❓ Mr. Kobelke questions the accounting treatment of the Collgar Windfarm electricity supply contract, specifically the reclassification from a finance lease to an operating lease and its impact on state debt. The government confirms the change was based on accounting advice and compliant with IFRS.
AnsweredQoN 6394Legislative Assembly
QuestionView source ↗
(1) Why was $499 million in costs included in government accounts for supply of electricity from the Collgar Windfarm near Merredin?
(2) Why was this $499 million removed from the accounts as a contribution to state debt by redefining it from a ‘finance lease’ to an ‘operating lease’?
(3) Was the decision to classify this contract as being an “operating lease” in keeping with International Financial Reporting Standards (IFRS)?
(4) If yes to (3), when was this advice given and by whom was it given?
(5) If no to (3), then what were the accounting standards by which it was judged to be an operating lease?
(2) Why was this $499 million removed from the accounts as a contribution to state debt by redefining it from a ‘finance lease’ to an ‘operating lease’?
(3) Was the decision to classify this contract as being an “operating lease” in keeping with International Financial Reporting Standards (IFRS)?
(4) If yes to (3), when was this advice given and by whom was it given?
(5) If no to (3), then what were the accounting standards by which it was judged to be an operating lease?
AnswerView source ↗
Answered
22 November 2011
Responded by
Minister representing the Minister for Energy
Response time
33 days
(1) The impact on the State from the Collgar Windfarm arose from the original Collgar contract with Synergy being initially classified as a finance lease for accounting purposes. Synergy was therefore required to incorporate approximately $499 million of both assets and liabilities into its balance sheet in 2011/12.
(2) Following changes to the terms and conditions of the Collgar contract, subsequent accounting advice recommended the classification of the revised transaction as an operating lease. This meant that the contract no longer had to be recognised on balance sheet. Synergy's and the State's budget position was adjusted accordingly.
(3) Yes
(4) Advice was received in September 2009 from Ernst & Young.
(5) N/A
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
(2) Following changes to the terms and conditions of the Collgar contract, subsequent accounting advice recommended the classification of the revised transaction as an operating lease. This meant that the contract no longer had to be recognised on balance sheet. Synergy's and the State's budget position was adjusted accordingly.
(3) Yes
(4) Advice was received in September 2009 from Ernst & Young.
(5) N/A
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.