Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
General Government
Australian Government
2014
2013
2014
2013
$m
$m
$m
$m
34,091
25,223
35,667
26,339
22,146
21,146
23,064
22,057
4,369
3,923
4,477
4,031
29,669
28,468
29,669
28,468
63,791
61,303
70,252
67,264
140,561
131,803
140,561
131,803
6,044
5,278
6,045
5,281
3,749
3,553
3,749
3,553
6,749
5,955
6,749
5,955
2,384
2,407
2,384
2,407
3,451
2,920
3,548
3,016
8,408
5,022
17,935
12,788
10,838
10,631
10,444
10,263
75,571
72,647
64,858
70,671
411,821
380,279
419,402
393,896
General public services
Defence
Public order and safety
Education
Health
Social security and w elfare
Housing and community amenities
Recreation and culture
Fuel and energy
Agriculture, forestry and fishing
Mining, manufacturing and construction
Transport and communication
Other economic affairs
Other purposes
Total expenses
(a) Refer Note 46 for description of each function.
Note 12: Net write-down of assets (including bad and doubtful debts)
General Government
Australian Government
2014
2013
2014
2013
$m
$m
$m
$m
FINANCIAL ASSETS
Receivables - bad and doubtful debts
Goods and services
Taxes due
Other
Total receivables - bad and doubtful debts
99
5,474
719
6,292
89
5,097
359
5,545
102
5,474
719
6,295
90
5,097
359
5,546
Net w rite-dow n/(reversal) and impairment arising
from the revaluation of investments and other
financial assets
Total financial w rite-dow n and im pairm ent
(159)
6,133
12
5,557
(170)
6,125
8
5,554
379
58
466
144
6
2
2
31
417
1
68
309
51
5
376
16
388
63
467
179
6
2
117
31
427
16
107
309
557
6
398
16
1,088
1,243
1,253
1,836
7,221
6,800
7,378
7,390
NON-FINANCIAL ASSETS
Inventories
Land
Buildings
Specialist military equipment
Other infrastructure, plant and equipment
Heritage and cultural assets
Other non-financial assets
Intangibles
Investment properties
Net w rite-dow n, im pairm ent and fair
value losses arising from the revaluation
of non-financial assets
Total net w rite-dow n and im pairm ent
of assets and fair value losses
104
2014
Note
s 11
to 19
Note 11: Expenses by function(a)
Notes to the financial statements
Note 13: Net gain/(loss) from the sale of assets
General Government
FINANCIAL AS S ETS
Net gains/(losses) from sale of investments
Net gains/(losses) from sale of receivables
Tota l ne t ga ins/ (losse s) from sa le of
fina nc ia l a sse ts
Australian Government
2014
2013
2014
2013
$m
$m
$m
$m
6,111
(129)
6,145
(436)
-
-
-
-
6 , 111
(12 9 )
6 , 14 5
(4 3 6 )
135
147
358
159
(8)
(141)
(10)
(142)
(44)
(171)
(11)
(132)
(14 )
(5 )
14 3
16
15
5
17
73
-
(1)
-
(1)
(16)
(5)
(16)
(45)
(1)
(1)
1
27
77
35
104
41
(11)
(4)
(11)
(4)
(84)
(54)
(108)
(65)
(18 )
(2 3 )
(15 )
(2 8 )
5
1,484
5
1,485
NO N- FINANCIAL AS S ETS
Proceeds from sale of land and buildings
less selling costs of sale of land and buildings
less written down value of land and buildings sold
Ne t ga ins/ (losse s) from sa le of la nd a nd buildings
Proceeds from sale of investment properties
less selling costs of investment properties
less written down value of investment properties
Ne t ga ins/ (losse s) from sa le of inve stme nt prope rtie s
Proceeds from sale of infrastructure, plant
and equipment
less selling costs of infrastructure, plant
and equipment
less written down value of infrastructure, plant and
equipment sold
Ne t ga ins/ (losse s) from sa le of infra struc ture , pla nt
a nd e quipme nt
Proceeds from sale of intangibles
less selling costs of intangibles
less written down value of intangibles
Ne t ga ins/ (losse s) from sa le of inta ngible s
less written down value of heritage and cultural assets
Ne t ga ins/ (losse s) from sa le he rtia ge a nd c ultura l a sse ts
Proceeds from sale of biological assets
less selling costs of biological assets
less written down value of biological assets
Ne t ga ins/ (losse s) from sa le of biologic a l a sse ts
Tota l ne t ga ins/ (losse s) from sa le of non- fina nc ia l a sse ts
Ne t ga ins/ (losse s) from sa le of a sse ts
Add back selling costs included in expenses from
transactions
Ne t ga ins/ (losse s) from sa le of a sse ts in othe r
e c onomic flows
105
-
-
-
-
(7)
(2)
(7)
(4)
(2 )
1, 4 8 2
(2 )
1, 4 8 1
(2)
-
(2)
-
(2 )
-
(2 )
-
9
-
13
-
9
-
13
-
(9)
(13)
(9)
(13)
-
-
-
-
(3 7 )
1, 4 5 3
12 5
1, 4 9 6
6,074
1, 3 2 4
6,270
1, 0 6 0
19
15
55
16
6,093
1, 3 3 9
6,325
1, 0 7 6
Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
General Government
Australian Government
2014
$m
2013
$m
2014
$m
2013
$m
Net foreign exchange gains/(losses)
Non-speculative
(402)
(2,284)
(245)
1,678
Net foreign exchange gains/(losses)
(402)
(2,284)
(245)
1,678
Note 15: Net swap interest received
General Government
2014
2013
$m
$m
Net sw ap interest
Net sw ap interest revenue
Net sw ap interest expense
612
(1,136)
Net sw ap interest received
(524)
387
(371)
16
Australian Government
2014
2013
$m
$m
698
(1,178)
(480)
472
(427)
45
Note 16: Other gains/(losses)
General Government
2014
2013
$m
$m
Fair value gains
- financial instruments
Fair value gains - biological assets
Fair value gains - investment properties
Net actuarial gains/(losses)
Revaluation of superannuation liability
Other
Total other gains/(losses)
1,005
11
8
(1,584)
(7,797)
35
(8,322)
25,113
4
4
(1,546)
114
23,689
Australian Government
2014
2013
$m
$m
1,130
11
22
(1,584)
(7,797)
35
(8,183)
25,298
4
15
(1,546)
114
23,885
Note 17: Fair value measurement
(a)
Fair value measurement
The following tables provide an analysis of assets and liabilities that are measured at
fair value. The different levels of the fair value hierarchy are defined below.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
106
2014
Note
s 11
to 19
Note 14: Net foreign exchange gains/(losses)
Notes to the financial statements
Australian Governm ent
Level 1:
Level 2:
Level 3:
Market
Market
Non Market
Values
Inputs
Inputs
2014
2014
2014
2014
$m
$m
$m
$m
-
1,949
27,583
29,532
146
6,628
-
6,774
55,448
2,741
-
58,189
200
659
-
859
-
-
5,306
5,306
Total
Financial assets:
Receivables
Investments, loans and placements
Deposits
Government securities
Debentures
International Monetary Fund quota
Collective investment vehicles
Other interest bearing securities
Other
-
273
32,020
32,293
43
27,453
4,054
31,550
3,790
3,131
2,855
9,776
38,346
120
1,467
39,933
-
-
-
-
210
73,495
210
Equity investments
Investments - Shares
Investment in public corporations
Equity accounted investments
97,973
42,954
Land
-
8,842
1,004
9,846
Buildings
-
4,465
22,916
27,381
Plant, equipment and infrastructure
-
1,867
23,073
24,940
Investment property
-
375
-
375
Biological assets
-
36
-
36
Heritage and cultural assets
-
8,161
2,664
10,825
11
11
132
23,878
49,657
73,546
97,984
66,832
123,152
287,968
314,024
32,578
-
346,602
-
1,951
224
2,175
21
630
12
663
Payables
Total financial liabilities
13
314,058
87
35,246
1,683
1,919
351,223
Total fair value m easurem ents of
liabilities in the statem ent of financial
position
314,058
35,246
1,919
351,223
Total financial assets
214,422
Non-financial assets:
Assets held for sale
Total non-financial assets
Total fair value m easurem ents of assets
in the statem ent of financial position
143
Financial liabilities:
Fair value through profit and loss
Government securities
Loans
Other debt
107
1,783
Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
2014
Note
s 11
to 19
General Governm ent
Level 1:
Level 2:
Level 3:
Market
Market
Non Market
Values
Inputs
Inputs
2014
2014
2014
2014
$m
$m
$m
$m
-
1,243
26,727
27,970
146
33,493
-
33,639
Government securities
-
-
-
-
Debentures
-
-
-
-
International Monetary Fund quota
-
-
5,306
5,306
Total
Financial assets:
Receivables
Investments, loans and placements
Deposits
Collective investment vehicles
-
273
32,020
32,293
43
27,453
4,054
31,550
3,694
1,797
2,377
7,868
38,159
18
1,119
39,296
-
-
35,746
35,746
42,042
64,277
210
107,559
213,878
Land
-
8,539
792
9,331
Buildings
-
3,046
21,677
24,723
Plant, equipment and infrastructure
-
1,133
11,918
13,051
Investment property
-
183
-
183
Biological assets
-
36
-
36
Heritage and cultural assets
-
8,161
2,664
10,825
9
9
86
21,184
37,051
58,244
42,051
85,461
144,610
272,122
318,691
32,578
-
351,269
-
-
-
-
20
448
8
476
Payables
Total financial liabilities
13
318,724
82
33,108
1,659
1,667
353,499
Total fair value m easurem ents of
liabilities in the statem ent of financial
position
318,724
33,108
1,667
353,499
Other interest bearing securities
Other
Equity investments
Investments - Shares
Investment in public corporations
Equity accounted investments
Total financial assets
210
Non-financial assets:
Assets held for sale
Total non-financial assets
Total fair value m easurem ents of assets
in the statem ent of financial position
