Reserve Bank of Australia Annual Report – 2007 Financial Statements Note 7

Note 7 LOANS, ADVANCES AND OTHER ASSETS

	Note	2007 $M	2006 $M
Shareholding in Bank for International Settlements	1(b)	253	267
Superannuation asset	1(h)	53	52
Officers' Home Advances		18	20
Investment in Securency	1(a)	29	21
Computer software	1(d)	5	6
Other		35	31
As at 30 June		393	397

The Reserve Bank of Australia has a 50 per cent share in Securency Pty Ltd, which is incorporated in Victoria, Australia, and whose principal activity is the marketing and manufacture of polymer substrate. The capital of Securency as at 30 June 2007 was $36.5 million. The carrying value of the RBA's investment in Securency as at 30 June 2007 was $29.1 million ($21.2 million at 30 June 2006). Securency has a 31 December balance date. The RBA's share of Securency's profit before income tax in 2006/07 was $11.4 million ($8.3 million in 2005/06); its share of Securency's income tax expense in 2006/07 was $3.5 million ($0.7 million in 2005/06). Securency's current and non-current assets as at 30 June 2007 were $43.8 million and $52.9 million respectively ($27.0 million and $29.7 million as at 30 June 2006). Current and non-current liabilities on 30 June 2007 were $21.0 million and $17.6 million ($13.6 and $0.7 million on 30 June 2006). Securency's revenue and expenses for 2006/07 were $109.8 million and $87.0 million ($77.3 and $60.7 million in 2005/06). The RBA provides facilities to Securency under operating leases. In 2005/06, the RBA also provided a finance lease facility to Securency for $5.6 million in relation to the construction of a new building on the Bank's land at Craigieburn. The finance lease was fully drawn down during 2006/07 and the balance of the lease receivable as at 30 June 2007 was $4.7 million. The lease was provided on commercial terms and at arm's length; it has a term of 10 years.

During 2006/07, the RBA acquired $0.2 million of computer software ($1.4 million in 2005/06) and amortised $1.6 million ($1.4 million in 2005/06). At 30 June 2007 the gross book value of the RBA's computer software amounted to $10.0 million and accumulated amortisation on this software was $5.2 million ($9.9 million and $4.1 million respectively at 30 June 2006). The RBA had contractual commitments of $1.9 million as at 30 June 2007 for the acquisition of computer software ($0.4 million at 30 June 2006).

As at 30 June 2007, other assets included receivables of $21.6 million, all of which was current (at 30 June 2006 other assets included receivables of $21.9 million, of which $18.0 million was current).