Indigenous Land Corporation gpo box 652 Adelaide sa 5001

4. Events occurring after the Statement of Financial Position date

There are no events occurring after Statement of Financial Position date.

Consol 2014 $,000

Consol 2013 $,000

ILC 2014 $,000

ILC 2013 $,000

5. Expenses

5A. Property granted

The expense relates to the value of land granted (at cost) to Indigenous organisations in line with the objectives of the ILC. Costs incurred in transferring land, unsuccessful acquisitions or projects considered unlikely to proceed at reporting date are also included in this expense.

Value of property granted	7,826	9,649	7,826	9,649
Associated costs	265	79	265	79
Total property granted expenses	8,091	9,728	8,091	9,728
Property granted expense
Related entities	–	–	–	–
External entities	8,091	9,728	8,091	9,728
Total property granted expenses	8,091	9,728	8,091	9,728

5B. Provision for property held for grant and assets held in trust

A provision is raised in the Statement of Comprehensive Income for the full cost of land and infrastructure purchases representing the sacrifice of future benefits embodied in the assets. The following represents the net movement in the provisions for the reporting period.

Total movement in the provision for property held for grant	(2,417)	21,598	(2,417)	21,598
Total movement in the provision for assets held in trust	–	809	–	809

5C. Land management

The ILC works with the Indigenous corporations and develops a package of support in the form of agreed solutions to land management issues identified by the land owners. Land Management expenses also include land management on land held by the ILC and includes the cost of caretaking, use, maintenance and improvement of that land. Land Management expenses are recorded as expenses in the Statement of Comprehensive Income in the period in which they are incurred.

Land management expense
Related entities	3,140	5,109	17,030	18,915
External entities	38,021	31,792	38,022	31,792
Total land management expenses	41,161	36,901	55,052	50,707

Consol 2014 $,000

Consol 2013 $,000

ILC 2014 $,000

ILC 2013 $,000

5D. Employee benefits

Wages and salaries	66,986	65,692	11,340	9,943
Superannuation:
Defined contribution plan	5,352	4,952	900	827
Defined benefit plan	890	914	890	914
Separation and redundancy	15	145	15	145
Total employee benefits	73,243	71,703	13,145	11,829

5E. Suppliers expenses

Goods and services:
Raw materials and consumables	27,600	25,657	–	–
Travel	2,129	2,279	1,495	1,536
Consultants	2,866	2,968	1,152	1,006
Marketing	3,232	4,148	–	–
Repairs and maintenance	5,703	6,268	43	32
Utilities, rates and services	7,395	7,279	84	74
Other	13,515	10,784	2,215	1,929
Total supplier expenses	62,440	59,383	4,989	4,577
Goods and services are made up of:
Rendering of services – related entities	1,991	1,695	880	824
Rendering of services – external entities	60,449	57,688	4,109	3,753
Total supplier expenses	62,440	59,383	4,989	4,577
Other supplier expenses:
Operating lease rentals^1	3,472	4,756	1,915	3,407
Workers’ compensation premiums	1,487	898	84	90
Total other supplier expenses	4,959	5,654	1,999	3,497
Total supplier expenses	67,399	65,037	6,988	8,074

¹ These comprise minimum lease payments only

Consol 2014 $,000

Consol 2013 $,000

ILC 2014 $,000

ILC 2013 $,000

5F. Depreciation and amortisation

Administration Assets
Office equipment	30	46	21	33
Furniture and fittings	12	436	5	6
Computer equipment	265	223	157	197
Office fitouts	145	165	138	145
Commercial Property Assets
Buildings and infrastructure	9,933	9,986	3,900	3,845
Plant and equipment	2,447	2,146	1,019	905
Furniture and fitting	3,601	2,661	66	82
Motor vehicles	1,181	875	952	669
Total depreciation	17,614	16,538	6,258	5,882
Amortisation of “make good” asset	43	22	43	22
Amortisation of software	109	1,117	109	131
Amortisation of goodwill	7	7	7	7
Amortisation of trademarks and licences	558	310	–	–
Total amortisation	717	1,456	159	160
Total depreciation and amortisation	18,331	17,994	6,417	6,042

