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3. Significant Change In The Current Reporting Period

ASC PTY LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -CONTINUED
For the year ended 30 June 2019

On 13 December 2018, ASC Pty Ltd transferred the ownership of ASC Shipbuilding Pty Ltd to the Commonwealth. This followed the Commonwealth announcement in June 2018 that “the Future Frigates would be designed by BAE Systems and built by ASC Shipbuilding at the Osborne Naval Shipyard. To ensure that BAE Systems is fully responsible and accountable for the delivery of the Future Frigates, ASC Shipbuilding will become a subsidiary of BAE Systems.”

The key steps for the transfer are described below:

Description

Impact

1

Transfer of plant & equipment from ASC Shipbuilding to the ASC Group

$17.8m of plant & equipment transferred to ASC AWD Shipbuilder Pty Ltd

2

Payment to Return to Work SA in respect of previously self-insured workers compensation liabilities

$5.6m payment to Return to Work SA

3

Transfer of ASC Shipbuilding employees to be retained within the ASC Group

$0.9m of employee entitlements transferred to ASC Pty Ltd

4

Transfer ownership of ASC AWD Shipbuilder Pty Ltd and ASC Modules Pty Ltd to ASC Group at carrying value

Not material

5

Settling of inter-company positions between ASC Shipbuilding and ASC Group companies

$32.8m of loans settled at separation date

6

Payment of a pre-completion indemnity amount to ASC Shipbuilding in respect of indemnified liabilities under the separation deal

$13.9m cash payment from ASC Pty Ltd

7

Transfer of ASC Shipbuilding direct to Commonwealth ownership through an in-specie dividend

Declared in-specie dividend being the net assets of ASC Shipbuilding on transfer, with a subsequent separation adjustment process

The table below summarises the balance sheet items of ASC Shipbuilding, inclusive of the separation adjustment, that was separated from the ASC Group.

ASC Shipbuilding Pty Ltd Balance Sheet

Step

$'000

ASSETS

CURRENT ASSETS

Cash and cash equivalents

5,6

25,523

Other current assets

462

TOTAL CURRENT ASSETS

25,985

NON CURRENT ASSETS

Intercompany

1,2,3,4,5

-

Other non current assets

1,2,3

98

TOTAL NON CURRENT ASSETS

98

TOTAL ASSETS

26,083

LIABILITIES

CURRENT LIABILITIES

Trade and other payables

5,139

Intercompany

1,2,3,4,5

-

Provisions

2,3

16,662

TOTAL CURRENT LIABILITIES

21,801

NON CURRENT LIABILITIES

Provisions

2,3

4,184

TOTAL NON CURRENT LIABILITIES

4,184

TOTAL LIABILITIES

25,985

NET ASSETS

98

EQUITY

Contributed equity

6

21,429

Retained earnings

(21,331)

TOTAL EQUITY

98