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ABC Annual Report Financial Statements

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  • 1. ABC Annual Report Financial Statements Table of Contents Independent Audit Report 118 Statement by Directors 120 Statement of Financial Performance 121 Statement of Financial Position 122 Statement of Cash Flows 123 Schedule of Commitments 124 Schedule of Contingencies 125 1. Statement of Significant Accounting Policies 126 2. Expenses and Revenues 136 3. Economic Dependency 136 4. Revenues from Government 137 5. Revenue from Independent Sources 137 6. Operating Expenses - Goods and Services 138 7. Borrowing Costs 139 8. Financial Assets 139 9. Non Financial Assets 140 10. Interest Bearing Liabilities 145 11. Provisions 145 12. Payables 145 13. Equity 146 14. Cash Flow Reconciliation 147 15. External Financing Arrangements 147 16. Financial Instruments (Consolidated) 148 17. Remuneration of Directors 151 18. Related Party Disclosures 151 19. Remuneration of Officers 154 20. Remuneration of Auditors 155 21. Trust Funds 155 22. Controlled Entities 156 23. Reporting by Outcomes 157 24. Subsequent Events 157 117
  • 2. Independent Audit Report To the Minister of Communications, Information Technology and the Arts. Scope I have audited the financial statements of the Australian Broadcasting Corporation for the year ended 30 June 2001. The financial statements include the consolidated financial statements of the economic entity comprising the Australian Broadcasting Corporation and the entities it controlled at the year’s end or from time to time during the year. The financial statements comprise: • Statement by Directors; • Statement of Financial Performance; • Statement of Financial Position; • Statement of Cash Flows; • Schedule of Commitments; • Schedule of Contingencies; • Notes to and forming part of the financial statements. The members of the Board are responsible for the preparation and presentation of the financial statements and the information they contain. I have conducted an independent audit of the financial statements in order to express an opinion on them to you. The audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are presented fairly in accordance with Australian Accounting Standards, and other mandatory professional reporting requirements and statutory requirements in Australia so as to present a view of the Australian Broadcasting Corporation and the economic entity which is consistent with my understanding of the Australian Broadcasting Corporation and the economic entity’s financial position, and performance as represented by the results of their operations and their cash flows. The audit opinion expressed in this report has been formed on the above basis. 118
  • 3. Independent Audit Report (cont) Audit Opinion In my opinion, • the financial statements have been prepared in accordance with the Schedule 1 of the Commonwealth Authorities and Companies (Financial Statements 2000-2001) Orders; and • the financial statements give a true and fair view, in accordance with applicable Accounting Standards, other mandatory professional reporting requirements and Schedule 1 of the Commonwealth Authorities and Companies (Financial Statements 2000-2001) Orders, of the financial position of the Australian Broadcasting Corporation and the economic entity as at 30 June 2001 and their performance for the year then ended. Australian National Audit Office Edward Hay Executive Director Delegate of the Auditor-General Canberra 14 August 2001 119
  • 4. Statement by Directors Australian Broadcasting Corporation In our opinion, the attached financial statements give a true and fair view of the matters required by Schedule 1 of the Commonwealth Authorities and Companies (Financial Statements 2000-2001) Orders made under the Commonwealth Authorities and Companies Act 1997 for the year ended 30 June 2001. Signed in accordance with a resolution of the directors. DONALD McDONALD AO JONATHAN SHIER Chairman Managing Director 14 August 2001 14 August 2001 120
  • 5. Statement of Financial Performance for the year ended 30 June 2001 Consolidated ABC 2001 2000 2001 2000 Notes $’000 $’000 $’000 $’000 Revenues from ordinary activities Revenues from government 4 668 540 643 995 622 921 599 158 Sales of goods and services 5D 1 16 968 1 1 1 964 95 452 92 098 Interest 5A 12 1 93 10 039 1 1 059 9 084 Proceeds from disposal of assets 5B 787 452 778 412 Net foreign exchange gain 5C 1 276 787 1 276 787 Other 5E 12 338 13 094 5 008 6 605 Total revenues from ordinary activities 812 102 780 33 1 736 494 708 144 Expenses from ordinary activities Employees 6A 329 241 310 831 284 895 268 825 Suppliers 6B 292 147 273 667 261 1 3 1 245 942 Depreciation and amortisation 6C 55 531 48 017 54 904 47 415 Write-down of assets 6D 4 275 1 893 4 275 1 932 Disposal of assets 5B 1 631 1 034 1 604 1 033 Program amortisation 6E 101 652 94 478 101 652 94 478 Other 6F - - 195 450 Total expenses from ordinary activities 784 477 729 920 708 656 660 075 Borrowing costs 7 12 282 13 373 12 282 13 372 Net operating surplus from ordinary activities* 15 343 37 038 15 556 34 697 Net surplus 15 343 37 038 15 556 34 697 Net credit (debit) to asset revaluation reserve (38 483) 5 207 (38 483) 5 207 Total revenues, expenses and valuation adjustments recognised directly in equity (38 483) 5 207 (38 483) 5 207 Total changes in equity other than those resulting from transactions with owners as owners before capital use charge ( 23 1 40) 42 245 (22 927) 39 904 The above statement should be read in conjunction with the accompanying notes. NOTE* Net surplus attributable to the Corporation before capital use charge 15 343 37 038 15 556 34 697 Capital use provided for or paid (56 179) (55 568) (56 179) (55 568) Contribution to accumulated results (40 836) (18 530) (40 623) (20 871) 121
  • 6. Statement of Financial Position as at 30 June 2001 Consolidated ABC 2001 2000 2001 2000 Notes $’000 $’000 $’000 $’000 ASSETS Financial assets Cash 8A 2 9 592 18 425 4 887 4 067 Receivables 8B 63 596 84 907 62 91 1 83 264 Accrued revenues 8D 4 85 1 4 041 4 851 3 065 Investments 8C - - 1 840 1 840 Total financial assets 98 039 1 07 373 74 489 92 236 Non-financial assets Land and buildings 9A 3 38 6 18 4 07 055 338 287 406805 Infrastructure, plant and equipment 9B 3 0 1 0 79 2 22 8 3 3 298 516 220 327 Inventories 9D 76 584 68 5 2 1 7 6 559 68 491 Intangibles 9C 1 4 1 18 1 6 566 1 4 1 18 16 566 Other 9E 1 3 65 7 90 12 1 3 590 8 352 Total non-financial assets 744 056 723 98 7 7 4 1 070 720 541 Total assets 842 095 83 1 360 815 559 812 777 LIABILITIES Interest bearing liabilities Loans 10A 190 000 142 966 190 000 142 966 Total interest bearing liabilities 190 000 142 966 190 000 142 966 Provisions Employees 11A 114 256 125 219 104 753 116 050 Total provisions 114 256 125 219 104 753 116 050 Payables Suppliers 12A 5 7 1 23 51 981 51 966 47 868 Other 12B 22 620 15 088 9 219 8 475 Total payables 7 9 74 3 67 069 61 185 56 343 Total liabilities 383 999 335 254 355 938 315 359 EQUITY Parent equity interest Capital 13 74 513 33 204 74 5 13 33 204 Reserves 13 228 708 267 191 228 708 267 191 Accumulated surplus 13 154 875 195 711 156 400 197 023 Total parent entity interest 458 096 496 106 459 6 2 1 497 418 Total equity 458 096 496 106 459 62 1 497 418 Current liabilities 149 044 196 797 126 3 34 180 467 Non-current liabilities 234 955 138 457 229 604 134 892 Current assets 185 188 181 329 16 1 7 63 166 072 Non-current assets 656 907 650 031 653 7 96 646 705 The above statement should be read in conjunction with the accompanying notes. 122
  • 7. Statement of Cash Flows for the year ended 30 June 2001 Consolidated ABC 2001 2000 2001 2000 Notes $’000 $’000 $’000 $’000 Inflows Inflows (Outflows) (Outflows) OPERATING ACTIVITIES Cash received Appropriations 4 659 167 632 158 622 9 2 1 599 1 58 Sales of goods and services 1 30 920 141 467 92 064 109 808 Interest and bill discounts 1 3 33 1 9 848 1 1 056 8 945 GST recovered from taxation authority 22 475 - 22 32 1 - Total cash received 825 893 783 473 748 362 7 17 9 1 1 Cash used Employees ( 334 845) (334 054) (289 359) (290 780) Suppliers (416 1 73) (311 7 74) (393 643) (292 660) Borrowing costs (15 896) (8 307) (15 896) (8 305) Total cash used (766 914) (654 135) (698 898) (591 745) Net cash from operating activities 14 58 979 129 338 49 464 126 166 INVESTING ACTIVITIES Cash received Proceeds from sale of property, plant and equipment 5B 787 452 778 412 Bills of exchange and promissory notes 28 818 - 27 530 - Total cash received 29 605 452 28 308 412 Cash used Purchase of property, plant and equipment (107 002) (65 564) (106 537) (65 093) Bills of exchange and promissory notes - (42 095) - (40 795) Total cash used (107 002) (107 659) (106 537) (105 888) Net cash from investing activities (77 397) (107 207) (78 229) (105 476) FINANCING ACTIVITIES Cash received Proceeds from loans 100 000 487 100 000 487 Equity appropriation 41 309 33 204 4 1 309 33 204 Total cash received 141 309 33 691 14 1 309 33 691 Cash used Repayments of debt (53 000) - (53 000) - Capital use paid (58 724) (55 568) (58 7 2 4) (55 568) Total cash used ( 1 1 1 72 4) (55 568) ( 1 1 1 7 2 4) (55 568) Net cash from financing activities 29 585 (2 1 87 7) 29 585 (21 877) Net increase (decrease) in cash held 1 1 167 254 820 (1 187) Cash at beginning of reporting period 18 4 25 18 1 7 1 4 067 5 254 Cash at end of reporting period 8A 29 592 18 425 4 887 4 067 The above statement should be read in conjunction with the accompanying notes. 123