Consol 2014 $,000

Consol 2013 $,000

ILC 2014 $,000

ILC 2013 $,000

5G. Impairment of assets

Net impairment of assets:
Land	1,451	11,269	–	–
Property, plant and equipment	6,173	46,830	323	–
Intangibles	11,592	4,158	–	–
Receivables	2	102	9	2
Total impairment of assets	19,218	62,359	332	2

5H. Other net loss (gain)

Net write up of assets held for sale	(25)	2,835	(25)	2,835
Assets received for no or nominal consideration	–	(26,250)	–	(26,250)
Forgiveness of loan to subsidiary	–	–	5,647	–
Change in net present value of sundry creditors	915	859	915	859
Change in fair value of forward contracts	–	(9)	–	(9)
Reversals of impairment on repayable grants	(4)	(68)	(4)	(68)
Write off of intangibles	25	7	25	7
Write down of property, plant and equipment	35	–	14	–
Total net loss (gain) of assets	946	(22,626)	6,572	(22,626)

5I. Finance costs

Loans	11,094	11,507	8,970	8,955
Total finance costs	11,094	11,507	8,970	8,955

Consol 2014 $,000

Consol 2013 $,000

ILC 2014 $,000

ILC 2013 $,000

5J. Income tax expense (benefit)

The major components of income tax are:

Income Statement
Current income tax
Current income tax charge	(5,322)	(6,087)	–	–
Deferred income tax
Relating to origination of temporary Differences	(331)	(264)	–	–
Value of deferred tax assets not recognised	5,653	6,351	–	–
Income tax reported in Statement of Comprehensive Income	–	–	–	–

Numerical reconciliation between aggregate tax expenses recognised in the Statement of Comprehensive Income and tax as calculated per the statutory income tax rate:

Total accounting profit (loss)	(28,835)	(66,248)	4,373	18,973
Accounting profit not subject to income tax	8,682	17,803	4,373	18,973
Total accounting profit (loss) subject to income tax	(37,517)	(84,051)	–	–
Income tax on profit at statutory rate (30%)	(11,255)	(25,215)	–	–
Entertainment	6	7	–	–
Fringe benefits tax	91	57	–	–
Revaluation/ impairment loss	5,668	18,675	–	–
Amortisation of intangibles	167	389	–	–
Adjustments in respect of current income tax of previous years	165	746	–	–
Value of deferred tax assets not recognised	5,158	5,341	–	–
Aggregate income tax expense (benefit)	–	–	–	–

5J. Income tax expense (benefit) (cont.)

Deferred tax relates to the following:	Statement of Financial Position	Statement of Comprehensive Income
	Consol 2014 $,000	Consol 2013 $,000	Consol 2014 $,000	Consol 2013 $,000
Provision for doubtful debts	65	73	(7)	(26)
Provision for employee entitlements	1,313	1,085	(228)	(136)
Amortisation of intangibles	(4,388)	(4,481)	(93)	(92)
Other	36	39	(3)	(10)
Deferred tax expense (income)			(331)	(264)
Losses available for offsetting future taxable income	18,148	12,993
Value of net deferred tax assets not recognised – current year	(5,488)	(5,605)
Value of net deferred tax assets not recognised – prior year	(9,686)	(4,104)
Net deferred tax assets / (liabilities)	–	–
Reconciliation of deferred tax assets / (liabilities) net:
Opening balance as of 1 July	–	–	–	–
Tax income / (expense) during the period recognised in statement of comprehensive income	331	264	–	–
Deferred taxes acquired in business combination	–	–	–	–
Losses available for offsetting future taxable income	5,322	6,087	–	–
Value of net deferred tax assets not recognised	(5,488)	(5,605)	–	–
Adjustments recognised in the current year to the current tax of prior years	(165)	(746)	–	–
Closing balance as at 30 June	–	–	–	–

Consol 2014 $,000

Consol 2013 $,000

ILC 2014 $,000

ILC 2013 $,000