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Forest NSW Annual Report 2012

Notes to and forming part of the financial statements For the year ended 30 June 2012 Note 1: Corporate Total State Sector Accounts. are prepared for the same reporting periodThe financial statements of the subsidiaries Information on an accrual basis utilising conventional & Carbon Plantations Pty Ltd (which wasas the parent company except for TimberThe financial statements have been prepared historical cost bases except for certain forest, Forests NSW is the trading name of the Forestry non-forest assets and investment properties liquidated 7 December 2011) using consistent Commission of NSW. which, as indicated separately in the notes and accounting policies. Forests NSW is aligned with the Department of financial statements, are at fair value. Investments in subsidiaries held by Forests Primary Industries (DPI). It continues to operate NSW are accounted for at cost in the separate The financial statements are presented in as a self funded Public Trading Enterprise (PTE). financial statements of the parent entity less Australian dollars and all values are rounded any impairment charges. Forests NSW is the parent reporting entity to the nearest thousand dollars unless and its operations are consolidated with the otherwise stated. activities of Forestry Commission Division to (ii) Joint ventures form the economic reporting entity. (c) Significant Accounting Forests NSW is involved in softwood and Timber & Carbon Plantations Pty Ltd (TCP) (ACN Judgements, Estimates and hardwood plantation joint ventures. 091040783), a wholly-owned subsidiary of Assumptions Joint venture arrangements exist in two Forests NSW, was liquidated on the 7 December forms. One form is for plantations established 2011. For financial reporting purposes, no In the application of accounting standards, on privately owned land with Forests NSW transactions or balances relating to this entity management is required to make judgements, providing the management expertise and required presentation in these consolidated estimates and assumptions about the carrying financing the majority of other inputs. The financial statements of Forests NSW. values of assets and liabilities that are not second is where plantations are established readily apparent from other sources. The in state forests with Forests NSW providing The Forestry Commission Division is a special purpose service entity pursuant to Part 3 of varying amounts of management and otherestimates and associated assumptions are & Management Act 2002 and Forests NSW agreements provide for the eventual harvestfactors that are believed to be reasonable underThe Public Sector Employmentinputs as set out in respective agreements. Thebased on historical experience and various Schedule 1 of administers and has dominant control of its day to be shared between the joint venturers inthe circumstance, the results of which form the basis to make the judgements. proportion to the discounted value of inputs to day operation. The estimates and underlying assumptions are calculated over the life of the ventures. Forests NSW principal activities involve planting reviewed on an ongoing basis. Revisions to and regeneration operations, planning and accounting estimates are recognised in the period In valuing joint venture plantations the same managing harvest operations and marketing in which the estimate is revised if the revision basic method has been used as that in place and delivering timber products. affects only that year or in the year of revision and for wholly owned forests (see Note 2(i)(ii)) previous years if the revision affects both. to recognise Forests NSW share of the joint Note 2: Summary of Information about assumptions and estimation attributable to joint venture partners areventure except that expenditure and revenue Significant Accounting notes: excluded.uncertainties are included in the following Policies Note 2 (t) Provisions consolidation(iii) Transactions eliminated onNote 2 (i) Non - Current Asset Valuations Note 2 (y) Employee Benefits (a) Statement of Compliance Note 12 Biological Assets income and expenses arising from intra-groupIntra-group balances and any unrealised This general purpose financial report complies transactions are eliminated in preparing theNote 17 Employee Defined Benefits with Australian Accounting Standards, which consolidated financial statements. include Australian Accounting Interpretations. (d) Basis of Consolidation The financial report of Forests NSW for the year The consolidated financial statements comprise (iv) Business Combinations ended 30 June 2012 have been authorised the financial statements of Forests NSW and Business Combinations are accounted for for issue by the Acting Commissioner of the its subsidiaries as at and for the period ended using the acquisition method under AASB 3 Forestry Commission of New South Wales, Ms 30 June each year (the Group). Interests in Business Combinations. The consideration Renata Brooks, on 20/09/2012. associates are equity accounted and are not transferred in a business combination is part of the consolidated Group. measured at fair value, which is calculated as (b) Basis of Preparation the sum of the acquisition date fair values of (i) Subsidiaries the assets transferred by the parent and the This general purpose financial report has Subsidiaries are entities controlled by Forests liabilities incurred by the acquirer to former been prepared in accordance with applicable NSW. Control exists when Forests NSW has the owners of the acquiree. The non-controlling Australian Accounting Standards and power to govern the financial and operating interest in the acquiree is measured either at Interpretations, the Public Finance and Audit Act policies of an entity so as to obtain benefits fair value or at the proportionate share of the 1983, NSW Treasury Circulars, and the Public from their activities. The financial statements acquiree’s identifiable net assets. Acquisition Finance and Audit (General) Regulation 2010. of subsidiaries are included in the consolidated related costs are expensed as incurred. When Forests NSW is a for profit entity and its financial financial statements from the date that control the Group acquires a business, it assesses the statements are consolidated as part of the NSW commences until the date that control ceases. financial assets and liabilities assumed for Forests NSW Annual Report 2011–12 Social, Environmental and Economic Performance 57


Forest NSW Annual Report 2012
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