Australia Post Annual Report 2008–09

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Notes to and forming part of the Financial Report for the year ended 30 June 2009 28 Related parties The consolidated financial statements include the financial statements of the 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 Payments for accommodation Jointly controlled entities Revenue from collection and delivery services Jointly controlled entities Controlled entities Revenue from administrative services Jointly controlled entities Controlled entities Dividends received or receivable (see note 2) Jointly controlled entities Interest received Jointly controlled entities Controlled entities Aggregate amounts receivable from and payable to other related parties at balance date 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 98 Australia Post Annual Report 2008–09 | Financial and statutory reports 2009 $m Consolidated Corporation 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 2009 is $16.5 million (2008: $16.0 million). 59.9 – 56.4 – 2.0 16.1 – 12.0 – – 10.3 – 1.5 – 17.9 – 130.7 – – 2008 $m 67.0 – 54.9 – 2.3 14.4 – 11.4 – – 11.4 – 1.7 – 17.6 – 130.3 – – 2009 $m 59.7 0.1 41.3 24.4 2.0 14.1 5.0 11.4 0.7 15.1 10.3 1.6 1.2 1.1 14.4 6.1 130.7 16.8 2.9 2008 $m 67.0 0.7 42.0 23.8 2.3 14.4 9.1 10.7 3.8 21.1 10.3 1.9 1.7 – 17.6 7.3 130.3 15.7 1.2
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 2009, the corporation expensed $16.6 million with respect to amounts owed by related parties (2008: $1.1 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 that have transacted with the Australian Postal Corporation Group. These transactions have occurred on terms and conditions no more favourable than those that 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 that are likely to adversely affect the financial performance, continued growth and its survival. In terms of financial and commodity risk management, the corporation takes a risk-averse approach to financial risk management in that it seeks 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 continues to hold the AAA rating from the independent ratings agency Standard & Poor’s achieved when first rated in 1994. 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 2008–09 | Financial and statutory reports 99
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1809 2009 Australia Post Annual Rep
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Over the past 200 years, Australian
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Our business Celebrating 200 years
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For 200 years, we have developed ou
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We handled 5.3 billion items of mai
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Our business Managing Director’s
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Mail volumes m 6,000 5,000 4,000 3,
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Our business Performance against ta
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Core businesses Australia’s posta
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Core businesses Letters & associate
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Collaborative solutions across the
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Rewarding customer loyalty Australi
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Core businesses Agency services & r
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1968 Behind the front counter of th
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Sending home comforts to the world
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Core businesses Parcels & logistics
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1936 Transporting mail from the SS
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Expanding Business, Naturally When
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Corporate responsibility From a wor
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Corporate responsibility Highlights
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Employment by occupation % Administ
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1950s A postie delivering mail in s
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Human Resources Committee Incorpora
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Treasury A comprehensive and pruden
Page 49 and 50: Mark Darras LLM, BA LLB, BEd Direct
Page 51 and 52: Contents - Financial and statutory
Page 53 and 54: Statements by directors for the yea
Page 55 and 56: Australia Post Annual Report 2008-0
Page 57 and 58: Balance sheet as at 30 June 2009 No
Page 59 and 60: Cashflow statement for the year end
Page 61 and 62: Schedule of contingencies as at 30
Page 63 and 64: Reference Title Nature of change to
Page 65 and 66: Where settlement of any part of the
Page 67 and 68: (iii) Translation of group companie
Page 69 and 70: (ii) Held-to-maturity investments N
Page 71 and 72: is increased to its recoverable amo
Page 73 and 74: 2 Revenues and other income Revenue
Page 75 and 76: 4 Finance costs Bonds (1) Interest
Page 77 and 78: 5 Income tax (continued) (e) Unreco
Page 79 and 80: 9 Non-current assets - trade and ot
Page 81 and 82: 11 Investments in jointly controlle
Page 83 and 84: 12 Superannuation (continued) (v) C
Page 85 and 86: 13 Analysis of property, plant & eq
Page 87 and 88: 15 Investment properties Opening ba
Page 89 and 90: 20 Provisions Current provisions An
Page 91 and 92: 22 Analysis of total equity (contin
Page 93 and 94: 24 Dividends paid Final ordinary di
Page 95 and 96: 26 Segment information (continued)
Page 97 and 98: 27 Key management personnel remuner
Page 99: 27 Key Management personnel remuner
Page 103 and 104: 29 Financial and capital risk manag
Page 111 and 112: 32 Corporate information The financ
Page 113 and 114: Auditor-General’s report - perfor
Page 115 and 116: Domestic letter service monitor for
Page 117 and 118: Survey certification for the year e
Page 119 and 120: Reserved/non-reserved services for
Page 121 and 122: Australian Postal Corporation Act 1
Page 123 and 124: Statutory reporting requirements fo
Page 125 and 126: Consultative arrangements The Stake
Page 127 and 128: Australia Post - the statistics for
Page 129 and 130: 5 Mail delivery network Private hou
Page 131 and 132: 9 Overall letter service performanc
Page 133 and 134: Index Australia Post Annual Report
Page 135 and 136: I (continued) interest 11, 57 inter
Page 137 and 138: Contact details Australia Post Head
Page 139 and 140: Stamp gallery 2008-09 Australia Pos
Page 141 and 142: AAT: International Polar Year 2007-
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Australia Post Annual Report 2008–09

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