116 - Australian Broadcasting Corporationabout.abc.net.au/wp-content/uploads/2012/06/Annual... · • Notes to and Forming Part of the Financial Statements for both the Australian

1 1 6A B C A n n u a l R e p o r t F i n a n c i a l S t a t e m e n t s

To the Minister for Communications, Information Technology and the Arts

ScopeThe financial statements comprise:• Statement by Directors;• Statements of Financial Performance, Financial Position and Cash Flows;• Scheduled of Commitments and Contingencies; and• Notes to and Forming Part of the Financial Statementsfor both the Australian Broadcasting Corporation and the consolidated entity, for the year ended 30 June 2004.

The members of the Board are responsible for the preparation and true and fair presentation of the financialstatements in accordance with the Finance Minister’s Orders. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error,and for the accounting policies and accounting estimates inherent in the financial statements.

Audit approachI have conducted an independent audit of the financial statements in order to express an opinion on them toyou. My audit has been conducted in accordance with the Australian National Audit Office Auditing Standards,which incorporate Australian Auditing and Assurance Standards, in order to provide reasonable assurance asto whether the financial statements are free of material misstatement. The nature of an audit is influenced byfactors such as the use of professional judgement, selective testing, the inherent limitations of internal control,and the availability of persuasive, rather than conclusive, evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

While the effectiveness of management’s internal controls over financial reporting was considered when determining the nature and extent of audit procedures, the audit was not designed to provide assurance on internal controls.

The audit did not involve an analysis of the prudence of business decisions made by members of the Board or management.

Procedures were performed to assess whether in all material respects the financial statements present fairly, in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and CompaniesAct 1997, Accounting Standards and other mandatory financial reporting requirements in Australia, a viewwhich is consistent with my understanding of the Australian Broadcasting Corporation’s and the consolidatedentity’s performance as represented by the statements of financial performance, financial position and cash flows.

The audit opinion is formed on the basis of these procedures, which included:• examining, on a test basis, information to provide evidence supporting the

amounts and disclosures in the financial report; and• assessing the appropriateness of the accounting policies and disclosures used,

and the reasonableness of significant accounting estimates made by the Board.

IndependenceIn conducting the audit, I have followed the independence requirements of the ANAO, which incorporateAustralian professional ethical pronouncements.

Audit OpinionIn my opinion, the financial statements:(i) have been prepared in accordance with the Finance Minister’s Orders made under the

Commonwealth Authorities and Companies Act 1997 and applicable Accounting Standards; and(ii) give a true and fair view, of the matters required by applicable Accounting Standards and other

mandatory professional reporting requirements in Australia, and the Finance Minister’s Orders, of the financial position of the Australian Broadcasting Corporation and the consolidated entity as at 30 June 2004, and their financial performance and cash flows for the year then ended.

Australian National Audit Office

Warren J. CochraneGroup Executive Director

Delegate of the Auditor-General

Sydney, 29 July 2004

Independent Audit Report

Financial Statements

Statement by Directors 118Statement of Financial Performance 119Statement of Financial Position 120Statement of Cash Flows 121Schedule of Commitments 122Schedule of Contingencies 123

Notes to and Forming Part of the Financial Statements 1241. Summary of Significant Accounting Policies 1242. Adoption of Australian Equivalents to International

Financial Reporting Standards from 2005-06 1313. Expenses and Revenues 1334. Economic Dependency 1335. Revenue from Government 1346. Revenue from Independent Sources 1347. Operating Expenses 1358. Borrowing Costs 1359. Financial Assets 136

10. Non Financial Assets 13711. Interest Bearing Liabilities 14112. Provisions 14113. Payables 14214. Equity 14315. Cash Flow Reconciliation 14416. External Financing Arrangements 14417. Financial Instruments (Consolidated) 14518. Contingent Liabilities 14719. Director Remuneration 14720. Related Party Disclosures 14821. Officer Remuneration 14922. Auditor Remuneration 15023. Assets Held in Trust 15024. Controlled Entities 15025. Reporting by Outcomes 15126. Appropriations 152


Contents

Statement by Directors1 1 8A B C A n n u a l R e p o r t F i n a n c i a l S t a t e m e n t s

Australian Broadcasting Corporation

In our opinion, the attached financial statements for the year ended 30 June 2004 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’sOrders made under the Commonwealth Authorities and Companies Act 1997.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the AustralianBroadcasting Corporation will be able to pay its debts as and when they become due and payable.

This statement is made in accordance with a resolution of the directors.

DONALD McDONALD AO RUSSELL BALDINGChairman Managing Director

29 July 2004 29 July 2004


Consolidated ABC2004 2003 2004 2003

Notes $’000 $’000 $’000 $’000

REVENUERevenues from ordinary activities

Revenue from government 5 777 398 780 160 726 895 733 469 Goods and services 6C 148 073 137 138 122 216 114 699 Interest 6A 6 228 7 736 4 971 6 645 Revenue from sale of assets 6B 2 298 622 2 282 571 Other revenues 6D 32 554 30 905 24 243 24 384

Total revenues from ordinary activities 966 551 956 561 880 607 879 768

EXPENSEExpenses from ordinary activities

Employees 7A 351 873 341 096 301 406 293 743 Suppliers 7B 381 959 368 821 351 456 340 308 Depreciation and amortisation 7C 70 323 62 283 69 362 61 570 Program amortisation 7D 118 110 108 612 118 110 108 612 Net foreign exchange loss 7E 87 740 87 740 Write-down of assets 7F 160 4 855 - 4 855 Value of assets sold 6B 5 381 3 172 5 372 3 142 Other expenses 6B 3 298 - 3 298 -

Total expenses from ordinary activities 931 191 889 579 849 091 812 970 (excluding borrowing costs expense)

Borrowing costs expense 8 9 640 9 886 9 637 9 886 Operating surplus from ordinary activities 25 720 57 096 21 879 56 912

Net profit * 25 720 57 096 21 879 56 912

Net increase to asset revaluation reserve:Revaluation of property, plant and equipment 14 135 480 1 088 135 226 1 088 Initial adoption of FMO 3C—non-current assets 14 - (1 782) - (1 782)

Net decrease to accumulated surplus:Initial adoption of revised AASB 1028 —Employee Benefits 14 - (2 268) - (2 268)

Total revenues, expenses and valuation adjustmentsrecognised directly in equity 135 480 (2 962) 135 226 (2 962)Total changes in equity other than those resultingfrom transactions with owners as owners beforeCapital Use Charge 161 200 54 134 157 105 53 950

The above statement should be read in conjunction with the accompanying notes.

NOTE * Net surplus attributable to theCorporation before Capital Use Charge 25 720 57 096 21 879 56 912 Capital use provided for or paid - (58 646) - (58 646)Contribution to accumulated results 25 720 (1 550) 21 879 (1 734)

Statement of F inancia l Performancefor the year ended 30 June 2004



Notes $’000 $’000 $’000 $’000

ASSETSFinancial assets

Cash 9A, 17 43 291 31 845 4 495 4 923 Receivables 9B, 17 53 372 103 986 49 941 102 506 Accrued revenues 9D, 17 9 472 8 373 8 884 7 466 Investments 9C, 17 - - - -

Total financial assets 106 135 144 204 63 320 114 895

Non-financial assetsLand and buildings 10A 580 457 476 509 579 592 476 203 Infrastructure, plant and equipment 10B 271 067 259 579 268 589 256 094 Inventories 10D 88 817 89 590 88 800 89 555 Intangibles 10C 8 820 11 228 8 820 11 228 Other non-financial assets 10E 15 636 11 208 13 365 11 090

Total non-financial assets 964 797 848 114 959 166 844 170

Total assets 1 070 932 992 318 1 022 486 959 065

LIABILITIESInterest bearing liabilities

Loans 11A, 17 171 699 191 411 171 000 191 000 Total interest bearing liabilities 171 699 191 411 171 000 191 000

Provisions Employees 12A 117 805 121 457 106 955 111 718 Capital Use Charge 12B - 58 646 - 58 646

Total provisions 117 805 180 103 106 955 170 364

PayablesSuppliers 13A, 17 57 451 60 024 49 651 55 888 Other 13B, 17 31 408 29 411 6 665 10 703

Total payables 88 859 89 435 56 316 66 591

Total liabilities 378 363 460 949 334 271 427 955

NET ASSETS 692 569 531 369 688 215 531 110

EQUITYParent equity interest

Contributed equity 14 132 387 132 387 132 387 132 387 Reserves 14 363 494 228 014 363 240 228 014 Accumulated surplus 14 196 688 170 968 192 588 170 709

Total parent entity interest 692 569 531 369 688 215 531 110

Total equity 692 569 531 369 688 215 531 110

Current assets 242 562 243 963 197 602 214 501 Non-current assets 828 370 748 355 824 884 744 564 Current liabilities 159 729 241 408 125 672 209 282 Non-current liabilities 218 634 219 541 208 599 218 673


Statement of F inancia l Posi t ionas at 30 June 2004



Notes $’000 $’000 $’000 $’000Inflows Inflows

(Outflows) (Outflows)

OPERATING ACTIVITIESCash received

Appropriations 767 250 770 578 726 895 733 469 Goods and services 164 154 150 384 115 330 107 641 Interest and bill discounts 6 945 7 736 5 688 6 645 GST recovered from taxation authority 27 257 33 132 27 257 33 132 Other 700 1 183 700 1 183

Total cash received 966 306 963 013 875 870 882 070 Cash used

Employees (355 525) (338 638) (306 169) (290 870)Suppliers (511 527) (488 384) (482 288) (458 691)Borrowing costs (11 130) (10 766) (11 127) (10 766)

Total cash used (878 182) (837 788) (799 584) (760 327)

Net cash from operating activities 15 88 124 125 225 76 286 121 743

INVESTING ACTIVITIESCash received

Proceeds from sale of property, plant and equipment 6B 4 798 622 4 782 571 Bills of exchange and promissory notes 16 768 3 230 16 768 3 224


Purchase of property, plant and equipment (52 433) (119 161) (52 165) (118 122)Total cash used (52 433) (119 161) (52 165) (118 122)

Net cash used by investing activities (30 867) (115 309) (30 615) (114 327)

FINANCING ACTIVITIESCash received

Proceeds from loans 20 288 31 000 20 000 31 000 Appropriations—contributed equity 32 547 10 700 32 547 10 700


Repayments of debt (40 000) (50 179) (40 000) (50 000)Capital Use Charge paid (58 646) (312) (58 646) (312)

Total cash used (98 646) (50 491) (98 646) (50 312)

Net cash used by financing activities (45 811) (8 791) (46 099) (8 612)