95
Financial liabilities:
Fair value through profit and loss
Government securities
Loans
Other debt
108
1,754
Notes to the financial statements
Level 3 financial assets
Australian Government Level 3 financial assets at 30 June 2014 included:

unlisted managed investment schemes and collective investment vehicles held by
the Future Fund which are re-measured based on the estimated fair value of the
net assets of each scheme or vehicle at the reporting date. In determining fair
value, reference is made to the underlying unit price provided by the Manager
(where available), associated Manager valuation reports and the most recent
audited financial statements of the scheme. Collective investment vehicles held by
the Future Fund were valued at $32,293 million at 30 June 2014 (2013: $29,498
million);

amounts receivable under the Higher Education Loan Programme (HELP) which
are actuarially determined (refer Note 1). The HELP receivable was valued at
$25,147 million at 30 June 2014 (2013: $21,593 million); and

subscription based membership rights (controlled) held by the Australian
Government in accordance with the articles of association for the International
Development Association (IDA) and the Asian Development Fund (ADF) which
are measured at fair value based on professional valuation advice as to the
estimated present value of the recoverable cash flows foregone. The subscription
was valued at $1,545 million at 30 June 2014 (2013: $1,493 million).
In addition, certain entities apply models in the valuation of derivative instruments.
At the general government sector level, Level 3 financial assets also included equity
investments in public corporations. Where the public corporation is a government
business enterprise whose principal function is to engage in commercial activities in
the private sector, the investment has been measured at fair value, where fair value is
reliably measurable. Investments in other public corporations have been measured at
the Australian Government’s proportional interest in the net assets of the public
corporation at 30 June. These investments are eliminated at the whole of government
level.
Fair value measurements – highest and best use differs from current use for
non-financial assets
The highest and best use for non-financial assets is the same as their current use.
(b)
Level 1 and level 2 transfers for recurring fair value measurement
There have been no material transfers between Level 1 and Level 2 fair value hierarchy
categories during the reporting period.
109
Valuation technique and inputs for level 2 and level 3 fair value measurements
The following table summarises the valuation techniques used in determining fair value across all agencies.
Level 2 and 3 fair value m easurem ents - valuation technique and the inputs used for assets and liabilities
Fair value
Category
(Level 2
General
Australian
or
Governm ent Governm ent
Level 3)
$m
$m
Financial assets
Receivables
Valuation
technique(s)(a)
2
1,243
1,949 Discounted cash flow
3
26,727
27,583 Discounted cash flow
110
Investments, loans and placements
Deposits
Government securities
Debentures
International Monetary Fund quota
Collective investment vehicles
Other interest bearing securities
Other
2
2
2
3
2
3
2
3
2
3
33,493
5,306
273
32,020
27,453
4,054
1,797
2,217
160
6,628
2,741
659
5,306
273
32,020
27,453
4,054
3,131
2,532
323
Market Approach
Market Approach
Market Approach
Cost approach
Market Approach
Market Approach
Market Approach
Market Approach
Market Approach
Net assets of entities
Market Approach
Inputs used(b)
Range
(w eighted
average)(c)
Principal due
Discount rate
Principal due
Repayment patterns
Debt not expected to
be repaid
Future CPI grow th
Discount rate
N/A
N/A
N/A
Refer footnote(d)
Market transactions
Market transactions
Market transactions
Cost
Market transactions
Net assets of entities
Market transactions
Net assets of entities
Market transactions
Net assets of entities
Adjusted market transaction
N/A
N/A
N/A
N/A
N/A
Refer footnote(f)
N/A
Refer footnote(f)
N/A
N/A
Refer footnote(b)
22.1%(d)
2.5%(d)
9.5% - 12.5%(e)
Notes to the financial statements
(c)
Fair value
Category
(Level 2
General
Australian
or
Governm ent Governm ent
Level 3)
$m
$m
Equity investments
Investments - Shares
Investment in public corporations
(General Government only)
