Full Version - Essential Energy

Notes to the Financial Statements
for the year ended 30 June 2005
• The plan has been structured into three areas of significance. Progress to date on the three areas is as follows:
1: Financial Instrument Standards - AASB 132: Financial Instruments: Disclosure and Presentation and AASB 139: Financial
Instruments: Recognition and Measurement Standards.
2: All other standards.
3: General Matters - Documentation, policies, processes and reports.
All plan steps are either completed or near completion in accordance with the timetable.
(ii) Impact on the financial reports by changes in accounting policies
Country Energy has identified the key areas where changes in accounting policies are expected to impact the financial
reports. Some of these impacts arise because AEIFRS requirements are different from existing AASB (AGAAP) requirements.
Other impacts are likely to arise from options in AEIFRS. To ensure consistency at whole of government level, NSW Treasury has
advised the options that it is likely to mandate.
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The following table and associated reference notes disclose the impacts and their financial effects on the entity’s equity and profit.
The table includes NSW Treasury’s likely mandates. The values disclosed are management’s best estimates as at the time of
preparing the 30 June 2005 financial statements. Country Energy does not anticipate any material impacts on its cash flows.
The final effect of the transition may differ from the estimated figures below because of pending changes to the AEIFRS, including
the UIG Interpretations and/or emerging accepted practice in their interpretation and application. Country Energy’s accounting
policies may also be effected by a proposed standard to harmonise accounting standards with Government Finance Statistics
(GFS). However, the impact is uncertain because it depends on when this standard is finalised and whether it can be adopted
in 2005-06.
Reconciliation of key aggregates:
Reconciliation of equity under existing Standards (AGAAP) to equity under AEIFRS
30 JUNE
2005
1 JULY
2004
NOTES $000 $000
Total equity under AGAAP 819,032 723,755
Adjustments to accumulated funds
Revaluation of defined benefit superannuation net asset 1 (53,419) (40,807)
Adjustment for the write back of accumulated depreciation on reclassified
property, plant and equipment
2 582 482
Adjustment for goodwill amortisation 3 464 -
Derecognition of capital contributions 4 (36,673) (31,480)
Recognition of emission rights asset/(liability) - RECs 5 2,563 (1,076)
Recognition of emission rights asset/(liability) - NGACs 5 (4,410) (146)
Tax effect adjustment for revalued defined benefit superannuation 6 4,520 4,702
Tax effect adjustment for pre June 2002 developer and customer capital
contributions
7 (56,525) (58,955)
Tax effect adjustment on derecognition of capital contributions 8 11,002 9,444
Tax effect adjustment for RECs 9 (769) 323
Tax effect adjustment for NGACs 9 1,323 44
Tax effect adjustment for revalued assets 10 (96,871) (94,454)
Total equity under AEIFRS $590,819 $511,832
Reconciliation of surplus/(deficit) under (AGAAP) to surplus/(deficit) under AEIFRS
Year Ended 30 June 2005 NOTES $000
Surplus under AGAAP 98,719
Defined benefit superannuation 1 (12,612)
Reclassification from pp&e to investments 2 100
Goodwill 3 464
Capital contributions 4 (5,193)
Recognition of intangibles 5 (625)
Tax effect on defined benefits superannuation deficit 6 (182)
Tax effect adjustment for pre June 2002 capital contributions 7 2,430
Tax effect on capital contributions income derecognition 8 1,558
Tax effect on intangibles 9 187
Tax effect adjustment for revalued assets 10 1,980
Surplus/(deficit) under AEIFRS $86,826
COUNTRY ENERGY ANNUAL REPORT 2004–2005