Reserve Bank of Australia Annual Report – 2010 Financial Statements Note 7 – Loans, Advances and Other Assets

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 Bank jointly controls Securency with a joint-venture partner. The capital of Securency International (Securency) as at 30 June 2010 was $36.5 million. The carrying value of the RBA's investment in Securency as at 30 June 2010 was $49.4 million ($43.5 million at 30 June 2009). Securency has a 31 December balance date.

The RBA's share of Securency's profit before income tax in 2009/10 was $9.5 million ($11.9 million in 2008/09); its share of Securency's income tax expense in 2009/10 was $2.7 million ($3.5 million in 2008/09); and its share of the movement in Securency's reserves was −$0.5 million. Securency's current and non-current assets as at 30 June 2010 were $69.4 million and $95.2 million respectively ($74.4 million and $90.0 million as at 30 June 2009). Current and non-current liabilities on 30 June 2010 were $39.3 million and $24.0 million ($50.7 million and $25.8 million on 30 June 2009). Securency's revenue and expenses for 2009/10 were $137.5 million and $118.4 million ($132.9 million and $109.2 million in 2008/09). The RBA provides facilities to Securency under operating leases.

In 2005/06, the RBA 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 2010 was $3.4 million ($3.9 million as at 30 June 2009).

During 2009/10, the RBA acquired $1.0 million of computer software and intangibles ($0.7 million in 2008/09) and amortised $1.8 million ($1.7 million in 2008/09). At 30 June 2010 the gross book value of the RBA's computer software and intangibles amounted to $20.4 million and accumulated amortisation on these assets was $8.6 million ($14.1 million and $6.9 million respectively at 30 June 2009). The RBA had no contractual commitments as at 30 June 2010 for the acquisition of computer software and intangibles ($1.4 million at 30 June 2009).

As at 30 June 2010, other assets included receivables of $29.5 million, all of which are current (at 30 June 2009 other assets included receivables of $20.3 million, all of which were current).