Net increase/(decrease) in cash held 11 446 1 125 (428) (1 196)Cash at beginning of reporting period 31 845 30 720 4 923 6 119 Effects of exchange rate changes on cash - - - - Cash at end of reporting period 9A 43 291 31 845 4 495 4 923


Statement of Cash Flowsfor the year ended 30 June 2004


Consolidated ABC2004 2003 2004 2003$’000 $’000 $’000 $’000

BY TYPECapital commitments

Buildings (1) 7 470 20 628 7 470 20 628 Infrastructure, plant and equipment (2) 16 482 23 181 16 482 23 181

Total capital commitments 23 952 43 809 23 952 43 809

Other commitmentsOperating leases (3) 42 140 41 091 41 320 38 048 Other (4) 1 660 418 1 498 869 1 651 642 1 487 945

Total other commitments 1 702 558 1 539 960 1 692 962 1 525 993

Commitments receivable (5) (612 190) (380 486) (611 317) (380 486)Net commitments 1 114 320 1 203 283 1 105 597 1 189 316

BY MATURITYCapital commitments

One year or less 20 732 36 861 20 732 36 861 From one to five years 3 220 6 948 3 220 6 948 Over five years - - - -

Total capital commitments 23 952 43 809 23 952 43 809

Operating lease commitmentsOne year or less 17 759 17 644 17 213 17 013 From one to five years 22 789 21 396 22 515 19 634 Over five years 1 592 2 051 1 592 1 401

Total operating lease commitments 42 140 41 091 41 320 38 048

Other commitmentsOne year or less 245 733 208 918 241 282 204 365 From one to five years 783 420 517 032 779 095 510 661 Over five years 631 265 772 919 631 265 772 919

Total other commitments 1 660 418 1 498 869 1 651 642 1 487 945

Commitments receivableOne year or less (110 028) (102 233) (109 574) (102 233)From one to five years (444 746) (207 861) (444 327) (207 861)Over five years (57 416) (70 392) (57 416) (70 392)

Total commitments receivable (612 190) (380 486) (611 317) (380 486)

Net commitments 1 114 320 1 203 283 1 105 597 1 189 316

The above schedule should be read in conjunction with the accompanying notes.

NB: Commitments are GST inclusive where relevant. 1. Outstanding contractual commitments for capital works primarily associated with building works in Sydney and Perth.2. Outstanding contractual commitments for capital works primarily associated with the purchase of infrastructure, plant

and equipment.3. Operating leases included are effectively non-cancellable and comprise:

Nature of Lease General description of leasing arrangementMotor vehicles—business and Fully maintained operating lease; lease periods 24/36 months and/orsenior executive 40 000/60 000km; no contingent rentals exist; there are no renewal or

purchase options available to the Corporation.PC leasing ABC entered into master supply agreement in 1999; 3 year lease on the

specific equipment covering hardware, operating system and maintenanceof hardware; lease of equipment is for 3 years; equipment returned at end of lease; ABC continues to operate under this agreement.

Property leases—office and Lease payments subject to increment increase in accordance with CPI orbusiness premises other agreed increment; initial period of lease ranges from 1 year to 10

years; Corporation has options to extend in accordance with lease.

4. Other commitments are covered by an agreement and are associated with the supply of transmission services and satellite services, purchase of programs and program rights.

5. Commitments receivable comprise, GST receivable, royalties, co-production commitments, resource hire, property rentals and grants.

Schedule of Commitmentsas at 30 June 2004



Notes $’000 $’000 $’000 $’000

Contingent liabilitiesOther guarantees 18 1 180 960 1 180 960

Total contingent liabilities 1 180 960 1 180 960

Details of each class of contingent liabilities including those not disclosed above, cannot be quantified or are consideredremote, are shown in note 18.

The above schedule should be read in conjunction with the accompanying notes.

Schedule of Cont ingenciesas at 30 June 2004


1. Summary of Significant Accounting PoliciesThe principal accounting policies adopted in preparing the financial statements of the Australian BroadcastingCorporation (the ‘Corporation’ or ‘ABC’) and the consolidated financial statements of the Corporation, its controlled entities and the entities it controlled from time to time during the period, are stated to assist in a general understanding of these financial statements. These policies have been applied consistently by all entities in the economic entity.

1.1 Basis of AccountingThe financial statements are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities andCompanies Act 1997 and are a general purpose financial report.

The statements have been prepared in accordance with:• Finance Minister’s Orders (being the Commonwealth Authorities and Companies Orders (Financial

Statements for reporting periods ending on or after 30 June 2004));• Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting

Standards Board; and• Consensus Views of the Urgent Issues Group.

The Corporation and Consolidated Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets,which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing priceson the results or the financial position.

Assets and liabilities are recognised in the Corporation and Consolidated Statements of Financial Position whenand only when it is probable that future economic benefits will flow and the amounts of the assets or liabilitiescan be reliably measured. Assets and liabilities arising under agreements equally proportionately unperformedare however not recognised unless required by an accounting standard. Liabilities and assets that areunrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies (other thanunquantifiable or remote contingencies, which are reported at note 18).

Revenues and expenses are recognised in the Corporation and Consolidated Statements of FinancialPerformance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.

1.2 RoundingAmounts are rounded to the nearest $1 000 except in relation to:• director remuneration• officer remuneration• auditor remuneration• assets held in trust.

1.3 Principles of ConsolidationThe consolidated financial statements are those of the economic entity, comprising the financial statements ofthe Australian Broadcasting Corporation and its controlled entities from the date control commences until thedate control ceases.

Investment in controlled entities are carried in the Australian Broadcasting Corporation’s financial statements atthe lower of cost or recoverable amount.

Controlled entities have annual reporting periods ending 31 December. Accounts of the controlled entities areprepared for the period 1 July 2003 to 30 June 2004 for consolidation using accounting policies which areconsistent with those of the Corporation.

Control exists where the Australian Broadcasting Corporation has the capacity to dominate the decision makingin relation to the financial and operating policies of another entity so the controlled entity operates to achievethe objectives of the Australian Broadcasting Corporation.

The controlled entities of the Corporation include seven independent orchestral companies as detailed in note24. The companies have been incorporated under the Corporations Act 2001 and are each governed by anindependent Board of Directors. Each company is audited annually by the Auditor-General.

The effects of all transactions and balances between the entities are eliminated in full. Details of controlled entitiesare contained in note 24.

Notes to and Forming Part of the Financial Statementsfor the year ended 30 June 2004


1. Summary of Significant Accounting Policies (continued)

1.4 TaxationThe Australian Broadcasting Corporation and its primary controlled entities are not subject to income tax pursuant to Section 71 of the Australian Broadcasting Corporation Act 1983.

Music Choice Australia Pty Ltd and The News Channel Pty Limited, whilst subject to income tax, have beeninactive for the years ended 30 June 2000, 30 June 2001, 30 June 2002, 30 June 2003 and 30 June 2004.

The Corporation and controlled entities are subject to fringe benefits tax and goods and services tax.Controlled entities are subject to payroll tax.

Goods and Services TaxRevenues, expenses and assets are recognised net of the amount of goods and services tax (GST) exceptwhere the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the ATO, is included as a current asset in theStatement of Financial Position.

Cashflows are included in the Statement of Cash Flows on a gross basis. The GST components arising frominvesting and financing activities which are recoverable from, or payable to the ATO are classified as operatingcashflows.

1.5 Foreign Currency TransactionsRevenues and expenditures denominated in foreign currencies are converted to Australian currency at theexchange rates prevailing at the date of the transaction, or at the hedged rate.

Exchange gains and losses and hedging costs arising on contracts entered into as hedges of specific revenueor expense transactions are deferred until the date of such transactions at which time they are included in thedetermination of such revenues or expenses.

Open hedge contracts relating to all other revenue and expenditure transactions are converted at the applicableexchange rate at balance date with exchange gains or losses being included in the Statement of FinancialPerformance.

All foreign currency balances are converted to Australian currency at the exchange rate prevailing at balancedate, except for liabilities brought to account at contract rates, which are subject to currency swap contractsfor which an Australian Dollar currency repayment schedule has been adopted. Monetary assets and liabilitiesof overseas branches and amounts payable to or by the Corporation in foreign currencies are translated intoAustralian currency at the applicable exchange rate at balance date.

1.6 DerivativesDerivative financial instruments are used by the Corporation to manage financial risks and are not entered intofor trading purposes. The classes of derivative financial contracts used are interest rate swaps, forward foreignexchange contracts and foreign exchange.

Derivative financial instruments designated as hedges are accounted for on the same basis as the underlyingexposure.

A. Interest rate swaps and forward rate agreementsInterest rate swaps and forward rate agreements are entered into for the purpose of managing theCorporation’s interest rate position. Gains or losses on interest rate swaps are included in the measurement of interest payments on the transactions to which they relate. Premiums or discounts are amortised throughthe Statement of Financial Performance each year over the life of the swap.

B. Forward exchange contractsForward exchange contracts are used to hedge specific and regular foreign exchange payments. Contractsare revalued at year end and the gain or loss is included in the Statement of Financial Performance.

C. Foreign exchange options Foreign exchange options are used to hedge specific foreign currency payments. Premiums paid on foreignexchange options are amortised to the Statement of Financial Performance over the life of the contract.



1.7 BorrowingsBorrowings are recorded at the amount of the net proceeds received until the liabilities are fully settled. Intereston the instruments is recognised as an expense on an effective yield basis. Borrowings are CommonwealthGovernment guaranteed.

All borrowing costs are expensed as incurred except to the extent that they are directly attributable to qualifyingassets, in which case they are capitalised. The amount capitalised in a reporting period does not exceed thecosts incurred in that period.

1.8 Cash Cash means notes and coins held, and any deposits held at call with a bank or financial institution.

1.9 Receivables Receivables are carried at nominal amounts due less provision for doubtful debts.

Trade debtors are normally settled within 30 days unless otherwise agreed and are carried at amounts due.

The Corporation makes a specific provision for doubtful debts by conducting a detailed review of materialdebtors, making an assessment of the probability of recovery of those debts and taking into account past bad debts experience.

1.10 Bills of Exchange and Promissory NotesPremiums or discounts are amortised through the Statement of Financial Performance each year from the date of purchase so that investments attain their redemption value by maturity date and income is recognisedon an effective yield basis.

Any profits or losses arising from the disposal prior to maturity are taken to the Statement of FinancialPerformance in the period in which they are realised. These assets are intended to be held to maturity and are carried at cost or cost adjusted for discounts and premiums.

1.11 Trade CreditorsCreditors are recognised at their nominal amounts, being the amounts at which the liabilities will be settled.Liabilities are recognised to the extent that the goods and services have been received.

