This section analyses the activities that ASIC does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

2.1 Administered – expenses

Accounting Policy

ASIC administers payments to registered insolvency practitioners to undertake preliminary investigations of suspected breaches of directors’ duties and fraudulent conduct and to report the outcome of their findings to ASIC for further action as appropriate.

Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. When the Government enters into an agreement to make these grants and services, but services have not been performed or criteria satisfied, this is considered a commitment.

Accounting Policy

Refer to Note 4.1 for the policy pertaining to the impairment of receivables and fee waivers.

In determining whether a fee should be waived in whole or part, ASIC considers the extent to which the company’s officers or its representatives contributed to the circumstances of the matter, in accordance with Part 7 of the Finance Minister’s Delegation under section 63 of the PGPA Act.

Administered expenses for refunds of unclaimed monies under the Banking Act 1959, Life Insurance Act 1995 and Corporations Act 2001 are recognised by estimating the value of claims likely to be repaid in respect of unclaimed money collected by ASIC as at balance date. The methodology used to determine the value of probable claims is determined by an independent actuary. Successful claims are paid out of the provision account.

2.2 Administered – income

Accounting Policy

All administered revenues are revenues relating to the course of ordinary activities performed by ASIC on behalf of the Government.

Administered revenue is generated from fees and fines under the following legislation:

• Corporations (Fees) Act 2001
• Corporations (Review Fees) Act 2003,
• National Consumer Credit Protection (Fees) Regulation 2010,
• Business Names Registration (Fees) Regulation 2012 and
• Superannuation Industry (Supervision) Act 1993.

Administered fee revenue is recognised on an accruals basis when:

• the client or the client group can be identified in a reliable manner;
• an amount of prescribed fee or other statutory charge is payable by the client or client group under legislative provisions; and
• the amount of the prescribed fee or other statutory charge payable by the client or the client group can be reliably measured.

Administered taxation revenue is recognised at its nominal amount due and an expense is recognised for impaired debts.

2.2B: Unclaimed monies lodgements

Accounting Policy

ASIC undertakes the collection of certain levies on behalf of the Government. These comprise of:

• the ASIC Supervisory Cost Recovery Levy Act 2017; and
• the ASIC Supervisory Cost Recovery Levy Regulations 2017.

ASIC also receives non-taxation revenue from search fees, fines – including late fees, court fines, penalties and infringement notices – and from unclaimed monies received under the Banking Act 1959, Life Insurance Act 1995 and Corporations Act 2001. This revenue is not available to ASIC and is transferred to the OPA.

Administered revenue arising from levies is recognised on an accrual basis.

The collectability of debts is reviewed at balance date. Provisions are made when collection of the debt is judged to be less, rather than more, likely.