AUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS … · The Directors present their report together with the financial report of Australian Central Credit Union Ltd (the "Holding Entity")

AUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2010

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3AUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2010

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Annual Financial Report

CONTENTS PAGE

Directors’ Report 4 - 6

Lead Auditor’s Independence Declaration 7 - 7

Corporate Governance Statement 8 - 11

Independent Auditor’s Report 12 - 13

Directors’ Declaration 14 - 14

Statements of Financial Position 15 - 15

Statements of Comprehensive Income 16 - 16

Statements of Changes in Equity 17 - 18

Statements of Cash Flows 19 - 19

Notes to the Accounts 20 - 65


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Directors’ Report

8.

AUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS CONTROLLED ENTITIES

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 JUNE 2010

DIRECTORS

William (Bill) Raymond Cossey AM Appointed 1 December 2009

NON EXECUTIVE CHAIR

B.Sc., MAICD

John Leonard Cossons

NON EXECUTIVE DEPUTY CHAIR

FAMI, MAICD

Peter Hans Torsten Evers Retired 30 November 2009 Appointed 21 December 2009

EXECUTIVE DIRECTOR

BA (Acc), FCPA, FAMI, FAICD, SF Fin

Dr Rosemary Helen Simon Brooks

NON EXECUTIVE DIRECTOR

PhD, MBA, MA, BA (Hons), LLB (Hons), GDLP, FAICD, FAMI, JP

Stephen (Mark) Day Appointed 1 December 2009


B.Bus, Grad Dip (Applied Finance and Investment), FAICD, FFTA

Edward Terrence McGuirk


BA (Hons), FAICD, AFAMI, SA Fin

Jan McMahon Appointed 1 December 2009


BA (Hons.), FAICD, AFAMI

Kathryn (Anne) Skipper AM Appointed 1 December 2009


Dip. Nursing, FAICD, FAIM

Mark Wesley Coleman Resigned 31 March 2010


BEc, MBA, FAICD, MAMI

Annabel Faith Catford Digance Retired 30 November 2009


MMgt, BN, GDHC, FAICD, MAMI

Giuliano Vito Rech Retired 30 November 2009


MBA, GAICD, AIMM, CP Mgr, MACS, MAMI

The number of Directors' meetings (including meetings of committees of Directors) and number of meetings attended by each of the

Directors during the financial year is shown in the Corporate Governance Statement commencing on page 6.

None of the above Directors has declared any interest in any existing or proposed contract with the Holding Entity since 1 July 2009.

The Directors present their report together with the financial report of Australian Central Credit Union Ltd (the "Holding Entity") and the

consolidated financial report of the Consolidated Entity, being the Holding Entity and its controlled entities, for the year ended 30 June

2010 and the auditor's report thereon.

The Directors of the Holding Entity at any time during or since the end of the financial year are:

Details of Directors, their experience and any special responsibilities, are set out on page [X]. Organisations with which certain

Directors have associations as set out on page [X] conduct business with the Holding Entity on the Holding Entity's standard terms and

conditions.

Directors were in office from the beginning of the financial year until the date of this report, unless otherwise stated. There were a

number of Director movements as a direct consequence of the merger with Savings & Loans Credit Union (S.A.) Limited. The two

existing boards combined as at 1 December 2009 with Directors joining the board on 1 December and Directors leaving the board on

30 November 2009.

2

Details of Directors, their experience and any special responsibilities, are set out in the Online Annual Report, which is available atsavingsloans.com.au/annualreport and australiancentral.com.au. Organisations with which certain Directors have associations as setout in the Online Annual Report conduct business with the Holding Entity on the Holding Entity’s standard terms and conditions.


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Directors’ ReportAUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS CONTROLLED ENTITIES

DIRECTORS' REPORT


CORPORATE SECRETARY

PRINCIPAL ACTIVITIES

DIVIDENDS

REVIEW OF OPERATIONS

STATE OF AFFAIRS

EVENTS SUBSEQUENT TO THE REPORTING DATE

Total consolidated on balance sheet assets reached $6.006 billion, representing an increase of $3.411 billion (131%) from 30 June

2009. This included the integration of Savings & Loans Credit Union (S.A.) Limited's assets of $3.264 billion (as at 1 December 2009).

Excluding the effects of the merger, on balance sheet personal and residential disbursements for the twelve months ended 30 June

2010 reached $407.149 million and mortgages under advice off balance sheet grew by 13.48% to $484.723 million during the year.

During the reporting period, the Consolidated Entity redeemed a $15.000 million Series 5 Subordinated Capital Notes issue maturing

on 15 December 2014. The repayment of the issue was the result of the Holding Entity exercising its option under the Trust Deed to

repay the entire face value of these notes to registered holders on 15 December 2009.

There has not arisen in the interval between the end of the financial year and the date of this report, any item, transaction or event of a

material and unusual nature likely, in the opinion of the Directors of the Holding Entity, to affect significantly the operations of the

Consolidated Entity, the results of those operations, or the state of affairs of the Consolidated Entity in future financial years other than

disclosed below.

On 1 December 2009, the Holding Entity merged with Savings & Loans Credit Union (S.A.) Limited to create a credit union of size and

strength to provide greater value for members, such as an improved range of products and services and a broader branch network.

The merger, originally announced on 13 August 2009, was subsequently approved by the members of both credit unions on 27

November 2009 and subsequently approved by the Australian Prudential Regulation Authority ("APRA") on 30 November 2009. The

merger legally took effect on 1 December 2009.

In the opinion of the Directors other than the event above, there have been no significant changes in the state of affairs of the

Consolidated Entity that occurred during the financial year under review not otherwise disclosed in this report or the consolidated

financial statements.

The principal activities of the Consolidated Entity during the year were the provision of loans to members and customers (including

"Choice of Home Loans" via a panel of lenders), savings and investment facilities, the sale of insurance policies, Mutual Aid, wealth

management and corporate superannuation services. There was no significant change in the nature of these activities during that

period.

The Consolidated Entity recorded a profit after tax for the year ended 30 June 2010 of $22.983 million (2009: $7.538 million). After

adjusting for pre-merger and pre fair value derivatives, net profit after tax was $26.718 million, which includes the estimated

contribution from Savings & Loans Credit Union (S.A.) Limited of $16.338 million (pre-merger and pre fair value of derivatives) for the

seven month period ending 30 June 2010. On a comparable basis excluding the effects of the merger, consolidated profit after tax

increased by $2.842 million (38%) on the previous period.

Effective 1 December 2009, Australian Central Credit Union Ltd merged with Savings & Loans Credit Union (S.A.) Limited following

approval by the members of both Credit Unions.

On the 23 March 2010 the Holding Entity repaid in full a $10.000 million Subordinated Capital Notes issue maturing 23 March 2015.

The repayment of the issue was the result of the Holding Entity exercising its option under the Trust Deed to repay the entire face value

of these notes to registered holders on the 23 March 2010.

Mr Paul Albert Macdonald BA Acc, CPA was appointed to the position of Corporate Secretary in November 2003.

The Holding Entity's Constitution prohibits the payment of dividends on member shares.

On the 31 July 2010 the Holding Entity repaid in full a $5.000 million Series 3 Subordinated Capital Notes issue maturing 31 July 2015.

The repayment of the issue was the result of the Holding Entity exercising its option under the Trust Deed to repay the entire face value

of these notes to registered holders on 31 July 2010.

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Directors’ ReportAUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS CONTROLLED ENTITIES

DIRECTORS' REPORT


EVENTS SUBSEQUENT TO THE REPORTING DATE (continued)

DIRECTORS' INTERESTS

LIKELY DEVELOPMENTS

INDEMNIFICATION OF OFFICERS

ROUNDING OFF

Signed at Adelaide this 30th day of August, 2010

in accordance with a resolution of the Board of Directors of the Holding Entity.

W. R. COSSEY AM P.H.T. EVERS

Chair Managing Director

Upon the redemption of the subordinated debt issue, the Holding Entity will no longer be classified as a 'disclosing entity', effective 31

July 2010 and will no longer be subject to the Australian Securities Exchange ("ASX") Listing Rules effective 13 August 2010. As such

this releases the Holding Entity from disclosing entity requirements and consequently no future Half-Year Financial Reports will be

required to be prepared and lodged with the Australian Securities and Investments Commission ('"ASIC").

The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, amounts

in the financial report and Directors' Report have been rounded off to the nearest thousand dollars, unless otherwise stated.

LEAD AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT

The insurance contract prohibits the disclosure of the nature of the liabilities insured against and the premium paid in respect of that

insurance.

The Lead Auditor's Independence Declaration is set out on page 5 and forms part of the Directors' Report for the year ended 30 June

2010.

Dr Rosemary Helen Simon Brooks

At the July 2010 Board meeting, the Board confirmed that there are no reasons to believe that the Holding Entity may become a

disclosing entity before the end of the end of the 2010/11 Financial Year. Consequently the Holding entity is now considered a non-

disclosing entity as at and from 30 June 2010.

Further information as to likely developments in the operations of the Consolidated Entity and the expected results of those operations

in subsequent financial years has not been included in this report because disclosure of the information would be likely to result in

unreasonable prejudice to the Consolidated Entity.

600

None of the above Directors have declared any interest in existing or proposed contracts with the Holding Entity since 1 July 2009. The

following Directors have, as at the year end, a relevant interest in $100 Series 3 Subordinated Unsecured Notes issued by the Holding

Entity on 30 June 2000 and maturing 31 July 2015 (redeemed 31 July 2010 upon exercise of the option under the Trust Deed to repay

the entire face value of these notes to registered holders on 31 July 2010), as follows:

During the period, the Holding Entity paid a premium in relation to a Directors & Officers Liability insurance policy indemnifying the

Directors and its Senior Executives mentioned above against certain liabilities.

In the course of meeting its goals the Consolidated Entity will continue to pursue profitable market share growth whilst maintaining

efficient and effective business operations. The size and strength the Holding Entity will gain from the merger will create many new

efficiencies and opportunities which will directly result in enhanced value for members including an improved range of products and

services, as well as a broader network of branches.

On 26 August 2010 APRA issued a letter to all locally-incorporated authorised deposit-taking institutions titled "Regulatory Capital

Treatment for Securitisation". The letter states APRA's view of the capital treatment of a securitisation where the originating ADI holds

any part of the most subordinated tranche of the securitisation. The Holding Entity has undertaken an assessment of the impact of the

application of APRA's stated position on the regulatory capital treatment for securitisation and has determined that it will have an

immaterial impact on the capital adequacy ratio of the Consolidated Entity as disclosed in Note 43 (e).

30/6/2000

Notes Issue

Number of notes

4

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Lead Auditor’s Independence Declaration


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Corporate Governance StatementAUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS CONTROLLED ENTITIES

CORPORATE GOVERNANCE STATEMENT


HOW WE DO BUSINESS

Minimum Competencies

Director Development

Independence

Refreshment and Renewal

Board policy sets out the minimum competencies regarding personal attributes, skills and knowledge that each Director should bring

to the Consolidated Entity. The Nominations Committee in forming its view assesses all election candidates with regard to these

minimum competencies.

The Holding Entity's Board and Management are committed to acting responsibly, ethically and with the highest standards of integrity

to ensure that the Consolidated Entity's activities are continually structured and delivered in a manner that allows us to meet the

needs of our members.

A principles based approach is taken to achieve sound corporate governance and business practices. To achieve this, policies have

been adopted by the Board and cascaded throughout all levels of the Consolidated Entity. We strive to ensure that our governance

"in action" is of the highest standard, consistent with our mutual underpinnings.

We are continually working to improve our governance policies and practices both at the Board level and throughout the

Consolidated Entity. Following on from the merger of the Holding Entity and Savings & Loans Credit Union (S.A.) Limited on 1

December 2009, a process has been instituted to merge the policies of both organisations to ensure that the very best of both is

carried forward. And whilst our mutual values remain constant, we are aware that we must adapt our business practices to ensure

we meet our obligations as a responsible Consolidated Entity in a changing world.

The Board has committed to following the Australian Securities Exchange Corporate Governance Council's "Principles of Good

Corporate Governance and Best Practice Recommendations". Australian Central complies with these principles to the extent that

they are applicable to a mutual organisation. Further the Board has carefully considered and implemented a "fit and proper"

framework in accordance with relevant legislation, that endeavours to ensure that Directors and Senior Management of the

Consolidated Entity are appropriate persons to lead the Consolidated Entity. The "fit and proper" framework deals with matters such

as minimum competencies, Director development, independence, Director refreshment and renewal and performance.