Settlement is on normal commercial terms.

1.12 Reporting by Outcomes and SegmentsA comparison by outcomes specified in the Appropriation Acts relevant to the Corporation is presented in note 25.Any intra-government costs included in the figure ‘net cost to Budget outcomes’ are eliminated in calculatingthe actual budget outcome for the Government overall.

The Corporation principally provides a national television and radio service within the broadcasting industry. It is therefore considered for segmental reporting to operate predominantly in one industry and in one geographicalarea, Australia.

1.13 Revenue RecognitionThe revenues described in this note are revenues relating to the core operating activities of the Corporation.

Revenue from the sale of goods and services is recognised at fair value of the consideration received net of the amount of the goods and services tax upon the delivery of goods and services to customers.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to thefinancial assets.

Credit sales are on normal commercial terms.

Revenue from disposal of non-current assets is recognised when control of the asset has passed to the buyer.

External contributions earned in respect of the production of television programs are reflected in the Statementof Financial Performance once the program has been broadcast (refer note 1.20).

Subsidies, grants, sponsorships and donations are recognised on receipt unless paid to the Corporation forspecific purpose where recognition of revenue will be recognised in accordance with the agreement.

Recognition of appropriations from the Government is discussed in note 1.21.

Core OperationsAll material revenues described in this note are revenues relating to the core operating activities of theCorporation and controlled entities. Details of revenue amounts are given in notes 5 and 6.




1.14 Employee Benefits BenefitsLiabilities for services rendered by employees are recognised at the reporting date to the extent that they havenot been settled.

Liabilities for wages and salaries (including non-monetary benefits) and annual leave, are measured at theirnominal amounts. Other employee benefits expected to be settled within 12 months of their reporting date are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.

Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision hasbeen made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years byemployees of the Corporation is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration, including the Corporation’s employer superannuation contribution rates to the extent that the leave is likely to be taken during servicerather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary, ProfessionalFinancial Consulting Pty Ltd as at 30 June 2004 (Mercer Human Resource Consulting Pty Ltd as at 30 June2003). The estimate of the present value of the liability takes into account attrition rates and pay increasesthrough promotion and inflation.

Separation and RedundancyA provision is recognised where there is a legal, equitable or constructive obligation as a result of a past eventand it is probable that a future sacrifice of economic benefits will be required to settle the obligation, the timingor amount of which is uncertain.

SuperannuationEmployees of the Corporation are members of the Commonwealth Superannuation Scheme and the PublicSector Superannuation Scheme. The liability for their superannuation benefits is recognised in the financialstatements of the Commonwealth and is settled by the Commonwealth in due course.

The Corporation makes employer contributions to the Commonwealth at rates determined by the actuary to be sufficient to meet the cost to the Commonwealth of the superannuation entitlements of the Corporation’semployees.

The liability for superannuation recognised as at 30 June 2004 represents outstanding contributions for the final fortnight of the year.

1.15 Repairs and Maintenance Maintenance, repair expenses and minor renewals which do not constitute an upgrading or enhancement of equipment are expensed as incurred.

1.16 Acquisition of AssetsAssets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fairvalue of assets transferred in exchange and liabilities undertaken.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition.

1.17 Property (Land and Buildings), Infrastructure, Plant and EquipmentAsset Recognition ThresholdPurchases of property, infrastructure, plant and equipment are recognised initially at cost in the Statement ofFinancial Position. Purchases costing less than $2 000 are expensed in the year of acquisition except wherethey form part of a project or group of similar items which are significant in total.

RevaluationsBasisLand, buildings, infrastructure, plant and equipment are carried at valuation. Revaluations undertaken up to 30 June 2002 were done on a deprival basis; revaluations since that date are at fair value. This change inaccounting policy is required by Australian Accounting Standard AASB 1041 Revaluation of Non-Current Assets.




1.17 Property (Land and Buildings), Infrastructure, Plant and Equipment (continued)

Fair and deprival values for each class of asset are determined as shown below.

Asset Class Fair Value Measured at: Deprival Value Measured at:Land Market selling price Market selling priceBuilding Market selling price Market selling priceLeasehold improvements Depreciated replacement cost Depreciated replacement costInfrastructure, plant and equipment Depreciated replacement cost Depreciated replacement cost

Under both deprival and fair value, assets that are surplus to requirement are measured at their net realisablevalue. In respect of the ABC’s Gore Hill site an independent valuation continues to be adopted.

FrequencyLand, buildings, infrastructure, plant and equipment are revalued progressively in successive three-year cycles.All current cycles commenced on 1 July 2003.

Freehold land, buildings on freehold land, leasehold land and buildings on leasehold land were all revalued in2003-04.

The majority of leasehold improvements were revalued in 2003-04. The balance (ABC shops and overseasbureaux) were revalued in 2002-03.

The majority of infrastructure, plant and equipment assets were revalued in 2003-04. The balance (motor vehicles) were revalued in 2002-03.

The Finance Minister’s Orders require that all property, infrastructure, plant and equipment assets be measuredat up-to-date fair values from 30 June 2005 onwards. The current year is therefore the last year in which theCorporation will undertake progressive revaluations.

ConductAll valuations are conducted by an independent qualified valuer.

DepreciationDepreciable property, infrastructure, plant and equipment assets are written-off to their estimated residual valuesover their estimated useful lives to the Corporation using, in all cases, the straight-line method of depreciation.Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life ofthe improvements or the unexpired period of the lease.

Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustmentsare recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2004 2003Buildings on freehold land 50 years 50 yearsLeasehold improvements Lease term Lease termInfrastructure, plant and equipment 5 to 15 years 5 to 15 years

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosedin note 7C.

1.18 Impairment of Non-Current AssetsNon-current assets carried at up-to-date fair value at the reporting date are not subject to impairment testing.

The non-current assets carried at cost or deprival value, which are not held to generate net cash inflows, havebeen assessed for indications of impairment. Where indications of impairment exist, the carrying amount of theasset is compared to its net selling price and depreciated replacement cost and is written down to its higher ofthe two amounts, if necessary.

No write-down was required (2003 nil).




1.19 IntangiblesThe Corporation’s intangibles comprise software for internal use. The assets are carried at cost.

However, Schedule 1 now requires such assets, if carried on the cost basis, to be assessed for indications of impairment. The carrying amount of impaired assets must be written down to the higher of its net marketselling price or depreciated replacement cost.

All software assets were assessed for impairment as at 30 June 2003 and 30 June 2004. None were found to be impaired.

Software is amortised on a straight-line basis over its anticipated useful life.

Useful lives:2004 2003

Software 3-5 years 3-5 years

1.20 InventoriesInventories held for resale are valued at the lower of cost or net realisable value. Inventories not held for resaleare valued at cost, unless they are no longer required, in which case they are valued at net realisable value.Television programs are produced for domestic transmission and include direct salaries and expenses. Fixedproduction overheads are expensed in the period in which they are incurred.

Produced ProgramsThe cost of produced television program inventory is amortised as follows:• News, Current Affairs and Live Programs—100% on first screening;• Childrens, Education and Movies—Straight-line over three years from completion;• All other programs not covered above—90% first screening and 10% second screening or in third year;• Programs not shown within three years of completion or purchase to be amortised 100% in year three.

The costs of programs produced for News, Current Affairs and Radio are expensed as incurred. Such programs are normally broadcast soon after production, stock on hand at any time being minimal.

Purchased ProgramsPurchased program inventory is amortised in accordance with the policy noted above or over the rights periodof the contract (whichever is lesser).

Subsequent sales of residual rights are recognised in the period in which they occur.

Merchandise InventoryThe provision for obsolete retail stock is based on stock on hand over twelve months old and which mayrequire discounting or disposal. Items in engineering and general stores which have not been issued for threeyears are provided for as obsolete.

1.21 Transactions by the Commonwealth as OwnerAppropriations From 1 July 1999, the Commonwealth Budget has been prepared under an accruals framework. Under this framework, Parliament appropriates monies to the Corporation as revenue appropriations, as loan appropriations, as equity injections and as Capital Use Charge.

Revenue AppropriationsRevenue from Government is revenue of the core operating activities of the Corporation.

The full amount of appropriations for departmental outputs for the year is recognised as revenue.

Equity InjectionsAmounts appropriated by the Parliament as equity injections are recognised as ‘contributed equity’ in accordance with the Finance Minister’s Orders.

Capital Use ChargeA Capital Use Charge was imposed by the Government on the net assets of the Corporation. The Charge was accounted for as a dividend to Government.

In accordance with the recommendations of a review of Budget Estimates and Framework, the Governmentdecided that the Charge will not operate after 30 June 2003. Therefore, the amount of the Charge payable in respect of 2003 is the amount appropriated.




1.22 LeasesA distinction is made between finance leases which effectively transfer from the lessor to the lessee substantiallyall the risks and benefits incidental to ownership of leased non-current assets and operating leases underwhich the lessor effectively retains substantially all such risks and benefits.

Operating lease payments are expensed on a basis which is representative of the pattern of benefits derivedfrom the leased assets. The net present value of future net outlays in respect of surplus space under non-cancellable lease agreements is expensed in the period in which the space becomes surplus.

Lease incentives taking the form of ‘free’ leasehold improvements and rent holidays are recognised as liabilities.These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability.

1.23 GrantsThe Corporation receives grant monies from time to time.

Most grant agreements require the Corporation to perform services or provide facilities, or to meet eligibility criteria. A liability in respect of unearned revenues is recognised to the extent the services or facilities have notbeen provided or eligibility criteria have not been met.

1.24 InsuranceThe Corporation has insured for risk through the Government’s insurable risk managed fund called ‘Comcover’.Workers compensation is insured through Comcare Australia.

1.25 Loans Loans from government and bank loans are recognised at their principal amounts. Interest is expensed as itaccrues.

Non-bank loans are carried at the balance not yet repaid. Interest is expensed as it accrues.

1.26 Changes in Accounting PolicyThe accounting policies used in the preparation of these financial statements are consistent with those used in 2002-03, except where stated.

1.27 Comparative FiguresWhere applicable, prior year comparative figures have been restated to reflect the current year’s presentation in the financial statements.



2. Adoption of Australian Equivalents to International FinancialReporting Standards from 2005-06The Australian Accounting Standards Board has issued replacement Australian Accounting Standards to applyfrom 2005-06. The new standards are the Australian Equivalents to International Financial Reporting Standards(IFRSs), which are issued by the International Accounting Standards Board (‘Australian Equivalents’). The newstandards cannot be adopted early. The standards being replaced are to be withdrawn with effect from 2005-06, but continue to apply for the 2003-04 financial year.