  • 8. Schedule of Commitments as at 30 June 2001 Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 B Y TYPE Capital commitments Infrastructure, plant and equipment (1) 2 1 38 8 388 2 1 38 8 37 7 Total capital commitments 2 1 38 8 388 2 1 38 8 37 7 Other commitments Operating leases (2) 31 644 37 071 31 154 36 608 Other (3) 485 009 440 146 478 353 4 28 7 30 Total other commitments 5 1 6 653 47 7 2 1 7 509 507 465 338 Commitments receivable (231 652) (333 768) (231 557) (333 536) Net commitments 287 139 151 837 280 088 140 179 BY MATURITY All net commitments One year or less 1 1 9 042 79 007 1 12 66 1 74 985 From one to five years 15 6 190 72 586 155 520 64 950 Over five years 1 1 9 07 244 1 1 90 7 244 Net commitments 2 8 7 139 151 837 280 088 140 179 Operating lease commitments One year or less 1 4 155 13 066 13 800 12 802 From one to five years 1 7 447 23 749 17 3 1 2 23 550 Over five years 42 256 42 256 Net operating lease commitments 31 644 37 07 1 31 154 36 608 The above schedule should be read in conjunction with the accompanying notes. NB: Commitments are GST inclusive where relevant. 1. Outstanding contractual commitments for capital works primarily associated with the conversion to digital broadcasting. 2. Operating leases included are effectively non-cancellable and comprise: Nature of Lease General description of leasing arrangement Motor vehicles – business and Fully maintained operating lease; lease periods 24/36 months and/or senior executive 40 000/60 000km; no contingent rentals exist; there are no renewal or purchase options available to the Corporation. PC leasing Corporation entered into supply argreement in 1999; 3 year lease on the specific equipment covering hardware, operating system and maintenance of hardware; lease of equipment is for 3 years; equipment returned at end of lease; Corportion has option to extend lease with one months notice. Property leases - office and Lease payments subject to increment increase in accordance with CPI or business premises other agreed increment; initial period of lease range from 1 year to 10 years; Corporation has options to extend in accordance with lease. 3. Other commitments as at 30 June 2001 are covered by an agreement and are associated with provision of transmission services and satellite services, purchase of programs and program rights. 124
  • 9. Schedule of Contingencies Schedule of Contingencies as at 30 June 2001 In the normal course of activities claims for damages have been lodged at the date of this report against the Corporation and certain of its officers. The Corporation has disclaimed liability and is actively defending these actions. It is not possible to estimate the amounts of any eventual payments which may be required in relation to these claims. The Corporation has provided guarantees and indemnity to the Reserve Bank of Australia for $1 950 711 (2000 $2 186 626) in support of 10 (2000 11) Bank Guarantees required in the day to day operations of the Corporation. The above schedule should be read in conjunction with the accompanying notes. 125
  • 10. Notes to and Forming Part of the Financial Statements for the year ended 30 June 2001 1. Statement of Significant Accounting Policies The principal accounting policies adopted in preparing the financial statements of the Australian Broadcasting Corporation (the “Corporation” or “ABC”) and the consolidated financial statements of the Corporation, its controlled entities and the entities it controlled from time to time during the period, are stated to assist in a general understanding of these financial statements. These policies have been applied consistently by all entities in the economic entity. 1.1 Basis of Accounting The financial statements are required by clause 1 (b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 and are a general purpose financial report. They have been prepared in accordance with: • Schedule 1 of the Commonwealth Authorities and Companies (Financial Statements 2000-2001) Orders made by the Finance Minister for the preparation of Financial Statements in relation to financial years ending on or after 30 June 2001; • Australian Accounting Standards and Accounting Interpretations issued by Australian Accounting Standards Boards; • other authoritative pronouncements of the Boards; and • Consensus Views of the Urgent Issues Group. The statements have been prepared having regard to: • Statements of Accounting Concepts; and • the Explanatory Notes to Schedule 1 of the Commonwealth Authorities and Companies (Financial Statements 2000-2001) Orders issued by the Department of Finance and Administration; and • Guidance Notes issued by that Department. The Corporation and Consolidated Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results or on the financial position. Assets and liabilities are recognised in the Corporation and Consolidated Statements of Financial Position when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. Assets and liabilities arising under agreements equally proportionately unperformed are however not recognised unless required by an Accounting Standard. Liabilities and assets which are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies. 126
  • 11. Notes to and Forming Part of the Financial Statements (cont) 1. Statement of Significant Accounting Policies (cont) Revenues and expenses are recognised in the Corporation and Consolidated Statements of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured. 1.2 Rounding Amounts are rounded to the nearest $1,000 except in relation to : remuneration of directors remuneration of officers (other than directors) remuneration of auditors trust funds 1.3 Principles of Consolidation The consolidated financial statements are those of the economic entity, comprising the financial statements of the Australian Broadcasting Corporation, its controlled entities and the entities it controlled from time to time during the period. Controlled entities have annual reporting periods ending 31 December. Accounts of the controlled entities are prepared for the period 1 July 2000 to 30 June 2001 for consolidation using accounting policies which are consistent with those of the Corporation. Control exists where the Australian Broadcasting Corporation has the capacity to dominate the decision making in relation to the financial and operating policies of another entity so the controlled entity operates to achieve the objectives of the Australian Broadcasting Corporation. The effects of all transactions and balances between the entities are eliminated in full. Details of controlled entities are contained in note 22. Financial statements of subsidiaries not considered to be a going concern have been prepared on a liquidation basis. No adjustments were necessary in relation to the recoverability and classification of the recorded assets of those subsidiaries. 1.4 Taxation The Australian Broadcasting Corporation and its primary controlled entities are not subject to income tax pursuant to Section 71 of the Australian Broadcasting Corporation Act 1983. Music Choice Australia Pty Ltd and The News Channel Pty Limited, whilst subject to income tax, have been inactive for the year ended 30 June 2000 and 30 June 2001. The Corporation and controlled entities are subject to fringe benefits tax, payroll tax and goods and services tax. 127
  • 12. Notes to and Forming Part of the Financial Statements (cont) 1. Statement of Significant Accounting Policies (cont) 1.5 Foreign Currency Transactions Revenues and expenditures denominated in foreign currencies are converted to Australian currency at the exchange rates prevailing at the date of the transaction, or at the hedged rate. Exchange gains and losses and hedging costs arising on contracts entered into as hedges of specific revenue or expense transactions are deferred until the date of such transactions at which time they are included in the determination of such revenues or expenses. Open hedge contracts relating to all other revenue and expenditure transactions are converted at the applicable exchange rate at balance date with exchange gains or losses being included in the Statement of Financial Performance. All foreign currency balances are converted to Australian currency at the exchange rate prevailing at balance date, except for liabilities brought to account at contract rates, which are subject to currency swap contracts for which an Australian dollar currency repayment schedule has been adopted. Monetary assets and liabilities of overseas branches and amounts payable to or by the Corporation in foreign currencies are translated into Australian currency at the applicable exchange rate at balance date. Non-monetary items of overseas branches are translated at exchange rates current at the transaction date. 1.6 Derivatives Derivative financial instruments are used by the Corporation to manage financial risks and are not entered into for trading purposes. The classes of derivative financial contracts used are interest rate swaps, forward foreign exchange contracts and foreign exchange. Derivative financial instruments designated as hedges are accounted for on the same basis as the underlying exposure. A. Interest rate swaps and forward rate agreements Interest rate swaps and forward rate agreements are entered into for the purpose of managing the Corporation's interest rate position. Gains or losses on interest rate swaps are included in the measurement of interest payments on the transactions to which they relate. Premiums or discounts are amortised through the Statement of Financial Performance each year over the life of the swap. B. Forward exchange contracts Forward exchange contracts are used to hedge specific and regular occurring foreign exchange payments. Contracts are revalued at year end and the gain or loss is included in the Statement of Financial Performance. C. Foreign exchange options Foreign exchange options are used to hedge specific foreign currency payments. Premiums paid on foreign exchange options are amortised to the Statement of Financial Performance over the life of the contract. 128
