Reserve Bank of Australia Annual Report – 2009 Financial Statements Note 7

Note 7 LOANS, ADVANCES AND OTHER ASSETS

	Note	2009 $M		2008 $M
Shareholding in Bank for International Settlements	1(b)	318		269
Superannuation asset	1(h), 14	95		80
Officers' Home Advances		8		10
Investment in Securency	1(a)	44		35
Computer software and intangibles	1(d)	7		5
Other		41		39
As at 30 June		513		438

The Reserve Bank of Australia has a 50 per cent share in Securency International Pty Ltd (formerly 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 International (Securency) as at 30 June 2009 was $36.5 million. The carrying value of the RBA's investment in Securency as at 30 June 2009 was $43.5 million ($35.1 million at 30 June 2008). Securency has a 31 December balance date. The RBA's share of Securency's profit before income tax in 2008/09 was $11.9 million ($8.8 million in 2007/08); its share of Securency's income tax expense in 2008/09 was $3.5 million ($2.8 million in 2007/08). Securency's current and non-current assets as at 30 June 2009 were $74.4 million and $90.0 million respectively ($61.5 million and $80.9 million as at 30 June 2008). Current and non-current liabilities on 30 June 2009 were $50.7 million and $25.8 million ($22.5 million and $38.2 million on 30 June 2008). Securency's revenue and expenses for 2008/09 were $132.9 million and $109.2 million ($103.2 million and $85.6 million in 2007/08). The RBA provides facilities to Securency under operating leases. In 2005/06, the RBA also provided a finance lease 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. The lease was provided on commercial terms and at arm's length; it has a term of 10 years. The balance of the lease receivable as at 30 June 2009 was $3.9 million ($4.3 million as at 30 June 2008).

During 2008/09, the RBA acquired $0.7 million of computer software and intangibles ($0.3 million in 2007/08) and amortised $1.7 million ($1.8 million in 2007/08). At 30 June 2009 the gross book value of the RBA's computer software and intangibles amounted to $14.1 million and accumulated amortisation on these assets was $6.9 million ($11.1 million and $5.7 million respectively at 30 June 2008). The RBA had contractual commitments of $1.4 million as at 30 June 2009 for the acquisition of computer software and intangibles ($0.7 million at 30 June 2008).

As at 30 June 2009, other assets included receivables of $20.3 million, all of which are current (at 30 June 2008 other assets included receivables of $24.4 million, all of which were current).