Equity accounted investments
Non-financial assets
Land
111
Buildings
18
1,119
31,313
4,433
3
210
2
3
2
2
8,338
201
792
2,241
418
2
387
3
21,243
3
3
327
107
120
1,467
-
Market approach
Market approach
Net assets of entities
Discounted cash flow
Inputs used(b)
Range
(w eighted
average)(c)
Market transactions
Adjusted market transaction
Net assets of entities
Cash flow grow th
Weighted average
cost of capital
Net assets of entities
N/A
Refer footnote(b)
N/A
2.5% - 5%(g)
Market transactions
Market transactions
Adjusted market transaction
Market transactions
Market transactions
Replacement cost of
387 Cost approach
new assets
Market transactions
Depreciated replacement Replacement cost of
22,482
cost
new assets
Consumed economic benefit
N/A
N/A
Refer footnote(b)
N/A
N/A
210 Net assets of entities
8,641
201
1,004
3,660
418
Market approach
Income Approach
Market approach
Market approach
Income approach
327 Market approach
107 Income approach
Adjusted market transaction
Capitalisation rate
Per square metre cost
10% - 10.75%(g)
N/A
N/A
N/A
N/A
0.5% - 100%
(3.43%)(h)
Refer footnote(b)
7.05% - 10%
(8.64%)(i)
N/A
Notes to the financial statements
2
3
3
3
Valuation
technique(s)(a)
Plant, equipment and infrastructure
Category
(Level 2
General
Australian
or
Governm ent Governm ent
Valuation
Level 3)
$m
$m
technique(s)(a)
2
662
1,396 Market approach
2
471
Inputs used(b)
Per square metre cost
Replacement cost of
new assets
Market transactions
471 Cost approach
Consumed economic benefit
Replacement cost of
new assets
Depreciated replacement Replacement cost of
23,073
cost
new assets
Consumed economic benefit
112
3
11,918
Investment property
2
183
Biological assets
Heritage and cultural assets
2
2
36
7,159
36
7,159
2
1,002
1,002
3
1,466
1,466
3
2
1,198
86
1,198 Market approach
132 Market approach
Assets held for sale
375 Market approach
Market transactions
Capitalisation rate
Future earnings
Market approach
Market transactions
Market approach
Market transactions
Replacement cost of
Cost approach
new assets
Depreciated replacement Replacement cost of
cost
new assets
Consumed economic benefit
Adjusted market transaction
Market transactions
Range
(w eighted
average)(c)
N/A
N/A
N/A
N/A
N/A
N/A
0.91% - 100%
(7.02%)(j)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
0.12% - 33.3%
(1.08%)(k)
Refer footnote(b)
N/A
Notes to the financial statements
Fair value
Fair value
Category
(Level 2
General
Australian
or
Governm ent Governm ent
Level 3)
$m
$m
Financial liabilities
Fair value through profit and loss
Government securities
Loans
Other debt
Payables
2
2
3
2
3
2
3
32,578
448
8
82
1,659
32,578
1,951
224
630
12
87
1,683
Valuation
technique(s)(a)
Market approach
Market approach
Market approach
Market approach
Market approach
Discounted cash flow
Discounted cash flow
Inputs used(b)
Market transactions
Market transactions
Adjusted market transaction
Market transactions
Adjusted market transaction
Discount rate
Discount rate
Bond rate 10 year
Range
(w eighted
average)(c)
N/A
N/A
Refer footnote(b)
N/A
Refer footnote(b)
N/A
9.5% - 12.5%(l)
N/A
113
Notes to the financial statements
Notes to the financial statements
114
(a) The following valuation techniques were used by agencies to determine fair values:
 Cost Approach: The amount required currently to replace the service capacity of an asset;
 Depreciated Replacement Cost: The amount a market participant would be prepared to pay to acquire or construct a substitute asset of comparable utility,
adjusted for obsolescence;
 Income Approach: Converts future amounts (cash flows or income and expenses) to a single current (i.e. discounted) amount. The fair value measurement is
determined on the basis of the value indicated by current market expectations about those future amounts;
 Discounted Cash Flows: The net cash flows over an appropriate timeframe together with a terminal value for the asset at the end of the forecast period,
discounted back to the measurement date, resulting in a net present value for the asset;
 Market Approach: Market approach seeks to estimate the current value of an asset with reference to recent market evidence including transactions of
comparable assets within local second-hand markets; or
 Net Assets of Entities: The value of the company’s assets less the value of its liabilities.