  • 13. Notes to and Forming Part of the Financial Statements (cont) 1. Statement of Significant Accounting Policies (cont) 1.7 Borrowings Borrowings are recorded at the amount of the net proceeds received and carried at amortised cost until the liabilities are fully settled. Interest on the instruments is recognised as an expense on an effective yield basis. Borrowings are Commonwealth Government guaranteed. All borrowing costs are expensed as incurred except to the extent that they are directly attributable to qualifying assets, in which case they are capitalised. The amount capitalised in a reporting period does not exceed the costs incurred in that period. 1.8 Cash Cash includes notes and coins held, and any deposits held at call with a bank or financial institution. 1.9 Receivables Receivables are carried at nominal amounts due less provision for doubtful debts. The Corporation makes a specific provision for doubtful debts by conducting a detailed review of material debtors, making an assessment of the probability of recovery of those debts and taking into account past bad debts experience. 1.10 Bills of Exchange and Promissory Notes Premiums or discounts are amortised through the Statement of Financial Performance each year from the date of purchase so that investments attain their redemption value by maturity date and income is recognised on an effective yield basis. Any profits or losses arising from the disposal prior to maturity are taken to the Statement of Financial Performance in the period in which they are realised. These assets are intended to be held to maturity and are carried at cost or cost adjusted for discounts and premiums. 1.11 Trade Creditors Creditors are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods and services have been received (and irrespective of having been invoiced). Settlement is on normal commercial terms. 1.12 Reporting by Outcomes and Segments A comparison of Budget and Actual figures by outcomes specified in the Appropriation Acts relevant to the Corporation is presented in note 23. Any intra-government costs included in the figure “net cost to Budget outcomes” are eliminated in calculating the actual budget outcome for the Government overall. The Corporation principally provides a national television and radio service within the broadcasting industry. It is therefore considered for segmental reporting to operate predominantly in one industry and in one geographical area, Australia. 129
  • 14. Notes to and Forming Part of the Financial Statements (cont) 1. Statement of Significant Accounting Policies (cont) 1.13 Revenue Recognition Revenue from the sale of goods and services is recognised upon the delivery of goods and services to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Credit sales are on normal commercial terms. Revenue from disposal of non-current assets is recognised when control of the asset has passed to the buyer. External contributions earned in respect of the production of television programs are reflected in the Statement of Financial Performance once the program has been broadcast (refer note 1.19). Subsidies, grants, sponsorships and donations are recognised on receipt unless paid to the Corporation for specific purpose where recognition of revenue will be recognised in accordance with the agreement. Recognition of appropriations from the government is discussed in note 1.22. Core operations All material revenue described in this note are revenues relating to the core oper- ating activities of the Corporation and controlled entities. Details of revenue amounts are given in notes 4 and 5. 1.14 Employee Entitlements Leave The liability for employee entitlements includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Corporation and the economic entity is estimated to be less than the annual entitlement for sick leave. The liability for annual leave reflects the value of total annual leave entitlements of all employees at 30 June 2001 and is recognised at its nominal amount. The non-current portion of the liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2001. In determining the present value of the liability, attrition rates and pay increases through promotion and inflation have been taken into account. On-costs relating to annual and long service leave have been included in the provision. 130
  • 15. Notes to and Forming Part of the Financial Statements (cont) 1. Statement of Significant Accounting Policies (cont) Separation and redundancies Provision is made for separation and redundancy payments in cases where positions have been formally identified as excess to requirements, the existence of an excess has been publicly communicated, and a reliable estimate of the amount payable can be determined. Superannuation Employees contribute to the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. Employer contributions amounting to $28 080 557 (1999/2000: $27 380 292) for the Corporation and $31 595 741 (1999/2000: $31 022 700) for the economic entity in relation to these schemes have been expensed in these financial statements. No liability is shown for superannuation in the Statement of Financial Position as the employer contributions fully extinguish the accruing liability which is assumed by the Commonwealth. Employer Superannuation Productivity Benefit contributions totalled $7 381 108 (1999/2000: $6 736 618) for the Corporation and $8 383 419 (1999/2000: $7 919 128) for the economic entity. 1.15 Repairs and Maintenance Maintenance, repair expenses and minor renewals which do not constitute an upgrading or enhancement of equipment are expensed as incurred. 1.16 Acquisition of Assets Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition. 1.17 Infrastructure, Plant and Equipment Asset recognition threshold Purchases of infrastructure, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $2000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). Revaluations Schedule 1 of the Commonwealth Authorities and Companies (Financial Statements 2000-2001) Orders requires that land, buildings, infrastructure, plant and equipment be revalued progressively in accordance with the “deprival” method of valuation in successive three-year cycles, so that no asset has a value greater than three years old. 131
  • 16. Notes to and Forming Part of the Financial Statements (cont) 1. Statement of Significant Accounting Policies (cont) 1.17 Infrastructure, Plant and Equipment (continued) The requirements of Schedule 1 have been implemented as follows: • Freehold land, buildings on freehold land and leasehold improvements are each revalued progressively on a geographical basis. The current cycles commenced in 2000-01 and each of these asset classes were independently revalued during the 2000-01 financial year. • All plant and equipment assets on hand at the commencement of the cycle, including information technology assets (not under operating leases) and furniture and fittings were independently revalued during 2000-01 financial year. • All libraries and archives were independently revalued during the 2000-01 financial year. • Motor vehicles were revalued at directors’ valuation in the 1999-00 financial year and are not due for revaluation until 2002-03. Assets in each class acquired after the commencement of a progressive revaluation cycle are not captured by the progressive revaluation then in progress. In accordance with the deprival methodology, land is measured at its current market buying price. Property other than land, plant and equipment is measured at its depreciated replacement cost. Where assets are held which would not be replaced or are surplus to requirements, measurement is at net realisable value. All valuations are independent or at directors’ valuations. Recoverable Amount Test Schedule 1 requires the application of the recoverable amount test to the Corporation’s non-current assets in accordance with AAS 10 Recoverable Amount of Non-Current Assets. The carrying amounts of these non-current assets have been reviewed to determine whether they are in excess of their recoverable amounts. In assessing recoverable amounts, the relevant cash flows, including the expected cash inflows from future appropriations by the Parliament, have been discounted to their present value. No write-down to recoverable amount has been made in 2000-01. Depreciation and amortisation Depreciable property, plant and equipment assets are written off to their estimated residual values over their estimated useful lives to the Corporation using, in all cases, the straight line method of depreciation. Leasehold improvements are amortised on a straight line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease. Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change in prices only when assets are revalued. 132