It is expected that the Finance Minister will continue to require compliance with the Accounting Standardsissued by the AASB, including the Australian Equivalents to IFRSs, in his Orders for the Preparation of theABC’s financial statements for 2005-06 and beyond.

The Australian Equivalents contain certain additional provisions which will apply to not-for-profit entities, including the ABC. Existing AASB standards that have no IFRS equivalent will continue to apply.

Accounting Standard AASB 1047 Disclosing the Impact of Adopting Australian Equivalents to IFRSs requiresthat the financial statements for 2003-04 disclose:• An explanation of how the transition to the Australian Equivalents is being managed; and• A narrative explanation of the key differences in accounting policies arising from the transition.

The purpose of this note is to make these disclosures.

2.1 Management of the transition to AASB Equivalents to IFRSs

ABC management continue to assess the significance of these changes and is preparing for their implementation.An IFRS steering committee has been established to oversee and manage the transition to IFRS and to provideregular feedback to the ABC’s Board on progress.

A project plan is in place with the following key milestones:• Identification of all major accounting policy differences between current AASB standards and the Australian

Equivalents to IFRSs for disclosure in the 2003-04 Financial Statements;• Identification of systems and process changes necessary to be able to report under the Australian

Equivalents, including those necessary to enable capture of data under both sets of rules for 2004-05, and the testing and implementation of those changes;

• Preparation of a transitional Balance Sheet as at 1 July 2004, under Australian Equivalents; and• Preparation of an Australian Equivalent Balance Sheet at the same time as the 30 June 2005 statements

are prepared.

To date, the major accounting and disclosure differences have been identified. The effect of these to the ABCis disclosed in section 2.2.

2.2 Major changes in accounting policyChanges to major accounting policies are discussed in the following paragraphs.

Property, infrastructure, plant and equipmentThe current Finance Minister’s Orders requires assets to be measured at up-to-date fair values as at 30 June2005 and allows entities to utilise the transitional arrangements where some classes of assets will remain atdeprival until that class is progressively revalued.

In line with IFRS, it is expected that the Finance Minister’s Orders will require property, infrastructure, plant andequipment assets carried at valuation in 2003-04 to be measured at up-to-date fair value from 2005-06.

The Corporation has revalued property, infrastructure, plant and equipment at fair value effective 1 July 2003 asoutlined in note 1.17.

Borrowing costs related to qualifying assets are capitalized as outlined in note 1.7. It is expected that theFinance Minister’s Orders (FMOs) for 2005-06 will elect to expense all borrowing costs in line with IFRS.Borrowing costs previously capitalised as at 1 July 2004 will be written-off to accumulated results.

Under the current Accounting Standards non-current assets held for sale do not require separate disclosure.IFRS requires separate disclosure on the face of the Balance Sheet, previously named Statement of FinancialPosition. The Corporation will adopt this disclosure change.

Current Accounting Standards require separate disclosure of the gross amount of disposal proceeds and the carrying amount of the asset disposed on the faceplate of the Statement of Financial Performance. The Statement of Financial Performance is to renamed Income Statement. AASB 116 - Property, Plant &Equipment requires the net gain/loss of disposal to be shown on the Income Statement faceplate and will be adopted.



2. Adoption of Australian Equivalents to International FinancialReporting Standards from 2005-06 (continued)

2.2 Major changes in accounting policy (continued)Intangible AssetsThe Corporation currently recognises software assets on the cost basis as outlined in note 1.19. This treatmentwill continue under IFRS.

The Corporation does not hold any other intangible assets and therefore will not be impacted by the change toIFRS in this regard.

Impairment of AssetsThe Corporation’s policy on impairment of assets is stated at note 1.18.

The most significant change as a result of IFRS to the ABC is the requirement to assess at each balance date if there is any indication that an non-current asset may be impaired. If there is an indication of impairment,measurement of recoverable amount must be conducted. Impairment losses are accounted for as expensesfor assets measured at cost or revaluation decrements for assets measured at fair value.

InventoryThe Corporation’s policy on inventory is stated at note 1.20.

IFRS requires inventory held for distribution for no consideration or at a nominal amount to be carried at thelower of cost or current replacement cost. This is consistent with the Corporation’s policy.

Employee BenefitsThe Corporation’s policy on employee benefits is outlined in note 1.14.

The provision for long service leave is measured at the present value of estimated future cash outflows usingmarket yields as at the reporting date on national government bonds.

Under IFRS, the same discount rate will be used unless there is a deep market in high quality corporate bonds,in which case the market yield on such bonds will be used.

The Finance Minister’s Orders, by reference to Finance Briefs, do not allow for a present value calculation ofestimated future cash outflows of annual leave expected to be taken beyond twelve months. AASB 119Employee Benefits requires annual leave to be a measurement of the present value of estimated future cashoutflows where leave is expected to be taken beyond one year.

Unless the Finance Minister’s Orders specifically preclude this measurement, the Corporation will be required to apply this measurement treatment.

Financial InstrumentsFinancial assets and liabilities are likely to be accounted for as ‘held at fair value through profit and loss’ oravailable-for-sale where the fair value can be reliably measured (in which case, changes in value are initiallytaken to equity). Fair values will be published prices where an active market exists or by appraisal.

Cash and receivables are expected to continue to be measured at cost.

Financial assets, except those classified as ‘held at fair value through profit and loss’, will be subject to impairment testing.

Cash Flow Statements The Corporation’s policy on cash is outlined at note 1.8.

Under AASB 107 Cash Flow Statements the definition of cash equivalent is broader and will include short-termmoney market investments that are convertible to cash.

The Corporation may be required to reclassify some investments currently disclosed under receivables as cash.



3. Expenses and RevenuesConsolidated ABC

2004 2003 2004 2003Notes $’000 $’000 $’000 $’000

Expenses from ordinary activitiesEmployee related 7A 351 873 341 096 301 406 293 743 Artist fees 7B 16 585 17 961 7 408 9 463 Auditor's remuneration 7B 294 285 198 220 Bad and doubtful debts 7B 21 66 15 147 Communications 7B 24 703 24 432 24 008 23 712 Computer costs 7B 5 556 6 400 5 276 6 163 Consultants and contract labour 7B 16 441 16 100 15 774 15 160 Depreciation and amortisation 7C 70 323 62 283 69 362 61 570 Freight 7B 2 314 2 687 1 684 1 678Borrowing costs 8 9 640 9 886 9 637 9 886 Legal costs 7B 2 654 2 117 2 639 2 091 Disposal of non-current assets 6B 5 381 3 172 5 372 3 142 Other disposal costs 6B 3 298 - 3 298 - Net loss on foreign exchange—non-speculative 7E 87 740 87 740 Materials and minor items 7B 12 093 15 730 11 734 15 235 Merchandising and promotion 7B 76 550 72 678 68 239 65 986 Transmission services 7B 111 120 95 233 111 120 95 233 Operating leases and occupancy 7B 21 644 21 450 19 376 19 461 Program amortisation 7D 118 110 108 612 118 110 108 612 Program rights 7B 8 837 7 760 8 737 7 659 Repairs, maintenance and hire 7B 26 867 24 571 23 858 21 501 Satellite and transmission 7B 28 813 29 393 28 813 29 393 Travel 7B 13 933 18 764 12 596 16 427 Video production services 7B 5 201 6 579 5 201 6 451 Incidentals 7B 8 333 6 615 4 780 4 328 Write-down of assets 7F 160 4 855 - 4 855 Total expenses from ordinary activities 940 831 899 465 858 728 822 856

Revenues from independent sourcesCo-production contributions 6C 1 900 1 761 1 174 1 083 Concert sales and subsidies 6C 24 428 20 902 - - Proceeds from disposal of non-current assets 6B 2 298 622 2 282 571 Interest and bill discounts 6A 6 228 7 736 4 971 6 645 Insurance settlement 6D 700 1 196 700 1 196 Merchandising 6C 70 408 63 995 70 408 63 991 Program sales 6C 7 565 6 871 7 435 6 697 Rent and hire of facilities 6C 8 782 9 321 8 216 8 652 Royalties 6C 33 603 32 778 33 596 32 766 Sponsorships and donations 6D 7 743 5 920 - - Subsidies and grants 6D 19 797 19 345 19 727 19 134 Technology sales 6C 1 387 1 510 1 387 1 510 Incidentals 6D 4 314 4 444 3 816 4 054 Total revenues from independent sources 189 153 176 401 153 712 146 299 Total revenues from Government 5 777 398 780 160 726 895 733 469 Total revenues from ordinary activities 966 551 956 561 880 607 879 768 Net operating surplus/(deficit) from ordinary activities 25 720 57 096 21 879 56 912

4. Economic DependencyThe ABC was established in 1932 as the Australian Broadcasting Commission. Since 1983 it has operatedunder the provisions of the Australian Broadcasting Corporation Act 1983.

The Corporation and its controlled entities are dependent upon direct and indirect appropriations of monies byParliament. In excess of 80% of normal activities are funded in this manner, and without these appropriationsthe Corporation and its controlled entities would be unable to meet their obligations. (Refer to note 5 for detailsof Revenue from Government).



5. Revenue from GovernmentConsolidated ABC

2004 2003 2004 2003$’000 $’000 $’000 $’000

5A Appropriations (a) 591 786 628 388 591 786 628 388

5B Appropriations—Transmission revenueOutcome 1.2—satellite and analog transmission 77 221 75 318 77 221 75 318 Outcome 1.3—digital transmission 57 888 29 763 57 888 29 763

135 109 105 081 135 109 105 081

5C Funding from Commonwealth/State Governments for Orchestral SubsidiariesAustralia Council for the Arts 40 355 37 109 - - Other 10 148 9 582 - -

50 503 46 691 - -

Total revenues from Government 777 398 780 160 726 895 733 469

(a) Appropriations from the Government include $nil (2003 $58 646 000) in respect of Capital Use Charge funding.

