2004-05 Annual Report - Australia Post

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
37. EVENTS AFTER BALANCE DATE
On 1 July 2005, the corporation, through its wholly
owned subsidiary Printsoft Holdings Pty Ltd, acquired
100% of the share capital of PrintSoft Developments
Pty Ltd and 100% of share capital of PrintSoft Systems
GmbH. The aggregate cost of the investment is
estimated to be $8.7m.
38. ADOPTION OF AUSTRALIAN
EQUIVALENTS TO INTERNATIONAL
FINANCIAL REPORTING STANDARDS
The corporation is in the process of transitioning its
accounting policies and financial reporting from the
Finance Minister’s Orders (FMOs) based on current
Australian Accounting Standards (AGAAP), to FMOs
based on Australian Equivalents to International
Financial Reporting Standards (A-IFRS) which will be
applicable for the financial year ended 30 June 2006.
In 2003, the corporation allocated internal resources
and engaged expert consultants to conduct impact
assessments to identify key areas that would be
impacted by the transition to A-IFRS.
As a result, the corporation established project teams
to address each of the areas in order of priority. An
A-IFRS steering committee was established to oversee
the progress of each of the project teams and make
necessary decisions. Priority has been given to the
FOR THE YEAR ENDED 30 JUNE 2005
preparation of an opening balance sheet in accordance
with A-IFRS as at 1 July 2004, the corporation’s transition
date to A-IFRS. This will form the basis of accounting for
A-IFRS in the future and is required when the corporation
prepares its first fully A-IFRS compliant financial report
for the year ended 30 June 2006.
Set out in the table below are the key areas where
accounting policies are expected to change on
adoption of A-IFRS and the corporation’s best
estimate of the quantitative impact of the changes
on total equity as at the date of the transition.
The figures disclosed are management’s best
estimates of the quantitative impact of the changes
on total equity as at the date of transition, 1 July 2004,
at the date of preparing the 30 June 2005 financial
report. The actual effects of transition to A-IFRS may
differ from the estimates disclosed due to:
° ongoing work being undertaken by the A-IFRS
project teams
° potential amendments to A-IFRSs and
interpretations thereof being issued by the
standard-setters and IFRIC
° emerging accepted practice in the interpretation
and application of A-IFRS and UIG Interpretations
° Finance Briefs issued by the Accounting and
Policy Branch of the Department of Finance and
Administration.
Reconciliation of equity as presented under AGAAP to that under A-IFRS
Consolidated
$m (1)(2)
Corporation
$m (1)
Total equity under AGAAP at 1 July 2004 1,559.6 1,552.3
Adjustments to retained earnings (net of tax):
Recognition of defined benefit pension asset (i) 677.5 677.5
Adjustment from asset revaluations (ii) (29.6) (29.6)
Transfer to asset revaluation reserve (iii) (215.4) (215.4)
Deferral of grant income (iv) (6.4) (6.4)
Taxation adjustments (v) 58.2 58.2
Adjustments to other reserves
Transfer to asset revaluation reserve (iii) 215.4 215.4
Tax effect on revalued assets (v) (52.3) (52.3)
Total equity under A-IFRS 2,207.0 2,199.7
Notes
1. This represents the adjustments as at the date of transition to A-IFRS.
2. At transition balance date there were no material adjustments arising from the assessment of the corporation’s
controlled and associated entities.
Australia Post Annual Report 2004/05 Financial and Statutory Reports Notes to and forming part of the financial statements
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