Relevant Board policy outlines the knowledge requirements for Directors and provides the high level guidelines for new Director

induction, new committee member induction as well as the standards for ongoing Director development. Each Director is expected to

attend annually one industry related conference.

As a behavioural principle, Board policy requires Directors to be independent in both judgement and action. Each Director is required

to be independent in his/her thinking which must be maintained over time such that the Director makes his/her own judgement based

on the present situation. It is the Director’s accountability to maintain and demonstrate his/her independence. Board policy excludes

the acceptance of gifts by Directors which may provide, or may be perceived to provide, for a decision to be made which otherwise

would not. The policy does not exclude the acceptance of low value gifts by a Director and where any doubt exists to the

appropriateness of the gift the Director is obliged to report the matter to the Chair of the Board and in the case of the Chair, the Board

itself. Where a Director has a material personal interest in a matter, that Director is not present during the consideration of, or voting

on, that matter.

Individual Directors are required on a regular basis to refresh and renew their knowledge generally and specific to the Consolidated

Entity and the environment in which it operates. Board policy requires that each Director must be able to demonstrate his/her own

refreshment and renewal process to the Board and relevant third parties as needed. Refreshment and renewal are also included as

part of an individual Director's performance assessment. Also, under Board policy the Corporate Governance Committee will

undertake a review of the Board’s refreshment and renewal where effective change in the composition of the Board has not occurred

over a period of three years.

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HOW WE DO BUSINESS (Continued)

Performance

STRUCTURE OF THE BOARD

ROLE OF THE BOARD

In particular, the Board:

• provides strategic direction to the Holding Entity;

• provides leadership in terms of corporate governance;

• appoints the Managing Director;

• monitors the performance of the Managing Director;

• reports to members and monitors that all regulatory requirements are met;

• approves, in accordance with the Board Remuneration Policy and APRA's Prudential Standard APS 510 Governance ,

the remuneration of the Managing Director, executive managers, other persons whose activities may affect the

financial soundness of the Holding Entity and relevant Risk, Internal Audit, Treasury and Financial Control personnel.

• oversees the Holding Entity's financial performance and position and monitors its business and affairs on behalf of all

members;

• oversees internal controls and processes for identifying areas of significant business risk;

• makes decisions in relation to major expenditures, acquisitions or merger opportunities;

• ensures that the Holding Entity's business is conducted ethically and transparently.

Responsibility for day-to-day activities is delegated to the Managing Director by the Board.

Established Board policy requires the annual review of performance of the Board, its committees and individual Directors including

the Chair. This is undertaken via a survey of relevant questions completed by Directors and where appropriate Executive Managers.

The size and composition of the Board is determined by the Board subject to the limits set out in the Holding Entity's constitution,

which requires a minimum of four member elected Non-Executive Directors. The constitution also allows for Board and merger

appointed Non-Executive Directors, or a Managing Director. At all times, member elected Directors must constitute a majority of

Directors, a requirement which protects our mutuality.

Board policy has been established that requires the Corporate Governance Committee to annually review the independence of each

non executive Director. All non executive Directors have been determined to be independent.

The Board currently comprises seven Non-Executive Directors, six of whom are member elected and one Board appointed Director

and one Managing Director, ensuring independence and objectivity. All Directors are shareholding members of the Holding Entity.

Board members are elected by the members or appointed in accordance with the constitution. The Chair of the Board is a member

elected Non-Executive Director. If a Board or merger appointed Non-Executive Director is appointed as Chair, they must stand for

election at the election which immediately follows their appointment as Chair. Generally all elected Directors hold a term of three

years upon election however as part of the merger with Savings & Loans Credit Union (S.A.) Limited, transitional amendments to the

constitution were made to specify Directors deemed elected until the end date of their term.

It is important that the above framework is maintained to ensure that the Board is able to operate independently of Executive

Management. Each of the Non-Executive Directors is independent of Management. This means that they are free from any

relationship (for example, a business interest in a supplier or competitor of the Consolidated Entity) which could materially interfere

with the exercise of their independent judgement and their ability to act in the best interests of the Consolidated Entity. In the event

that a potential conflict of interest arises, involved Directors must withdraw from all debate and decisions concerning the matter

unless the Board resolves that the interest should not disqualify the Director from being present and/or voting.

Refer to Page 2 of this financial report for the names of Directors who held office at any time during or since the end of the financial

year.

The Board comprises a majority of Non-Executive Directors, who together with the Managing Director have extensive business

acumen and bring accountability and judgement to the Board's deliberations to ensure optimum benefit to members, employees and

the wider community.

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COMMITTEES OF THE BOARD

Standing committees in operation at any time during or since the end of the financial year were:

STANDARDS

•

•

•

•

•

•

•

•

•

•

AUDIT SERVICES

the Managing Director, General Manager Finance and Treasury and General Manager Risk provide an assurance statement on

the accuracy and completeness of financial information and risk management processes;

the Executive Managers provide assurance to the Board that the business of the Holding Entity has been conducted ethically

and all dealings have been conducted transparently with the Board;

the transparency of information to members through publication of (regulatory) notices on the Holding Entity's website

www.australiancentral.com.au;

the gearing of Board Policies towards risk management to safeguard the assets and interests of the Consolidated Entity;

Non-Executive Director remuneration approved by members at the Annual General Meeting. The Board undertakes

benchmarking and/or seeks independent advice to determine recommended Non-Executive Director remuneration levels.

The Holding Entity's Internal Audit Services department via the Audit Committee assists the Board in ensuring compliance with

established internal controls. The Audit Committee is responsible for approving the program and scope of Audit Services activities

each financial year.

The Board has established three standing committees as described below to consider detailed matters. Generally committees

consider the various matters and make recommendations to the Board, however some decisions, within the parameters of Board

policy, have been delegated to committees. Each committee's authority and responsibilities are set out in their individual terms of

reference, as approved by the Board. Other committees may be established from time to time to consider matters of particular

importance. Committee members are chosen for the skills, experience and other relevant qualities they bring to the committee.

The Audit Committee meets at least quarterly, whilst the other two committees generally meet bi-monthly to consider and make

recommendations or decisions on matters within their terms of reference. Committee Chairs give verbal reports to the Board at the

next Board meeting, and minutes of all committee meetings are reviewed by the Board. All information prepared for the consideration

of committees is also available to the Board.

Audit Committee - assists the Board in fulfilling its responsibilities relating to the audit, accounting, and reporting obligations,

monitoring compliance with the established policies of the Consolidated Entity, monitoring internal and external auditors (including

the independence of the internal and external auditors). This committee has a number of particular guidelines which include that the

Chair of the committee cannot be the Chair of the Board and that the committee can and does meet with the internal and/or External

Auditors without the presence of the Managing Director or Management.

Corporate Governance Committee - assists the Board in adopting and implementing good corporate governance in the areas of

the Managing Director's appointment, Non-Executive Director remuneration, recommending to the Board management remuneration

levels in accordance with the Board Remuneration Policy, Director elections, Board performance reviews, oversight of the "fit and

proper" framework, monitoring the size and composition of the Board and reviewing Executive succession plans. A Nominations

Committee is established in association with Director elections, and operates under the guidelines of the Corporate Governance

Committee.

Risk Committee - The Risk Committee ensures that the Holding Entity adopts an integrated approach to risk management including

treasury risk management and capital management dealing with all risks of the portfolio including those to do with the balance sheet

and interest rates, credit risk that arises in the credit portfolio, operational risk management including regulatory risk management as

part of the day to day conduct of the business and alignment with prudential standards.

The Board acknowledges the need for, and continued maintenance of the highest standards of corporate governance and therefore

adopts practices including:

a Code of Conduct that applies to all staff, Management and Directors;

allowing non executive Directors to seek independent professional advice at the expense of the Holding entity;

regular Executive Management presentations;

active participation by all Directors at all meetings and open access to information;

an annual review of Board performance;

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INTERNAL AND EXTERNAL AUDIT INDEPENDENCE

REMUNERATION OF THE BOARD

MEETINGS OF THE BOARD AND BOARD COMMITTEES

A * B A B A B A B

Director

7 7 - - 4 4 - -

16 16 3 3 6 6 2 1

15 15 - - - - - -

Dr R.H.S. Brooks 16 15 4 3 2 2 3 2

S.M. Day appointed 1/12/2009 7 7 - - - - 6 6

E.T. McGuirk 16 15 6 6 - - - -

J. McMahon appointed 1/12/2009 7 7 1 1 - - 6 5

K.A. Skipper AM appointed 1/12/2009 7 6 - - 4 4 - -

M.W. Coleman resigned 31/3/2010 13 8 - - - - 7 3

A.F.C. Digance retired 30/11/2009 9 8 2 2 2 2 - -

G.V. Rech retired 30/11/2009 9 9 2 2 - - 3 2

* Twelve scheduled Board meetings and four special Board meetings were held during the year.

B - The number of meetings attended by the Director.

The following leaves of absence were granted by the Board:

Director

Dr R.H.S. Brooks

A. Skipper AM

M.W. Coleman

E.T. McGuirk 1

Retiring Directors

3

4

Number of Board and Committee

Meetings

A - The number of meetings held during the period the Director was a member of the Board or Board Committee.

1

The Audit Committee has the ability to meet with Management without the internal and/or External Auditors being present and with

the internal and/or External Auditors without Management being present.

W. R. Cossey AM (Chair) appointed 1/12/2009

The Corporate Governance Committee reviews and recommends the level of Executive Directors' remuneration for approval by the

Board. The remuneration of Non-Executive Directors is determined by the Corporate Governance Committee following

benchmarking and/or independent advice and recommended by the Board for approval by members at the Annual General Meeting.

The membership and details of attendances at meetings of the Holding Entity's Board and Committees of the Holding Entity's Board

are outlined below.

Board Audit Risk

Corporate

Governance

J.L. Cossons (Deputy Chair) Chair until 30/11/2009

P.H.T. Evers (Managing Director) retired 30/11/2009,

appointed 21/12/2009

The Board approves the appointment or dismissal of the head of Audit Services and oversees the appointment of the Holding Entity's

External Auditors.

The External Auditors were appointed in 1997. The lead External Audit engagement partner was last rotated in June 2008. The

rotation was overseen by the Audit Committee.

The Audit Committee closely monitors the independence of the External Auditors and regularly reviews the independence

safeguards put in place by the External Auditors.

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Independent Audit Report


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Independent Audit Report


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Directors’ Declaration


DIRECTORS DECLARATION


DIRECTORS' DECLARATION

In the opinion of the Directors of the Holding Entity:

(a)

(i)

(ii)

(b)

Signed at Adelaide this 30th day of August, 2010

in accordance with a resolution of the Board of Directors of the Holding Entity.

W. R. COSSEY AM P.H.T. EVERS

Chair Managing Director

complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the

Corporations Regulations 2001;

there are reasonable grounds to believe that the Holding Entity will be able to pay its debts as and when they become

due and payable.

the financial statements and notes of the Holding Entity and of the Consolidated Entity, set out on pages 13 to 63 are

in accordance with the Corporations Act 2001, including:

giving a true and fair view of the Holding Entity's and the Consolidated Entity's financial position as at 30 June

2010 and of their performance, for the financial year ended on that date;

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Statements of Financial PositionAUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS CONTROLLED ENTITIES

STATEMENTS OF FINANCIAL POSITION

AS AT 30 JUNE 2010

2010 2009 2010 2009

Note $'000 $'000 $'000 $'000

Assets

Cash and cash equivalents 10 38,132 11,512 44,982 13,686 Trade and other receivables 11 29,860 12,554 28,408 10,982 Current tax assets 12 - 2,923 - 2,508 Loans and advances 13 4,979,923 2,179,221 4,979,923 2,179,221 Investments: Available-for-Sale investment securities 15 817,368 50,000 822,627 50,000 Held-to-Maturity investment securities 15 35,850 288,500 35,850 292,500 Other investments 15 31,252 10,691 12,905 5,703 Property, plant and equipment 16 36,336 15,742 36,505 16,106 Deferred tax assets 17 21,734 11,910 19,325 10,845 Intangible assets 18 14,489 3,163 22,824 11,498 Other financial assets 19 8,220 3,626 107 - Other assets 20 2,562 1,615 2,614 1,654 Total Assets 6,015,726 2,591,457 6,006,070 2,594,703

Liabilities

Payables due to other financial institutions 21 - 722 - - Deposits 22 3,935,050 1,636,332 3,934,728 1,636,332 Other financial liabilities 23 22,622 23,052 22,622 21,568 Trade and other payables 24 452,694 260,948 92,898 29,368 Borrowings 25 1,222,965 498,130 1,222,965 498,130 Notes payable 26 - - 350,030 236,549 Income tax payable 27 4,926 - 5,266 - Deferred tax liabilities 28 10,716 2,134 8,282 1,046 Employee benefits 29 12,128 5,788 12,199 5,867 Subordinated debt 30 5,000 19,964 5,000 19,964 Total Liabilities 5,666,101 2,447,070 5,653,990 2,448,824

Net Assets 349,625 144,387 352,080 145,879

Equity

Redeemed preference share capital 31 489 441 489 441 General reserve for credit losses 8,193 3,696 8,193 3,696 Hedging reserve - cash flow hedges (5,961) (15,127) (5,961) (15,127)Asset revaluation reserve 287 - 293 6 Fair Value Reserve - Available-for-Sale Financial Assets 1,433 - 1,442 - Other equity reserves 171,745 - 171,745 - Retained earnings 173,439 155,377 175,879 156,863

Total Equity attributable to members of the Holding Entity 349,625 144,387 352,080 145,879

Total Equity 349,625 144,387 352,080 145,879

The Statement of Financial Position is to be read in conjunction with the accompanying notes to the financial statements.