6. Revenue from Independent Sources 6A InterestDeposits 1 839 1 782 582 691 Bills receivable 4 389 5 954 4 389 5 954 Total interest revenue 6 228 7 736 4 971 6 645

6B Net loss from sales of assetsLand and buildings

Total proceeds from disposal 1 402 - 1 389 - Net book value of assets disposed (1 762) (188) (1 762) (188)Cost of disposal (371) - (371) -

Net loss from disposal of land and buildings (731) (188) (744) (188)

Infrastructure, plant and equipmentTotal proceeds from disposal 896 622 893 571 Net book value of assets disposed (2 998) (2 748) (2 989) (2 718)Write-offs (250) (236) (250) (236)

Net loss from disposal of infrastructure, plant and equipment (2 352) (2 362) (2 346) (2 383)

Total proceeds from disposal 2 298 622 2 282 571 Total value of assets disposed (5 381) (3 172) (5 372) (3 142)

Net loss from disposal of assets (3 083) (2 550) (3 090) (2 571)

Other disposal costs (a) (3 298) - (3 298) -

6C Goods and servicesGoods 100 776 91 385 100 776 91 385 Services 47 297 45 753 21 440 23 314 Total goods and services 148 073 137 138 122 216 114 699

Cost of sales of goods 60 932 53 516 60 932 53 516

6D Other revenuesSponsorships and donations 7 743 5 920 - - Subsidies and grants 19 797 19 345 19 727 19 134 Insurance settlement 700 1 196 700 1 196 Other 4 314 4 444 3 816 4 054 Total other revenue 32 554 30 905 24 243 24 384

Total revenue from independent sources 189 153 176 401 153 712 146 299

(a) Costs associated with future sale of Gore Hill. Prior years disposal costs of $3 164 000 were capitalised or expensed as incurred.



7. Operating ExpensesConsolidated ABC

2004 2003 2004 2003$’000 $’000 $’000 $’000

7A Employee expensesWages and salaries 258 534 261 169 223 215 226 314 Superannuation 46 421 34 473 37 656 29 651 Leave and other entitlements 33 430 32 024 28 814 25 932 Separation and redundancy 2 856 2 837 2 061 2 024 Other employee benefits 8 136 8 826 8 076 8 826 Total employee benefits expenses 349 377 339 329 299 822 292 747 Workers' compensation premiums 2 496 1 767 1 584 996 Total employee expenses 351 873 341 096 301 406 293 743

7B Supplier expensesSupply of goods and services 371 371 359 229 343 103 332 178 Operating lease rentals 10 588 9 592 8 353 8 130 Total supplier expenses 381 959 368 821 351 456 340 308

7C Depreciation and amortisationDepreciation of property, infrastructure, plant and equipment 67 953 59 254 66 992 58 541 Amortisation of intangible assets 2 370 3 029 2 370 3 029 Total depreciation and amortisation 70 323 62 283 69 362 61 570

The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class of depreciable asset are as follows:Buildings and land 22 218 26 392 22 218 26 392 Leasehold improvements 506 66 392 10 Infrastructure, plant and equipment 45 229 32 796 44 382 32 139 Software 2 370 3 029 2 370 3 029 Total depreciation and amortisation 70 323 62 283 69 362 61 570

7D Program Amortisation 118 110 108 612 118 110 108 612 Total program amortisation 118 110 108 612 118 110 108 612

7E Net foreign exchange loss Non-speculative 87 740 87 740 Total net foreign exchange loss 87 740 87 740

7F Write-down of assetsNon-financial assets

Infrastructure, plant and equipment—impairment 160 - - - Intangibles - 4 855 - 4 855

Total write-down of assets 160 4 855 - 4 855

8. Borrowing CostsLoans 9 640 9 886 9 637 9 886 Total borrowing costs 9 640 9 886 9 637 9 886



9. Financial AssetsConsolidated ABC

2004 2003 2004 2003Notes $’000 $’000 $’000 $’000

9A CashCash at bank and on hand (a) 43 291 31 845 4 495 4 923

43 291 31 845 4 495 4 923Balance of cash as at 30 June shown in the Statement of Cash Flows 43 291 31 845 4 495 4 923

9B ReceivablesGoods and services 11 672 8 511 9 099 8 087 Less:Provision for doubtful debts (267) (640) (267) (640)

11 405 7 871 8 832 7 447

Bills of exchange and other investments 35 753 52 521 35 753 52 521 Appropriations receivable—equity injection - 32 574 - 32 574 GST receivable 4 684 8 388 4 193 7 967 Other receivables 1 530 2 632 1 163 1 997

41 967 96 115 41 109 95 059 Total receivables (net) 53 372 103 986 49 941 102 506

Receivables are categorised as follows:Current 52 349 103 031 49 036 101 551 Non-current 1 023 955 905 955

53 372 103 986 49 941 102 506

Receivables (gross) which are overdue are aged as follows:Not Overdue 48 536 100 045 46 855 99 870 Overdue by:- less than 30 days 2 151 1 539 1 285 1 071 - 30 to 60 days 768 448 616 259 - 60 to 90 days 978 192 507 91 - more than 90 days 1 206 2 402 945 1 855 Total receivables (gross) 53 639 104 626 50 208 103 146

The provision for doubtful debts is aged as follows:Not Overdue - - - - Overdue by:- less than 30 days - (270) - (270)- 30 to 60 days - - - - - 60 to 90 days - (6) - (6)- more than 90 days (267) (364) (267) (364)Total provision for doubtful debts (267) (640) (267) (640)

9C InvestmentsShares in subsidiaries—(unlisted) 24 - - - - Total investments - - - -

Investments are current assets.

9D Accrued revenues 9 472 8 373 8 884 7 466 9 472 8 373 8 884 7 466

Accrued revenues are all current assets.

(a) Consolidated cash includes $2 319 000 held by a subsidary, which is subject to restricted use over a maximum 15 year term.



10. Non Financial AssetsConsolidated ABC

2004 2003 2004 2003$’000 $’000 $’000 $’000

10A Land and buildingsFreehold land at independent valuation 2004 (fair value) (c) (e) 187 635 - 187 635 - Freehold land at independent valuation 2001 (deprival) (a) - 119 204 - 119 204 Freehold land at cost 2 332 533 2 332 533

189 967 119 737 189 967 119 737

Buildings on freehold land at independent valuation 2004 (fair value) (c) 536 000 - 536 000 -Accumulated depreciation (219 132) - (219 132) -

316 868 - 316 868 -

Buildings on freehold land at independent valuation 2001 (deprival) (a) - 407 299 - 407 299 Accumulated depreciation - (231 970) - (231 970)

- 175 329 - 175 329

Buildings on freehold land at cost 20 076 136 145 20 076 136 145 Accumulated depreciation (699) (4 718) (699) (4 718)

19 377 131 427 19 377 131 427

Leasehold land at independent valuation 2004 (fair value) (c) 3 086 - 3 086 - Accumulated amortisation (41) - (41) -

3 045 - 3 045 -

Leasehold land at independent valuation 2001 (deprival) (a) - 1 839 - 1 839 Accumulated amortisation - (74) - (74)

- 1 765 - 1 765

Leasehold buildings at independent valuation 2004 (fair value) (c) 3 287 - 3 287 - Accumulated amortisation (1 488) - (1 488) -

1 799 - 1 799 -

Leasehold buildings at independent valuation 2001 (deprival) (a) - 7 425 - 7 425 Accumulated amortisation - (5 163) - (5 163)

- 2 262 - 2 262

Leasehold buildings at cost 7 468 7 468 Accumulated amortisation - (13) - (13)

7 455 7 455

Leasehold improvements at independent valuation 2004 (fair value) (c) 7 719 - 7 609 - Accumulated amortisation (3 384) - (3 274) -

4 335 - 4 335 -

Leasehold improvements at independent valuation 2003 (fair value) (b) 11 336 10 896 11 226 10 896 Accumulated amortisation (9 031) (7 319) (8 921) (7 319)

2 305 3 577 2 305 3 577

Leasehold improvements at independent valuation 2000 (deprival) (a) 110 3 525 - 2 881 Accumulated amortisation (110) (2 822) - (2 484)

- 703 - 397

Leasehold improvements at cost 4 204 1 739 2 963 1 739 Accumulated amortisation (966) (220) (590) (220)

3 238 1 519 2 373 1 519

Total land and buildings excluding capital works in progress 540 941 436 774 540 076 436 468 Capital works in progress at cost (d) 39 516 39 735 39 516 39 735 Total land and buildings 580 457 476 509 579 592 476 203

(a) The revaluations were in accordance with the revaluation policy stated at note 1, and were completed by independent valuers Edward Rushton Australia Pty Ltd and McGee Bowen Pty Ltd.

(b) The revaluations were in accordance with the revaluation policy stated at note 1, and were completed by independent valuers Hymans Professional Services.



10. Non Financial Assets (continued)


10A Land and buildings (continued)(c) The revaluations were in accordance with the revaluation policy

stated at note 1, and were completed by independent valuers Australian Valuation Office and McGees National Property Consultants.

(d) This amount includes borrowing costs which have been capitalised of $1 164 591 (2003 $879 577).

(e) Includes property subject to an option for sale.

Movement in Asset Revaluation ReserveIncrement for land 70 813 - 70 813 - Increment for buildings 29 307 - 29 307 - Increment for leasehold improvements 3 848 459 3 848 459

103 968 459 103 968 459

10B Infrastructure, plant and equipmentAt independent valuation 2004 (fair value) (c) 448 695 - 448 695 - Accumulated depreciation (287 333) - (287 333) -

161 362 - 161 362 -

At independent valuation 2003 (fair value) (b) 1 297 1 140 1 297 1 140 Accumulated depreciation (587) (92) (587) (92)

710 1 048 710 1 048

At independent valuation 2001 (fair value) (a) - 387 468 - 387 468 Accumulated depreciation - (317 020) - (317 020)

- 70 448 - 70 448

At cost 78 691 161 178 73 164 154 975 Accumulated depreciation (15 349) (33 753) (12 300) (31 035)

63 342 127 425 60 864 123 940

Total infrastructure, plant and equipmentexcluding capital works in progress 225 414 198 921 222 936 195 436 Capital works in progress at cost 45 653 60 658 45 653 60 658 Total infrastructure, plant and equipment 271 067 259 579 268 589 256 094

(a) Revaluations were performed by Edward Rushton AustraliaPty Ltd in 2001 on a deprival basis. During the year ended 30 June 2003 Hymans Professional Services have confirmed that the 2001 revaluations equate to fair value.

(b) The revaluations were in accordance with the revaluation policy stated at note 1, and were completed by independent valuers Hymans Professional Services.

(c) The revaluations were in accordance with the revaluation policy stated at note 1, and were completed by independent valuers Australian Valuation Office.

Movement in Asset Revaluation ReserveIncrement for infrastructure, plant and equipment 31 512 629 31 258 629

10C Intangible assetsComputer software at cost (a) 22 426 22 464 22 426 22 464 Accumulated amortisation (13 606) (11 236) (13 606) (11 236)Total intangible assets 8 820 11 228 8 820 11 228

(a) Software carrying value at 1 July 2001 deemed to be cost.

