Australian Securities and Investments Commission
Section 1: Entity Overview and Resources
1.1	Strategic Direction
1.2	Entity Resource Statement
1.3	Entity Measures Table
1.4	Additional Estimates and Variations
1.5	Breakdown of Additional Estimates by Appropriation Bill
Section 2: Revisions to Entity Outcomes and Planned Performance
2.1	Resources and Performance Information
Section 3: Explanatory Tables and Budgeted Financial Statements
3.1	Explanatory Tables
3.2	Budgeted Financial Statements

Australian Securities and Investments Commission
Section 1: Entity overview and resources
1.1	Strategic direction
There has been no significant change to the strategic direction of the Australian Securities and Investments Commission (ASIC) from that outlined in the Treasury Portfolio Budget Statements 2014‑15 (pages 153‑154).
ASIC is seeking an additional $3.42 million in equity injection through Appropriation Bill (No. 4) 2014‑15 for the Enhanced Public Register of Financial Advisors — Establishment measure outlined in the Mid‑Year Economic and Fiscal Outlook 2014‑15.
1.2	Entity resource statement
The Entity Resource Statement details the resourcing for ASIC at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2014‑15 Budget year, including variations through Appropriation Bill Nos. 3 and No. 4, Special Appropriations and Special Accounts. 

Table 1.1: ASIC resource statement — additional estimates for 2014‑15 as at additional estimates February 2015 

Table 1.1: ASIC resource statement — additional estimates for 2014‑15 as at additional estimates February 2015 (continued)

1.	Appropriation Act (No. 1) 2014‑15 and Appropriation Bill (No. 3) 2014‑15.
2.	Estimated adjusted balance carried from previous year for annual appropriations
3.	Includes an amount of $15m in 2014‑15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’. 
4.	Estimated retained revenue receipts under sections 74 and 75 of the Public Governance, Performance and Accountability (PGPA) Act 2013. 
5.	Appropriation Act (No. 2) 2014‑15 and Appropriation Bill (No. 4) 2014‑15.
6.	Estimated opening balance for special accounts (less ‘Special Public Money’ held in a Services for Other Entities and Trust Moneys Special Accounts (SOETM)). For further information on Special Accounts see Table 3.1.1.
7.	Appropriation receipts from other entities credited to entity ASIC’s Special Accounts.

Reader note: All figures are GST exclusive. 

1.3	Entity measures table
Table 1.2 summarises new Government measures taken since the 2014‑15 Budget. The table is split into revenue, expense and capital measures, with the affected programme identified.
Table 1.2: Entity 2014‑15 measures since Budget

Prepared on a Government Financial Statistics (fiscal) basis
(1)	Measures published in the Mid‑Year Economic and Fiscal Outlook 2014‑15. 

1.4	Additional Estimates and variations
The following tables detail the changes to the resourcing for ASIC at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2014‑15 Budget in Appropriation Bill No. 4. Table 1.4 details Additional Estimates or variations through other factors, such parameter adjustments.
Table 1.3: Additional estimates and variations to outcomes from measures since 2014‑15 Budget

Table 1.4: Additional estimates and variations to outcomes from other variations

(1)	Relates to the transfer of funding from the Treasury to the ASIC for the development and implementation of the North Queensland Insurance Comparison Website.

1.5	Breakdown of additional estimates by appropriation bill
The following tables detail the Additional Estimates sought for ASIC through Appropriation Bill No. 4. ASIC is not seeking funding through Appropriation Bill No. 3.
Table 1.5: Appropriation Bill (No. 4) 2014‑15

Section 2: Revisions to Entity Resources and Planned Performance
2.1	Resources and performance information
There has been no change to outcomes or the outcome strategy for ASIC from that included in the Portfolio Budget Statements 2014‑15 (page 159).
Table 2.1 Budgeted expenses and resources for Outcome 1

Programme Objective 1.1 – Australian Securities and Investments Commission
There has been no change to the programme objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2014‑15.
Programme Expenses 1.1
Table 2.2: Programme 1.1 expenses

