H4. Deed of cross guarantee
NBN Co Limited and NBN Tasmania Limited (NBN Tasmania) are parties to a deed of cross guarantee under which each company guarantees the debts for the other. By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare a Financial Report and Directors’ report under the ASIC Corporations (Wholly-owned Companies) Instrument 2016/785.
Statement of profit or loss and other comprehensive income, Statement of financial position and Summary of movements in accumulated losses
NBN Co Limited and NBN Tasmania Limited represent a ‘closed group’ for the purpose of the Class Order and as there are no other parties to the deed of cross guarantee, they also represent the ‘extended closed group’.
Set out on the following pages are a Statement of profit or loss and other comprehensive income, Statement of financial position and a Summary of movements in accumulated losses for the year ended 30 June 2020 of the closed group.
Statement of profit or loss and other comprehensive income
NBN Co & NBN Tasmania | ||
30 June 2020 | 30 June 2019 | |
For the year ended | $m | $m |
Revenue | 3,836 | 2,824 |
Direct network costs | (641) | (746) |
Employee benefits expenses | (877) | (867) |
Other operating expenses | (554) | (609) |
Subscriber costs | (2,414) | (1,903) |
Depreciation and amortisation | (3,151) | (2,611) |
Other income | 24 | 23 |
Net finance costs | (1,460) | (991) |
Loss before income tax | (5,237) | (4,880) |
Income tax (expense)/benefit | (1) | 1 |
Loss for the year | (5,238) | (4,879) |
Loss attributable to the shareholder | (5,238) | (4,879) |
Other comprehensive gain/(loss) | ||
Items that may be reclassified to profit or loss | ||
Changes in the fair value of cash flow hedges, net of tax | 2 | 3 |
Total other comprehensive gain/(loss) for the year, net of tax | 2 | 3 |
Total comprehensive loss for the year | (5,236) | (4,876) |
Total comprehensive loss attributable to the shareholder | (5,236) | (4,876) |
Statement of financial position
NBN Co & NBN Tasmania | ||
30 June 2020 | 30 June 2019 | |
As at | $m | $m |
Current assets | ||
Cash and cash equivalents | 344 | 520 |
Trade and other receivables | 512 | 444 |
Inventories | - | 39 |
Derivative financial assets | 5 | 6 |
Other current assets | 129 | 116 |
Total current assets | 990 | 1,125 |
Non-current assets | ||
Derivative financial assets | - | 2 |
Property, plant and equipment | 33,738 | 29,443 |
Intangible assets | 2,064 | 2,114 |
Other non-current assets | 29 | 43 |
Total non-current assets | 35,831 | 31,602 |
Total assets | 36,821 | 32,727 |
Current liabilities | ||
Trade and other payables | 2,289 | 2,751 |
Other liabilities | 25 | 24 |
Lease liabilities | 415 | 276 |
Other financial liabilities | 1,000 | - |
Provisions | 213 | 160 |
Total current liabilities | 3,942 | 3,211 |
Non-current liabilities | ||
Trade and other payables | 1 | 5 |
Other liabilities | 847 | 811 |
Lease liabilities | 10,445 | 8,277 |
Provisions | 57 | 63 |
Related party borrowings | 19,458 | 13,053 |
Total non-current liabilities | 30,808 | 22,209 |
Total liabilities | 34,750 | 25,420 |
Net assets | 2,071 | 7,307 |
Equity | ||
Contributed equity | 29,500 | 29,500 |
Other reserves | 9 | 7 |
Accumulated losses | (27,438) | (22,200) |
Total equity | 2,071 | 7,307 |
Summary of movements in accumulated losses
NBN Co & NBN Tasmania | ||
30 June 2020 | 30 June 2019 | |
For the year ended | $m | $m |
Opening balance at 1 July | (22,200) | (17,321) |
Loss for the period | (5,238) | (4,879) |
Closing balance at 30 June | (27,438) | (22,200) |
Visit
https://www.transparency.gov.au/annual-reports/nbn-co-limited/reporting-year/2019-20-51