Movement in Asset Revaluation ReserveDecrement for intangibles - 1 782 - 1 782




Table A1Reconciliation of the opening and closing balances of property, infrastructure, plant and equipment and intangibles(Consolidated)

Other Total infrastructure,

land and plant and ComputerItem Land Buildings buildings equipment software Total

$’000 $’000 $’000 $’000 $’000 $’000

As at 1 July 2003Gross book value 121 576 567 497 689 073 549 786 22 464 1 261 323Accumulated depreciation/amortisation (74) (252 225) (252 299) (350 865) (11 236) (614 400)Net book value 121 502 315 272 436 774 198 921 11 228 646 923

AdditionsBy purchase 2 333 21 525 23 858 44 489 (38) 68 309 From acquisition of operations - - - - - -

- Reclassifications - 916 916 (916) - - Reclassifications—depreciation - (151) (151) 151 - - Net revaluation increment 70 813 33 155 103 968 31 512 - 135 480 Depreciation/amortisation expense (41) (22 683) (22 724) (45 229) (2 370) (70 323)Recoverable amount write-downs - - - - - - Write-back revaluation—application FMO 3C - - - - - - Write-off—application FMO 3C - - - (250) - (250)

DisposalsFrom disposals of operations - - - - - - Other disposals (1 595) (105) (1 700) (3 264) - (4 964)

As at 30 June 2004Gross book value 193 053 582 739 775 792 528 683 22 426 1 326 901 Accumulated depreciation/amortisation (41) (234 810) (234 851) (303 269) (13 606) (551 726)Net book value 193 012 347 929 540 941 225 414 8 820 775 175

Table A2Reconciliation of the opening and closing balances of property, infrastructure, plant and equipment and intangibles (ABC)



$’000 $’000 $’000 $’000 $’000 $’000

As at 1 July 2003Gross book value 121 576 566 853 688 429 543 583 22 464 1 254 476 Accumulated depreciation/amortisation (74) (251 887) (251 961) (348 147) (11 236) (611 344)Net book value 121 502 314 966 436 468 195 436 11 228 643 132

AdditionsBy purchase 2 333 21 516 23 849 44 061 (38) 67 872 From acquisition of operations - - - - - -

Reclassifications - - - - - - Reclassifications—depreciation - - - - - - Net revaluation increment 70 813 33 155 103 968 31 258 - 135 226 Depreciation/amortisation expense (41) (22 569) (22 610) (44 382) (2 370) (69 362)Recoverable amount write-downs - - - - - - Write-back revaluation—application FMO 3C - - - - - - Write-off—application FMO 3C - - - (250) - (250)

DisposalsFrom disposals of operations - - - - - - Other disposals (1 595) (4) (1 599) (3 187) - (4 786)

As at 30 June 2004Gross book value 193 053 581 168 774 221 523 156 22 426 1 319 803 Accumulated depreciation/amortisation (41) (234 104) (234 145) (300 220) (13 606) (547 971)Net book value 193 012 347 064 540 076 222 936 8 820 771 832




Table B Assets at valuation (Consolidated only)



$’000 $’000 $’000 $’000 $’000 $’000

As at 30 June 2004Gross value 193 053 582 739 775 792 528 683 22 426 1 326 901 Accumulated depreciation/amortisation (41) (234 810) (234 851) (303 269) (13 606) (551 726)Net book value 193 012 347 929 540 941 225 414 8 820 775 175As at 30 June 2003Gross value 121 576 567 497 689 073 549 786 22 464 1 261 323 Accumulated depreciation/amortisation (74) (252 225) (252 299) (350 865) (11 236) (614 400)Net book value 121 502 315 272 436 774 198 921 11 228 646 923

Table CAssets under construction (Consolidated only)



$’000 $’000 $’000 $’000 $’000 $’000

Gross value at 30 June 2004 - 39 516 39 516 45 653 - 85 169

Gross value at 30 June 2003 - 39 735 39 735 60 658 - 100 393


10D InventoriesRetailInventory held for sale 14 120 13 260 14 103 13 225 Provision for stock obsolescence (1 190) (856) (1 190) (856)

12 930 12 404 12 913 12 369

Broadcasting consumablesInventory not held for sale (cost) 790 923 790 923

TV programsPurchased 29 975 36 827 29 975 36 827 Produced 33 696 21 694 33 696 21 694 In progress 11 426 17 742 11 426 17 742

75 097 76 263 75 097 76 263

Total inventories 88 817 89 590 88 800 89 555 All inventories are current assets.

10E Other non-financial assetsPrepaid property rentals 1 916 156 218 156 Other prepayments 13 720 11 052 13 147 10 934 Total other non-financial assets 15 636 11 208 13 365 11 090

Other non-financial assets are categorised as follows:Current 14 633 11 124 12 387 11 006 Non-current 1 003 84 978 84 Total non-financial assets 15 636 11 208 13 365 11 090



11. Interest Bearing LiabilitiesConsolidated ABC

2004 2003 2004 2003$’000 $’000 $’000 $’000

11A LoansLoans from Government 171 000 151 000 171 000 151 000 Bank loans 699 411 - - Non bank loan (a) - 40 000 - 40 000 Total Loans 171 699 191 411 171 000 191 000

(a) $40 million was repayable in Japanese Yen. Currency swap contracts were undertaken to effectively remove the currencyrisk associated with these loans.

Maturity schedule for loans:Payable within one year 30 604 40 165 30 000 40 000 Payable in one to five years 84 595 91 246 84 500 91 000 Payable in more than five years 56 500 60 000 56 500 60 000 Total Loans 171 699 191 411 171 000 191 000

12. Provisions12A Employee ProvisionsSalaries and wages 9 237 14 078 7 975 13 514 Annual leave 48 080 44 989 46 359 43 266 Long service leave (a) 60 276 62 192 52 477 54 778 Superannuation 212 198 144 160 Separation and redundancy - - - - Aggregate employee entitlement benefit 117 805 121 457 106 955 111 718 Workers compensation - - - - Aggregate employee benefit liability and related costs 117 805 121 457 106 955 111 718

(a) An independent actuarial valuation was performed by Professional Financial Consulting Pty Ltd in 2004 andMercer Human Resource Consulting Pty Ltd in 2003.

Current 48 968 56 510 42 371 47 085 Non-current 68 837 64 947 64 584 64 633

117 805 121 457 106 955 111 718

12B Capital Use Charge Provision

Capital Use Charge - 58 646 - 58 646

Balance owing 1 July 2003 - 312 - 312 Capital Use Charge provided forduring the period 58 646 58 646 58 646 58 646 Capital Use Charge paid (58 646) (312) (58 646) (312)Balance owing 30 June 2004 - 58 646 - 58 646

The Capital Use Charge provision is a current liability.



13. PayablesConsolidated ABC

2004 2003 2004 2003$’000 $’000 $’000 $’000

13A SuppliersTrade creditors 54 045 56 429 48 188 54 115 Other creditors 3 406 3 595 1 463 1 773 Total Suppliers payables 57 451 60 024 49 651 55 888

Suppliers payables are categorised as follows:Current 56 975 59 695 49 357 55 867 Non-current 476 329 294 21

57 451 60 024 49 651 55 888

13B OtherInterest payable 44 369 44 369 Unearned revenue 31 364 29 042 6 621 10 334 Total Other payables 31 408 29 411 6 665 10 703

Other payables are categorised as follows:Current 23 182 26 392 3 944 7 684 Non-current 8 226 3 019 2 721 3 019

31 408 29 411 6 665 10 703

Total Payables 88 859 89 435 56 316 66 591



14. EquityConsolidated

AssetContributed Accumulated revaluation Total

Item equity results reserve equity2004 2003 2004 2003 2004 2003 2004 2003$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance as at 1 July 132 387 89 113 170 968 174 786 228 014 228 708 531 369 492 607

Net surplus/(deficit) - - 25 720 57 096 - - 25 720 57 096

Net revaluation increment in leaseholdproperty, plant and equipment - - - - 135 480 1 088 135 480 1 088

Decrease in asset revaluation reserve on application of FMO 3C—Non Current Assets - - - - - (1 782) - (1 782)

Decrease in accumulated results on application of transitional provisions in AASB 1028 Employee Benefits - - - (2 268) - - - (2 268)

Transactions with owner:Distributions to owner:

Returns on capitalCapital Use Charge (CUC) - - - (58 646) - - - (58 646)

Contributions by owner:Contribution of equity: appropriation - 43 274 - - - - - 43 274

Closing balance as at 30 June 132 387 132 387 196 688 170 968 363 494 228 014 692 569 531 369

ABCAsset

Contributed Accumulated revaluation TotalItem equity results reserve equity

2004 2003 2004 2003 2004 2003 2004 2003$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance as at 1 July 132 387 89 113 170 709 174 711 228 014 228 708 531 110 492 532

Net surplus/(deficit) - - 21 879 56 912 - - 21 879 56 912

Net revaluation increment in leaseholdproperty, plant and equipment - - - - 135 226 1 088 135 226 1 088

Decrease in asset revaluation reserve on application of FMO 3C—Non Current Assets - - - - - (1 782) - (1 782)

Decrease in accumulated results on application of transitional provisions in AASB 1028 Employee Benefits - - - (2 268) - - - (2 268)

Transactions with owner:

Distributions to owner:Returns on capitalCapital Use Charge (CUC) - - - (58 646) - - - (58 646)

Contributions by owner:Contribution of equity: appropriation - 43 274 - - - - - 43 274

Closing balance as at 30 June 132 387 132 387 192 588 170 709 363 240 228 014 688 215 531 110



15. Cash Flow Reconciliation Consolidated ABC

2004 2003 2004 2003$’000 $’000 $’000 $’000

Operating surplus from ordinary activities 25 720 57 096 21 879 56 912

Capital use provided - (58 646) - (58 646)Depreciation of fixed assets 67 953 59 175 66 992 58 541 Amortisation of intangibles 2 370 3 108 2 370 3 029 Amortisation of program purchases 118 110 108 612 118 110 108 612 Interest capitalised (448) (880) (448) (880)Unrealised foreign exchange (gain)/loss (111) (95) (111) (95)Transfer to/from provisions

- employee entitlements (3 652) 190 (4 763) 605 - doubtful debts 21 66 15 147

Write-down of assets - intangibles - 4 855 - 4 855 - infrastructure, plant and equipment - 236 - 236

(Profit)/loss on disposal of property, infrastructure, plant and equipment 2 712 2 550 2 719 2 571

Changes in assets and liabilities(Increase)/decrease in receivables 1 117 6 295 3 346 4 033 (Increase)/decrease in other current assets (5 255) 2 246 (3 693) 3 149 (Increase)/decrease in inventories (117 337) (117 960) (117 355) (117 933)Increase/(decrease) in payables (2 573) 59 670 (6 237) 60 795 Increase/(decrease) in provisions/liabilities (503) (1 293) (6 538) (4 188)Net cash from operating activities 88 124 125 225 76 286 121 743

16. External Financing ArrangementsTotal facility (a) 1 000 1 000 - - Amount of facility used as at 30 June (439) - - - Facility available 561 1 000 - -

(a) A subsidiary company has a commercial bill line of credit facility with Westpac Banking Corporation with a limit of $1 000 000 (2003 $1 000 000). As at 30 June 2004 $439 287 drawings had been made under this facility. The facility is reviewable in September each year, repayable on demand and expires on 31 December 2006.

