2009-10 Annual Report - Australia Post

More documents

Recommendations

Info

notes to And ForminG PArt oF the FinAnCiAl rePort For the year ended 30 June 2010 When the recoverable amount of the cash-generating unit (group of cash-generating units) is less than the carrying amount, an impairment loss is recognised. When goodwill forms part of a cash-generating unit (group of cash-generating units) and an operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this manner is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained. impairment losses recognised for goodwill are not subsequently reversed. (y) intangible assets intangible assets acquired separately or in a business combination are initially measured at cost. the cost of an intangible asset acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is recognised in profit and loss in the year in which the expenditure is incurred. the useful lives of intangible assets are assessed to be either finite or indefinite. intangible assets with finite lives are amortised over their useful life and tested for impairment whenever there is an indication that the intangible asset may be impaired. the amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for prospectively by changing the amortisation period or method, as appropriate, which is a change in accounting estimate. the amortisation expense on intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the function of the intangible asset. intangible assets with indefinite useful lives are tested for impairment annually either individually or at the cash-generating unit level consistent with the methodology outlined for goodwill above. such intangibles are not amortised. the useful life of an intangible asset with an indefinite life is reviewed each reporting period to determine whether indefinite life assessment continues to be supportable. if not, the change in the useful life assessment from indefinite to finite is accounted for as a change in an accounting estimate and is thus accounted for on a prospective basis. computer software is carried at cost and is amortised on a straight-line basis over its anticipated useful life, being four to eight years. research and development costs research costs are expensed as incurred. an intangible asset arising from development expenditure on an internal project is recognised only when the group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the development and the ability to measure reliably the expenditure attributable to the intangible asset during its development. Following the initial recognition of the development expenditure, the cost model is applied requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. any expenditure so capitalised is amortised over the period of expected benefits from the related project. 56 AustrAliA Post AnnuAl rePort 2009–10 | Financial and statutory reports the carrying value of an intangible asset arising from development expenditure is tested for impairment annually when the asset is not yet available for use or more frequently when an indication of impairment arises during the reporting period. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when the asset is derecognised. (z) impairment of non-financial assets (other than goodwill and indefinite life intangibles) the group assesses at each reporting date whether there is an indication that an asset may be impaired. if any such indication exists or when annual impairment testing for an asset is required, the group makes an estimate of the asset’s recoverable amount. an asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset’s value in use cannot be estimated to be close to its fair value. in such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. in assessing value in use, the estimated future cashflows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease). an assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. if such indication exists, the recoverable amount is estimated. a previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. if that is the case, the carrying amount of the asset is increased to its recoverable amount. that increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. such reversal is recognised in profit or loss, unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase. after such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. (aa) trade and other payables trade and other payables are carried at amortised cost and due to their short-term nature they are not discounted. they represent liabilities for goods and services provided to the group before the end of the financial year that are unpaid and arise when the group becomes obliged to make future payments in respect of the purchase of these goods and services.
(bb) interest-bearing liabilities all borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. after initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using the effective interest method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying amount of borrowings. Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. (cc) Finance costs Finance costs directly attributable to the acquisition, construction or production of a qualifying asset (that is, an asset that necessarily takes a substantial period of time to get ready for its intended use or sale) are capitalised as part of the cost of that asset. the group does not currently hold qualifying assets. all other borrowing costs are expensed in the period in which they occur. Finance costs consist of interest and other costs that an entity incurs in connection with the borrowings of funds. (dd) Provisions (excluding employee benefits) provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the group expects some or all of a provision to be reimbursed – for example, under an insurance contract – the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. the expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement. provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. the discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a financing cost. (ee) employee leave benefits (i) wages, salaries, annual leave and sick leave liabilities for wages and salaries (including non-monetary benefits), expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services up to the reporting date. liabilities for annual leave where the corporation does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date are recognised in current provisions at the amounts expected to be paid when the liabilities are settled. no liability is recognised for sick leave as benefits lapse with termination of employment and experience indicates that the pattern of sick leave taken is less than the entitlement accumulating. (ii) long service leave the liability for long service leave is recognised and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows. (iii) workers’ compensation the corporation is a licence holder under the Safety, Rehabilitation and Compensation Act 1988 (src act). the corporation self-insures its liability for workers’ compensation. claims are recognised in the financial statements and measured by the discounted value of an annuity. the adequacy of the provision is established by reference to the work of an actuary as at balance date, with the estimate of present value taking into account pay increases, attrition rates, interest rates and the time over which settlement is made. in accordance with its src act licensing conditions, the corporation has a bank guarantee to cover its outstanding actuarial established claims liability (see schedule of contingencies). the corporation also complies with a requirement to maintain reinsurance to limit its workers’ compensation liabilities. the corporation has recognised a liability for workers’ compensation of $106.7 million at balance date (refer note 20) of which $8.7 million relates to claims made in the 2009–10 financial year (2008–09: $7.8 million). (iv) separation and redundancy a liability is recognised for separation and redundancy benefit payments for ongoing major restructuring only where the corporation is demonstrably committed to the restructuring and the cost can be reliably measured (refer note 20). Generally such assessments do not exceed the certainty of initiatives planned for the following year. (ff) Pensions and other post-employment benefits the defined benefit plan requires contributions to be made to a separately administered fund. the cost of providing benefits under the defined benefit plan is determined using the projected unit credit actuarial valuation method. actuarial gains and losses are recognised in retained earnings. past service costs are recognised immediately to the extent that the benefits are already vested, and otherwise are amortised on a straight-line basis over the average period until the benefits become vested. the defined benefit asset or liability recognised in the balance sheet represents the present value of the defined benefit obligation, adjusted for unrecognised past service cost, net of the fair value of the plan assets. any asset resulting from this calculation is limited to past service costs plus the present value of available refunds and reductions in future contributions to the plan. AustrAliA Post AnnuAl rePort 2009–10 | Financial and statutory reports 57
Page 1:
gETTing fuTuRE REAdY AuSTRAliA PoST
Page 4 and 5:
AUSTRALIA POST HAS ALWAYS BEEN IN T
Page 6 and 7:
OUR BUSINESS OUR CAPABILITIES AND B
Page 8 and 9: OUR BUSINESS THE YEAR IN REVIEW 6 A
Page 10 and 11: OUR BUSINESS CHAIRMAN’S REPORT Da
Page 12 and 13: OUR BUSINESS FINANCIAL REPORT Perfo
Page 14 and 15: our Business Key Business results O
Page 16 and 17: CORE BUSINESSES In 2009-10, our 4,4
Page 18 and 19: CORE BUSINESSES LETTERS & ASSOCIATE
Page 20 and 21: CORE BUSINESSES AGENCY SERVICES & R
Page 22 and 23: core Businesses aGenCY seRViCes & R
Page 24 and 25: CORE BUSINESSES PARCELS & LOGISTICS
Page 30 and 31: CORPORATE RESPONSIBILITY Some key r
Page 32 and 33: CorPorAte governAnCe General austra
Page 34 and 35: CorPorAte governAnCe incentive rewa
Page 36 and 37: BOARD OF DIRECTORS David A Mortimer
Page 38 and 39: FINANCIAL AND STATUTORY REPORTS 36
Page 40 and 41: FinAnCiAl And stAtutory rePorts for
Page 42 and 43: FinAnCiAl stAtements Audit rePort f
Page 44 and 45: stAtement oF ComPrehensive inCome f
Page 46 and 47: CAshFlow stAtement for the year end
Page 48 and 49: sChedule oF Commitments as at 30 Ju
Page 50 and 51: notes to And ForminG PArt oF the Fi
Page 100 and 101: Community serviCe oBliGAtions for t
Page 102 and 103: Auditor-GenerAl’s rePort - PerFor
Page 104 and 105: domestiC letter serviCe monitor (co
Page 106 and 107: survey CertiFiCAtion (continued) fo
Page 108 and 109:
stAtutory rePortinG reQuirements in
Page 110 and 111:
stAtutory rePortinG reQuirements in
Page 112 and 113:
stAtutory rePortinG reQuirements (c
Page 114 and 115:
stAtutory rePortinG reQuirements (c
Page 116 and 117:
AustrAliA Post - the stAtistiCs (co
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
index (CONTINUED) courier services;
Page 124 and 125:
index (continued) r raw materials 5
Page 126 and 127:
ABout tHis AnnuAl rePort editor/pro
Page 128 and 129:
STAmP gAllERY 2009-10 Kokoda 20 Apr
Page 130:
AuSTRAliA PoST AnnuAl REPoRT 2009-1
show all

2009-10 Annual Report - Australia Post

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?