❓ Dr. Honey questions the Water Corporation's dividend reporting, citing discrepancies between interim and proposed final dividend figures in the 2020 Annual Report. The Minister clarifies the figures and explains the accounting standards and approval process.
AnsweredQoN 6509Legislative Assembly
QuestionView source ↗
I refer to page 15 of the 2020 Water Corporation Annual Report, which shows a 2019-20 interim dividend of $613 million compared to page 222 of the same report, which shows a proposed final dividend of $642 million, and ask: (a) Can the Minister please provide an explanation for this increase; and (b) Provide the accounting and/or dividend reporting standards by which this
proposed, and therefore accrued dividend of $642 million, is not being
declared in the 2019-20 financial statements?
proposed, and therefore accrued dividend of $642 million, is not being
declared in the 2019-20 financial statements?
AnswerView source ↗
Answered
4 December 2020
Responded by
Minister for Water
Response time
13 days
There is no page 222 in Water Corporation’s Annual Report, the response below assumes you are referring to page 22.
(a) The premise of the question is incorrect as there is no increase. The $613 million on page 15 reflects the interim payment, while $642 million on page 22 reflects the total dividend payment for the 2019-20 financial year.
(b) As the resolution to recommend the final dividend was only made by the Board of Directors after 30 June 2020, the Water Corporation did not recognise the dividend as a liability at the end of the reporting period.
Section 79 of the Water Corporations Act 1995 states that the Minister may with the concurrence of the Treasurer, accept the recommendation or after consultation with the Board, direct that the amount of the final dividend be some other amount.
The Water Corporation has not at this stage requested the Minister’s concurrence for the dividend, which is required to be paid on or before 31 December 2020.
(a) The premise of the question is incorrect as there is no increase. The $613 million on page 15 reflects the interim payment, while $642 million on page 22 reflects the total dividend payment for the 2019-20 financial year.
(b) As the resolution to recommend the final dividend was only made by the Board of Directors after 30 June 2020, the Water Corporation did not recognise the dividend as a liability at the end of the reporting period.
Section 79 of the Water Corporations Act 1995 states that the Minister may with the concurrence of the Treasurer, accept the recommendation or after consultation with the Board, direct that the amount of the final dividend be some other amount.
The Water Corporation has not at this stage requested the Minister’s concurrence for the dividend, which is required to be paid on or before 31 December 2020.
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