Credit Union Consolidated

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AS AT 30 JUNE 2010


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Statements of Comprehensive IncomeAUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS CONTROLLED ENTITIES

STATEMENTS OF COMPREHENSIVE INCOME


Note

2010 2009 2010 2009$'000 $'000 $'000 $'000

Interest income 2,3 271,728 170,203 299,146 190,221 Interest expense 2,3 (170,321) (118,516) (196,358) (137,655)Net interest income 101,407 51,687 102,788 52,566

Non-interest income 4 56,824 34,541 58,671 36,327 Non-interest income 56,824 34,541 58,671 36,327

Impairment losses on loans and advances 5 (2,490) (1,266) (2,490) (1,266)Other expenses 6 (124,713) (75,590) (126,763) (77,858)

Profit before tax 31,028 9,372 32,206 9,769

Income tax expense 8 (8,870) (2,112) (9,223) (2,231)

Profit for the year 22,158 7,260 22,983 7,538

Other comprehensive income

Cash flow hedges:22,898 7,888 22,898 7,888

to profit or loss

(9,846) (39,126) (9,846) (39,126)1,433 - 1,442 -

- (557) - (557) Revaluation of property, plant and equipment 175 - 175 -

(3,968) 9,538 (3,968) 9,538

10,692 (22,257) 10,701 (22,257)

Total comprehensive income for the year 32,850 (14,997) 33,684 (14,719)

Profit attributable to:Members of the Holding Entity 22,158 7,260 22,983 7,538

Total comprehensive income attributable to:Members of the Holding Entity 32,850 (14,997) 33,684 (14,719)

The Statement of Comprehensive Income is to be read in conjunction with the accompanying notes to the financial statements.


Other comprehensive income for the year, net of tax

Effective portion of changes in fair value of cash flow hedges

Prior period adjustment

Income tax (expense)/benefit on items of other comprehensive income

Net change in fair value of cash flow hedges transferred

Changes in fair value of Available-for-Sale financial assets

14

CreditUnion Consolidated


AN

NU

AL REPO

RT 2010Stat

emen

ts o

f Cha

nges

in E

quity

AU

STR

ALI

AN

CEN

TRA

L C

RED

IT U

NIO

N LT

D A

ND

ITS

CO

NTR

OLL

ED E

NTI

TIES

FO

R TH

E YE

AR E

ND

ED 3

0 JU

NE

2010

AU

ST

RA

LIA

N C

EN

TR

AL

CR

ED

IT U

NIO

N L

TD

AN

D I

TS

CO

NT

RO

LL

ED

EN

TIT

IES

Sta

tem

en

ts o

f C

han

ges i

n E

qu

ity

for

the y

ear

en

ded

30 J

un

e 2

010

Ho

ldin

g E

nti

ty 2

010

Red

eem

ab

le

pre

fere

nce s

hare

cap

ital

acco

un

tG

en

era

l re

serv

e f

or

cre

dit

lo

sses

Hed

gin

g r

eserv

e -

cash

flo

w h

ed

ges

Asset

revalu

ati

on

reserv

e

Fair

Valu

e R

eserv

e -

Avail

ab

le F

or

Sale

Fin

an

cia

l A

ssets

Oth

er

eq

uit

y

reserv

es

Reta

ined

earn

ing

sT

ota

l

No

te$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Op

en

ing

bala

nce a

t 1 J

uly

2009

441

3,6

96

(15,1

27)

-

-

-

155,3

77

144,3

87

To

tal

co

mp

reh

en

siv

e i

nco

me f

or

the p

eri

od

Pro

fit o

r lo

ss

-

-

-

-

-

-

22,1

58

22,1

58

Oth

er

co

mp

reh

en

siv

e i

nco

me

Eff

ectiv

e p

ort

ion o

f changes in

fair v

alu

e o

f cash f

low

hedges,

net

of

tax

-

-

(6,8

92)

-

-

-

-

(6,8

92)

Change in

fair v

alu

e o

f cash f

low

hedges t

ransfe

rred t

o p

rofit

or

loss,

net

of

tax

-

-

16,0

29

-

-

-

-

16,0

29

Net

change in

fair v

alu

e o

f availa

ble

-for-

sale

fin

ancia

l assets

, net

of

tax

-

-

-

-

1,4

33

-

-

1,4

33

Revalu

atio

n o

f pro

pert

y, p

lant

and e

quip

ment,

net

of

tax

-

-

-

122

-

-

-

122

To

tal

oth

er

co

mp

reh

en

siv

e i

nco

me

-

-

9,1

37

122

1,4

33

-

-

10,6

92

To

tal

co

mp

reh

en

siv

e i

nco

me f

or

the p

eri

od

-

-

9,1

37

122

1,4

33

-

22,1

58

32,8

50

Tra

nsacti

on

s w

ith

mem

bers

reco

rded

dir

ectl

y i

n e

qu

ity

Net

capita

l reserv

es e

sta

blis

hed o

n m

erg

er

with

Savin

gs &

Loans C

redit

Unio

n (

S.A

.)

L

imite

d44b

-

-

-

-

-

171,7

45

-

171,7

45

Esta

blis

hm

ent

of

Redeem

able

pre

fere

nce s

hare

s a

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enera

l reserv

e f

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cre

dit

losses u

pon m

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er

-

4,5

71

-

-

-

-

(4,5

86)

(15)

Tra

nsfe

r to

/(fr

om

) re

serv

es

48

(74)

29

165

-

-

490

658

Clo

sin

g b

ala

nce a

t 30 J

un

e 2

010

489

8,1

93

(5,9

61)

287

1,4

33

171,7

45

173,4

39

349,6

25

Co

nso

lid

ate

d E

nti

ty 2

010

Red

eem

ab

le

pre

fere

nce s

hare

cap

ital

acco

un

tG

en

era

l re

serv

e f

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cre

dit

lo

sses

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gin

g r

eserv

e -

cash

flo

w h

ed

ges

Asset

revalu

ati

on

reserv

e

Fair

Valu

e R

eserv

e -

Avail

ab

le F

or

Sale

Fin

an

cia

l A

ssets

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er

eq

uit

y

reserv

es

Reta

ined

earn

ing

sT

ota

l

No

te$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Op

en

ing

bala

nce a

t 1 J

uly

2009

441

3,6

96

(15,1

27)

6 -

-

156,8

63

145,8

79

To

tal

co

mp

reh

en

siv

e i

nco

me f

or

the p

eri

od

Pro

fit o

r lo

ss

-

-

-

-

-

-

22,9

83

22,9

83

Oth

er

co

mp

reh

en

siv

e i

nco

me

Eff

ectiv

e p

ort

ion o

f changes in

fair v

alu

e o

f cash f

low

hedges,

net

of

tax

-

-

(6,8

92)

-

-

-

-

(6,8

92)

Change in

fair v

alu

e o

f cash f

low

hedges t

ransfe

rred t

o p

rofit

or

loss,

net

of

tax

-

-

16,0

29

-

-

-

-

16,0

29

Net

change in

fair v

alu

e o

f availa

ble

-for-

sale

fin

ancia

l assets

, net

of

tax

-

-

-

-

1,4

42

-

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1,4

42

Revalu

atio

n o

f pro

pert

y, p

lant

and e

quip

ment,

net

of

tax

-

-

-

122

-

-

-

122

To

tal

oth

er

co

mp

reh

en

siv

e i

nco

me

-

-

9,1

37

122

1,4

42

-

-

10,7

01

To

tal

co

mp

reh

en

siv

e i

nco

me f

or

the p

eri

od

-

-

9,1

37

122

1,4

42

-

22,9

83

33,6

84

Tra

nsacti

on

s w

ith

mem

bers

reco

rded

dir

ectl

y i

n e

qu

ity

Net

capita

l reserv

es e

sta

blis

hed o

n m

erg

er

with

Savin

gs &

Loans C

redit

Unio

n (

S.A

.)

L

imite

d44b

-

-

-

-

-

171,7

45

-

171,7

45

Esta

blis

hm

ent

of

Redeem

able

pre

fere

nce s

hare

s a

nd G

enera

l reserv

e f

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cre

dit

losses u

pon m

erg

er

-

4,5

71

-

-

-

-

(4,5

86)

(15)

Tra

nsfe

r to

/(fr

om

) re

serv

es

48

(74)

29

165

-

-

619

787

Clo

sin

g b

ala

nce a

t 30 J

un

e 2

010

489

8,1

93

(5,9

61)

293

1,4

42

171,7

45

175,8

79

352,0

80

The S

tate

ments

of

Changes in

Equity

are

to b

e r

ead in

conju

nctio

n w

ith t

he a

ccom

panyi

ng n

ote

s t

o t

he f

inancia

l sta

tem

ents

.

15


AN

NU

AL

REPO

RT 2

010

18

Stat

emen

ts o

f Cha

nges

in E

quity

AU

STR

ALI

AN

CEN

TRA

L C

RED

IT U

NIO

N LT

D A

ND

ITS

CO

NTR

OLL

ED E

NTI

TIES

FO

R TH

E YE

AR E

ND

ED 3

0 JU

NE

2010

AU

ST

RA

LIA

N C

EN

TR

AL

CR

ED

IT U

NIO

N L

TD

AN

D I

TS

CO

NT

RO

LL

ED

EN

TIT

IES

Sta

tem

en

ts o

f C

han

ges i

n E

qu

ity

for

the y

ear

en

ded

30 J

un

e 2

010

Ho

ldin

g E

nti

ty 2

009

Red

eem

ab

le

pre

fere

nce s

hare

cap

ital

acco

un

tG

en

era

l re

serv

e f

or

cre

dit

lo

sses

Hed

gin

g r

eserv

e -

cash

flo

w h

ed

ges

Asset

revalu

ati

on

reserv

e

Fair

Valu

e R

eserv

e -

Avail

ab

le F

or

Sale

Fin

an

cia

l A

ssets

Oth

er

eq

uit

y

reserv

es

Reta

ined

earn

ing

sT

ota

l

No

te$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Op

en

ing

bala

nce a

t 1 J

uly

2008

417

3,7

48

7,1

30

--

-148,0

89

159,3

84

To

tal

co

mp

reh

en

siv

e i

nco

me f

or

the p

eri

od

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fit o

r lo

ss

-

-

-

-

-

-

7,2

60

7,2

60

Oth

er

co

mp

reh

en

siv

e i

nco

me

Eff

ectiv

e p

ort

ion o

f changes in

fair v

alu

e o

f cash f

low

hedges,

net

of

tax

-

-

(27,3

88)

-

-

-

-

(2

7,3

88)

Change in

fair v

alu

e o

f cash f

low

hedges t

ransfe

rred t

o p

rofit

or

loss,

net

of

tax

-

-

5,5

22

-

-

-

-

5,5

22

Net

change in

fair v

alu

e o

f availa

ble

-for-

sale

fin

ancia

l assets

, net

of

tax

Prior

period a

dju

stm

ent,

net

of

tax

-

-

(391)

-

-

-

-

(3

91)

To

tal

oth

er

co

mp

reh

en

siv

e i

nco

me

-

-

(22,2

57)