(b) The following are unobservable inputs for Level 3 categorised items:
 Consumed Economic Benefits: Physical deterioration, functional or technical obsolescence and conditions of the economic environment specific to the asset;
 Market Transactions: Market transactions of comparable assets, small adjustment to reflect differences in price sensitive characteristics (eg. size, condition
etc.);
 Adjusted Market Transactions: Market transactions of comparable assets, involving significant professional judgement to adjust for other factors (eg. economic
conditions) and their impact on price sensitive characteristics;
 Discount rate: The rate at which cash flows are discounted back to the value at measurement date;
 Net Assets of Entities: The value of the company’s assets less the value of its liabilities;
 Debt not expected to be repaid: the estimated proportion of outstanding debt that will not be repaid;
 Future CPI growth;
 Repayment patterns;
 Cash flow growth: the rate at which cash flows will increase over a given period; or
 Weighted average cost of capital: the average rate of return a company is expected to pay to all its security holders to finance its assets.
(c) Range and weighted average are only provided for significant unobservable inputs of items categorised as Level 3. Weighted averages are presented in brackets.
(d) The inputs reported here are for HELP loans receivable which comprise 91 per cent of the reported balance. The unobservable inputs identified include repayment
patterns, debt not expected to be repaid and future CPI growth. As repayment patterns are actuarially determined from a range of sources, it is not possible to list
ranges or weighted averages.
(e) Represents the discount range applied to IDA/ADF loan portfolio which comprises approximately 6 per cent of this balance. No discount rate is provided for HELP
loans and other level 3 receivables as the discount rates are drawn from observable inputs.
(f) Due to the diverse nature of the fund’s investments, it is not possible to provide a range of inputs.
(g) Represents the range of cash flow growth and cost of capital used by the Department of Finance in determining the fair value under this valuation technique.
(h) Represents the range of consumed economic benefit per annum used in determining the fair value for the Department of Defence, the Department of Parliamentary
Services, the Department of Immigration and Border Protection and the Commonwealth Scientific and Industrial Research Organisation which comprise
approximately 72 per cent of this balance.
(i) Represents the range of capitalisation rates used in determining the fair value for the Attorney General's Department, Grains Research and Development
Corporation and the Special Broadcasting Service which comprises 100 per cent of this balance.
(j) Represents the range of consumed economic benefit per annum used in determining the fair value for the Department of Defence, NBN Co, Australian Rail Track
Corporation Ltd and Airservices Australia which comprise approximately 75 per cent of this balance.
(k) Represents the range of consumed economic benefit per annum used in determining the fair value for the Australian War Memorial, the National Library of Australia,
the Department of Infrastructure and Regional Development and the Australian National Maritime Museum which comprises approximately 72 per cent of this
balance.
(l) Represents the discount range applied to IDA/ADF loan portfolio which comprises approximately 99 per cent of this balance.
115
Notes to the financial statements
Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
Financial assets
The fair value of the Higher Education Loan Programme (HELP) receivable that makes
up 91 per cent of the Level 3 receivables balance is calculated each year by actuarial
assessment. The two main measures impacting on the calculation of the HELP asset are
the face value of the debt not expected to be repaid and the fair value of the remaining
receivable, calculated as the present value of projected future cash flows.
The fair value of the IDA and ADF receivables that comprise six per cent of the level 3
receivables balance has been determined on a basis consistent with previous years,
using professional valuation advice.
Investments in public corporations that have been valued using a discounted net cash
flow technique are assumed to be a cash generating unit. Cash flow projections for a
forecast period and terminal year are based on management corporate plans and have
been discounted using a Weighted Average Cost of Capital. Weighted Average Cost of
Capital is calculated based on a number of inputs derived from either professional
judgement or observable historical market data of comparable entities.
Investments categorised as level 3 are valued using the net assets as the inputs have
been based on either the latest available audited accounts of those entities or internal
management accounts because this is the most relevant available information at the
end of the period. Collective investments vehicles, which comprise a significant
proportion of the investments valued with this technique, are pooled investments with
a variety of underlying assets. The diverse nature of these investments results in them
being classified as level 3. The valuation techniques used by the investment managers
are consistent with the overall accounting policy.
Level 3 investments that have been valued using market approach are based on the
share value of the relevant institution.
