Endeavour Energy Annual Performance Report - Parliament of New ...

09
Financial
statements
Notes to the Financial Statements
For the year ended 30 June 2011
5 Gain/(loss) on sale of Retail business
(a) Retail sale
On 14 December 2010 the NSW Government, as part of its Energy Reform Transaction Strategy, entered into a
sale agreement to dispose of the net assets of the Corporation’s Retail business. The disposal was completed on
1 March 2011, at which date control of the Retail business passed to the acquirer. The gain on disposal of the Retail
business assets and liabilities is measured as the difference between the fair value of the consideration received
(excluding stamp duty) and the sum of the carrying value of the disposal group. The disposal group consists of
working capital, derivative assets and liabilities, environmental certificate assets, and property, plant and equipment.
(b) Financial performance of operations disposed
Results of discontinued operations for the year up to disposal date are presented below:
Note
2011
$’000
2010
$’000
Revenue 829,368 1,195,745
Expenses (769,382) (1,102,105)
Results from operating activities 59,986 93,640
Income tax 6(a) (17,996) (28,092)
Results from operating activities, net of tax 41,990 65,548
Gain on sale of discontinued operations 5(e) 759,280 –
Profit/(loss) for the year 801,270 65,548
Profit from discontinued operations in the amount of $801.3m (2010: $65.5m) is attributable entirely to the owners
of the Corporation.
(c) Cash flows from (used in) discontinued operations
Cash flow information relating to discontinued operations has not been disclosed due to books and records not being
kept to distinguish between the Retail and Network business separately in prior years and up to the date of sale.
Significant assumptions would have to be made to separate the financial information if these disclosures were to be
presented that, in management’s view, would not reflect a true and fair position of the discontinued operations cash
flow position.
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