Programme objective 1.2 Banking Act 1959, Life Insurance Act 1995, unclaimed monies and special accounts
There has been no change to the programme objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2014‑15.
Programme Expenses 1.2
Table 2.3: Programme 1.2 expenses

Section 3: Explanatory Tables and Budgeted Financial Statements
3.1	Explanatory Tables
Estimates of Special Account Flows
Special Accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by ASIC. The corresponding table in the Portfolio Budget Statements 2014-15 is Table 3.1.2.
Table 3.1.1: Estimates of Special Account Flows and Balances

(A) = Administered
(D) = Departmental

3.2	Budgeted financial statements
3.2.1	Analysis of Budgeted Financial Statements
ASIC is currently budgeting for a break‑even operating result for 2014‑15 and for the remainder of the forward estimates.
Total revenue and expenses (excluding depreciation) are estimated to be $324.5 million for 2014‑15. The expenditure will be used to fund activities that contribute towards achieving the outcome and program objectives outlined in Section 2.
Budgeted departmental balance sheet
This statement shows the financial position of ASIC. It helps decision makers to track the management of ASIC’s assets and liabilities.
ASIC’s budgeted equity (or net asset position) for 2014‑15 is $100.4 million.
The 2014‑15 equity position reflects the cumulative effect of capital injections of $12.0 million received during 2014‑15.
Budgeted departmental statement of cash flows
The budgeted statement of cash flows provides important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.
Departmental statement of changes in equity — summary of movement
This statement shows the changes in the equity position of ASIC. It helps decision‑makers to track the management of ASIC’s equity.
Departmental capital budget statement
This statement shows details of capital appropriations received by ASIC. It helps decision‑makers to track the acquisition of new non‑financial assets.
Statement of asset movements — Departmental
This statement shows details of gross asset movements during the year. It helps decision‑makers to analyse movements of non‑financial assets.
Schedule of administered activity
Schedule of budgeted income and expenses administered on behalf of government
The schedule of budgeted income and expenses administered on behalf of government shows the revenue and expenses associated with the collection of revenue under the Corporations Act 2001 and ASIC’s responsibilities in administering unclaimed monies under the Banking Act 1959, the Life Insurance Act 1995 and section 77 of the Public Governance, Performance and Accountability Act 2013 (PGPA ACT).
Other non‑taxation revenue represents the amount of fees and charges budgeted to be levied under the Corporations Act 2001 and estimated receipts of unclaimed monies under the Banking Act 1959, the Life Insurance Act 1995 and the Corporations Act 2001.
Expenses represent budgeted payments of unclaimed monies, refund of overpaid fees and charges levied under the Corporations Act 2001, bad debt expense, administered advertising expenses and grant payments to registered insolvency practitioners to investigate breaches of directors’ duties and fraudulent conduct.
Schedule of budgeted assets and liabilities administered on behalf of government
The amount shown for receivables in 2014‑15 and in the forward estimates is the estimated amount of fees and charges under the Corporations Act 2001 remaining unpaid at 30 June.
The amounts shown in other payables for 2014‑15 and the forward estimates represent the estimated amount of refunds relating to the overpayments of annual review and other fees under the Corporations Act 2001, estimated claims payable under the Banking Act 1959 and the Life Insurance Act 1995 and companies unclaimed monies under section 77 of the PGPA Act.
Schedule of budgeted administered cash flows
Budgeted administered cash flows provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

3.2.2	Budgeted Financial Statements
Departmental Financial Statements
Table 3.2.1: Budgeted Departmental Comprehensive Income Statement (Showing Net Cost of Services)

Table 3.2.1: Budgeted Departmental Comprehensive Income Statement (Showing Net Cost of Services) (continued)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget Year 2014‑15)

Prepared on Australian Accounting Standards basis 

Table 3.2.4: Budgeted Departmental Statement of Cash Flows (as at 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Capital Budget Statement — Departmental

(1)	Includes current and prior Appropriation Act 2, Appropriation Bills 4 and 6 and special capital appropriations.
(2)	Does not include annual finance lease costs. Includes purchase from current and previous years’ Departmental Capital Budgets (DCBs).