  • 17. Notes to and Forming Part of the Financial Statements (cont) 1. Statement of Significant Accounting Policies (cont) 1.17 Infrastructure, Plant and Equipment (continued) Depreciation and amortisation rates applying to each class of depreciable asset are based on the following useful lives: 2001 2000 Buildings on freehold land 50 years 50 years Leasehold land, buildings and improvements Lease term Lease term Plant and equipment 6 - 15 years 6 - 15 years As part of the revaluation of all plant and equipment, the useful lives of all assets were reassessed and in the majority of cases shortened, owing to the effect of technological change and the conversion from analogue to digital. This has accelerated the depreciation on many assets. The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 6C. Asset Write-down A nation-wide stock count of all plant and equipment assets was completed during 2000-01 and a total write-down of $4.3 million received directors approval in May 2001. Of this amount, $1.9 million was provided for in the 1999-2000 financial statements and a further write-down of $2.4 million has been made in 2000-01 as disclosed in note 6D. 1.18 Intangibles The carrying amount of each non-current intangible asset is reviewed to determine whether it is in excess of the asset’s recoverable amount. If an excess exists as at the reporting date, the asset is written down to its recoverable amount immediately. In assessing recoverable amounts, the relevant cash flows, including the expected cash inflows from future appropriations by the Parliament, have been discounted to their present value. No write-down to recoverable amount has been made in 2000-01. Intangible assets such as software, do not require independent valuation and can be recorded at either cost, or at fair value by way of directors’ valuation. A directors’ valuation of the Bananas in Pyjamas intellectual property rights has been done on a discounted cash flow basis during the 2000-01 financial year. Intangible assets are amortised on a straight-line basis over their anticipated useful lives. Useful lives are: 2001 2000 Copyright 5 years 5 years Software 3 –5 years 3 – 5 years The aggregate amount of amortisation allocated for intangible assets during the reporting period is disclosed in Note 6C. 133
  • 18. Notes to and Forming Part of the Financial Statements (cont) 1. Statement of Significant Accounting Policies (cont) 1.19 Inventories Inventories held for resale are valued at the lower of cost or net realisable value. Inventories not held for resale are valued at cost, unless they are no longer required, in which case they are valued at net realisable value. Television programs are produced for domestic transmission and include direct salaries and expenses. Fixed production overheads are expensed in the period in which they are incurred. The cost of television program inventory is amortised as follows: • News, Current Affairs and Live Programs - 100% on first screening. • Children's, Education and Movies - Straight line over the shorter of the license period or three years. • All other programs not covered above - 90% first screening and 10% second screening or in third year. • Programs not shown within three years of completion or purchase to be amortised 100% in year three. • Alternative Amortisation Schedule - Management may determine an alternative amortisation schedule for exceptional programs in any of the above categories for which the stated policy is considered inappropriate. Subsequent sales of residual rights are recognised in the period in which they occur. The costs of programs produced for news, current affairs and radio are expensed as incurred. Such programs are normally broadcast soon after production, stock on hand at any time being minimal. The provision for obsolete retail stock is based on stock on hand over twelve months old and which may require discounting or disposal. Items in engineering and general stores which have not been issued for three years are provided for as obsolete. 1.20 Capital Usage Charge A capital usage charge of 12% is imposed by the Commonwealth on the net assets of the Corporation. The charge is adjusted to take account of asset gifts and revaluation increments during the financial year. 1.21 Leases A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets and operating leases under which the lessor effectively retains substantially all such risks and benefits. Operating lease payments are expensed on a basis which is representative of the pattern of benefits derived from the leased assets. The net present value of future net outlays in respect of surplus space under non-cancellable lease agreements is expensed in the period in which the space becomes surplus. Lease incentives taking the form of “free” leasehold improvements and rent holi- days are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability. 134
  • 19. Notes to and Forming Part of the Financial Statements (cont) 1. Statement of Significant Accounting Policies (cont) 1.22 Appropriations From 1 July 1999, the Commonwealth Budget has been prepared under an accruals framework. Under this framework, Parliament appropriates monies to the Corporation as revenue appropriations, as loan appropriations and as equity injections. Revenue Appropriations Revenues from government are revenues of the core operating activities of the Corporation. Appropriations for outputs are recognised as revenue to the extent they have been received into the Corporation’s bank account or are entitled to be received by the Corporation at year end. Transactions by the Government as owner. Appropriations to the Corporation designated as “capital equity injections” are recognised directly in equity, to the extent that the appropriation has been received into the Corporation’s bank account or are entitled to be received by the Corporation at year end. 1.23 Grants The corporation recognises grant liabilities as follows. Most grant agreements require the grantee to perform services or provide facilities, or to meet eligibility criteria. In these cases, liabilities are recognised only to the extent that the services required have been performed or the eligibility criteria have been satisfied by the grantee. (Where grants money are paid in advance of performance or eligibility, a prepayment is recognised). In cases where grant agreements are made without conditions to be monitored, liabilities are recognised on signing of the agreement. 1.24 Changes in Accounting Policy Changes in accounting policy have been identified in this note under their appropriate headings. 1.25 Comparative Figures Where applicable, prior year comparative figures have been restated to reflect the current year's presentation in the financial statements. 1.26 Reclassification of Financial Information Some line items and subtotals reported in the previous financial year have been reclassified and repositioned in the financial statements as a result of the first time application on 1 July 2000 of the revised standards AAS 1 Statement of Financial Performance, AAS 37 Financial Report Presentation and Disclosures and AAS 36 Statement of Financial Position. A revenue and an expense previously disclosed as abnormal have been reclassified and are shown as individually significant items in Note 2. These items are no longer identified separately on the face of the Statement of Financial Performance. 135
  • 20. Notes to and Forming Part of the Financial Statements (cont) 2. Expenses and Revenues Consolidated ABC 2001 2000 2001 2000 Notes $’000 $’000 $’000 $’000 Expenses from ordinary activities Employee related 6A 329 241 310 8 3 1 284 895 268 825 Artist fees 6B 14 425 14 1 42 6 100 6 680 Auditor's remuneration 6B 320 290 200 230 Bad and doubtful debts 6B 104 16 1 (64) 98 Communications 6B 24 364 15 984 23 601 14 5 16 Computer costs 6B 5 433 4 580 5 175 4 3 17 Consultants and contract labour 6B 13 475 14 909 1 3 005 1 4 138 Depreciation and amortisation 6C 55 531 48 0 1 7 54 904 47 415 Freight 6B 2 258 2 463 1 649 1 664 Borrowing costs 7 12 282 13 373 1 2 282 13 372 Legal costs 6B 2 768 1 618 2 741 1 607 Disposal of non-current assets 5B 1 631 1 034 1 604 1 033 Materials and minor items 6B 15 410 12 755 12 205 1 2 416 Merchandising and promotion 6B 58 799 57 447 52 166 5 1 287 Transmission services 6B 69 453 68 3 1 7 69 453 68 317 Operating leases and occupancy 6B 19 379 16 757 17 691 15 989 Program amortisation 6E 101 652 94 478 101 652 94 478 Program rights 6B 6 992 6 441 6 902 6 147 Repairs, maintenance and hire 6B 20 441 18840 17 466 16 075 Satellite and transmission 6B 1 1 901 1 1 399 11 901 11 399 Travel 6B 15 415 17 7 7 7 13 514 14 947 Video production services 6B 4 454 2 426 3 750 2 426 Incidental 6B 6 756 7 361 3 676 3 689 Write-down of assets 6D 4 275 1 893 4 275 1 932 Payment to controlled entities 6F - - 195 450 Total expenses from ordinary activities 796 759 743 293 720 938 673 447 Revenues from independent sources Co-production contributions 5D 2 897 3 1 15 1 902 2 139 Concert sales and subsidies 5D 1 9 916 18985 - - Net gain on foreign exchange 5C 1 276 787 1 276 787 Proceeds from disposal of non-current assets 5B 787 452 778 412 Interest and bill discounts 5A 1 2 193 10039 11 059 9084 Merchandising 5D 55 780 53 745 55 738 5 3 673 Program sales 5D 6 493 9 644 6 407 9 495 Rent and hire of facilities 5D 1 1 015 7 607 10 590 7 948 Royalties 5D 19 393 17 433 19 341 1 7 408 Sponsorships and donations 5E 6 165 5 273 - - Technology sales 5D 1 474 1 435 1 474 1 435 Incidental 5E 6 173 7 821 5 008 6 605 Total revenues from independent sources 143 562 136 336 1 1 3 57 3 108 986 Total revenues from Government 4A, B, C 668540 643 995 62 2 92 1 599 158 Total revenues from ordinary activities 8 1 2 102 780 331 736 494 708 144 Net operating surplus/deficit from ordinary activities 15 343 37 038 15 556 34 697 3. Economic Dependency The ABC was established in 1932 as the Australian Broadcasting Commission. Since 1983 it has operated under the provisions of the Australian Broadcasting Corporation Act. The Corporation and its controlled entities are dependent upon direct and indirect appropriations of monies by Parliament. In excess of 84% of normal activities are funded in this manner, and without these appropriations the Corporation and its controlled entities would be unable to meet their obligations. (Refer to note 4 for details of revenues from Government). 136
