annual report 2011

IOOF | annual report 2011
35 Operating leases
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
Consolidated Parent
2011 2010 2011 2010
$’000 $’000 $’000 $’000
Not later than one year 9,820 11,633 - -
Later than one year, not later than five years 35,417 36,847 - -
Later than five years 12,042 9,290 - -
57,279 57,770 - -
The Group leases a number of offices premises under non-cancellable operating leases expiring between one month to ten years. The
leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated.
The Group also lease various office equipment under non-cancellable operating leases expiring between 1 month to 3 years. The
terms of some of these lease provided the Group with the option to purchase this equipment at the conclusion of these lease
agreements.
36 Capital commitments
On 27 June 2011, the Company announced that the Company and Deakin Financial Group (DKN) had entered into an agreement
under which the Company, through a wholly owned subsidiary, proposes to acquire DKN via a scheme of arrangement. The
arrangement to acquire 100% of shares not already owned by the Group for $0.80 cash is subject to shareholder approval and as a
result, no amounts have been recognised in the profit or loss or financial position of the Group at balance date. If accepted, the total
consideration payable to shareholders is estimated at $94 million.
The Group has not entered into any non-cancellable capital expenditure commitments not already recognised or provided for.
37 Contingencies
Consolidated Parent
2011 2010 2011 2010
$’000 $’000 $’000 $’000
Contingent liabilities
Rental bond guarantees 4,596 4,744 - -
ASX settlement bond guarantee 500 500 - -
ASIC bond guarantees 60 100 - -
5,156 5,344 - -
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