Indigenous Land Corporation gpo box 652 Adelaide sa 5001

1. Summary of Significant Accounting Policies

1.1 Objective of the Indigenous Land Corporation

The Indigenous Land Corporation (ILC) is an independent Australian Government statutory authority established to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting with acquisition and management of land. The ILC was established on 1 June 1995, and is governed by the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act). It is a not for profit entity.

The ILC is structured to meet the following outcome:

Enhanced socioeconomic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management.

1.2 Basis of preparation of the financial statements

The financial statements are general purpose financial statements and are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997.

The ILC and Consolidated financial statements have been prepared in accordance with:

• Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and

• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or on the financial position of the ILC and the economic entity (“the Corporation”).

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless alternative treatment is specifically required by an accounting standard or the FMO’s, assets and liabilities are recognised in the ILC and Consolidated Statement of Financial Position when, and only when, it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets and liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments or the Schedule of Contingencies.

Unless alternative treatment is specifically required by an Accounting Standard, income and expenses are recognised in the ILC and Consolidated Statement of Comprehensive Income when, and only when, the flow, consumption or loss of economic benefit has occurred and can be reliably measured.

1.3 Principles of consolidation

The consolidated financial statements are those of the Corporation, comprising:

• ILC (the parent entity) and its subsidiaries or controlled entities:-

• National Indigenous Pastoral Enterprises Pty Ltd (“NIPE”)

• National Centre of Indigenous Excellence Ltd (“NCIE”)

• Voyages Indigenous Tourism Australia Pty Ltd (“Voyages”)

• The Owners – Strata Plan No. 86156 (“Strata Corp”)

NIPE was established in 2004 as a wholly-owned subsidiary of the ILC. NIPE provides the employment vehicle for staff working on ILC-held properties and Agribusinesses.

NCIE was incorporated to manage the National Centre of Indigenous Excellence in Redfern NSW on behalf of the ILC. No income or property of NCIE may be paid or transferred, directly to any member of NCIE whether by way of dividend, bonus or otherwise. The ILC is the sole member of NCIE.

1.3 Principles of consolidation (cont.)

Voyages was incorporated to own and manage Ayers Rock Resort in Yulara NT on behalf of the ILC.

All subsidiaries are 100% owned by the parent entity and are all incorporated in Australia.

On 8 February 2012, the ILC registered a strata title scheme that separated a building owned by the ILC into three separate strata title lots. Upon the registration of the strata scheme four certificates of title were issued. Three titles are in the name of the ILC representing three separate strata title lots. The fourth title is in the name of The Owners—Strata Plan No 86156 and represents the common area of the property. As the ILC owns all three lots of BTS it effectively “controls” the The Owners – Strata Plan No 86156.

Subsidiaries and controlled entities are all those entities (including special purpose entities) over which the ILC has the power to govern the financial and operating policies so as to obtain benefits from their activities.

These entities have applied accounting policies consistent with those of the ILC. The effects of all transactions and balances between the entities are eliminated in full.

The financial statements of the subsidiaries are prepared for the same reporting period as the parent entity.

1.4 Proposed Shareholding in Voyages

In May 2011, the ILC entered into a Deed of Agreement with Wana Ungkunytja Pty Ltd (WU) in recognition of the WU non-exercise of its first right of refusal for the purchase of Ayers Rock Resort. In accordance with the deed, WU shall be offered without further consideration, seven percent of the issued share capital in the corporate body established by the ILC to own the assets and operate the tourism business at Ayers Rock Resort, upon the earlier of the discharge of all securities or the 10th anniversary of the agreement. The current corporate body is Voyages. The fair value of the option currently approximates zero.

1.5 Significant accounting judgements and estimates