  • 21. Notes to and Forming Part of the Financial Statements (cont) 4. Revenues from Government Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 4A Appropriations (a) 553 652 530 778 553 652 530 778 4B Appropriations - Transmission revenue 69 269 68 380 69 269 68 380 4C Funding from Commonwealth/State Governments for Orchestral Subsidiaries Department of Communications, Information Technology and the Arts 36 246 33 000 - - Other 9 373 1 1 83 7 - - 45 619 44 837 - - Total revenues from Government 668 540 643 995 622 921 599 158 (a) Appropriations from the Government include $61 569 000 (2000 $58 413 000) in respect of capital use charge funding. This amount was repaid to the Government on the 27 June 2001. 5. Revenues from Independent Sources Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 5A Interest Deposits 1 875 1 619 741 756 Bills receivable 10 318 8 420 10 318 8 328 12 193 10 039 11 059 9 084 5B Proceeds and expenses from sales of assets Non-financial assets- Infrastructure, plant and equipment Revenue (proceeds) from sale 787 452 778 412 Expenses from sale 1 631 1 034 1 604 1 033 Gain/(loss) on sale (844) ( 582 ) ( 826 ) ( 621 ) 5C Net foreign exchange gain Non-speculative 1 276 787 1 276 787 1 276 787 1 276 787 5D Sales of goods and services Goods 75 618 73 605 75 618 73 605 Services 41 350 38 359 19 834 18 493 116 968 1 1 1 964 95 452 92 098 Cost of sales of goods 44 571 43 525 44 571 43 525 5E Other revenues Sponsorships and donations 6 165 5 273 - - Subsidies and grants 3 145 - 3 145 863 Writeback of superannuation provision upon settlement - 2 275 - 2 275 Other 3 028 5 546 1 863 3 467 12 338 13 094 5 008 6 605 Total revenue from independent sources 143 562 136 336 113 573 108 986 137
  • 22. Notes to and Forming Part of the Financial Statements (cont) 6. Operating Expenses – Goods and Services Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 6A Employee expenses Basic remuneration for services provided 271 577 267 940 233 333 231 064 Leave entitlements 37 417 39 472 31 819 34 942 Separation and redundancy 20 247 3 419 19 743 2 819 329 241 310 831 284 895 268 825 The Corporation and its controlled entities contribute to the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation (PSS) which provide retirement, death and disability benefits to employees. Contributions to the schemes are at a rate calculated to cover existing and emerging obligations. Current contribution rates are 18.6% (2000 18.6%) of salary (CSS) and 11.5% (2000 11.5%) of salary (PSS). An additional 3% is contributed for employer productivity benefits. 6B Suppliers expenses Supply of goods and services 284 615 266 675 253 599 238 957 Operating lease rentals 7 532 6 992 7 532 6 985 292 147 273 667 261 131 245 942 6C Depreciation and amortisation Depreciation of property, plant and equipment 51 326 43 706 50 699 43 104 Amortisation of intangible assets 4 205 4 311 4 205 4 311 55 531 48 017 54 904 47 415 The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class of depreciable asset are as follows: Buildings 10 037 12 942 9 996 12 942 Leasehold improvements 1 314 783 1 314 754 Infrastructure, plant and equipment 39 976 29 981 39 390 29 408 Software 1 992 1 991 1 992 1 991 Copyright 2 212 2 320 2 212 2 320 55 531 48 017 54 904 47 415 6D Write-down of assets Financial assets Investments - - - 47 Non-financial assets Infrastructure, plant and equipment 4 275 1 893 4 275 1 885 4 275 1 893 4 275 1 932 6E Program Amortisation 101 652 94 478 101 652 94 478 101 652 94 478 101 652 94 478 6F Other Payment to controlled entities - - 195 450 - - 195 450 138
  • 23. Notes to and Forming Part of the Financial Statements (cont) 7. Borrowing Costs Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 Loans 12 282 13 371 12 282 13 371 Other - 2 - 1 Total borrowing costs 12 282 13 373 12 282 13 372 8. Financial Assets 8A Cash Cash at bank and on hand 29 592 18 425 4 887 4 067 29 592 18 425 4 887 4 067 Balance of cash as at 30 June shown in the Statement of Cash Flows 29 592 18 425 4 887 4 067 8B Receivables Goods and services 13 862 10 048 14 544 10 258 Less: Provision for doubtful debts (403) (403) (287) (403) 13 459 9 645 14 257 9 855 Bills of exchange 43 9 75 72 793 43 962 7 1 49 2 GST receivable 3 461 - 3 059 - Other debtors 2 701 2 469 1 633 1 9 17 50 1 3 7 75 262 48 654 7 3 409 Total receivables 63 596 84 907 62 9 1 1 83 2 64 Receivables (gross) which are overdue are aged as follows: Not Overdue 57 104 78 379 5 7 600 79 551 Overdue by: - less than 30 days 2 235 3 657 946 1 518 - 30 to 60 days 1 187 947 1 078 609 - 60 to 90 days 1 038 467 924 408 - more than 90 days 2 750 1 860 2 650 1 581 Total receivables (gross) 64 314 85 310 6 3 198 83 6 67 8C Investments Shares in subsidiaries at cost 22 - - 1 840 1 840 - - 1 840 1 840 8D Accrued revenues 4 851 4 041 4 851 3 065 4 851 4 041 4 851 3 065 139
  • 24. Notes to and Forming Part of the Financial Statements (cont) 9. Non Financial Assets Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 9A Land and buildings Freehold land - Independent valuation 1998 - 80 705 - 80 705 Freehold land - Independent valuation 2001(a) 119 194 - 119 194 - Freehold land - at cost - 5 420 - 5 420 119 194 86 125 119 194 86 125 Building on freehold land - Independent valuation 2000 - 6 186 - 6 186 Accumulated depreciation - (1 973) - (1 973) - 4 213 - 4 213 Building on freehold land - Independent valuation 1998 - 316 738 - 316 738 Accumulated depreciation - (19 057) - (19 057) - 297 681 - 297 681 Building on freehold land - Independent valuation 2001 (a) 407 475 - 407 475 - Accumulated depreciation (199 521) - (199 521) - 207 954 - 207 954 - Buildings on freehold land - at cost 937 10 916 937 10 916 Accumulated depreciation (34) (168) (34) (168) 903 10 748 903 10 748 Leasehold land - Directors' valuation 2000 - 180 - 180 Accumulated depreciation - (14) - (14) - 166 - 166 Leasehold land - Independent valuation 1998 - 1 000 - 1 000 Accumulated depreciation - (40) - (40) - 960 - 960 Leasehold land - Independent valuation 2001 (a) 1 839 - 1 839 - Accumulated depreciation - - - - 1 839 - 1 839 - Leasehold buildings - Directors' valuation 2000 - 1 051 - 1 051 Accumulated depreciation - (113) - (113) - 938 - 938 Leasehold building - Independent valuation 1998 - 1 853 - 1 853 Accumulated depreciation - (74) - (74) - 1 779 - 1 779 Leasehold building - Independent valuation 2001 (a) 7 371 - 7 371 - Accumulated depreciation (4 848) - (4 848) - 2 523 - 2 523 - Leasehold improvements - at cost 8 468 4 822 7 988 4 464 Accumulated depreciation (4 137) (2 538) (3 988) (2 430) 4 331 2 284 4 000 2 034 Leasehold improvements - Independent valuation 2000 4 458 4 458 4 458 4 458 Accumulated depreciation (2 584) (2 297) (2 584) (2 297) 1 874 2 161 1 874 2 161 Total land and buildings 338 618 407 055 338 287 406 805 (a) The revaluations were in accordance with the revaluation policy stated in note 1.17 and were completed by independent valuers Edward Rushton Australia Pty Ltd and McGee Bowen Pty Ltd. Revaluation decrements of $62 676 000 for land, building and leasehold improvements were made to the asset revaluation reserve. 140
  • 25. Notes to and Forming Part of the Financial Statements (cont) 9. Non Financial Assets (cont) Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 9B Infrastructure, plant and equipment Director's valuation 2000 (a) - 1 648 - 1 648 Accumulated depreciation - (1 400) - (1 400) - 248 - 248 Independent valuation 1997 - 20 000 - 20 000 Accumulated depreciation - (4 078) - (4 078) - 15 922 - 15 922 Independent valuation 2001 (a) 469 357 - 469 357 - Accumulated depreciation (339 501) - (339 501) - 129 856 - 129 856 - Independent valuation 1998 - 380 899 - 380 899 Accumulated depreciation - (262 753) - (262 753) - 118 146 - 118 146 At cost 61 413 46 040 57 073 41 958 Accumulated depreciation (4 268) (15 354) (2 491) (13 778) 57 1 45 30 686 54 582 28 180 Plant and equipment (excluding capital works in progress) 187 001 165 002 184 438 162 496 Capital works in progress at cost (b) 114 078 57 831 1 1 4 078 57 831 Total plant and equipment (including capital works in progress) 301 079 222 833 298 516 220 327 (a) The revaluations were in accordance with the revaluation policy stated in note 1.17 and were completed by an independent valuer Edward Rushton Australia Pty Ltd. Revaluation increments of $22 483 000 for infrastructure, plant and equipment were made to the asset revaluation reserve. (b) This amount includes borrowing costs which have been capitalised of $204 387 (2000 $150 189). 9C Intangible assets Computer software - Directors' valuation 1998 2 466 2 466 2 466 2 466 Accumulated amortisation (1 405) (968) (1 405) (968) 1 061 1 498 1 061 1 498 Computer software at cost 7 777 7 804 7 777 7 804 Accumulated amortisation (3 570) (2 016) (3 570) (2 016) 4 207 5 788 4 207 5 788 Copyright - Independent valuation 1998 - 14 500 - 14 500 Accumulated amortisation - (5 220) - (5 220) - 9 280 - 9 280 Copyright - Directors' valuation 2001 (a) 1 1 062 - 1 1 062 - Accumulated amortisation (2 212) - (2 212) - 8 850 - 8 850 - Total intangible assets 14 1 18 16 566 14 1 18 16 566 Total land, buildings, infrastructure, plant and equipment 539 737 588 623 536 843 585 867 and intangibles (excluding capital works in progress) 141
