annual report 2011

IOOF | annual report 2011
Tax consolidation
IOOF Holdings Ltd and its wholly owned entities have implemented the tax consolidation legislation.
The entities have entered into tax sharing and funding agreements. Under the terms of the tax funding agreement, the wholly owned
entities fund or are reimbursed by IOOF Holdings Ltd for their share of the income tax expense / benefit arising in respect of their
activities. This is recognised as a current tax related payable / receivable by IOOF Holdings Ltd and is either funded or reimbursed by
the wholly owned entities each month.
In the opinion of the directors, the tax sharing agreement is also a valid agreement under the tax consolidation legislation and limits
the joint and several liability of the wholly owned entities in the case of a default by IOOF Holdings Ltd.
Taxable income for the tax consolidated group includes the profit generated by IOOF Ltd benefit funds, which is distributable
to policyholders of the Benefit Fund. The profit of these funds forms part of the consolidated profit for the calculation of the tax
expense.
12 Cash and cash equivalents
Consolidated Parent
2011 2010 2011 2010
$’000 $’000 $’000 $’000
Bank balances 152,999 132,780 45,959 617
The Group’s exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in Note 5 Risk
management.
13 Receivables
Consolidated Parent
2011 2010 2011 2010
$’000 $’000 $’000 $’000
Receivables 39,848 35,623 14,299 11,539
Provision for impairment of receivables (32) (30) - -
Interest receivable - related parties 156 186 - -
Security bond 4,500 5,000 - -
Other debtors 374 936 - 6
Stockbroking debtors 6,242 3,245 - -
Accrued income 21,980 22,708 43 2
73,068 67,668 14,342 11,547
The Group’s exposure to credit and currency risks, and impairment losses related to trade and other receivables, is disclosed in Note 5
Risk management.
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