Note 4. Assets and liabilities administered on behalf of the Government
This section analyses assets used to conduct operations and the operating liabilities incurred as a result of 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.
4.1 Administered – financial assets
4.1A: Supervisory cost recovery levies receivables
Supervisory cost recovery levies receivables – taxation
Supervisory cost recovery levies receivables – non-taxation
Total supervisory cost recovery levies receivables receivables (gross)
Less impairment loss allowance
Supervisory cost recovery levies
Total supervisory cost recovery levies receivables receivables (net)
4.1B: Other taxation receivables
Fees and fines receivable
Total other taxation receivables (gross)
Less impairment loss allowance
Fees and fines
Total other taxation receivables (net)
Taxation receivables are due from entities that are not part of the Australian Government.
4.1C: Trade and other receivables
Information brokers’ fees
Total trade and other receivables (gross)
Administered receivables are recognised at their nominal value less an impairment allowance. The Finance Minister has determined that statutory receivables are not financial instruments and accordingly ASIC has assessed administered receivables for impairment under AASB 136 Impairment of Assets (FRR 26.3).
The impairment allowance is raised against receivables for any doubtful debts and any probable credit amendments, and is based on a review of outstanding debts at balance date. This includes an examination of individual large debts and disputed amounts with reference to historic collection patterns.
The impairment allowance expense is calculated using estimation techniques to determine an estimate of current receivables which are unlikely to be collected in the future.
Administered receivables that are irrecoverable at law or are uneconomic to pursue are written off under s63 of the PGPA Act.
4.2 Administered – payables
4.2A: Suppliers and other payables
Refund of fees payable
Other non-current payables2
All supplier and other payables are for entities that are not part of the Australian Government.
All supplier and other payables, with the exception of Other non-current payables, are expected to be settled within 12 months. Settlement is usually made within 30 days.
1 Settlement is made according to the terms and conditions of each grant. This is usually within 30 days of performance and eligibility.
2 Other non-current payables are over payments of fees where payments are made to ASIC in error. The settlement period is expected to be greater than 12 months as these are unidentified payments.
The provisions recognised in the Administered Schedule of Assets and Liabilities are for estimated claims payable from collections of unclaimed monies administered by ASIC as at balance date. ASIC adopted a provision for future claims based on an independent valuation as at 30 June, calculated by a registered actuary, under AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
Significant accounting judgements and estimates
The provision has been estimated taking into account the historic claims pattern experienced since 2002 and the outstanding lodgements. The estimate reflects the volatility of unclaimed monies lodgements and claims from year to year, which is impacted by factors including economic events, legislative change, media exposure and the behaviour of claimants, each of which has differed significantly from year to year and over time. The estimated future flow of refunds over time has been discounted to present value at a risk-free rate of interest based on government bond rates with similar terms to the expected refunds. Allowance has been made for payment of compounding interest for all claims from 1 July 2013 on unclaimed balances in accordance with actual legislated interest rates and estimated future interest rates based on economist expectations for inflation in the medium to longer term, noting legislated interest rates are linked to movements in the CPI.