-

-

-

-

(22,2

57)

To

tal

co

mp

reh

en

siv

e i

nco

me f

or

the p

eri

od

-

-

(22,2

57)

-

-

-

7,2

60

(14,9

97)

Tra

nsacti

on

s w

ith

mem

bers

reco

rded

dir

ectl

y i

n e

qu

ity

Tra

nsfe

r to

/(fr

om

) re

serv

es

24

(52)

-

-

-

-

28

-

Clo

sin

g b

ala

nce a

t 30 J

un

e 2

009

441

3,6

96

(15,1

27)

-

-

-

155,3

77

144,3

87

Co

nso

lid

ate

d E

nti

ty 2

009

Red

eem

ab

le

pre

fere

nce s

hare

cap

ital

acco

un

tG

en

era

l re

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e f

or

cre

dit

lo

sses

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gin

g r

eserv

e -

cash

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w h

ed

ges

Asset

revalu

ati

on

reserv

e

Fair

Valu

e R

eserv

e -

Avail

ab

le F

or

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Fin

an

cia

l A

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eq

uit

y

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es

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ined

earn

ing

sT

ota

l

No

te$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Op

en

ing

bala

nce a

t 1 J

uly

2008

417

3,7

48

7,1

30

6-

-149,2

97

160,5

98

To

tal

co

mp

reh

en

siv

e i

nco

me f

or

the p

eri

od

Pro

fit o

r lo

ss

-

-

-

-

-

-

7,5

38

7,5

38

Oth

er

co

mp

reh

en

siv

e i

nco

me

Eff

ectiv

e p

ort

ion o

f changes in

fair v

alu

e o

f cash f

low

hedges,

net

of

tax

-

-

(27,3

88)

-

-

-

-

(2

7,3

88)

Change in

fair v

alu

e o

f cash f

low

hedges t

ransfe

rred t

o p

rofit

or

loss,

net

of

tax

-

-

5,5

22

-

-

-

-

5,5

22

Net

change in

fair v

alu

e o

f availa

ble

-for-

sale

fin

ancia

l assets

, net

of

tax

Prior

period a

dju

stm

ent,

net

of

tax

-

-

(391)

-

-

-

-

(3

91)

To

tal

oth

er

co

mp

reh

en

siv

e i

nco

me

-

-

(22,2

57)

-

-

-

-

(22,2

57)

To

tal

co

mp

reh

en

siv

e i

nco

me f

or

the p

eri

od

-

-

(22,2

57)

-

-

-

7,5

38

(14,7

19)

Tra

nsactio

ns w

ith m

em

bers

record

ed d

irectly

in e

quity

Tra

nsfe

r to

/(fr

om

) re

serv

es

24

(52)

-

-

-

-

28

-

Clo

sin

g b

ala

nce a

t 30 J

un

e 2

009

441

3,6

96

(15,1

27)

6 -

-

156,8

63

145,8

79

The S

tate

ments

of

Changes in

Equity

are

to b

e r

ead in

conju

nctio

n w

ith t

he a

ccom

panyi

ng n

ote

s t

o t

he f

inancia

l sta

tem

ents

.

16


AN

NU

AL REPO

RT 2010

Statements of Cash FlowsAUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS CONTROLLED ENTITIES

STATEMENTS OF CASH FLOWS


Note

2010 2009 2010 2009

$'000 $'000 $'000 $'000

Cash flows from operating activities

Interest received 251,529 171,168 278,922 191,148

Interest paid (163,201) (120,826) (183,129) (136,774)

Dividends and distributions received 1,007 2,025 1,007 2,025

Fee and commission received 38,978 24,596 42,001 27,254

Other income received 12,188 8,677 10,925 7,666

Recoveries on loans and advances previously written off 849 852 849 852

New loans disbursed (778,762) (357,087) (778,762) (357,087)

Principal collected on loans 798,220 546,298 798,220 546,297

Net (decrease)/increase in revolving credit loans (512) (17,481) (512) (17,481)

Cash payments to employees and suppliers (106,810) (68,707) (109,666) (75,171)

Income taxes paid (1,332) (5,929) (1,747) (5,929)Net cash from operating activities 41b 52,154 183,586 58,108 182,800

Cash flows from investing activities

Net decrease/(increase) in Available-for-Sale investment securities (445,000) - (445,000) -

Payment for acquired contractual rights - 15 - 15

Acquisition of property plant and equipment (3,668) (6,723) (3,668) (6,729)

Acquisition of non-tradeable investments (13,850) - (650) -

Proceeds from sale of property, plant and equipment 119 52 119 57

Net cash received on merger 317,582 - 317,582 -

Net increase in Held-to-Maturity investment securities 86,250 (51,500) 86,250 (48,500)Net cash used in investing activities (58,567) (58,156) (45,367) (55,157)

Cash flows from financing activities

Net increase in deposits and withdrawable share capital 44,854 100,682 44,854 100,682

Proceeds from borrowings 777,292 354,740 777,292 354,740

Proceeds from residential backed securities issue - - 250,000 -

Repayment of borrowings (667,805) (579,011) (794,486) (518,238)

Payment to Noteholders - - (136,519) (60,774)

Subordinated debt repayment (25,000) (10,000) (25,000) (10,000)Net cash from financing activities 129,341 (133,589) 116,141 (133,590)

Net (decrease)/increase in cash and cash equivalents 122,928 (8,159) 128,882 (5,947)

Cash and cash equivalents at 1 July 243,790 251,949 249,936 255,883

Cash and cash equivalents at 30 June 41a 366,718 243,790 378,818 249,936

The Statements of Cash Flows are to be read in conjunction with the accompanying notes to the financial statements.


17


AN

NU

AL

REPO

RT 2

010

20

Notes to the AccountsAUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS CONTROLLED ENTITIES

NOTES TO THE ACCOUNTS


1. SIGNIFICANT ACCOUNTING POLICIES

a) Reporting entity

b) Basis of preparation

Statement of compliance

Basis of measurement

•

• Available-for-Sale financial assets; and

• Land and buildings.

Functional and presentation currency

Use of estimates and judgements

•

•

•

•

The preparation of a financial report in conformity with AASB Standards requires management to make judgements, estimates and

assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. The

estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable when

making the judgement about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may

differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates

are recognised in the period in which the estimate is revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the

most significant effect on the amount recognised in the financial statements are described in the following notes:

The merger with Savings & Loans Credit Union (S.A.) Limited has been accounted for on a provisional basis using the requirements

applicable to mergers between mutual entities. All the identifiable assets and liabilities of Savings & Loans Credit Union (S.A.) Limited

are required to be initially recognised at their fair values on the date of merger. This involves critical accounting assumptions,

judgements and estimates.

The assets and liabilities of Savings & Loans Credit Union (S.A.) Limited recognised by the Holding Entity as at 1 December 2009 may

change due to adjustments to the provisional amounts to reflect new information obtained about facts and circumstances that existed at

the date of merger.

Note 18 (a) - measurement of the recoverable amounts of cash-generating units

Note 14 - provision for impairment of loans and advances

Australian Central Credit Union Ltd (the “Holding Entity”) is a company domiciled in Australia. The consolidated financial report of the Holding

Entity for the financial year ended 30 June 2010 comprises the Holding Entity and its controlled entities (together referred to as the

“Consolidated Entity”).

The consolidated financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting

Standards ("AASBs") (including Australian Interpretations) adopted by the Australian Accounting Standards Board ("AASB") and the

Corporations Act 2001. The consolidated financial report of the Group and of the Holding Entity comply with Australian equivalents to

International Financial Reporting Standards (AIFRSs) and relevant interpretations issued by the International Accounting Standards Board

(IASB) and adopted by the AASB.

The consolidated financial report has been prepared on the historical cost basis except that the following assets and liabilities are stated at

their fair value in the statement of financial position:

The Holding Entity is a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with the Class Order, amounts in

the financial report and Directors’ Report have been rounded off to the nearest thousand dollars, unless otherwise stated.

The consolidated financial report was authorised for issue by the Directors on 30 August 2010.

Derivative financial instruments;

The financial report has been prepared on a going concern basis.

The financial report is presented in Australian dollars.

Note 43(i) - valuation of financial instruments

Note 44 - business combination

18


AN

NU

AL REPO

RT 2010




1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

b) Basis of preparation (continued)

Changes in accounting policies

Issued standards early adopted

c) Basis of consolidation

(i) Controlled Entities

(ii) Transactions eliminated on consolidation

(iii) Special purpose entities

(iv) Business combinations

As part of integration activities resulting from the merger with Savings & Loans Credit Union (S.A.) Limited effective 1 December 2009, a

review and subsequent modification of some accounting policies was undertaken. Changes indentified included revenue recognition,

classification of Held-to-Maturity investment securities and certain depreciation rates on items of property, plant and equipment. The financial

effect of this policy alignment is not considered material.

Controlled Entities are entities controlled by the Holding Entity. Control exists when the Holding Entity has the power, directly or indirectly, to

govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights

that presently are exercisable are taken into account. The controlled entities are fully consolidated from the date on which control is

transferred to the Holding Entity and they are de-consolidated from the date that control ceases.

Intragroup balances and any unrealised income and expenses arising from intragroup transactions are eliminated in preparing the

consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is

no evidence of impairment.

The Group has established a number of special purpose entities ("SPEs") for the purpose of the issuance of Residential Mortgage Backed

Securities ("RMBS"). The SPEs have been consolidated as the Group is exposed to the majority of the residual risks and rewards of the

SPEs. For the accounting policy on securitisation refer to Note 1(t).

In the financial statements, investments in controlled entities are carried at cost.

The Consolidated Entity has not early adopted any issued standards in the financial year.

The accounting policies set out below have been consistently applied by each entity in the Consolidated Entity.

The Consolidated Entity adopted revised AASB 3 Business Combinations (2008) and the amended AASB 127 Consolidated and Separate

Financial Statements (2008) for business combinations occurring in the financial year starting 1 July 2009. All business combinations that

occurred on or after 1 July 2009 are accounted for by applying the acquisition method. The change in accounting policy was applied

prospectively.

The Consolidated Entity has applied the acquisition method for the business combination that occurred during the period as disclosed in Note

44.

The acquirer, which is the combining entity that obtains control of the other combining entities or businesses, has been identified by the

Consolidated Entity. Control is the power to govern the financial and operating policies of an entity so as to obtain the benefits from its

activities. The acquisition date is the date on which control is transferred to the acquirer.

A contingent liability of the acquiree is assumed in a business combination only if such a liability represents a present obligation and arises

from a past event, and its fair value can be measured reliably.

Transaction costs that the Consolidated Entity incurs in connection with a business combination, such as finder's fees, legal fees, due

diligence fees, and other professional and consulting fees are expensed as incurred.

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d) Cash and cash equivalents

e) Trade and other receivables

f) Loans and advances

•

•

•

•

Provision for impairment

• Specific Provision

All loans are subject to a continuous management review process to assess whether there is any objective evidence that any loan or group of

loans is impaired.

If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the

asset's carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been

incurred). The present value of the estimated future cash flows is discounted at the financial asset's original effective interest rate. If a loan

has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate. The calculation of the

present value of the estimated future cash flows of a collateralised financial asset reflects the cash flows that may result from foreclosure less

costs for obtaining and selling the collateral, whether or not foreclosure is probable.

Loans and advances, that meet significant delinquency and loan size criteria, are individually assessed for impairment to estimate the likely

loss on the loan. Provisions on loans and advances that meet delinquency criteria but are below the set loan size are determined through a

consideration of provisioning applied to individually assessed loans with the same risk characteristics. All bad debts are written off against

the specific provision in the period in which they are classified as not recoverable.

Impairment losses are recognised in profit or loss.

Impairment of loans and advances is recognised when objective evidence is available that a loss event has occurred.

Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less. Bank overdrafts that

are repayable on demand and form an integral part of the Consolidated Entity's cash management are included as a component of cash and

cash equivalents for the purpose of the statements of cash flows.

Loans and advances comprise term and revolving credit facilities provided to members and members' overdrawn savings accounts. Loans

and advances are recognised at amortised cost, being the cost of the loan on initial recognition less principal repayments, accumulated

amortisation using the Effective Interest Rate method and impairment losses. The effective interest rate is the rate that exactly discounts

estimated future cash payments through the expected life of the loan or advance to the carrying amount of the loan or advance. When

estimating the future cash flows, the Holding Entity considers all contractual terms of the loan or advance excluding any future credit losses.

