0$'
000
$'00
0$'
000
(179
,063
)(1
51,8
58)
(179
,063
)15
1,85
8O
wn-
sour
ce In
com
e1,
549
1,17
61,
549
1,17
6
(598
)(6
8)(5
98)
(68)
Ow
n-so
urce
Inco
me
28,3
2243
,412
28,3
2243
,412
(149
,790
)(1
07,3
38)
(149
,790
)(1
07,3
38)
Out
com
e 1
is d
escr
ibed
in N
ote
1.1.
Net
cos
ts sh
own
incl
ude
intra
-gov
ernm
ent c
osts
that
are
elim
inat
ed in
cal
cula
ting
the
actu
al B
udge
t out
com
e.
Expe
nses
Adm
inist
ered
Net
cos
t of o
utco
me
deliv
ery
The
Com
mis
sion
attr
ibut
es it
s out
com
e be
twee
n its
two
outp
ut g
roup
s on
the
basi
s of i
dent
ifiab
le a
ctua
l cos
ts.
Shar
ed c
osts
incu
rred
with
resp
ect t
o th
ese
outp
ut g
roup
s are
ap
porti
oned
acc
ordi
ng to
thes
e re
sulti
ng a
ctua
l cos
ts.
This
bas
is o
f attr
ibut
ion
is c
onsi
sten
t with
that
use
d fo
r the
201
1-12
bud
get.
Dep
artm
enta
l
Out
com
e 1
Tota
l
Expe
nses
Out
com
e 1
is d
escr
ibed
in N
ote
1.1.
Net
cos
ts sh
own
incl
ude
intra
-gov
ernm
ent c
osts
that
are
elim
inat
ed in
cal
cula
ting
the
actu
al B
udge
t out
com
e.
258 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 25B: Major Classes of Departmental Expenses, Income, Assets and Liabilities by Outcome
2012 2011 2012 2011$'000 $'000 $'000 $'000
Departmental expensesEmployees 100,607 81,586 100,607 81,586Suppliers 68,737 64,563 68,737 64,563Depreciation & amortisation 4,664 4,836 4,664 4,836Finance costs 74 61 74 61Losses from asset sales 1 - 1 - Write-down and impairment of assets 406 23 406 23Other expenses 4,574 789 4,574 789
Total 179,063 151,858 179,063 151,858
Departmental incomeRevenue from government 151,275 141,342 151,275 141,342Sale of goods and services 587 602 587 602Other income 887 467 887 467Gains 75 107 75 107
Outcome 1Outcome 1 Total
Gains 75 107 75 107Total 152,824 142,518 152,824 142,518
Departmental assetsCash and cash equivalents 1,792 1,626 1,792 1,626Trade and other receivables 32,626 51,867 32,626 51,867Leasehold improvements 14,296 14,236 14,296 14,236Property, plant and equipment 6,621 7,678 6,621 7,678Intangibles 3,453 2,029 3,453 2,029Inventories 49 28 49 28Other non-financial assets 1,782 1,313 1,782 1,313
Total 60,619 78,777 60,619 78,777
Departmental liabilitiesSuppliers 6,615 7,236 6,615 7,236Other payables 13,805 11,816 13,805 11,816Employee provisions 24,134 20,279 24,134 20,279Other provisions 1,560 1,407 1,560 1,407
Total 46,114 40,738 46,114 40,738
Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actualBudget outcome.
ACCC and AER Annual Report 2011–12 259
MANAGEM
ENT AND ACCOUNTABILITY
FINA
NCIA
L ST
ATEM
ENTS
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 25C: Major Classes of Administered Expenses, Income, Assets and Liabilities by Outcome
2012 2011 2012 2011$'000 $'000 $'000 $'000
Administered expensesWrite-down of assets 598 68 598 68
Total 598 68 598 68
Administered IncomeFines and costs 28,098 43,180 28,098 43,180Authorisation fees 148 121 148 121Other 76 111 76 111
Total 28,322 43,412 28,322 43,412
Administered AssetsCash and cash equivalents 9 18 9 18Receivables 8,779 8,943 8,779 8,943
Total 8,788 8,961 8,788 8,961
latoT1 emoctuO
Administered LiabilitiesSupplier payables - - - -
Total - - - -
Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actualBudget outcome.
260 ACCC and AER Annual Report 2011–12
FINA
NCIA
L ST
ATEM
ENTS
MAN
AGEM
ENT
AND
ACCO
UNTA
BILI
TY
AUSTRALIAN COMPETITION & CONSUMER COMMISSIONNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2012
Note 26: Net Cash Appropriation Arrangements
2,012 2,011 $’000 $’000
(21,433) (4,504)
4,664 4,836 (26,097) (9,340)
funded through revenue appropriations 1
Plus: depreciation/amortisation expenses previously funded through revenue appropriationTotal comprehensive loss as per the Statement of Comprehensive Income
Total comprehensive loss less depreciation/amortisation previously
1 From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.