  • 26. Notes to and Forming Part of the Financial Statements (cont) 9. Non Financial Assets (cont) Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 9D Inventories Retail Inventory held for sale 8 466 7 074 8 441 7 044 Provision for stock obsolescence (433) (233) (433) (233) 8 033 6 841 8 008 6 811 Broadcasting consumables Inventory not held for sale (cost) 1 000 1 019 1 000 1 019 TV programs Purchased 23 885 17 915 23 885 1 7 9 15 Produced 30 747 30 306 30 747 30 306 In progress 12 919 12 440 12 919 1 2 440 67 551 60 661 67 551 60 6 6 1 Total inventories 76 584 68 521 76 559 68 491 9E Other non-financial assets Prepaid property rentals - - - - Other prepayments 13 657 7 980 1 3 590 7 320 Deferred interest rate hedging expenditure - 1 0 32 - 1 032 13 657 9 0 12 1 3 590 8 352 (a) The revaluations were in accordance with the revaluation policy stated in note 1.17 and were adopted by the directors. Revaluation increments of $1 782 000 for copyright were made to the revaluation reserve. 142
  • 27. Notes to and Forming Part of the Financial Statements (cont) 9. Non Financial Assets (cont) Table A1 Movement summary 2000-01 for all assets irrespective of valuation basis (Consolidated) Item Land Buildings Total Other Computer Other Total Total land and infrastructure, software intangibles intangibles buildings plant and equipment $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Gross value as at 1 July 2000 87 306 346 023 433 329 448 587 10 270 14 500 24 770 906 686 Additions Acquisition of replacement assests - - - - - - - - Acquisition of new assets - 8 319 8 319 44 672 - - - 52 991 Revaluations 34 091 74 603 108 694 101 684 - (3 438) (3 438) 206 940 Assets transferred in/(out) - - - - - - - - Reclassifications - - - 27 (27) - (27) - Write-offs - - - (45 817) - - - (45 817) Change in accounting policy - - - - - - - - Disposals (364) (236) (600) (18 383) - - - (18 983) Gross value as at 30 June 2001 121 033 428 709 549 742 530 770 10 243 11 062 21 305 1 101 817 Accumulated depreciation / amortisation as at 1 July 2000 54 26 221 26 275 283 585 2 984 5 220 8 204 318 064 Disposals - 12 12 (17 364) - - - (17 352) Depreciation/amortisation - - - - - - - - charge for assets held 24 1 1 3 27 1 1 35 1 39 976 1 992 2 212 4 204 55 531 Adjustment for revaluations (78) 1 73 564 1 73 486 79 1 13 - (5 220) (5 220) 247 379 Assets transferred in/(out) - - - - - - - - Reclassifications - - - 1 (1) - (1) - Write-offs - - - (41 542) - - - (41 542) Adjustment for other movements - - - - - - - - Accumulated depreciation/ amortisation at 30 June 2001 - 21 1 1 24 2 1 1 124 3 4 3 7 69 4 975 2 212 7 187 562 080 Net book value at 30 June 2001 1 21 033 2 1 7 585 338 618 1 8 7 00 1 5 2 68 8 850 1 4 1 18 539 7 3 7 Net book value at 1 July 2000 87 252 319 802 407 054 1 65 002 7 286 9 280 1 6 566 588 6 2 2 Net revaluation increments/decrements in the table above comprise: • For land – net revaluation increment of $34 169 000 • For building on freehold land – a net decrement of $98 961 000 • For other infrastructure, plant and equipment – net increment of $22 571 000 • For other intangibles – net increment of $1 782 000 Table B Summary of balance of assets at valuation as at 30 June 2001 (Consolidated) Item Land Buildings Total Other Computer Other Total Total land and infrastructure, software intangibles intangibles buildings plant and equipment $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 As at 30 June 2001 Gross value 121 0 33 419 304 540 337 469 357 2 466 11 063 13 529 1 023 223 Accumulated depreciation/ amortisation - (206 666) (206 666) (339 499) (1 405) (2 213) (3 618) (549 783) Net book value 121 0 33 212 638 333 67 1 129 858 1 061 8 850 9 911 473 440 As at 30 June 2000 Gross value 81 885 330 286 412 171 402 547 2 466 14 500 16 966 831 684 Accumulated depreciation/ amortisation (54) (23 514) (23 568) (268 231) (968) (5 220) (6 188) (297 987) Net book value 81 831 306 772 388 603 134 316 1 498 9 280 10 778 533 697 143
  • 28. Notes to and Forming Part of the Financial Statements (cont) 9. Non Financial Assets (cont) Table A2 Movement summary 2000-01 for all assets irrespective of valuation basis. (ABC) Item Land Buildings Total Other Computer Other Total Total land and infrastructure, software intangibles intangibles buildings plant and equipment $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Gross value as at 1 July 2000 87 306 345 665 432 971 444 674 10 270 14500 24 770 902 415 Additions Acquisition of replacement assests - - - - - - - - Acquisition of new assets - 8 197 8 197 43 950 - - - 52 147 Revaluations 34091 74603 108 694 101 684 - (3 438) (3 438) 206 940 Assets transferred in/(out) - - - - - - - - Reclassifications - - - 27 (27) - (27) - Write-offs - - - (45 817) - - - (45 817) Change in accounting policy - - - - - - - - Disposals (364) (236) (600) (18 088) - - - (18 688) Gross value as at 30 June 2001 121 033 428 229 549 262 526 430 10 243 11 062 21 305 1096 997 Accumulated depreciation / amortisation as at 1 July 2000 54 26 113 26 167 282 126 2 984 5 220 8 204 316 497 Disposals - 12 12 (17 096) - - - (17 084) Depreciation/amortisation - - - - - - - - Charge for assets held 24 11 286 11 310 39 390 1 992 2 212 4 204 54 904 Adjustment for revaluations (78) 173 564 173 486 79 1 13 - (5 220) (5 220) 247 379 Assets transferred in/(out) - - - - - - - - Reclassifications - - - 1 (1) - (1) - Write-offs - - - (41 542) - - - (41 542) Change in accounting policy - - - - - - - - Adjustment for other movements - - - - - - - - Accumulated depreciation/ amortisation at 30 June 2001 - 210 975 210 975 341 992 4 975 2 212 7 187 560 154 Net book value at 30 June 2001 121 033 217 254 338 287 184 438 5 268 8 850 14 118 536 843 Net book value at 1 July 2000 87 252 319 552 406 804 162 548 7 286 9280 16 566 585 918 Net revaluation increments/decrements in the table above comprise: • For land – net revaluation increment of $34 169 000 • For building on freehold land – a net decrement of $98 961 000 • For other infrastructure, plant and equipment – net increment of $22 571 000 • For other intangibles – net increment of $1 782 000 144
  • 29. Notes to and Forming Part of the Financial Statements (cont) 10. Interest Bearing Liabilities Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 10A Loans Loans (a) 140 000 40 000 140 000 40 000 Bonds - maturity value $53 000 000 - 5 2 966 - 52 966 Inscribed stock 50 000 50 000 50 000 50 000 190 000 14 2 966 190 000 142 966 (a) Of this amount, $40 million are repayable in Japanese Yen. Currency swap contracts have been undertaken to effectively remove the currency risk associated with these loans. Maturity schedule for loans: Payable within one year - 52 966 - 52 966 Payable within one to two years 50 000 - 50 000 - Payable within two to five years 89 000 90 000 89 000 90 000 Payable more than five years 51 000 - 51 000 - Total Loans 190 000 14 2 966 190 000 142 966 11. Provisions Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 11A Employees Salaries and wages 15 284 20 674 14 440 19 55 6 Annual leave 4 2 797 43 17 7 41 057 4 1 5 45 Long service leave 54 445 59 2 19 47 667 5 2 93 3 Superannuation 1 515 42 1 395 - Workers' compensation 21 3 - - Separation and redundancy 194 2 104 194 2 01 6 Aggregate employee entitlement liability 1 1 4 256 1 2 5 219 1 04 753 1 1 6 050 12. Payables Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 12A Suppliers Trade creditors 52 852 48 625 49 579 44 655 Other creditors 4 271 3 356 2 387 3 213 57 123 51 981 51 966 47 868 12B Other Interest payable 498 2 091 498 2 091 Unearned revenue 22 122 12 997 8 721 6 384 22 620 15 088 9 219 8 475 Total Payables 79 743 67 069 61 185 56 343 145
  • 30. Notes to and Forming Part of the Financial Statements (cont) 13. Equity Consolidated Item Capital Accumulated Asset Total results revaluation equity reserve 2001 2000 2001 2000 2001 2000 2001 2000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance as at 1 July 33 204 - 195 711 2 1 4 2 4 1 267 191 261 984 496 106 476 225 Operating results - - 15 343 37 038 - - 15 343 37 038 Net revaluation increase/(decreases) - - - - (38 483) 5 207 (38 483) 5 207 Equity appropriation: capital 41 309 33 204 - - - - 41 309 33 204 Capital Use Charge - - (56 179) (55 568) - - (56 179) (55 568) Closing balance as at 30 June 74 513 33 204 154 875 195 71 1 228 708 267 191 458 096 496 106 ABC Item Capital Accumulated Asset Total results revaluation equity reserve 2001 2000 2001 2000 2001 2000 2001 2000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening balance as at 1 July 33 204 - 197 023 2 1 7 894 267 191 261 984 497 418 479 878 Operating results - - 15 556 34 697 - - 15 556 34 697 Net revaluation increase/(decreases) - - - - (38 483) 5 207 (38 483) 5 207 Equity appropriation: capital 41 309 33 204 - - - - 41 309 33 204 Capital Use Charge - - (56 179) (55 568) - - (56 179) (55 568) Closing balance as at 30 June 74 513 33 204 156 400 197 023 228 708 267 191 459 621 497 418 (a) $17.1 million ($29.1 million 1999/2000) of the ABC’s on-going base funding is included in the equity injection of capital ($41.3 million 2000/01, $33.2 million 1999/2000) on the advice of the Department of Finance and Administration. This amount is applied to meet debt financing arrangements relating predominantly to the purpose built facilities in the Ultimo and Southbank complexes. From 2001/02 onwards, this funding will be appropriated to the ABC as revenue. The remaining amount of $4.2 million is an equity injection provided to assist in the conversion to digital television, announced in the 1998/99 Budget. 146