Included in this calculation are all fees paid or received that are integral to the contract.

Loans and advances are reviewed and graded according to the assessed level of credit risk. Classifications adopted are as follows:

Past-due loans - are loans and advances where the borrower has failed to make a repayment when contractually due. Full recovery of

both principal and interest is still expected.

Receivables comprising of non-interest bearing sundry debtors are stated at their cost less impairment losses (see Note 1(g)).

Impaired loans - are loans and advances where the full recovery of outstanding principal and interest is considered doubtful and income

recognition is converted from an accruals to a cash basis. Cash payments received on non-accrual loans are firstly applied to

outstanding interest accrued on the account and then to the remaining principal.

Assets acquired through the enforcement of security - are assets (usually residential property or motor vehicles) acquired in full or

partial settlement of an advance through the enforcement of security arrangements. The recoverable value of such assets forms part of

the net value of loans and advances as part of the estimated future cashflows.

Restructured loans - arise when the borrower is granted concessional terms or conditions due to difficulties in meeting the original

contractual terms, and the revised terms are more favourable than comparable new facilities.

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f) Loans and advances (continued)

• Collective Provision

The quantitative effect is disclosed in Note 14.

• General Reserve for Credit Losses

g) Impairment

(i) Reversals of impairment

Loans and advances that do not meet significant delinquency criteria are not individually assessed but are placed into portfolios of assets with

similar risk profiles and a collective assessment of impairment is performed based on objective evidence from historical experience.

The Australian Prudential Regulatory Authority (''APRA'') requires Authorised Deposit-Taking institutions to maintain a prescribed level of

provision for regulatory purposes. The difference between the impairment provisions calculated under AIFRS and those required by APRA is

represented by a General Reserve for Credit Losses within Equity. Transfers to and from the General Reserve for Credit Losses are made

from retained earnings.

The carrying amount of the Consolidated Entity's assets, other than deferred tax assets (see Note 1(p)) and loans and advances (see Note

1(f)), are reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, the asset's

recoverable amount is estimated (see Note 1(f)) for signs of objective evidence indicating that impairment may have occurred. Where

objective evidence of impairment exists the asset's recoverable amount is determined.

An impairment loss is recognised whenever the carrying amount of an asset (either in its own right or as part of a cash generating unit)

exceeds its recoverable amount. Impairment losses are recognised in profit or loss unless the asset has previously been revalued, in which

case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess recognised in profit or loss.

The recoverable amount is calculated as the present value of estimated future cash flows, discounted at the original effective interest rate

(i.e. the effective interest rate computed at initial recognition of these financial assets). Receivables with a short term duration are not

discounted.

The recoverable amount of other assets is the greater of their fair value less costs to sell and value in use. In assessing the value in use, the

estimated future cash flows are discounted to the present value using a pre-tax discount rate that reflects current market assessments of the

time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash flows, the recoverable

amount is determined for the cash generating unit to which the asset belongs.

An impairment loss in respect of a Held-to-Maturity or receivable carried at amortised cost is reversed if the subsequent increase in the

recoverable amount can be related objectively to an event occurring after the impairment loss was recognised.

An impairment loss in respect of an investment in an Equity instrument classified as Available-for-Sale is not reversed through profit or loss. If

the fair value of a debt instrument classified as Available-for-Sale increases and the increase can be objectively related to an event occurring

after the impairment loss was recognised in profit or loss, the impairment loss shall be reversed, with the reversal recognised in profit or loss.

For goodwill and other intangible assets that have an indefinite life, the recoverable amount is estimated annually.

For the accounting policy on impairment of loans and advances, refer to Note 1(f).

Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to

the cash-generating unit (group of units) and then, to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata

basis.

When a decline in the fair value of an Available-for-Sale financial asset has been recognised in other comprehensive income, and presented

in the fair value reserve in Equity and there is objective evidence that the asset is impaired, the cumulative loss that had been recognised in

other comprehensive income is transferred to profit or loss even though the financial asset has not been derecognised. The amount of the

cumulative loss that is removed from other comprehensive income and recognised in profit or loss is the difference between the acquisition

cost and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss.

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g) Impairment (continued)

(ii) Reversals of impairment (continued)

(iii) Derecognition of financial assets and liabilities

h) Financial Instruments - Non-derivative financial instruments

(i) Available-for-Sale investment securities

(ii) Held-to-Maturity investment securities

The fair value of financial instruments classified as Available-for-Sale is its quoted bid price at the reporting date.

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. When an existing financial

liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially

modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The

difference in the respective carrying amounts is recognised in profit or loss.

An impairment loss in respect of goodwill is not reversed.

Impairment losses, other than in respect of goodwill, are reversed when there is an indication that the impairment loss may no longer exist

and there has been a change in the estimate used to determine the recoverable amount.

Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably

measured are carried at cost. Investments in controlled entities are carried at cost.

Financial instruments held by the Consolidated Entity classified as being Available-for-Sale are non-derivative financial assets and are stated

at fair value, with any resultant gain or loss recognised in other comprehensive income and presented within Equity in the fair value reserve,

except for impairment losses. Where the financial instruments are derecognised, the cumulative gain and loss previously recognised in other

comprehensive income, and presented in the fair value reserve in Equity, is transferred to profit or loss. Where these investments are

interest-bearing, interest calculated using the Effective Interest Rate method is recognised in profit or loss.

Financial instruments classified as Available-for-Sale investment securities are recognised/derecognised by the Consolidated Entity on the

date it commits to purchase/sell the investments.

Financial instruments classified as Held-to-Maturity are non-derivative financial assets that have determinable payments, fixed maturity and

there is an ability and intent by the Holding Entity to hold the financial instrument until maturity. If during the current or previous two reporting

periods the entity has derecognised or reclassified more than an insignificant amount of an asset class within this category then all of the

assets within that class are reclassified as Available-for-Sale. When the financial instrument is derecognised any gain or loss on de-

recognition is recognised directly in profit or loss. Where an asset is reclassified as being Available-for-Sale it is re-measured at fair value and

any difference between its carrying amount and the fair value is recognised in Equity.

Held-to-Maturity investment securities are measured at amortised cost using the effective interest method.

Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash

equivalents, loans and borrowings, and trade and other payables.

An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been

determined, net of depreciation or amortisation, if no impairment loss had been recognised.

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when: a) the

right to receive cash flows from the asset have expired, b) the Consolidated Entity retains the right to receive cash flows from the asset, but

has assumed an obligation to pay them without material delay to a third party; or c) the Consolidated Entity has transferred its rights to

receive cash flows from the asset and either (i) has transferred substantially all the risks and rewards of the asset, or (ii) has neither

transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

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h) Financial Instruments - Non-derivative financial instruments (continued)

(iii) Liabilities

(iv) OtherOther

i) Acquisition of assets

j) Property, plant and equipment

Owned assets

Land and buildings

Property, plant and equipment

Depreciation

With the exception of freehold land, items of property, plant and equipment are depreciated on a straight line basis so as to write off the net

cost of each non-current asset over their expected useful lives. The depreciation rates used for each class of asset in the current and

comparative periods are as follows:

All assets acquired, including property, plant and equipment and intangibles other than goodwill, are initially recorded at their cost of

acquisition at the date of acquisition, being their fair value of the consideration provided plus incidental costs directly attributable to the

acquisition.

If the revaluation results in a net revaluation increment, the net increment is credited directly to an asset revaluation reserve, except that, to

the extent that the increment reverses a decrement previously recognised as an expense in the statement of comprehensive income, in which

case it is recognised as revenue in the statement of comprehensive income. A net revaluation decrement is recognised as an expense in the

statement of comprehensive income, except that, to the extent that a credit balance exists in the asset revaluation reserve, the decrement is

debited directly to the reserve.

Land and buildings are held at their fair value. Independent valuations of land and buildings are performed on a regular basis to ensure the

carrying amount of each asset is stated at its fair value at reporting date.

Plant and equipment of the Consolidated Entity are brought to account at cost, less any accumulated depreciation and impairment losses.

Non-derivative financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial

recognition these financial liabilities are measured at amortised cost using the effective interest rate method.

Where settlement of any part of cash consideration is deferred, the amounts payable are recorded at their present value, discounted at the

rate applicable to the Consolidated Entity if a similar borrowing were obtained from an independent financier under comparable terms and

conditions. The unwinding of the discount is treated as interest expense.

The costs of assets constructed or internally generated by the Consolidated Entity, other than goodwill, include the cost of materials and

direct labour. Directly attributable overheads and other incidental costs are also capitalised to the asset.

Expenditure, including that on internally generated assets other than research and development costs, is only recognised as an asset when

the entity controls future economic benefits as a result of the costs incurred that are probable and can be measured reliably. Costs

attributable to feasibility and alternative approach assessments are expensed as incurred.

The Holding Entity initially recognises debt securities issued and subordinated liabilities on the date that they are originated. All other

financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on the trade date at which the

Holding Entity becomes a party to the contractual provisions of the instrument. The Holding Entity derecognises a financial liability when its

contractual obligations are discharged or cancelled or expire.

Other non-derivative financial instruments are measured at amortised cost using the effective interest method, less any impairment losses.

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j) Property, plant and equipment (continued)

2010 2009


Leasehold improvements 10% to 67% 10% to 25%

Information technology 7.5% to 40% 12.5% to 40%

Office equipment 7.5% to 25% 7.5% to 25%

Fixtures and fittings 7.5% to 25% 7.5% to 25%

Motor vehicles 20% 20%

Land and buildings are not depreciated.

Leased assets

k) Intangible assets

(i) Goodwill

(ii) Acquired Contractual Rights

(iii) Software

(iv) Amortisation

2010 2009

Intangibles

Core Banking System 14% to 40% 14% to 40%

Other (including Acquired Contractual Rights) 25% to 33% 10% to 40%

Leases of plant and equipment under which the Consolidated Entity assumes substantially all the risks and benefits of ownership are

classified as finance leases. Other leases are classified as operating leases and not recognised in the Consolidated Entity's statement of

financial position. The Consolidated Entity is not currently engaged in any finance leases.

As from 1 July 2009, the Consolidated Entity has adopted the revised AASB 3 Business Combinations (2008) and the amended AASB 127

Consolidated and Separate Financial Statements (2008) . The revised AASB 3 and amended AASB 127 have been applied prospectively to

business combinations with an acquisition date on or after 1 July 2009.

The expected useful life and the depreciation method applied to an asset are reassessed at least annually.

Payments made under operating leases are expensed over the term of the lease.

Goodwill is stated at cost less any accumulated impairment. Goodwill is allocated to cash-generating units and is tested annually for

impairment (refer Note 18 a).

The amount relating to acquired contractual rights to future cashflows is measured at cost less accumulated amortisation and accumulated

impairment losses. Acquired Contractual Rights are amortised to profit or loss over the expected useful life of the asset. The amortisation

rates for intangible assets for the current and comparative periods are outlined in the table at k (iv).

Software assets that are not integral to the operation of hardware are recognised as intangible assets with a finite life. Where the expenditure

is of a significant amount and there are related benefits which are expected to be realised over the medium to long term, it is deferred and

amortised on a straight line basis over the period in which the benefits are expected to be realised. The amortisation rates for the current and

comparative periods are outlined in the table at k (iv).

Negative goodwill arising on acquisition is recognised directly in profit or loss.

Items of intangible assets are amortised on a straight line basis so as to write off the net cost of each non-current asset over their expected

useful lives. The amortisation rates used for each class of intangible asset in the current and comparative periods are as follows:

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j) Property, plant and equipment (continued)

2010 2009


Leasehold improvements 10% to 67% 10% to 25%

Information technology 7.5% to 40% 12.5% to 40%

Office equipment 7.5% to 25% 7.5% to 25%

Fixtures and fittings 7.5% to 25% 7.5% to 25%

Motor vehicles 20% 20%

Land and buildings are not depreciated.

Leased assets

k) Intangible assets

(i) Goodwill

(ii) Acquired Contractual Rights

(iii) Software

(iv) Amortisation

2010 2009

Intangibles

Core Banking System 14% to 40% 14% to 40%

Other (including Acquired Contractual Rights) 25% to 33% 10% to 40%

Leases of plant and equipment under which the Consolidated Entity assumes substantially all the risks and benefits of ownership are

classified as finance leases. Other leases are classified as operating leases and not recognised in the Consolidated Entity's statement of

financial position. The Consolidated Entity is not currently engaged in any finance leases.