Non-financial assets
Government agencies engage professional valuers to undertake comprehensive
valuations of these classes of non-financial assets as specified in their respective
accounting policy notes. Valuations are conducted with sufficient frequency to ensure
that the carrying amounts of assets do not differ materially from the assets’ fair values
as at the reporting date. The regularity of independent valuations depends upon the
volatility of movements in market values for the relevant assets. Professional valuers
were engaged as required to provide assurance that the models developed comply
with requirements of AASB 13.
Non-financial assets valued using the market approach utilise market transactions of
similar assets to determine fair value. Due to the sensitive nature of the assets within
116
2014
Note
s 11
to 19
Recurring and non-recurring Level 3 fair value measurements - valuation
processes
Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
this class, precise location or details have not been disclosed. Fair value measurements
have been developed based on analysed prices in the assets’ general locality. The
values are based on sales evidence and applied using professional judgement.
Non-financial assets that do not transact with enough frequency and transparency to
develop objective opinions of value from observable market evidence have been
valued utilising the Depreciated Replacement Cost (DRC) approach. Under the DRC
approach, the estimated cost to replace the asset has been calculated and then adjusted
to take into account obsolescence (accumulated depreciation). The obsolescence has
been determined based on professional judgement regarding physical, economic and
external obsolescence factors relevant to the asset under consideration.
Financial liabilities
Financial liabilities categorised as Level 3 have had their fair value determined using
market interest rates and valuation techniques that incorporate discounted cash flows.
They have been classified Level 3 because they have either complex interest rate
formulas that include foreign exchange rates, a variety of discount rates, use the Nikkei
index or they have knockout or callable features.
Recurring Level 3 fair value measurements - sensitivity of inputs
Receivables – Repayment patterns, debt expected to not be repaid, future CPI growth
and discount rate
Significant unobservable inputs used in the fair value measurement of receivables are
the repayment pattern, debt expected to not be repaid, future CPI growth and the
discount rate. A significant increase (or decrease) in these inputs or adjustments would
result in significantly lower (or higher) fair value measurements.
Investments in public corporations – cash flow growth and weighted average cost of
capital
Significant unobservable inputs used in the fair value measurement of investments in
public corporations are the cash flow growth and the weighted average cost of capital.
A significant increase (or decrease) in these inputs or adjustments would result in
significantly lower (or higher) fair value measurements.
Buildings, plant, equipment and infrastructure, and heritage and cultural assets –
consumed economic benefit
A significant unobservable input used in the fair value measurement of these classes of
assets is consumed economic benefit. A significant increase (or decrease) in the input
or adjustments would result in significantly lower (or higher) fair value measurements.
117
Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
A significant unobservable input used in the fair value measurement of this class of
assets is the capitalisation rate. A significant increase (or decrease) in the input or
adjustments would result in significantly lower (or higher) fair value measurements.
Payables – discount rate
A significant unobservable input used in the fair value measurement of payables is the
discount rate. A significant increase (or decrease) in the input or adjustments would
result in significantly lower (or higher) fair value measurements.
Recurring Level 3 fair value measurements - sensitivity analysis for
financial assets and liabilities
Changing significant unobservable inputs to the level 3 hierarchy valuations of
financial assets and liabilities held at fair value to reasonably possible alternate
assumptions would not significantly change amounts recognised in net cost of service
or other comprehensive income.
Further details around the sensitivity in regards to the market risks associated with
financial assets and liabilities can be found in Note 37 Financial Instruments.
118
2014
Note
s 11
to 19
Buildings – capitalisation rate
(d)
Reconciliation for recurring level 3 fair value measurements
The following tables provide reconciliations for the movement in balances for assets and liabilities classified as level 3.