  • 31. Notes to and Forming Part of the Financial Statements (cont) 14. Cash Flow Reconciliation Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 Net operating surplus from ordinary activities 15 343 37 038 15 556 34 697 Capital use provided (56 179) (55 568) (56 1 79) (55 568) Depreciation of fixed assets 51 326 43 706 50 699 43 104 Amortisation of intangibles 4 205 4 311 4 205 4 31 1 Amortisation of program purchases 101 652 94 478 101 652 94 478 Transfer to/from provisions - employee entitlements (10 963) 17 525 (11 297) 1 7 036 -doubtful debts (69) 98 (69) 98 Transfer to provision - asset write-down - 1 893 - 1 932 Write down of assets 4 275 - 4 275 - (Profit)/loss on disposal of property, infrastructure, 844 582 826 621 plant and equipment Changes in assets and liabilities Increase/(decrease) in receivables (7 438) 5 559 (7 108) 6 205 Increase/(decrease) in other current assets (5 455) 9 957 (7 024) 10 362 Increase/(decrease) in inventories (109 715) (105 431) (109 720) (105 401) (Increase)/decrease in creditors 63 62 1 70 348 62 904 76 101 (Increase)/decrease in provisions/ liabilities 7 532 4 842 744 (1 810) Net cash flows provided by operating activities 58 979 129 338 49 464 126 166 15. External Financing Arrangements Consolidated ABC 2001 2000 2001 2000 $’000 $’000 $’000 $’000 Total facility (a) 1 000 1 500 1 000 1 000 Amount of facility used - - - - Facility available 1 000 1 500 1 000 1 000 (a) ABC facility is held with Reserve Bank of Australia, subsidiary facility held with Commonwealth Bank of Australia. 147
  • 32. Notes to and Forming Part of the Financial Statements (cont) 16. Financial Instruments (Consolidated) Floating 1 Year 1 to 2 2 to 5 More Non Total Weighted Interest or less Years Years than 5 Interest Average A. Interest Rate Risk Rate Years Bearing Interest Note $’000 $’000 $’000 $’000 $’000 $’000 $’000 Rate 2001 Financial Assets (Recognised) Cash at bank and on hand 8A 29 592 - - - - - 29 592 3.90% Receivables Goods and Services 8B - - - - - 13 459 13 459 N/A Accrued Revenues 8D - - - - - 4 851 4 851 N/A Other Debtors 8B - - - - - 6 162 6 162 N/A Bills of Exchange 8B 43 975 - - - - - 43 975 5.12% Total Financial Assets 73 567 - - - - 24 472 98 039 Total Assets 842 095 Financial Liabilities (Recognised) Debt Loans - Long Term Borrowings 10A - 50 000 89 000 51 000 - 190 000 6.46% Provisions and Payables Suppliers 12A/B - - - - - 79 743 79 743 N/A Total Financial Liabilities - - 50 000 89 000 51 000 79 743 269 743 Total Liabilities 383 999 Financial Liabilities (Unrecognised) Interest Rate Swap (10 000) - 50 000 (40 000) - - - N/A# 2000 Financial Assets (Recognised) Cash at bank and on hand 8A 18 425 - - - - - 18 425 4.90% Receivables Goods and Services 8B - - - - - 9 645 9 645 N/A Accrued Revenues 8D - - - - - 4 041 4 041 N/A Other Debtors 8B - - - - - 2 469 2 469 N/A Bills of Exchange 8B 72 793 - - - - - 72 793 6.21% Total Financial Assets 91 218 - - - - 16 155 107 373 Total Assets 831 360 Financial Liabilities (Recognised) Debt Loans - Long Term Borrowings 10A - 52 966 - 90 000 - - 142 966 8.57% Provisions and Payables Suppliers 12A/B - - - - - 67 069 67 069 N/A Total Financial Liabilities - 52 966 - 90 000 - 67 069 210 035 Total Liabilities 335 254 Financial Liabilities (Unrecognised) Interest Rate Swap (Notional principal amounts only) 15 000 25 000 - (40 000) - - - N/A #The interest rates under these swaps range from the bank bill swap reference rate (BBSW) less 10 basis points and 4.84% on payables and BBSW and 4.40% on receivables. BBSW rates are reset at 90 days. 148
  • 33. Notes to and Forming Part of the Financial Statements (cont) 16. Financial Instruments (Consolidated) (cont) B. Net Fair Values of Financial Assets and Liabilities The following methods and assumptions were used to estimate the net fair values. Cash, receivables, payables and short term borrowings The carrying amount approximates the net fair value because of the short term maturity. Investments The carrying amount for non traded instruments has been assessed by the directors based on the underlying net assets, expected cash flows and any particular special circumstances of the investee as approximating net fair values. Long term borrowings The net fair values of long term borrowings are estimated using discounted cash flow analysis, based on current borrowing rates for similar types of borrowing arrangements. Interest rate swaps and cross currency swap agreements The net fair values of unrecognised financial instruments reflect the estimated amounts the economic entity expects to pay or receive to terminate the contracts (net of transaction costs) or to replace the contracts at their current market rates as at the reporting date. This is based on independent market quotations and using standard valuation techniques. Forward exchange contracts The net fair values of forward exchange contracts is taken to be the unrealised gain or loss at balance date calculated by reference to current forward exchange rates for contracts with similar maturity profiles. Carrying Amount Net Fair Value 2001 2000 2001 2000 $’000 $’000 $’000 $’000 Financial Assets Swap agreements - - 14 104 14 531 Foreign exchange contracts 628 76 852 66 Financial Liabilities Long term borrowings (loans) 190 000 142 966 204 262 160 044 149
  • 34. Notes to and Forming Part of the Financial Statements (cont) 16. Financial Instruments (Consolidated) (cont) C. Credit Risk Exposures Credit risk represents the loss that would be recognised if counterparties to financial instruments fail to perform as contracted. Financial Assets The economic entity's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount, net of provision for doubtful debts, of those assets as indicated in the Statement of Financial Position. Items not recognised in the Statement of Financial Position The credit risk arising from dealings in financial instruments is controlled by a strict policy of credit approvals, limits and monitoring procedures. The economic entity has no material concentration of credit risk with any single counterparty and, as a matter of policy, only transacts with financial institutions that have a high credit rating. Credit exposure of foreign currency and interest rate derivatives is represented by the net fair value of the contracts, as disclosed. D. Hedging Instruments Specific Hedges The net unrecognised gain of $224 061 (2000 unrecognised loss $10 348) on specific hedges of anticipated foreign currency purchases will be recognised at the date of the underlying transactions. General Hedges At balance date, the Corporation held forward exchange contracts to buy United States Dollars (USD), Great British Pounds (GBP) and the Euro (EUR). The following table sets out the gross value to be received under foreign currency contracts, the weighted average contracted exchange rates and the settlement periods of outstanding contracts for the economic entity. Sell Australian Dollars Average Exchange Rate 2001 2000 2001 2000 $’000 $’000 Buy USD Less than 1 year 3 380 3 390 0.5642 0.6 2 7 2 Greater than 1 year - 303 - 0.6600 Buy GBP Less than 1 year 1 082 3 747 0.3803 0.3864 Buy EUR Less than 1 year 1 766 1 071 0.5863 0.6387 150
  • 35. Notes to and Forming Part of the Financial Statements (cont) 17. Remuneration of Directors ABC 2001 2000 $ $ Remuneration received or due and receivable by directors of the Corporation. 869 351 789 631 The number of directors of the Corporation included in these figures are shown below in the relevant remuneration bands: Number Number $Nil - $9 999 1 2 $10 000 - $19 999 2 2 $20 000 - $29 999 4 5 $30 000 - $39 999 1 1 $80 000 - $89 999 - 1 $90 000 - $99 999 1 1 $430 000 - $439 999 - 1 $600 000 - $610 999 1 - Remuneration received or due and receivable by directors of the Corporation and Controlled Entities as detailed in note 22 is $2 233 754 (2000 $2 150 392). Directors’ remuneration for 2001 includes the reimbursement of relocation expenses. 18. Related Party Disclosures Directors of the Corporation The Directors of the Corporation during the year were: • Donald McDonald (Chairman) • Jonathan Shier (Managing Director) • Russell Bate (Retired 19 December 2000) • Leith Boully (Appointed Director 11 October 2000) • John Gallagher QC • Ian Henschke • Michael Kroger • Ross McLean • Maurice Newman (Appointed Director 20 December 2000) • Judith Sloan The aggregate remuneration of Directors is disclosed in note 17. 151
