AWB Limited - 2004 Annual Report

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2004 3. PROFIT FROM ORDINARY ACTIVITIES BEFORE INCOME TAX EXPENSE Profit from ordinary activities before income tax expense includes the following specific expenses: Consolidated AWB Limited 2004 2003 2004 2003 $'000 $'000 $'000 $'000 Amortisation of non–current assets – goodwill 27,077 2,441 – – – licence fees 23 26 23 26 27,100 2,467 23 26 Depreciation of non–current assets – plant and equipment 52,956 25,502 155 13,972 – buildings 3,230 1,913 52 307 56,186 27,415 207 14,279 Total depreciation and amortisation expenses 83,286 29,882 230 14,305 Write down in value of property plant and equipment to recoverable amount – 7,182 – 7,182 Write down in value of investment in associate to recoverable amount 2,806 – 2,806 – Borrowing costs expensed Interest expense – wholly owned group – – 1,992 901 – related party (AWB National Pools) 19,143 10,353 770 – – other persons/corporations 89,784 57,381 – – Other borrowing costs – other persons/corporations 4,964 2,771 – 349 Total borrowing costs 113,891 70,505 2,762 1,250 Research and development costs 4,634 6,960 – 6,960 Net (gain)/loss on disposal of property, plant and equipment (5,545) (21) (5,185) 23 Operating lease rental expense 23,171 4,777 52 1,853 Employee benefit expenses 222,256 72,350 3,298 54,644 Net expense for movements in provision: – employee benefits 3,957 (330) (8,292) 568 – restructure costs (8,292) 5,000 (3,389) 5,000 – counterparty default relating to other financial assets 6,634 8,368 – – – onerous contracts 7,401 1,548 – – Net bad and doubtful debts expensed including movements in provision for doubtful debts 8,767 2,769 (1) (2,117) 68
4. TAXATION Consolidated AWB Limited 2004 2003 2004 2003 $'000 $'000 $'000 $'000 (a) Income tax expense The income tax expense for the year differs from the amount calculated on the profit. The differences are reconciled as follows: Prima facie income tax expense calculated at 30% on the profit from ordinary activities 44,116 17,672 13,812 19,659 Tax effect of permanent differences: Share of net profits from associates (2,543) (628) – – Franking credits on dividends received (1,657) (828) – (12,484) Research and development concessions (710) (656) 1,156 (656) Amortisation of intangible assets 8,130 732 – – Depreciation of buildings 463 351 – – Foreign tax credits (2,261) (1,423) (2,261) (1,100) Under/(over) provision of previous year (671) (2,535) (933) (2,063) Tax rate differential on foreign entities 973 502 3,088 – Attibutable income of foreign entities 4,552 3,338 4,552 3,338 Tax consolidation intragroup transactions – – (14,933) – Other items (net) (990) (1,768) 603 (2,460) Income tax expense attributable to profit from ordinary activities 49,402 14,757 5,084 4,234 (b) Deferred tax assets and liabilities Current tax assets – 13,444 – – Future income tax benefit – Parent entity – – 5,264 6,585 – Entities in the tax consolidated group (i) 41,617 43,044 36,353 – 41,617 43,044 41,617 6,585 Current tax payable – Parent entity – – 10,966 3,122 – Entities in the tax consolidated group (i) 37,198 – 26,232 – 37,198 – 37,198 3,122 Provision for deferred income tax – non–current – Parent entity – – 296 6,125 – Entities in the tax consolidated group (i) 16,505 10,554 16,209 – 16,505 10,554 16,505 6,125 (i) Entities in the tax consolidated group have entered into a tax sharing agreement. Refer Note 1(f ) for further information. This future income tax benefit will only be obtained if: – future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised; – the conditions for deductibility imposed by tax legislation continue to be complied with; and – no changes in tax legislation adversely affect the consolidated entity in realising the benefit. 69
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Annual Report 2004
Page 3 and 4:
Who We Are AWB Limited (AWB) is Aus
Page 5 and 6:
Finance AWB harvest finance book pe
Page 7 and 8:
Five Year Summary 2004 2003 2002 20
Page 9 and 10:
Chairman’s and Managing Director
Page 11 and 12:
To continue building its capability
Page 13 and 14:
Pool Management Services Highlights
Page 15 and 16:
AWB National Pool participants. AWB
Page 17 and 18:
Landmark Highlights Integrated Land
Page 19 and 20: the integration, Landmark has reloc
Page 21 and 22: Finance and Risk Management Highlig
Page 23 and 24: Finance Limited, a wholly owned, ba
Page 25 and 26: Grain Acquisition and Trading Highl
Page 27 and 28: through the AWB Geneva office, both
Page 29 and 30: Supply Chain & Other Investments Hi
Page 31 and 32: The Five Star Feed Mill, located on
Page 33 and 34: Our People AWB employs over 2,700 p
Page 35 and 36: More than 70% of AWB’s employees
Page 37 and 38: Our Social Commitment Together with
Page 39 and 40: Social service providers While not
Page 41 and 42: 7. Richard Fuller General Manager,
Page 43 and 44: Independence All of the current 11
Page 45 and 46: Services Agreement Committee The Se
Page 47 and 48: its observance provides the foundat
Page 49 and 50: Promotion Committee and Founding Ch
Page 51 and 52: 1. Brendan Stewart Chairman, Non-ex
Page 54 and 55: DIRECTORS' REPORT Your directors su
Page 56 and 57: DIRECTORS' REPORT (continued) REMUN
Page 58 and 59: DIRECTORS' REPORT (continued) DIREC
Page 60 and 61: DIRECTORS' REPORT (continued) DIREC
Page 62 and 63: STATEMENT OF FINANCIAL PERFORMANCE
Page 64 and 65: STATEMENT OF CASH FLOWS FOR THE YEA
Page 66 and 67: NOTES TO AND FORMING PART OF THE FI
Page 106 and 107: INDEPENDENT AUDIT REPORT TO THE MEM
Page 108 and 109: SHAREHOLDER COMMUNICATION FINANCIAL
Page 110 and 111: GLOSSARY AWB Basis Pool AWB Basis P
Page 112: Head Office 380 La Trobe Street Mel
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AWB Limited - 2004 Annual Report

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