As from 1 July 2009, the Consolidated Entity has adopted the revised AASB 3 Business Combinations (2008) and the amended AASB 127

Consolidated and Separate Financial Statements (2008) . The revised AASB 3 and amended AASB 127 have been applied prospectively to

business combinations with an acquisition date on or after 1 July 2009.

The expected useful life and the depreciation method applied to an asset are reassessed at least annually.

Payments made under operating leases are expensed over the term of the lease.

Goodwill is stated at cost less any accumulated impairment. Goodwill is allocated to cash-generating units and is tested annually for

impairment (refer Note 18 a).

The amount relating to acquired contractual rights to future cashflows is measured at cost less accumulated amortisation and accumulated

impairment losses. Acquired Contractual Rights are amortised to profit or loss over the expected useful life of the asset. The amortisation

rates for intangible assets for the current and comparative periods are outlined in the table at k (iv).

Software assets that are not integral to the operation of hardware are recognised as intangible assets with a finite life. Where the expenditure

is of a significant amount and there are related benefits which are expected to be realised over the medium to long term, it is deferred and

amortised on a straight line basis over the period in which the benefits are expected to be realised. The amortisation rates for the current and

comparative periods are outlined in the table at k (iv).

Negative goodwill arising on acquisition is recognised directly in profit or loss.

Items of intangible assets are amortised on a straight line basis so as to write off the net cost of each non-current asset over their expected

useful lives. The amortisation rates used for each class of intangible asset in the current and comparative periods are as follows:

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k) Intangible assets (continued)

(v) Brand Name

(vi) Core Deposit Intangible

(vii) Wealth Management including Financial Planning and General Insurance Contractual Relationships

l) Employee entitlements

Wages, salaries and annual leave

Long service leave

Banked hours

Sick leave

Defined contribution plans

All employees, upon satisfying eligibility tests, may participate in an accumulation superannuation scheme. The Holding Entity's contributions

to defined contribution plans are recognised as an expense in profit or loss as incurred. The Holding Entity has no legal obligation to cover

any shortfall in the fund's obligation to provide benefits to employees on retirement.

The provision for employee benefits for wages, salaries and annual leave represents the amount which the Consolidated Entity has a present

obligation to pay resulting from employees' services up to balance date. The provision has been calculated at undiscounted amounts based

on remuneration wage and salary rates that the Consolidated Entity expects to pay as at reporting date including related on costs, such as

workers compensation insurance and payroll tax.

The provision for employee benefits for long service leave represents the present value of the estimated future cash outflows to be made

resulting from employees' service provided to reporting date. The provision is calculated using expected future increases in wage and salary

rates including related on-costs and expected settlement dates based on turnover history and is discounted using the rates attaching to

Commonwealth Government bonds at the reporting date which most closely match the terms of maturity of the related liabilities.

The provision for banked hours represents the amount, measured at current rates, that the Consolidated Entity expects to pay as at reporting

date. Banked hours, are a form of flexible working arrangements for award staff that provides many of the advantages of traditional flexi-time

and rostered days off with the added advantage of being able to be tailored to both the individuals' and organisational requirements. Staff are

able to draw down on their entitlements during the year to meet their personal needs whilst ensuring operational requirements are satisfied or

in certain circumstances convert provisions to normal remuneration payments during the year.

Sick leave entitlements of employees of the Consolidated Entity are non-vesting. No provision has been raised for unused entitlements to

non-vesting sick leave as it is not probable that sick leave to be taken in the future will exceed entitlements to be accrued in the future.

Brand intangible assets were recognised on merger. Brand intangible assets represent the value attributed to the brand names associated

with businesses acquired through merger. The useful life of the brands recognised is estimated to be finite as the merged entity is planning

to implement a new brand and any inherent value in the Brand at 30 June 2010 is likely to be immaterial due to the short timeframe that the

brand may be used post this date. The brand acquired upon the merger of Savings & Loans Credit Union (S.A.) Limited was fully amortised

as at 30 June 2010 due to the pending implementation of a new brand by the new combined entity.

The core deposit intangible is amortised over a period of nine years and is stated at cost less accumulated amortisation and impairment.

The amortisation period is based on the underlying mortality rates of the deposit portfolio. Core deposit intangible is assessed for any

indication of impairment at each reporting date.

A core deposit intangible was recognised following the merger with Savings & Loans Credit Union (S.A.) Limited and represents the value of

having a deposit base from customer and business transaction accounts, savings accounts, term deposits and other providing a more

favourable source of funding than alternative sources of funding such as in wholesale and securitisation markets.

Assets reflecting the value of the financial planning and general insurance relationships were recognised following the merger with Savings &

Loans Credit Union (S.A.) Limited and represent a value attributable to future revenue generation from these relationships. The financial

planning contracts are amortised over three years and the general insurance contracts are amortised over four years on a straight line basis.

Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

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m) Interest-bearing borrowings

n) Trade and other payables

o) Revenue recognition

(i) Loan interest

(ii) Revenue from services rendered

(iii) Dividends

(iv) Commissions

(v) Other non-interest income

p) Income tax

Interest-bearing borrowings (inclusive of member deposits) are recognised initially at fair value less attributable transaction costs.

Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption

value being recognised in profit or loss over the period of the borrowings on an effective interest rate basis.

Interest on loans and advances is recognised on an amortised cost basis, being the cost of the loan on initial recognition less principal

repayments, accumulated amortisation using the Effective Interest Rate method and impairment losses. The effective interest rate is the rate

that exactly discounts estimated future cash payments through the expected life of the loan or advance to the net carrying amount of the loan

or advance. When estimating the future cash flows the Holding Entity considers all contractual terms of the loan or advance excluding any

future credit losses. Included in this calculation are all fees and points paid or received that are integral to the contract (refer Note 1(f)). All

interest is recognised on an accruals basis.

Trade and other payables are stated at their amortised cost. Trade payables are non-interest bearing and are normally settled on thirty day

terms.

Dividends from other investments are recognised when the right to receive the dividend has been established.

Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion of the transaction at the reporting date.

No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or the costs incurred or to be

incurred cannot be measured reliably.

Revenue is recognised on an accrual basis upon the provision of services from acting in the capacity of an agent rather than as the principal

in a transaction.

Mutual Aid income is recognised over the average life of the associated loans.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting

date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for the financial reporting

purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation

or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the reporting date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can

be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be utilised.

Income tax expense comprises current and deferred tax. Current and deferred tax are recognised in profit or loss except to the extent that it

relates to a business combination, or items recognised directly in equity or in other comprehensive income.

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p) Income tax (continued)

Tax consolidation

q) Deferred borrowing costs

r) Financial instruments - Derivative Financial instruments

(i) Hedging

Cash flow hedges

Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability, or a highly

probable forecast transaction, the effective part of any gain or loss on the derivative financial instrument is recognised directly in other

comprehensive income. When the forecast transaction subsequently results in the recognition of a non-financial asset or non-financial

liability, or the forecast transaction for a non-financial asset or non-financial liability the associated cumulative gain or loss is removed from

other comprehensive income and included in the initial cost or other carrying amount of the non-financial asset or liability. If a hedge of a

forecast transaction subsequently results in the recognition of a financial asset or financial liability, then the associated gains and losses that

were recognised directly in other comprehensive income are reclassified into profit in the same period or periods during which the asset

acquired or liability assumed affects the statement of comprehensive income (i.e. when the interest income is recognised).

Effectiveness tests are performed on all derivative financial instruments to determine if they are still providing the protection originally

intended when entered into by the Consolidated Entity. Where a derivative financial instrument that was previously considered to be effective

no longer satisfies the effectiveness test criteria any gain or loss on the instrument previously recognised in other comprehensive income is

reversed through profit or loss with all subsequent gains or losses recognised through profit or loss.

When a derivative financial instrument is not held for trading, or is not designated in a qualifying hedge relationship, all changes to its fair

value are recognised directly in profit or loss.

On entering into a hedging relationship, the Consolidated Entity formally designates and documents the hedge relationship and the risk

management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the

hedged item or transaction, the nature of risk being hedged and how the entity will assess the hedging instrument's effectiveness in offsetting

the exposure to changes in the hedged item's fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly

effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have

been highly effective throughout the financial reporting period as designated.

The Holding Entity and its Australian wholly-owned controlled entities formed a tax-consolidated group with effect from 1 July 2003 and are

therefore taxed as a single entity from that date. The head entity within the consolidated group is Australian Central Credit Union Ltd.

Current tax expense/income, deferred tax liabilities and deferred tax assets arising from temporary differences of the members of the tax-

consolidated group are recognised in the separate financial statements of the members of the tax-consolidated group using the separate

taxpayer within group approach by reference to the carrying amounts in the separate financial statements of each entity and the tax values

applying under tax consolidation.

Deferred borrowing costs include costs associated with the establishment of a number of separate securitisation facilities. These costs are

amortised over the expected life of the facilities.

The Consolidated Entity uses interest rate swaps to hedge its exposure to interest rate risks arising from operational and financing activities.

In accordance with its treasury policy, the Consolidated Entity does not hold or issue derivative financial instruments for trading purposes.

However derivatives that do not qualify for hedge accounting are accounted for as fair value through profit and loss.

Derivative financial instruments are recognised initially at cost. Subsequent to initial recognition, derivative financial instruments are stated at

fair value. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss. However, where derivatives qualify for

hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged (refer Note 1(r)(i)).

Further details of derivative financial instruments are disclosed in Note 43.

The fair value of interest rate swaps is the estimated amount that the Consolidated Entity would receive or pay to terminate the swap at the

balance date, taking into account current interest rates and the current creditworthiness of the swap counterparties.

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s) Goods and services tax

t) Securitisation

u) Presentation of financial statements

v) New Standards and interpretations not yet adopted

•

•

•

w) Comparatives

The Holding Entity through its loan securitisation program, securitises mortgage loans to SPEs, which in turn issue rated securities to

investors. Fees are received for various services provided to the SPEs on an arms-length basis, including servicing fees and management

fees and are reported in profit or loss. The Holding Entity also provides arms-length interest rate swaps and loan facilities to the SPEs.

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST

incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of

acquisition of the asset or as part of an item of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is

included as a current asset or liability in the statement of financial position.

Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and

financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

Where appropriate, amounts shown for prior periods have been reclassified to facilitate comparison.

AASB 9 Financial Instruments includes requirements for the classification and measurement of financial assets resulting from the first

part of Phase 1 of the project to replace AASB 139 Financial Instruments: Recognition and Measurement . AASB 9 will become

mandatory for the Holding Entity's 30 June 2014 financial statements. Retrospective application is generally required, although there are

exceptions, particularly if the entity adopts the standard for the year ended 30 June 2012 or earlier. The Holding Entity has not yet

determined the potential effect of the standard.

AASB 124 Related Party Disclosures (revised December 2009) simplifies and clarifies the intended meaning of the definition of a related

party and includes an explicit requirement to disclose commitments involving related parties. The amendments, which will become

mandatory for the Holding Entity's 30 June 2012 financial statements, are not expected to have any impact on the financial statements.

AASB 2009-5 Further amendments to Australian Accounting Standards arising from the Annual Improvements Process affect various

AASBs resulting in minor changes for presentation, disclosure, recognition and measurement purposes. The amendments, which

become mandatory for the Holding Entity's 30 June 2011 financial statements, are not expected to have a significant impact on the

financial statements.

The following standards, amendments to standards and interpretations have been identified as those which may impact the Consolidated

Entity in the period of initial application. They are available for early adoption at 30 June 2010, but have not been applied in preparing this

financial report:

Costs incurred in the establishment of a securitisation issue are amortised over the expected life of the issue.

Details of the transfer of financial assets to third parties and/or special purpose entities is disclosed in Note 37.

Comparative information has been re-presented so that it also is in conformity with the revised standard.

The Holding Entity applies revised AASB 101 Presentation of Financial Statements (2007), which became effective as of 1 January 2009. As

a result, the Holding Entity presents in the consolidated statement of changes in equity all owner changes in equity, whereas all non-owner

changes in equity are presented in the consolidated statement of comprehensive income.