The facility is secured by guarantees for up to $200 000 each given to Westpac Banking Corporation by five separate parties. Each guarantee endures until 31 December 2006. In the event that the subsidiary company has not achieved a return to profitability by 31 December 2004 the guarantors will collectively become entitled to nominate a Director to the Board of the subsidiary company.



17. Financial Instruments (Consolidated)A. Interest Rate Risk

Floating Fixed interest rate maturing Non Total Weightedinterest 1 Year 1 to 5 More interest average

rate or less years than 5 bearing effectiveyears interest rate

Notes $’000 $’000 $’000 $’000 $’000 $’000

2004Financial assets (recognised)Cash at bank and on hand 9A 29 306 8 445 5 506 - 34 43 291 4.63%ReceivablesGoods and services 9B - - - - 11 672 11 672 N/ALess provision for doubtful debts 9B - - - - (267) (267) N/AAccrued revenues 9D - - - - 9 472 9 472 N/AAppropriations receivable - equity injection 9B - - - - - - N/AOther receivables 9B - - - - 1 530 1 530 N/AGST receivable 9B - - - - 4 684 4 684 N/ABills of exchange 9B 35 753 - - - - 35 753 5.47%Investments 9C - - - - - - N/ATotal financial assets 65 059 8 445 5 506 - 27 125 106 135

Total assets 1 070 932

Financial liabilities (recognised)DebtLoans—long term borrowings 11A - 30 604 84 595 56 500 - 171 699 5.75%Provisions and payablesSuppliers 13A/B - - - - 88 859 88 859 N/ATotal financial liabilities - 30 604 84 595 56 500 88 859 260 558

Total liabilities 378 363

Financial liabilities (unrecognised)Interest rate swap(Notional principal amounts only) - - - - - - N/A

2003Financial assets (recognised)Cash at bank and on hand 9A 31 845 - - - - 31 845 4.21%ReceivablesGoods and services 9B - - - - 8 511 8 511 N/ALess provision for doubtful debts 9B - - - - (640) (640) N/AAccrued revenues 9D - - - - 8 373 8 373 N/AAppropriations receivable- equity injection 9B - - - - 32 574 32 574 N/AOther receivables 9B - - - - 2 632 2 632 N/AGST receivable 9B - - - - 8 388 8 388 N/ABills of exchange 9B 52 521 - - - - 52 521 4.83%Investments 9C - - - - - - N/ATotal financial assets 84 366 - - - 59 838 144 204

Total assets 992 318

Financial liabilities (recognised)DebtLoans—long term borrowings 11A - 40 165 91 246 60 000 - 191 411 5.53%Provisions and payablesSuppliers 13A/B - - - - 89 435 89 435 N/ATotal financial liabilities - 40 165 91 246 60 000 89 435 280 846

Total liabilities 460 949

Financial liabilities (unrecognised)Interest rate swap(Notional principal amounts only) (40 000) 40 000 - - - - N/A



17. Financial Instruments (continued)

B. Net Fair Values of Financial Assets and LiabilitiesThe following methods and assumptions were used to estimate the net fair values:

Cash, receivables, payables and short term borrowingsThe carrying amount approximates the net fair value because of the short term maturity.

InvestmentsThe carrying amount for non traded investments has been assessed by the directors based on the underlyingnet assets, expected cash flows and any particular special circumstances of the investee as approximating net fair values.

Long term borrowings The net fair values of long term borrowings are estimated using discounted cash flow analysis, based on current interest rates for liabilities with similar risk profiles.

Interest rate swaps and cross currency swap agreementsThe net fair values of unrecognised financial instruments reflect the estimated amounts the economic entityexpects to pay or receive to terminate the contracts (net of transaction costs) or to replace the contracts attheir current market rates as at reporting date. This is based on independent market quotations and usingstandard valuation techniques.

Forward exchange contractsThe net fair values of forward exchange contracts is taken to be the unrealised gain or loss at balance date calculated by reference to current forward exchange rates for contracts with similar maturity profiles.

Carrying Amount Net Fair Value2004 2003 2004 2003$’000 $’000 $’000 $’000

Financial AssetsSwap agreements - - - (727)Foreign exchange contracts 111 (100) 216 (195)

Financial LiabilitiesLong term borrowings (loans) 171 699 191 000 170 015 195 186

C. Credit Risk ExposuresCredit risk represents the loss that would be recognised if counterparties to financial instruments fail to performas contracted.

The economic entity has no significant exposures to any concentrations of credit risk.

Financial AssetsThe economic entity’s maximum exposure to credit risk at reporting date in relation to each class of recognisedfinancial assets is the carrying amount, net of provision for doubtful debts, of those assets as indicated in theStatement of Financial Position.

Items not recognised in the Statement of Financial PositionThe credit risk arising from dealings in financial instruments is controlled by a strict policy of credit approvals,limits and monitoring procedures. The economic entity has no material concentration of credit risk with any single counterparty and, as a matter of policy, only transacts with financial institutions that have a high creditrating. Credit exposure of foreign currency and interest rate derivatives is represented by the net fair value ofthe contracts, as disclosed.

D. Hedging InstrumentsSpecific HedgesThe net unrecognised gain of $105 384 (2003 unrecognised loss $94 555) on specific hedges of anticipatedforeign currency purchases will be recognised at the date of the underlying transactions.

General HedgesAt balance date, the Corporation held forward exchange contracts to buy United States Dollars (USD), Pounds Sterling (GBP) and the Euro (EUR). Gains/losses arising from general hedges outstanding at year end have been recognised in the Statement of Financial Performance.



17. Financial Instruments (continued)

D. Hedging Instruments (continued) The following table sets out the gross value to be received under foreign currency contracts, the weighted averagecontracted exchange rates and the settlement periods of outstanding contracts for the economic entity.

Sell Australian Dollars Average Exchange Rate2004 2003 2004 2003$’000 $’000

Buy USDLess than 1 year 3 612 2 514 0.7174 0.6149 Buy GBPLess than 1 year 1 630 1 836 0.3931 0.3867 Buy EURLess than 1 year 649 287 0.6018 0.5575

18. Contingent Liabilities Consolidated ABC

2004 2003 2004 2003$’000 $’000 $’000 $’000

Quantifiable ContingenciesContingent liabilitiesOther guarantees (a) 1 180 960 1 180 960 Total contingent liabilities 1 180 960 1 180 960

Net contingent liabilities 1 180 960 1 180 960

(a) The Corporation has provided guarantees and indemnities to the Reserve Bank of Australia in support of Bank Guarantees required in the day to day operations of the Corporation.

Unquantifiable ContingenciesIn the normal course of activities claims for damages have been lodged at the date of this report against the Corporation and certain of its officers. The Corporation has disclaimed liability and is actively defending these actions. It is not possible to estimate the amounts of any eventual payments which may be required in relation to these claims.

19. Director RemunerationABC

2004 2003$ $

Remuneration received or due and receivable by directors of the Corporation 925 132 702 632

The number of directors of the Corporation included in these figures are shown below in the relevant remuneration bands: Number Number

$ Nil - $ 9 999 - 1 $ 10 000 - $ 19 999 - 1 $ 20 000 - $ 29 999 - 4 $ 30 000 - $ 39 999 - 1 $ 40 000 - $ 49 999 6 1 $ 60 000 - $ 69 999 1 - $ 100 000 - $ 109 999 - 1 $ 120 000 - $ 129 999 1 - $ 380 000 - $ 389 999 - 1 $ 490 000 - $ 499 999 1 - Total number of directors of the Corporation 9 10

Remuneration received or due and receivable by directors of the Corporation and Controlled Entities as detailed in note 24is $2 606 699 (2003 $1 901 074).



20. Related Party DisclosuresDirectors of the Corporation

The Directors of the Corporation during the year were:

• Donald McDonald AO (Chairman)• Russell Balding (Managing Director) • Leith Boully • Dr Ron Brunton• John Gallagher QC • Ramona Koval (re-appointed 16 June 2004)• Ross McLean • Maurice Newman AC (resigned effective 30 June 2004)• Prof. Judith Sloan

The aggregate remuneration of Directors is disclosed in note 19.

Transactions with entities in the wholly owned groupTransactions between related parties are on normal commercial terms and conditions no more favourable thanthose available to other parties unless otherwise stated.

Symphony Australia Holdings Pty LimitedThe company is a wholly owned subsidiary of the Corporation.

During the period the Corporation provided goods and services to Symphony Australia Holdings Pty Limited onnormal terms and conditions totalling $485 147 (2003 $231 299). At year end the Corporation was owed $44 997 (2003 $58 127) in relation to the supply of these goods and services.

Adelaide Symphony Orchestra Pty LimitedThe company is a wholly owned subsidiary of the Corporation.

During the period the Corporation provided goods and services to Adelaide Symphony Orchestra Pty Limitedon normal terms and conditions totalling $26 408 (2003 $37 159). At year end the Corporation was owed$106 648 (2003 $127 964) in relation to the supply of these goods and services.

During the period the Adelaide Symphony Orchestra Pty Limited provided goods and services on normal termsand conditions to the Corporation totalling $33 974 (2003 $15 360).

Melbourne Symphony Orchestra Pty LimitedThe company is a wholly owned subsidiary of the Corporation.

During the period the Corporation provided goods and services to Melbourne Symphony Orchestra Pty Limitedon normal terms and conditions totalling $235 563 (2003 $256 834). At year end the Corporation was owed$39 581 (2003 $111 175) for these goods and services.

During the period the Melbourne Symphony Orchestra Pty Limited provided goods and services on normalterms and conditions to the Corporation totalling $2 520 (2003 $4 953).

The Queensland Orchestra Pty LimitedThe company is a wholly owned subsidiary of the Corporation.

During the period the Corporation provided goods and services to The Queensland Orchestra Pty Limited onnormal terms and conditions totalling $59 393 (2003 $59 779). At year end the Corporation was owed $5 122(2003 $4 373) in relation to the supply of these goods and services.

During the period The Queensland Orchestra Pty Limited provided goods and services on normal terms andconditions to the Corporation totalling $705 (2003 $2 052).