  • 36. Notes to and Forming Part of the Financial Statements (cont) 18. Related Party Disclosures (cont) Controlled entities Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Symphony Australia Holdings Pty Limited The company is a wholly owned subsidiary of the Corporation. Symphony Australia Holdings Pty Limited issued 6 shares at a value of $30 to the Corporation in 1997 with a further 464 804 shares issued to the Corporation during the 1999/2000 financial year. During the period the Corporation provided goods and services to Symphony Australia Holdings Pty Limited on normal terms and conditions totalling $455 659 (2000 $445 142). At year end the Corporation was owed $281 088 (2000 $181 374) in relation to the supply of these goods and services. At year end the Corporation owed Symphony Australia Holdings Pty Limited an amount of $18 858 (2000 $192 868) in relation to long service leave for staff at incorporation. Adelaide Symphony Orchestra Pty Limited During the year the Corporation provided goods and services to Adelaide Symphony Orchestra Pty Limited on normal terms and conditions totalling $180 114 (2000 $209 838). At year end the Corporation was owed $154 453 (2000 $277 960) in relation to the supply of these goods and services. At year end the Corporation owed Adelaide Symphony Orchestra Holdings Pty Limited an amount of $25 837 (2000 $46 969) in relation to long service leave for staff at incorporation. Melbourne Symphony Orchestra Pty Limited During the period the Corporation provided goods and services to Melbourne Symphony Orchestra Pty Limited on normal terms and conditions totalling $178 072 (2000 $231 183). At year end the Corporation is owed $51 181 (2000 $28 574) for these goods and services. At year end the Corporation owed Melbourne Symphony Orchestra Pty Limited an amount of $45 377 (2000 $69 280) in relation to long service leave for staff at incorporation. Orchestral Network Australia Pty Limited The company is a wholly owned subsidiary of the Corporation. Orchestral Network Australia Pty Limited issued 2 shares to the Corporation during the 1999 /2000 financial year. Queensland Orchestras Pty Limited The company became a wholly owned subsidiary of the Corporation during the financial year. Queensland Orchestras Pty Limited issued 2 shares with a value of $2 to the Corporation. During the year the Corporation provided goods and services to Queensland Orchestras Pty Limited on normal terms and conditions totalling $50 256. At year end the Corporation was owed $52 176 in relation to the supply of these goods and services. At year end the Corporation owed Queensland Orchestras Pty Limited $63 821 for long service leave for staff at incorporation. 152
  • 37. Notes to and Forming Part of the Financial Statements (cont) 18. Related Party Disclosures (cont) Sydney Symphony Orchestra Holdings Pty Limited During the period the Corporation provided goods and services on normal terms and conditions totalling $87 746 (2000 $89 134). At year end Sydney Symphony Orchestra Holdings Pty Limited owed the Corporation $266 604 (2000 $145 399). At year end the Corporation owed Sydney Symphony Orchestra Holdings Pty Limited $186 869 (2000 $186 869) for long service leave for staff at incorporation. Tasmanian Symphony Orchestra Pty Limited The company became a wholly owned subsidiary of the Corporation on the 1 October 1999. Tasmanian Symphony Orchestra Pty Limited issued 222 372 shares with a value of $175 214 to the Corporation. During the year the Corporation provided goods and services to Tasmanian Symphony Orchestra Pty Limited on normal terms and conditions totalling $98 690 (2000 $61 867). At year end the Corporation was owed $86 642 (2000 $51 893) in relation to the supply of these goods and services. At year end the Corporation owed Tasmanian Symphony Orchestra Pty Limited $30 199 (2000 $119 979) for long service leave for staff at incorporation. West Australian Symphony Orchestra Holdings Pty Limited During the period the Corporation provided goods and services to West Australian Symphony Orchestra Holdings Pty Limited on normal terms and conditions totalling $159 452 (2000 $156 336). At year end the Corporation was owed $131 880 (2000 $104 464) in relation to the supply of these goods and services. At year end the Corporation owed West Australian Symphony Orchestra Holdings Pty Limited an amount of $105 148 (2000 $106 182) in relation to long service leave for staff at incorporation. Music Choice Australia Pty Limited and The News Channel Pty Limited The companies are wholly owned subsidiaries of the Corporation that did not trade during the 2000/2001 financial year. AIM West Pty/Equipco Australia Pty Limited/AIM Holdings Australia Pty Limited During the 1998/99 financial year, AIM West Pty, Equipco Australia Pty Limited, AIM Holdings Australia Pty Limited were placed in voluntary liquidation. These companies are in the process of being deregistered. Arnbridge Pty Limited During the financial year ended 30 June 1999, Arnbridge Pty Limited was placed into voluntary liquidation. This company is in the process of being deregistered. Australian Information Media Pty Limited During the 1998/99 financial year, Australian Information Media Pty Limited was placed into voluntary liquidation. This company is in the process of being deregistered. 153
  • 38. Notes to and Forming Part of the Financial Statements (cont) 19. Remuneration of Officers Consolidated ABC 2001 2000 2001 2000 $ $ $ $ The aggregate amount of total remuneration of Officers shown is: 2 987 400 2 367 174 3 249 278 2 597 812 The number of officers included in these figures are shown below in the relevant income bands 2001 2000 2001 2000 Number Number Number Number $130 000 - $139 999 1 - 1 - $150 000 - $159 999 - 1 - 1 $160 000 - $169 999 1 - 1 - $180 000 - $189 999 1 1 1 1 $190 000 - $199 999 - 2 - 2 $210 000 - $219 999 - 1 - 1 $220 000 - $229 999 1 - 1 - $230 000 - $239 999 1 - 1 1 $240 000 - $249 999 1 - 1 - $250 000 - $259 999 2 - 2 - $260 000 - $269 999 - - 1 - $270 000 - $279 999 1 - 1 - $280 000 - $289 999 2 - 2 - $430 000 - $439 999 1 - 1 - $570 000 - $579 999 - 1 - 1 $860 000 - $869 999 - 1 - 1 The officer remuneration includes all officers concerned with or taking part in the management of the Corporation during 2000-01 except the Managing Director. Details in relation to the Managing Director have been incorporated into note 17-Remuneration of Directors. Consolidated remuneration excludes officers of the principal entity who are Directors in the wholly owned group. Details in relation to the officers have been incorporated into note 17 - Remuneration of Directors. Consolidated remuneration includes termination payable of $425 181 (2000 $973 762). 154
  • 39. Notes to and Forming Part of the Financial Statements (cont) 20. Remuneration of Auditors Consolidated ABC 2001 2000 2001 2000 $ $ $ $ Remuneration to the Auditor-General for auditing the financial statements for reporting period. 257 000 266 000 203 000 205 000 Total amount payable to the Australian National Audit Office for the audit of the Corporation and controlled entities financial statements. No other services were provided by the Auditor–General during the reporting period. 21. Trust Funds 2001 2000 2001 2000 $ $ $ $ The Corporation is trustee for foundations Ian Reed Sir Charles Moses with accumulated funds at 30 June as follows: Foundation Foundation Revenues 23 578 27 059 3 3 Expenses (25 587) (11 484) - - Surplus/(deficit) for year (2 009) 15 575 3 3 Fund opening balance 446 253 430 678 3 187 3 184 Fund closing balance 444 244 446 253 3 190 3 187 Monies were received under formal trust arrangements. These trusts are independently managed in accordance with the terms of the trusts and the funds are held in authorised trustee investments. These funds are not available for other purposes of the Corporation and are not recognised in the financial statements. 155
  • 40. Notes to and Forming Part of the Financial Statements (cont) 22. Controlled Entities During the year the Corporation had fifteen 100% owned controlled entities, all incorporated in Australia. Beneficial Beneficial percentage percentage held by held by economic economic entity entity 2001 2000 % % Chief Entity: Australian Broadcasting Corporation Controlled entities of Australian Broadcasting Corporation Adelaide Symphony Orchestra Pty Limited 100% 100% Melbourne Symphony Orchestra Pty Limited 100% 100% Queensland Orchestras Pty Limited 100% 100% Sydney Symphony Orchestra Holdings Pty Limited 100% 100% Symphony Australia Holdings Pty Limited 100% 100% Tasmanian Symphony Orchestra Pty Limited 100% 100% West Australian Symphony Orchestra 100% 100% Holdings Pty Limited Orchestral Network Australia Pty Limited 100% 100% Music Choice Australia Pty Limited 100% 100% The News Channel Pty Limited 100% 100% AIM Holdings Australia Pty Limited (a) 100% 100% AIM West Pty (a) 100% 100% Arnbridge Pty Limited (a) 100% 100% Australian Information Media Pty Limited (a) 100% 100% Equipco Australia Pty Limited (a) 100% 100% (a) Entities placed into voluntary liquidation during the 1998/1999 financial year. 156
  • 41. Notes to and Forming Part of the Financial Statements (cont) 23. Reporting by Outcomes The Corporation is structured to meet two outcomes: Outcome 1 The ABC will create and deliver distinctive programming and services; inform, entertain and educate its audiences; and develop cultural and community identity. Outcome 2 The ABC will maintain the scale and quality of analog terrestrial transmission of its national networks, regional networks and Radio Australia programming which existed immediately prior to the privatisation of the NTN. Table A Reporting by Outcomes for 2000-2001 Outcome 1 Outcome 2 Total Budget Actual Budget Actual Budget Actual $’000 $’000 $’000 $’000 $’000 $’000 Total net administered expenses - - - - - - Add: Net Cost of entity outputs 553 652 594 398 69 269 69 146 622 921 663 544 Cost outcome before extraordinary item 553 652 594 398 69 269 69 146 622 921 663 544 Extraordinary items - - - - - - Net Cost to Budget Outcome 553 652 594 398 69 269 69 146 622 921 663 544 Outcome specific assets 864 019 815 559 864 019 815 559 Assets that are not outcome specific - - NB The Net Cost to Budget Outcome shown includes intra government costs that are eliminated in calculating the overall Budget Outcome. The above note and table apply to the ABC’s appropriation only and not to the consolidated entity. 24. Subsequent Events On 4 July 2001, the Supreme Court of Victoria ordered the ABC to pay R Clarke the sum of $710 700 and to Runaway Bay Centre Pty Limited the sum of $386 250 in damages for defamation payable within 30 days. The financial effect of this payment has been reflected in the accounts as at 30 June 2001. The ABC is appealing this decision. 157
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