Recurring Level 3 fair value m easurem ents - reconciliation for assets
Australian Governm ent
Financial Assets
International
Monetary
Receivables Fund quota
2014
2014
Collective Other interest
investment
bearing
vehicles
securities
2014
2014
Investment
Equity
Investments
in public accounted
Other
- Shares corporations investments
2014
2014
2014
2014
Total
2014
$m
$m
$m
$m
$m
$m
$m
$m
$m
24,767
5,247
28,954
3,994
737
1,553
-
192
65,444
6,511
-
8,034
1,847
181
187
-
23
16,783
(2,005)
-
(7,718)
(1,651)
(174)
(217)
-
(5) (11,770)
Gains and losses recognised in profit or loss
(922)
59
-
-
19
21
-
-
(823)
Gains and losses recognised in equity
(164)
-
2,750
15
2,092
9
-
-
4,702
Financial assets at fair value
119
Opening balance
Purchases / Payments
Sales / Repayments
(604)
-
-
(151)
-
(86)
-
-
(841)
27,583
5,306
32,020
4,054
2,855
1,467
-
210
73,495
Notes to the financial statements
Transfers in / (out) of level 3
Closing balance
Financial Assets
International
Monetary
Receivables Fund quota
2014
2014
Collective Other interest
investment
bearing
vehicles
securities
2014
2014
Investment
Equity
Investments
in public accounted
Other
- Shares corporations investments
2014
2014
2014
2014
Total
2014
$m
$m
$m
$m
$m
$m
$m
$m
$m
23,984
5,247
28,954
3,994
324
1,186
24,879
192
88,760
6,288
-
8,034
1,847
11
187
3,193
23
19,583
(1,856)
-
(7,718)
(1,651)
(83)
(217)
(13)
Gains and losses recognised in profit or loss
(921)
59
-
-
(2)
21
-
-
(843)
Gains and losses recognised in equity
(164)
-
2,750
15
2,127
28
7,687
-
12,443
Transfers in / (out) of level 3
(604)
-
-
(151)
-
(86)
-
-
(841)
26,727
5,306
32,020
4,054
2,377
1,119
35,746
Financial assets at fair value
Opening balance
Purchases / Payments
Sales / Repayments
120
Closing balance
(5) (11,543)
210 107,559
Notes to the financial statements
General Governm ent
Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
Australian Governm ent
Non-Financial Assets
Land
2014
Plant, Heritage and
equipment and
cultural
Buildings infrastructure
assets
2014
2014
2014
$m
Total
2014
$m
$m
$m
$m
1,014
21,357
19,938
1
2,720
4,266
28
7,015
Sales / Repayments
(1)
(23)
(54)
-
(78)
Gains and losses recognised in profit or loss
(2)
(1,400)
(1,658)
(12)
237
305
179
709
4
25
276
2
307
1,004
22,916
23,073
Financial assets at fair value
Opening balance
Purchases / Payments
Gains and losses recognised in equity
Transfers in / (out) of level 3
Closing balance
2,476 44,785
(21) (3,081)
2,664 49,657
General Governm ent
Non-Financial Assets
Land
2014
Plant, Heritage and
equipment and
cultural
Buildings infrastructure
assets
2014
2014
2014
$m
Total
2014
$m
$m
$m
$m
806
20,230
10,960
1
2,576
1,424
28
4,029
Sales / Repayments
(1)
(16)
(48)
-
(65)
Gains and losses recognised in profit or loss
(1)
(1,330)
(1,080)
(12)
209
326
179
702
(1)
8
336
2
345
792
21,677
11,918
Financial assets at fair value
Opening balance
Purchases / Payments
Gains and losses recognised in equity
Transfers in / (out) of level 3
Closing balance
121
2,476 34,472
(21) (2,432)
2,664 37,051
Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
d 30
June
2014
Note
s 11
to 19
Australian Governm ent
Financial liabilities
Loans
2014
Other debt
2014
Payables
2014
Total
2014
$m
$m
$m
$m
380
7
32
419
Financial liabilities at fair value
Opening balance
Purchases / Payments
-
-
749
749
(146)
8
(344)
(482)
Gains and losses recognised in profit or loss
(2)
(3)
(144)
(149)
Gains and losses recognised in equity
(8)
-
-
(8)
-
-
1,390
1,390
224
12
1,683
1,919
Sales / Repayments
Transfers in / (out) of level 3
Closing balance
General Governm ent
Financial liabilities
Loans
2014
Other debt
2014
Payables
2014
Total
2014
$m
$m
$m
$m
Opening balance
-
-
-
-
Purchases / Payments
-
-
749
749
Sales / Repayments
-
8
(344)
(336)
Gains and losses recognised in profit or loss
-
-
(136)
(136)
Gains and losses recognised in equity
-
-
-
-
Transfers in / (out) of level 3
-
-
1,390
1,390
-
8
1,659
1,667
Financial liabilities at fair value
Closing balance
122
Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
Note 18: Advances paid and receivables
General Government Australian Government
2014
2013
2014
2013
$m
$m
$m
$m
Advances paid
Loans to State and Territory governments
Higher Education Loan Programme
Student Financial Supplement Scheme