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2. INTEREST REVENUE AND INTEREST EXPENSE

Average Average Average Interest Average InterestBalance Interest Rate Balance Interest Rate

$'000 $'000 % $'000 $'000 %

Interest Income 2010

Held-to-Maturity investment securities 160,767 8,591 5.34% 163,033 8,783 5.39%Available-for-Sale investment securities 429,209 22,935 5.34% 432,562 23,302 5.39%Loans and advances 3,663,815 240,202 6.56% 3,663,815 267,061 7.29%

4,253,791 271,728 6.39% 4,259,410 299,146 7.02%

Interest Expense 2010Payables due to other financial institutions 41,667 1,971 4.73% 41,667 1,971 4.73%Deposits 2,794,952 106,920 3.83% 2,794,764 106,917 3.83%Borrowings 1,204,901 43,577 3.62% 784,709 45,231 5.76%Interest Rate Hedges - 16,927 - - 22,898 - Notes Payable - - - 407,512 18,415 4.62%Subordinated debt 14,375 926 6.44% 14,375 926 6.44%

4,055,895 170,321 4.20% 4,043,027 196,358 4.86%Net Interest Income 2010 197,896 101,407 2.19% 216,383 102,788 2.17%

Interest Income 2009Held-to-Maturity investment securities - - - - - - Available-for-Sale investment securities 345,479 18,873 5.46% 348,688 19,257 5.52%Loans and advances 2,261,756 151,330 6.69% 2,261,756 170,964 7.56%

2,607,235 170,203 6.53% 2,610,444 190,221 7.29%

Interest Expense 2009Payables due to other financial institutions 129,167 8,625 6.68% 129,167 8,625 6.68%Deposits 1,572,336 74,601 4.74% 1,572,336 74,601 4.74%Borrowings 759,655 29,309 3.86% 491,458 30,416 6.19%Interest Rate Hedges - 4,446 - - 7,888 - Notes Payable - - - 268,197 14,589 5.44%Subordinated debt 20,417 1,535 7.52% 20,417 1,535 7.52%

2,481,575 118,516 4.78% 2,481,575 137,655 5.55%Net Interest Income 2009 125,660 51,687 1.75% 128,869 52,566 1.74%


The following tables show the average balance of each of the major categories of interest-bearing assets and liabilities, the amount ofinterest revenue or expense and the average interest rate. Most averages are monthly averages.

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

3. NET INTEREST INCOME

Interest income

Cash and short term funds 5,969 3,519 6,528 3,904

Investment securities 25,557 15,354 25,557 15,354

Loans and advances 240,202 151,330 267,061 170,963 Total interest income 271,728 170,203 299,146 190,221

Interest expense

Banks and customers 106,920 74,601 125,332 89,190

Debt securities issue 926 1,535 926 1,535

22,898 7,888 22,898 7,888

(5,971) (3,442) - -

Other borrowed funds 44,973 37,667 46,597 38,763

Other 575 267 605 279 Total interest expense 170,321 118,516 196,358 137,655

4. NON-INTEREST INCOME

Fee and commission income

Loan fee income 2,210 1,081 2,210 1,081

Transactional fee income 10,966 10,584 10,966 10,584

Insurance fees and commissions 9,656 6,181 9,656 6,181

Wealth management fees and commissions 5,780 3,489 8,845 6,286

Other commissions 4,910 2,103 4,910 2,103

Superannuation income 228 - 228 -

Other fees 12,868 8,194 11,650 7,183 Total fee and commission Income 46,618 31,632 48,465 33,418

Bad debts recovered 849 852 849 852

Dividends received 1,007 2,024 1,007 2,024

Profit on sale of property, plant and equipment 25 33 25 33

Property rental income 55 - 55 -

4,633 - 4,633 -

Mutual Aid Income 3,637 - 3,637 - Total non-interest income 56,824 34,541 58,671 36,327

5. IMPAIRMENT LOSSES ON LOANS AND ADVANCES

Bad debts written off to profit or loss 2,069 1,421 2,069 1,421

Increase/(decrease) in provision for impairment 421 (155) 421 (155)

Total impairment on loans and advances 2,490 1,266 2,490 1,266

6. OTHER EXPENSES

Staff costs (Note 7) 52,783 33,507 53,878 34,908

Provision for impairment on other investments - 329 - 329

Administrative expenses 13,009 9,480 13,491 9,878

Merger expenses (Note 44) 5,003 - 5,003 -

Depreciation:

Property, plant and equipment 7,470 4,141 7,636 4,304

Amortisation:

Computer software 102 86 138 120

Intangible Assets - computer software 612 1,364 612 1,364

- acquired contractual rights 8,233 280 8,233 280

Marketing costs 6,017 4,100 6,017 4,119

Operating lease:

Rentals 9,226 6,239 9,412 6,417

Other occupancy expenses 3,209 1,895 3,294 1,969

Distribution channel costs 11,177 8,072 11,177 8,072

Information technology costs 7,575 6,094 7,575 6,095

Net loss on disposal of property, plant and equipment 297 3 297 3 124,713 75,590 126,763 77,858

Net change in fair value of financial assets/liabilities at fair value

Consolidated Credit Union

through profit or loss

Net change in fair value of cash flow hedges transferred from equity

Net change in fair value of financial assets/liabilities at fair value

through profit or loss

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

7. STAFF COSTS

Wages and salaries 46,004 28,518 46,962 29,715

Employee on costs 2,704 1,704 2,758 1,766

Superannuation contributions 4,150 2,512 4,232 2,603

(Decrease)/Increase in liability for annual leave (250) 151 (249) 160

Increase in liability for long service leave 179 615 179 655

(Decrease)/Increase in liability for banked leave (4) 7 (4) 9 52,783 33,507 53,878 34,908

8. INCOME TAX EXPENSE

(a) Income tax expense

Current tax 9,236 3,408 9,590 3,520

Deferred tax (449) (1,261) (450) (1,254)

Under/(over) provided in prior years 83 (35) 83 (35)8,870 2,112 9,223 2,231

Deferred income tax/(revenue) expense

included in income tax expense comprises:

Prior year adjustment - (390) - (390)

Decrease/(increase) in deferred tax assets (Note 17) 985 (396) 984 699

Decrease in deferred tax liabilities (Note 28) (1,434) (475) (1,434) (1,563)(449) (1,261) (450) (1,254)

(b) Numerical reconciliation of income

tax expense to prima facie tax

payable

Profit before tax 31,028 9,372 32,206 9,769

Tax at the tax rate of 30% (2009: 30%) 9,309 2,812 9,662 2,930

Non taxable dividends (302) (607) (302) (607)

Sundry items (220) (58) (220) (57)

8,787 2,147 9,140 2,266

Under/(over) provision in prior years 83 (35) 83 (35)

Income tax expense 8,870 2,112 9,223 2,231

(c) Amounts recognised directly in Equity

11,952 (9,391) 11,949 (9,391)

28)

11,952 (9,391) 11,949 (9,391)

(d) Income tax recognised in other comprehensive income

Before Tax

Cash flow hedges 13,052 (31,238) 13,052 (31,238)

Prior period adjustment - (557) - (557)

Revaluation of property, plant and equipment 175 - 175 - 13,227 (31,795) 13,227 (31,795)

Tax (expense) / benefit

Cash flow hedges 3,915 (9,371) 3,915 (9,371)



Net of tax

Cash flow hedges 9,137 (21,867) 9,137 (21,867)




Tax effect of amounts which are not deductible/(taxable) in

calculating taxable income:

Aggregate deferred tax arising in the reporting period and not recognised

in net profit or loss but directly debited or credited to Equity:

Net deferred tax debited/(credited) directly to Equity (Notes 17 and

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9. FRANKING ACCOUNT

2010 2009 2010 2009

$'000 $'000 $'000 $'000

10. CASH AND CASH EQUIVALENTS

Cash on hand and at bank 12,706 9,322 19,556 11,496

Deposits at call 9,650 3 9,650 3

Deposits with Cuscal Ltd 15,776 2,187 15,776 2,187

38,132 11,512 44,982 13,686

11. TRADE AND OTHER RECEIVABLES

Other receivables 18,021 9,309 18,284 9,540

Allowance for impairment (351) (352) (351) (352)

17,670 8,957 17,933 9,188

Interest receivable 10,453 1,766 10,475 1,794

Amounts receivable from controlled entities 1,737 1,831 - -

29,860 12,554 28,408 10,982

Maturity analysis

Not longer than 3 months 28,048 10,596 28,201 10,855

No maturity specified 1,812 1,958 207 127 29,860 12,554 28,408 10,982

12. CURRENT TAX ASSETS

2010 2009 2010 2009

$'000 $'000 $'000 $'000

13. LOANS AND ADVANCES

Credit card outstanding 56,458 - 56,458 -

Revolving credit facilities 485,757 149,047 485,757 149,047

Term loans 4,447,671 2,033,283 4,447,671 2,033,283 Gross Loans and advances 4,989,886 2,182,330 4,989,886 2,182,330

Provision for impairment (Note 14) (4,119) (1,079) (4,119) (1,079)

Loan origination and processing costs 932 1,616 932 1,616

Unearned loan fees (6,776) (3,646) (6,776) (3,646)Net loans and advances 4,979,923 2,179,221 4,979,923 2,179,221

(a) Maturity analysis:

Scheduled for repayment:

Overdrafts and line of credit facilities 542,215 149,044 542,215 149,044


Longer than 3 and not longer than 12 months 6,426 4,542 6,426 4,542

Longer than 1 and not longer than 5 years 337,249 88,329 337,249 88,329

Longer than 5 years 4,099,069 1,938,548 4,099,069 1,938,548 4,989,886 2,182,330 4,989,886 2,182,330

The ability to use these franking credits is restricted by the Constitution of the Holding Entity which does not currently permit dividend

payments. The balance of the franking account is adjusted for franking credits that the Holding Entity is currently prevented from distributing

in the subsequent financial year.


The current tax asset for the Holding Entity of $Nil (2009: $2.923 million) and for the Consolidated Entity of $Nil (2009:$2.508 million)

represents the amount of income taxes recoverable in respect of the current and prior financial periods.


The Consolidated Entity has generated franking credits through paying income tax with a total of $57,608,233 (@ 30%) (2009: $52,685,323

(@ 30%)) worth of franking credits having been accumulated. This includes credits which will arise from the payment of income tax provided

for in the financial statements.

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

13. LOANS AND ADVANCES (continued)

(b) Loans by security

Secured by mortgage 4,376,798 1,961,146 4,376,798 1,961,146

Secured other 465,116 166,011 465,116 166,011

Unsecured 147,972 55,173 147,972 55,173 4,989,886 2,182,330 4,989,886 2,182,330

(c) Loans by purpose

Residential loans 3,801,492 1,763,381 3,801,492 1,763,381

Personal loans 590,257 220,984 590,257 220,984

Residential investment loans 558,663 197,659 558,663 197,659

Commercial 39,474 306 39,474 306 4,989,886 2,182,330 4,989,886 2,182,330

(d) Aggregate amounts receivable from related parties

Key management personnel 3,973 2,770 3,973 2,770 3,973 2,770 3,973 2,770

14. IMPAIRMENT OF LOANS AND ADVANCES

(a) Provision for impairment

Total provisions:

Balance at beginning of year 1,079 1,234 1,079 1,234

Additions upon merger 2,619 - 2,619 -

Increase/(decrease) in provision for loan impairment 421 (155) 421 (155) Balance at end of year 4,119 1,079 4,119 1,079

Specific provision for impairment:

Balance at beginning of year 328 426 328 426

Additions upon merger 395 - 395 -

Increase/(decrease) in provision 127 (98) 127 (98) Balance at end of year 850 328 850 328

Collective provision for impairment:

Balance at beginning of year 751 808 751 808


Increase/(decrease) in provision 294 (57) 294 (57) Balance at end of year 3,269 751 3,269 751

Charge to profit or loss comprises:

Provision for loan impairment (Note 5) 421 (155) 421 (155)

Loans written off during the year as uncollectible 2,069 1,421 2,069 1,421 Total charge for the year 2,490 1,266 2,490 1,226

(b) Impaired loans

Gross impaired loans 3,766 454 3,766 454

Specific provision for impairment (2,529) (276) (2,529) (276) Net impaired loans 1,237 178 1,237 178

(c) Restructured loans 6,957 1,258 6,957 1,258

(d) Assets acquired through the enforcement of security

Real estate assets acquired through enforcement of security:

Value of real estate assets acquired 610 - 610 -

Other assets acquired through enforcement of security: Value of other assets acquired 50 18 50 18

660 18 660 18


Total assets acquired through the enforcement of security

Details of loans to Directors and key management personnel are set out

in Note 42 (d).

