❓ Hon Christine Sharp questions the Forest Products Commission's accounting practices regarding logging and profitability. Hon Kim Chance provides detailed answers referencing accounting standards and the Commission's annual report.
AnsweredQoN 656Legislative Council
QuestionView source ↗
(1) Given that forests are recorded as an asset in the Forest Products Commission’s financial statements, when forests are logged and the asset is diminished, how does the commission record this loss? (2) Where is this shown in the Forest Product Commission’s accounts? (3) If logging of native forest is profitable, what dividends have been received by the State in the last financial year as a result of logging of forests? (4) Where in the accounts can this be verified? Hon KIM CHANCE
AnswerView source ↗
I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(2) Where is this shown in the Forest Product Commission’s accounts? (3) If logging of native forest is profitable, what dividends have been received by the State in the last financial year as a result of logging of forests? (4) Where in the accounts can this be verified? Hon KIM CHANCE replied : I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(3) If logging of native forest is profitable, what dividends have been received by the State in the last financial year as a result of logging of forests? (4) Where in the accounts can this be verified? Hon KIM CHANCE replied : I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(4) Where in the accounts can this be verified? Hon KIM CHANCE replied : I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
Hon KIM CHANCE replied : I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(2) Where is this shown in the Forest Product Commission’s accounts? (3) If logging of native forest is profitable, what dividends have been received by the State in the last financial year as a result of logging of forests? (4) Where in the accounts can this be verified? Hon KIM CHANCE replied : I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(3) If logging of native forest is profitable, what dividends have been received by the State in the last financial year as a result of logging of forests? (4) Where in the accounts can this be verified? Hon KIM CHANCE replied : I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(4) Where in the accounts can this be verified? Hon KIM CHANCE replied : I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
Hon KIM CHANCE replied : I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
I thank Hon Christine Sharp for her very incisive question, to which there is an answer. (1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(1) The loss of the asset is recorded as an expense in the accounts of the Forest Products Commission. This expense is offset by the increase in the market value of natural resource assets in accordance with AAS35/AASB1037 issued in August 1998 under self-generating and regenerating assets, which was prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation, and by the Australian Accounting Standards Board. (2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(2) This is shown in the accounts against the line item “Decrement in net market value of natural resource assets and forest infrastructure” and expanded on in note 8 to the accounts. The net movement on this account in the 2001-02 financial year was a decrement of $1.223 million. (3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(3) No cash dividends were received by the State. However, the activities of the Forest Products Commission resulted in a net profit from ordinary activities before grants and subsidies from government of $14.968 million. As the people of Western Australia have 100 per cent ownership of the Forest Products Commission, these net profits contribute to the overall profitability of the Western Australian public sector accounts on consolidation into the whole-of-government accounts. Whether a dividend had been declared is irrelevant, as in any event these dividends would have been eliminated on consolidation into the whole-of-government accounts. (4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
(4) Verification is possible from a review of volume 2 of the Forest Products Commission’s annual report, which has been tabled in Parliament and is available from the Forest Products Commission or via the commission’s web site.
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