2009-10 Annual Report - Australia Post

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notes to And ForminG PArt oF the FinAnCiAl rePort For the year ended 30 June 2010 28 Related parties the consolidated financial statements include the financial statements of australian postal corporation and the subsidiaries listed in note 10. remuneration and retirement benefits information on remuneration of directors and amounts paid in connection with the retirement of directors is disclosed in note 27. the following table provides the total amount of transactions that were entered into with related parties for the relevant financial year (for information regarding outstanding balances at year-end, refer to notes 6, 9, 18 and 21). other transactions with related parties Payments for collection and delivery services Jointly controlled entities controlled entities Payments for management and administrative services Jointly controlled entities controlled entities 84 AustrAliA Post AnnuAl rePort 2009–10 | Financial and statutory reports 2010 $m 58.3 – consolidated corporation Payments for accommodation Jointly controlled entities 1.9 2.0 1.9 2.0 revenue from collection and delivery services Jointly controlled entities controlled entities revenue from administrative services Jointly controlled entities controlled entities dividends received or receivable (refer note 2) controlled and jointly controlled entities – – 15.0 15.1 interest received Jointly controlled entities controlled entities Aggregate amounts receivable from and payable to other related parties at balance date were as follows: Current receivables Jointly controlled entities controlled entities Current payables Jointly controlled entities controlled entities loans advanced to: Jointly controlled entities controlled entities loans advanced from: controlled entities – – 2.9 2.9 australia post performs administrative services on behalf of its superannuation fund, apss. these services are provided on normal commercial terms. payment received by australia post for these services for year ended 30 June 2010 is $16.5 million (2009: $16.5 million). 49.0 – 17.4 – 9.4 – 10.3 – 1.4 – 8.7 – 130.7 – 2009 $m 59.9 – 56.4 – 16.1 – 12.0 – 10.3 – 1.5 – 17.9 – 130.7 – 2010 $m 58.3 0.2 35.9 25.7 13.7 8.8 9.1 1.2 10.3 1.1 1.2 2.3 7.4 7.5 130.7 30.0 2009 $m 59.7 0.1 41.3 24.4 14.1 5.0 11.4 0.7 10.3 1.6 1.2 1.1 14.4 6.1 130.7 16.8
28 Related parties (continued) transactions entered into directly by directors or director-related entities with the australian postal corporation have been either domestic or trivial in nature. For the year ended 30 June 2010, the corporation has expensed $14.5 million with respect to amounts owed by related parties (2009: $16.6 million). an impairment assessment is undertaken each financial year by examining the financial position of the related party and the market in which the related party operates to determine whether there is objective evidence that a related party receivable is impaired. When such objective evidence exists, the group recognises an allowance for the impairment loss. a number of directors of the australian postal corporation are also directors of other entities which have transacted with the australian postal corporation Group. these transactions have occurred on terms and conditions no more favourable than those which it is reasonable to expect the group would have adopted if dealing with any third party on normal commercial terms. ultimate controlling entity the commonwealth is the ultimate parent and controlling entity of the australian postal corporation Group. the australian postal corporation is the parent entity in the group comprising australia post and its controlled entities. 29 Financial and capital risk management (a) Financial risk management objectives the corporation’s risk management policy is to identify, assess and manage risks, which are likely to adversely affect the corporation’s financial performance, continued growth and survival. in terms of financial and commodity risk management, the corporation will take a risk-averse approach to financial risk management in that it will seek to minimise risk, provided it is cost effective to do so. the group’s principal financial instruments, other than derivatives, comprise bonds, finance leases and hire purchase contracts, cash and short-term deposits. the main purpose of these financial instruments is to provide finance for the group’s operations. the group has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. the group also enters into derivative transactions, including interest rate swaps, forward currency contracts and commodity swap contracts. the purpose is to manage the interest rate, currency and commodity risks arising from the group’s operations and its sources of finance. it is, and has been throughout the period under review, the group’s policy that no trading in financial instruments shall be undertaken. the main risks arising from the group’s financial instruments are interest rate risk, liquidity risk, commodity risk, foreign currency risk and credit risk. the board reviews and agrees policies for managing each of these risks and they are summarised below. details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument, are disclosed in note 1 to the financial report. (b) Capital risk management the group’s objectives when managing capital are to safeguard the ability to continue as a going concern while maximising the return to the commonwealth Government. the group recognises the impact on shareholder returns of the level of equity capital employed and seeks to maintain a prudent balance between the advantages and flexibility afforded by a strong capital position and the higher returns on equity possible with some leverage. a further consideration when managing capital is maintenance of an investment grade rating. the group holds a aa+rating (2009: aaa) from the independent ratings agency standard & poor’s. the capital structure of the group consists of debt, which includes the bonds payable disclosed in note 19, cash and cash equivalents disclosed in note 31(a) and equity attributable to equity holders of the corporation, comprising contributed equity, reserves and retained profits disclosed in notes 22 and 23. the capital structure is reviewed annually as part of the corporate plan, which includes analysis of the return on equity, return on average operating assets and debt to debt plus equity ratios implicit in the corporate plan. AustrAliA Post AnnuAl rePort 2009–10 | Financial and statutory reports 85
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gETTing fuTuRE REAdY AuSTRAliA PoST
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AUSTRALIA POST HAS ALWAYS BEEN IN T
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OUR BUSINESS OUR CAPABILITIES AND B
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OUR BUSINESS THE YEAR IN REVIEW 6 A
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OUR BUSINESS CHAIRMAN’S REPORT Da
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OUR BUSINESS FINANCIAL REPORT Perfo
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our Business Key Business results O
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CORE BUSINESSES In 2009-10, our 4,4
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CORE BUSINESSES LETTERS & ASSOCIATE
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CORE BUSINESSES AGENCY SERVICES & R
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core Businesses aGenCY seRViCes & R
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CORE BUSINESSES PARCELS & LOGISTICS
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CORPORATE RESPONSIBILITY Some key r
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CorPorAte governAnCe General austra
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CorPorAte governAnCe incentive rewa
Page 36 and 37: BOARD OF DIRECTORS David A Mortimer
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Page 116 and 117: AustrAliA Post - the stAtistiCs (co
Page 122 and 123: index (CONTINUED) courier services;
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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
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2009-10 Annual Report - Australia Post

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