Reserve Bank of Australia Annual Report – 2011 Financial Statements Note 7 – Loans, Advances and Other Assets

The Reserve Bank of Australia holds a share of 50 per cent 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 2011 was $36.5 million. The carrying value of the RBA's investment in Securency as at 30 June 2011 was $53.9 million ($49.4 million at 30 June 2010). Securency has a 31 December balance date.

The RBA's share of Securency's profit before income tax in 2010/11 was $9.5 million ($9.5 million in 2009/10); its share of Securency's income tax expense in 2010/11 was $3.4 million ($2.7 million in 2009/10); and its share of the movement in Securency's reserves was −$0.8 million (−$0.5 million in 2009/10). Securency's current and non-current assets as at 30 June 2011 were $97.4 million and $74.2 million respectively ($69.4 million and $95.2 million as at 30 June 2010). Current and non-current liabilities on 30 June 2011 were $40.7 million and $19.1 million ($39.3 million and $24.0 million on 30 June 2010). Securency's revenue and expenses for 2010/11 were $154.0 million and $135.0 million ($137.5 million and $118.4 million in 2009/10). 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 2011 was $2.9 million ($3.4 million as at 30 June 2010).

The RBA has announced that it has begun a process to pursue a joint sale with its partner, Innovia Films, to divest its interest in Securency International Pty Ltd (see Note 1(a)).

During 2010/11, the RBA acquired $4.8 million of computer software and intangibles ($1.0 million in 2009/10) and amortised $2.2 million ($1.8 million in 2009/10). At 30 June 2011 the gross book value of the RBA's computer software and intangibles amounted to $23.2 million and accumulated amortisation on these assets was $9.6 million ($20.4 million and $8.6 million respectively at 30 June 2010). The RBA had contractual commitments of $0.6 million as at 30 June 2011 for the acquisition of computer software and intangibles (no contractual commitments at 30 June 2010).

As at 30 June 2011, other assets included receivables of $33.3 million, all of which are current (at 30 June 2010 other assets included receivables of $29.5 million, all of which were current).