Other
less Provision for doubtful debts
2,502
25,147
604
6,015
(228)
2,486
21,593
677
4,641
(24)
2,502
25,147
604
6,810
(229)
2,486
21,593
677
5,349
(30)
Total advances paid
34,040
29,373
34,834
30,075
817
3,635
37,972
55
6,890
781
3,261
35,533
189
8,005
1,827
3,635
37,967
300
5,823
1,807
3,261
35,521
493
7,662
(1,958)
(1,772)
(1,978)
(1,788)
(675)
(667)
(675)
(667)
(14,685)
(2,538)
29,513
(12,269)
(2,773)
30,288
(14,685)
(2,538)
29,676
(12,269)
(2,773)
31,247
12,775
341
13,116
42,629
76,669
10,942
396
11,338
41,626
70,999
12,775
482
13,257
42,933
77,767
10,942
545
11,487
42,734
72,809
Advances paid and receivables m aturity schedule
Not later than one year
36,722
Later than one year and not later than tw o years
29,272
Later than tw o years and not later than five years
1,464
Later than five years
9,211
Total advances paid and receivables by m aturity
76,669
36,821
26,025
1,144
7,009
70,999
36,965
29,371
2,007
9,424
77,767
38,066
26,096
1,620
7,027
72,809
Other receivables
Goods and services receivable
Recoveries of benefit payments
Taxes receivable
Other financial assets
Other
less Provision for doubtful debts - Goods
and services and other
less Provision for doubtful debts - Personal
benefits receivable
less Provision for doubtful debts - Taxes
receivable
less Provision for credit amendments
Total other receivables
Accrued revenue
Accrued taxation revenue
Other accrued revenue
Total accrued revenue
Other receivables and accrued revenue
Total advances paid and receivables
123
Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
d 30
June
2014
Note
s 11
to 19
Reconciliation of the allowance for doubtful debts(a)
Movements in relation to 2014
Advances Goods and
Australian Government
and loans
Other
Total
Services
$m
$m
$m
$m
(30)
(104)
(1,682)
(1,816)
(5)
(52)
(2)
(59)
-
(11)
(24)
(35)
(5)
(80)
(118)
(203)
plus Other movement
(199)
(46)
(37)
(282)
Total
(229)
(167)
(1,811)
(2,207)
Advances Goods and
Other
Total
Opening doubtful debts balance
less Amounts w ritten off
less Amounts recovered and reversed
plus Increase/decrease recognised in net surplus
General Government
and loans
Opening doubtful debts balance
less Amounts w ritten off
less Amounts recovered and reversed
plus Increase/decrease recognised in net surplus
Services
$m
$m
$m
$m
(24)
(88)
(1,682)
(1,794)
(5)
(50)
(2)
(57)
-
(9)
(24)
(33)
(118)
(195)
(4)
(73)
plus Other movement
(205)
(46)
(36)
(287)
Total
(228)
(148)
(1,810)
(2,186)
Advances Goods and
Other
Total
Movements in relation to 2013
Australian Government
and loans
Opening doubtful debts balance
less Amounts w ritten off
Services
$m
$m
$m
$m
(31)
(187)
(1,727)
(1,945)
(77)
(2)
(47)
(28)
less Amounts recovered and reversed
-
(7)
-
(7)
plus Increase/decrease recognised in net surplus
6
(26)
1
(19)
(7)
55
16
64
(30)
(104)
(1,682)
(1,816)
Advances Goods and
Other
Total
plus Other movement
Total
General Government
and loans
Services
$m
$m
$m
$m
(25)
(171)
(1,727)
(1,923)
(2)
(44)
(26)
(72)
-
(6)
-
(6)
6
(22)
1
(15)
(7)
55
18
66
Total
(24)
(88)
(1,682)
(a) Excludes statutory receivables such as taxes receivable and personal benefits recoverable.
(1,794)
Opening doubtful debts balance
less Amounts w ritten off
less Amounts recovered and reversed
plus Increase/decrease recognised in net surplus
plus Other movement
124
Consolidated Financial Statements for the year ended 30 June 2014 - Notes 11 to 19
Note 19: Investments, loans and placements
General Government
Australian Government
2014
2013
2014
2013
$m
$m
$m
$m
Gold
3,584
3,299
Deposits
30,866
23,342
6,512
5,829
Government securities
233
233
125,620
86,968
Residential mortgage-backed securities(a)
6,060
9,113
6,060
9,113
Debentures
859
782
International Monetary Fund quota
5,306
5,247
9,995
9,992
Defined benefit superannuation plan assets
81
Collective investment vehicles
32,293
29,498
32,293
29,498
Other interest bearing securities
31,550
31,373
31,550
31,373
Other
11,303
12,291
13,222
14,446
Total investm ents, loans and placem ents
117,611
111,097
229,776
191,300
(a) Investments in residential mortgage-backed securities are to support competition in the residential
mortgage market and to meet government policy objectives. Residential mortgage-backed securities
held for investment purposes are classified elsewhere.
125