Consistent with information contained in the Statement of asset movements and the Budgeted statement of cash flows.

Table 3.2.6: Statement of Asset Movements (2014‑15)

Prepared on Australian Accounting Standards basis.

Schedule of Administered Activity
Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June) 

Prepared on Australian Accounting Standards basis.

Table 3.2.10: Schedule of administered capital budget
ASIC does not have any administered capital.
Table 3.2.11: Statement of administered asset movements (2014‑15)
ASIC does not have any administered non‑financial assets.

Notes to the Financial Statements
Basis of accounting
The budgeted financial statements have been prepared on an Australian Accounting Standards basis.
Budgeted agency financial statements
Under the Australian Government’s accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that agencies control (departmental transactions) are separately budgeted for and reported on from transactions that agencies do not have control over (administered transactions). This ensures that agencies are only held fully accountable for the transactions over which they have control.
Departmental items are those assets, liabilities, revenues and expenses in relation to an agency or authority that are controlled by the agency. Departmental expenses include employee and supplier expenses and other administrative costs which are incurred by the agency in providing its goods and services.
Administered items are revenues, expenses, assets and liabilities that are managed by an agency or authority on behalf of the Australian Government according to set government directions. Administered expenses and administered revenues include fees, fines and expenses that have been earmarked for a specific purpose by the Australian Government.
Appropriations in the accrual budgeting framework
Under the Australian Government’s accrual budgeting framework, separate annual appropriations are provided for:
•	departmental appropriations representing the Australian Government’s purchase of programmes from agencies;
•	departmental capital appropriations for investments by the Australian Government for either additional equity or loans in agencies;
•	administered expense appropriations for the estimated administered expenses relating to an existing outcome or a new outcome; and
•	administered capital appropriations for increases in administered equity through funding non‑expense administered payments.

Departmental
Asset valuation
ASIC has adopted fair value as a basis for valuing its leasehold improvements and plant and equipment. Valuation is conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date.
Asset recognition threshold
Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition.
Leases
A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non‑current assets, and operating leases, under which the lessor effectively retains substantially all such risks and benefits. 
Where a non‑current asset is acquired by means of a finance lease, the asset is capitalised at the lower of fair value or the present value of minimum lease payments at the inception of the lease and a liability recognised for the same amount. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.
Operating lease payments are charged to the income statement on a basis that is representative of the pattern of benefits derived from the lease assets.
Depreciation and amortisation
Computer equipment and plant and equipment is depreciated using the straight‑line method. Leasehold improvements are amortised on a straight‑line basis over the lesser of the estimated life of the improvements or the unexpired period of the lease.
Depreciation/amortisation rates (useful lives) are reviewed at each balance date and necessary adjustments are recognised receivables.
Receivables
A provision is raised for any doubtful debts based on a review of the collectability of all outstanding accounts as at year‑end. 
Bad debts are written off during the year in which they are identified.
Provisions and payables
Provisions and payables represent liabilities for miscellaneous accruals and employee benefits, including accrued salary and leave entitlements, provisions for making good leased premises and lease incentives. No provision for sick leave is required as all sick leave is non‑vesting.
Administered
Schedule of budgeted revenues and expenses administered on behalf of government
Revenues
Non‑taxation revenues are predominately comprised of Corporations Act 2001 fees and charges, and collections of unclaimed monies under the Banking Act 1959, the Life Insurance Act 1995 and the Corporations Act 2001.
Write‑down and impairment of assets
Write‑down and impairment of assets represents waivers and write‑offs of corporations law fees.
Schedule of budgeted assets and liabilities administered on behalf of government
Financial assets
The financial assets include Corporations Act 2001 debt invoiced and still outstanding at year‑end.
Schedule of budgeted administered cash flows
All cash collected by ASIC for corporations law revenue is transferred to the Official Public Account (OPA) at the close of business each day. Cash collected for Banking Act 1959 unclaimed monies, Life Insurance Act 1995 unclaimed monies and Corporations Act 2001 unclaimed monies is transferred to the OPA when received.