Sydney Symphony Orchestra Holdings Pty LimitedThe company is a wholly owned subsidiary of the Corporation.

During the period the Corporation provided goods and services to Sydney Symphony Orchestra Holdings PtyLimited on normal terms and conditions totalling $31 636 (2003 $32 521). At year end Sydney SymphonyOrchestra Holdings Pty Limited owed the Corporation $13 129 (2003 $40 451).

At year end the Corporation owed Sydney Symphony Orchestra Holdings Pty Limited $5 115 (2003 $33 538)for long service leave for staff at incorporation.



20. Related Party Disclosures (continued)

Transactions with entities in the wholly owned group (continued)Sydney Symphony Orchestra Holdings Pty Limited (continued)During the period the Sydney Symphony Orchestra Holdings Pty Limited provided goods and services on normal terms and conditions to the Corporation totalling $7 497 (2003 $nil).

Tasmanian Symphony Orchestra Pty LimitedThe company is a wholly owned subsidiary of the Corporation.

During the period the Corporation provided goods and services to Tasmanian Symphony Orchestra Pty Limitedon normal terms and conditions totalling $68 596 (2003 $124 765). At year end the Corporation was owed$14 541 (2003 $11 175) in relation to the supply of these goods and services.

During the period the Tasmanian Symphony Orchestra Pty Limited provided goods and services on normalterms and conditions to the Corporation totalling $33 666 (2003 $3 375).

West Australian Symphony Orchestra Holdings Pty LimitedThe company is a wholly owned subsidiary of the Corporation.

During the period the Corporation provided goods and services to West Australian Symphony OrchestraHoldings Pty Limited on normal terms and conditions totalling $150 631 (2003 $131 874). At year end theCorporation was owed $25 241 (2003 $15 893) in relation to the supply of these goods and services.

At year end the Corporation owed West Australian Symphony Orchestra Holdings Pty Limited an amount of $4 075 (2003 $7 628) in relation to long service leave for staff at incorporation.

During the period the West Australian Symphony Orchestra Holdings Pty Limited provided goods and serviceson normal terms and conditions to the Corporation totalling $6 696 (2003 $nil).

Music Choice Australia Pty Ltd and The News Channel Pty LimitedThe companies are wholly owned subsidiaries of the Corporation that did not trade during the 2003-04 financial year.

The Corporation provided secretarial and accounting services for Music Choice Australia Pty Ltd and The News Channel Pty Limited during the year free of charge.

21. Officer RemunerationConsolidated ABC

2004 2003 2004 2003$ $ $ $

The aggregate amount of total remuneration of Officers shown is: 3 343 361 3 277 988 3 343 361 3 143 127

The number of Officers who received or were due to receive total remuneration of $100 000 or more:

2004 2003 2004 2003Number Number Number Number

$130 000 - $139 999 - 3 - 2 $200 000 - $209 999 - 1 - 1 $210 000 - $219 999 1 - 1 - $230 000 - $239 999 1 1 1 1 $240 000 - $249 999 - 1 - 1 $250 000 - $259 999 2 1 2 1 $270 000 - $279 999 1 4 1 4 $280 000 - $289 999 2 3 2 3 $290 000 - $299 999 2 - 2 - $300 000 - $309 999 1 - 1 - $310 000 - $319 999 1 - 1 - $330 000 - $339 999 1 - 1 - Total 12 14 12 13

The officer remuneration includes all officers concerned with or taking part in the management of the Corporation during 2003-04 except the Managing Director. Details in relation to the Managing Director have been incorporated into note 19—Director Remuneration.Consolidated remuneration excludes officers of the principal entity who are Directors in the wholly owned group. Details in relation to the officers have been incorporated into note 19—Director Remuneration.



22. Auditor RemunerationConsolidated ABC

2004 2003 2004 2003$ $ $ $

Remuneration to the Auditor-General for auditing thefinancial statements for reporting period. 267 522 284 483 183 000 218 000

Ernst & Young (2003 KPMG) have been contracted by the Australian National Audit Office to provide audit services on theirbehalf. Fees for these services are included in the above. In addition Ernst & Young have earned $3 300 for training courseprovision (2003 KPMG $56 614 for advisory services) where they have been separately contracted by the Corporation.

23. Assets Held in Trust2004 2003

$ $

The Corporation is trustee for a foundation with Ian Reed accumulated funds at 30 June as follows: Foundation

Balance carried forward from previous year 494 755 480 795 Receipts during the year - - Interest received 19 543 14 940 Available for payments 514 298 495 735 Payments made (520) (980)Fund closing balance 513 778 494 755

Monies were received under formal trust arrangements. These trusts are independently managed in accordance with theterms of the trusts and the funds are held in authorised trustee investments. These funds are not available for other purposesof the Corporation and are not recognised in the financial statements.

24. Controlled EntitiesBeneficial Beneficial

percentage percentageheld by held by

Place of economic economic incorporation entity entity

2004 2003% %

Ultimate parent entity:Australian Broadcasting Corporation

Controlled entities ofAustralian Broadcasting Corporation:

Adelaide Symphony Orchestra Pty Limited Australia 100% 100%

Melbourne Symphony Orchestra Pty Limited Australia 100% 100%

Sydney Symphony Orchestra Holdings Pty Limited Australia 100% 100%

Symphony Australia Holdings Pty Limited Australia 100% 100%

Tasmanian Symphony Orchestra Pty Limited Australia 100% 100%

The Queensland Orchestra Pty Limited Australia 100% 100%

West Australian Symphony Orchestra Australia 100% 100%Holdings Pty Limited

Music Choice Australia Pty Ltd Australia 100% 100%

The News Channel Pty Limited Australia 100% 100%



25. Reporting by OutcomesThe Corporation is structured to meet three outcomes:

Outcome 1Audiences throughout Australia—and overseas—are informed, educated and entertained.

Outcome 2Australian and international communities have access to at least the scale and quality of satellite and analog terrestrial radioand television transmission services that existed at 30 June 2003.

Outcome 3The Australian community has access to ABC digital television services in accordance with approved digital implementation plans.

Note 25A - Net Cost of Outcome Delivery

Outcome 1 Outcome 2 Outcome 3 Total2004 2003 2004 2003 2004 2003 2004 2003$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Administered expenses - - - - - - - - Departmental expenses 730 909 714 242 77 116 75 318 50 703 33 296 858 728 822 856 Total expenses 730 909 714 242 77 116 75 318 50 703 33 296 858 728 822 856 Costs recovered from provision of goods and services to the non-government sector

Administered - - - - - - - - Departmental - - - - - - - -

Total costs recovered - - - - - - - - Other external revenues

DepartmentalSale of goods and services 122 216 114 699 - - - - 122 216 114 699 Interest 4 971 6 645 - - - - 4 971 6 645 Donations and bequests - - - - - - - - Revenue from the sale of assets 2 282 571 - - - - 2 282 571 Industry contributions - - - - - - - - Reversal of previous asset write-downs - - - - - - - - Net foreign exchange gains - 186 - - - - - 186 Other 24 134 24 134 115 - (6) 64 24 243 24 198

Total departmental 153 603 146 235 115 - (6) 64 153 712 146 299 Total other external revenue 153 603 146 235 115 - (6) 64 153 712 146 299 Net cost/(contribution) of outcome 577 306 568 007 77 001 75 318 50 709 33 232 705 016 676 557

Note 25B - Departmental Revenues and Expenses by Outcome Groups and Outputs

Outcome 1 Outcome 2 Outcome 3 TotalOutput Group 1.1 Output Group 1.2 Output Group 1.3 Output Group 2.1 Output 3.12004 2003 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Operating expensesEmployees 93 257 91 876 200 801 195 315 7 348 6 552 - - - - 301 406 293 743 Suppliers 70 330 72 469 151 433 154 057 5 541 5 168 77 116 75 318 50 703 33 296 355 123 340 308 Grants - - - - - - - - - - - - Depreciation and amortisation 21 461 19 258 46 212 40 939 1 691 1 373 - - - - 69 364 61 570 Write-down of assets - 1 519 - 3 228 - 108 - - - - - 4 855 Value of assets disposed 1 547 983 3 332 2 089 122 70 - - - - 5 001 3 142 Borrowing cost expense 2 982 3 092 6 420 6 573 235 221 - - - - 9 637 9 886 Other 36 571 34 203 78 745 72 710 2 881 2 439 - - - - 118 197 109 352 Total operating expenses 226 148 223 400 486 943 474 911 17 818 15 931 77 116 75 318 50 703 33 296 858 728 822 856 Funded by:Revenue from Government 201 740 212 249 374 651 400 629 15 395 15 510 77 221 75 318 57 888 29 763 726 895 733 469 Sale of goods and services 24 452 22 148 95 479 91 297 2 285 1 254 - - - - 122 216 114 699 Interest 994 1 283 3 884 5 289 93 73 - - - - 4 971 6 645 Donations and bequests - - - - - - - - - - - - Industry contributions - - - - - - - - - - - - Revenue from the sale of assets 457 110 1 782 455 43 6 - - - - 2 282 571 Reversal of previous asset write-downs - - - - - - - - - - - - Net foreign exchange gains - 36 - 148 - 2 - - - - - 186 Other non-taxation revenues 4 829 4 659 18 854 19 211 451 264 115 - (6) 64 24 243 24 198 Other - - - - - - - - - - - - Total operating revenues 232 472 240 485 494 650 517 029 18 267 17 109 77 336 75 318 57 882 29 827 880 607 879 768



26. AppropriationsParticulars Departmental Outputs Loans Equity Total

2004 2003 2004 2003 2004 2003 2004 2003$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Year Ended 30 June 2004Balance carried forward from previous year - - - - - - - -

Appropriation Acts 1 and 3 726 895 733 469 - - - - 726 895 733 469 Appropriation Acts 2 and 4 - - 20 000 31 000 - 43 274 20 000 74 274 Available for payment from CRF 726 895 733 469 20 000 31 000 - 43 274 746 895 807 743

Payments made out of CRF 726 895 733 469 20 000 31 000 - 10 700 746 895 775 169 Balance carried forward to next year - - - - - 32 574 - 32 574

Represented by:Appropriations receivable - - - - - 32 574 - 32 574

This table reports on appropriations made by Parliament of the Consolidated Revenue Fund (CRF) in respect of theCorporation. When received by the Corporation, the payments made are legally the money of the Corporation and do not represent any balance remaining in the CRF.



Documents

116 - Australian Broadcasting Corporationabout.abc.net.au/wp-content/uploads/2012/06/Annual... · • Notes to and Forming Part of the Financial Statements for both the Australian