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

15. INVESTMENTS

a) Available-for-Sale investment securities

(i) At the beginning of year 50,000 66,000 50,000 69,750 Additions/Disposals (sale and redemption) 415,536 (16,000) 420,786 (19,750) Additions upon merger 350,399 - 350,399 - Fair value adjustments 1,433 - 1,442 - At end of year 817,368 50,000 822,627 50,000

(ii) Classification:

Interest-bearing deposits 577,368 50,000 582,627 50,000 Negotiable certificates of deposit 240,000 - 240,000 -

817,368 50,000 822,627 50,000

b) Held-to-Maturity investment securities

(i) At the beginning of year 288,500 230,000 292,500 230,000

Additions/(Maturities) (252,650) 58,500 (256,650) 62,500 At end of year 35,850 288,500 35,850 292,500

(ii) Classification:

Interest-bearing deposits 15,850 168,500 15,850 172,500

Negotiable certificates of deposit 20,000 120,000 20,000 120,000 35,850 288,500 35,850 292,500

Maturity of investments:


Longer than 3 and not longer than 12 months 20,000 105,500 20,000 106,250 35,850 288,500 35,850 292,500

c) Other investments

Shares in unlisted entities (at cost) 19,082 5,733 5,883 5,733

Allowance for impairment (30) (30) (30) (30)

19,052 5,703 5,853 5,703


Other investments 500 - 500 - 26,104 5,703 12,905 5,703

Shares in controlled entities (Note 39) 5,148 4,988 - - 31,252 10,691 12,905 5,703

Maturity of investments:

No fixed maturity 31,252 10,691 12,905 5,703 31,252 10,691 12,905 5,703

Total Investments 884,470 349,191 871,382 348,203

16. PROPERTY, PLANT AND EQUIPMENT

Land and buildings - at fair value - - - -


Fair value adjustments 175 - 175 - 13,325 - 13,325 -

Leasehold improvements - at cost 15,351 15,520 15,358 15,527


Accumulated depreciation (10,540) (7,739) (10,545) (7,742)10,699 7,781 10,701 7,785


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2010 2009 2010 2009

$'000 $'000 $'000 $'000

16. PROPERTY, PLANT AND EQUIPMENT (continued)

Information Technology - at cost 19,007 17,887 19,247 18,128



Plant and equipment - at cost 7,699 8,064 8,440 8,805



Computer software - at cost 1,712 1,434 1,887 1,610

Accumulated depreciation (1,348) (1,245) (1,494) (1,357)364 189 393 253

Total property, plant and equipment - at cost or fair value 43,769 42,905 44,932 44,070


Total accumulated depreciation (32,656) (27,163) (33,650) (27,964)

Fair value adjustments 175 - 175 - 36,336 15,742 36,505 16,106

Reconciliations

Buildings


Fair value adjustments 175 - 175 - Carrying amount at end of year 13,325 - 13,325 -

Leasehold improvements

Carrying amount at beginning of year 7,781 8,049 7,785 8,054

Additions 60 1,625 60 1,625


Work in progress 306 - 306 -

Disposals (60) - (60) -

Depreciation (3,276) (1,893) (3,278) (1,894) Carrying amount at end of year 10,699 7,781 10,701 7,785

Information Technology


Additions 1,338 2,239 1,338 2,239


Work in progress 660 453 660 453

Disposals (48) (3) (48) (3)

Depreciation (3,250) (1,794) (3,269) (1,813) Carrying amount at end of year 7,872 5,716 7,888 5,751

Plant and equipment


Additions 505 577 505 577



Disposals (306) (20) (306) (20)

Depreciation (944) (454) (1,083) (597) Carrying amount at end of year 4,076 2,056 4,198 2,317


Reconciliations of the carrying amounts for each class of property, plant

and equipment are set out below:

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

16. PROPERTY, PLANT AND EQUIPMENT (continued)

Computer software

Carrying amount at beginning of year 189 156 253 254

Additions 277 119 277 119

Amortisation (102) (86) (137) (120) Carrying amount at end of year 364 189 393 253


2010 2009 2010 2009

$'000 $'000 $'000 $'000

17. DEFERRED TAX ASSETS

The balance comprises temporary

differences attributable to:

Amounts recognised in profit or loss

Loans and advances impairment 1,236 324 1,236 324

Accrued superannuation 85 14 85 14

Unearned income on term loans 2,033 1,093 2,033 1,093

Unearned fee income 2,206 277 2,206 277

Depreciation 1,695 797 1,698 797

Provisions 3,872 1,847 3,894 1,870

Financial liabilities at fair value through profit or loss 2,434 1,088 - -

Intangible assets 1,010 - 1,010 -

Other items 376 - 376 -

14,947 5,440 12,538 4,375

Amounts recognised directly in Equity

Cash flow hedges 6,787 6,470 6,787 6,470 Net deferred tax assets 21,734 11,910 19,325 10,845

Movements:

Opening Balance 11,910 5,064 10,845 5,094


Credited/(charged) to the profit or loss (Note 8) 985 396 984 (699)

(Charged)/credited to Equity (3,811) 6,450 (5,154) 6,450 Closing balance 21,734 11,910 19,325 10,845

9,384 9,866 9,400 9,872

Deferred tax assets to be recovered within 12 months 12,350 2,044 9,925 973 21,734 11,910 19,325 10,845

18. INTANGIBLE ASSETS

Goodwill - at cost 202 202 9,174 9,174

Accumulated impairment (60) (60) (697) (697)142 142 8,477 8,477

Computer software - at cost 17,295 17,033 17,295 17,033

Accumulated amortisation (15,711) (15,099) (15,711) (15,098)1,584 1,934 1,584 1,935

Core deposit intangible - at fair value 6,884 - 6,884 -

Accumulated amortisation (667) - (667) - 6,217 - 6,217 -

The Holding Entity's properties were independently valued as at 31 May 2010 by Ms T.A. Gornall, AAPI, Certified Practicing Valuer

B.Bus.Prop (Hons) of Colliers Jardine (S.A.) Pty Ltd in accordance with the holding entities policy of obtaining annual independent valuations.

These independent valuations were performed on the basis of the fair value of the properties in their existing use.

Deferred tax assets to be recovered after more than 12 months

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

18. INTANGIBLE ASSETS (continued)

Brand names - at fair value 5,215 - 5,215 -

Accumulated amortisation (5,215) - (5,215) - - - - -

Acquired contractual rights - at cost 1,366 1,366 1,366 1,366

- additions upon merger 7,811 - 7,811 -

Accumulated amortisation (2,631) (280) (2,631) (280)6,546 1,086 6,546 1,086

Total intangible assets - at cost or fair value 30,962 18,601 39,934 27,573

Total additions upon merger 7,811 - 7,811 -

Total accumulated impairment and amortisation (24,284) (15,438) (24,921) (16,075)14,489 3,163 22,824 11,498

Reconciliations

Goodwill

Carrying amount at beginning of year 142 142 8,477 8,474

Additions goodwill on acquisition - - - 3

Impairment charge - - - - Carrying amount at end of year 142 142 8,477 8,477

Computer software


Additions less opening work in progress (56) 1,377 (56) 1,377


Amortisation (612) (1,364) (612) (1,364) Carrying amount at end of year 1,584 1,935 1,584 1,935

Core deposit intangible

Carrying amount at beginning of year - - - -


Amortisation (667) - (667) - Carrying amount at end of year 6,217 - 6,217 -

Brand Name


Amortisation (5,215) - (5,215) - Carrying amount at end of year - - - -

Acquired contractual rights


Additions - - - -


Prior year adjustment to additions - (15) - (15)

Amortisation (2,351) (280) (2,351) (280) Carrying amount at end of year 6,546 1,086 6,546 1,086

(a) Impairment tests for goodwill

A segment level summary of the goodwill allocation is presented below:

2010 2009

$'000 $'000

Advice and Distribution 8,477 8,477 8,477 8,477

Credit Union

Goodwill is allocated to the Consolidated Entity's cash generating units (CGUs) identified according to business segment and region of

operation.

Consolidated

Reconciliations of the carrying amounts for each class of intangible

assets are set out below:

Consolidated

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18. INTANGIBLE ASSETS (continued)

(a) Impairment tests for goodwill (continued)

(b) Acquired contractual rights

2010 2009 2010 2009

$'000 $'000 $'000 $'000

19. OTHER FINANCIAL ASSETS

Interest rate swaps used for hedging 107 - 107 - Financial assets at fair value through profit or loss 8,113 3,626 - -

8,220 3,626 107 -

20. OTHER ASSETS

Deferred borrowing costs 2,893 1,225 2,893 1,225

Accumulated amortisation (980) (565) (980) (565)

Prepayments 649 955 701 994 2,562 1,615 2,614 1,654

21. PAYABLES DUE TO OTHER FINANCIAL

INSTITUTIONS

Overdraft (at call) - 722 - - - 722 - -

22. DEPOSITS

Members' deposits 3,934,361 1,635,998 3,934,039 1,635,998

689 334 689 334 3,935,050 1,636,332 3,934,728 1,636,332

(a) Maturity analysis:

At call 1,813,489 898,287 1,813,167 898,287

Not longer than 3 months 1,244,892 482,765 1,244,892 482,765

Longer than 3 and not longer than 12 months 803,832 245,266 803,832 245,266

Longer than 1 and not longer than 5 years 72,775 10,014 72,775 10,014

Longer than 5 years 62 - 62 - 3,935,050 1,636,332 3,934,728 1,636,332

Withdrawable shares are included as part of at call deposits.

The recoverable amount has been calculated in accordance with Note 1 (g) and no impairment has been identified.

Acquired contractual rights includes the value of financial planning and general insurance relationships recognised following the merger with

Savings & Loans Credit Union (S.A.) Limited and represents a value attributable to future revenue generation from these relationships.

• Management has undertaken sensitivity analysis and believes that no reasonably possible change in any of the above key assumptions

would cause the carrying value of the CGU’s to exceed their recoverable amount.

• Cash flows were projected using the budgeted operating results for the next financial year as a base level, with cash flows extrapolated over

a further three years using a revenue growth rate of 1.8% (based on the budgeted revenue growth rate) and an overhead growth rate of 3%

(based on the budgeted average CPI increase) and a final terminal value calculation with no further growth rate applied.

Consolidated

The overdraft facility is secured by an equitable mortgage over the

assets of the Holding Entity.

The recoverable amount of a CGU is determined on either a fair value less costs to sell or a "Value in Use" methodology. The net present

value (NPV) of the relevant CGU's anticipated cashflows is used as a basis for determining whether any impairment exists.

Withdrawable shares (issued and paid up shares at $2.00 per share)

Credit Union

On 30 June 2008 the Holding Entity purchased the contractual rights attached to a loan portfolio assets of the Royal Automobile Club of WA's

(RACWA) Mortgage Find business. The purchase price of $1.350 million plus costs incidental to the acquisition have been disclosed as

"Intangible Assets".

Key assumptions used in value in use calculations:

• A discount rate of 15.652% was applied in determining the recoverable amounts for the CGU’s. These discount rates were estimated based

on the weighted average cost of debt and capital allocated by the Consolidated Entity to these CGU’s, reflecting the market assessment of

any risks specific to a wealth management business.

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

23. OTHER FINANCIAL LIABILITIES

Interest rate swaps used for hedging 22,622 21,568 22,622 21,568 Financial liabilities at fair value through profit or loss - 1,484 - -

22,622 23,052 22,622 21,568

24. TRADE AND OTHER PAYABLES

Accounts payable 56,641 11,648 60,361 17,045

Loan from SPE's 363,230 236,549 - -

Accrued interest payable 32,823 12,751 32,537 12,323 452,694 260,948 92,898 29,368

25. BORROWINGS

The Consolidated Entity has access to the following funding facilities:

Wholesale funding facilities

National Australia Bank Ltd 250,000 300,000 250,000 300,000

Westpac Banking Corporation Ltd 640,000 - 640,000 -

Waratah Finance Pty Ltd 400,000 430,000 400,000 430,000

Credit Union Services Corporation (Australia) Ltd 50,000 50,000 50,000 50,000

Other 2,276 2,848 2,276 2,848 1,342,276 782,848 1,342,276 782,848

Wholesale funding facilities utilised





Other 2,276 2,848 2,276 2,848 1,222,965 498,130 1,222,965 498,130

Wholesale funding facilities unutilised


Westpac Banking Corporation Ltd - - - -


Credit Union Services Corporation (Australia) Ltd - - - -

Other - - - - 119,311 284,718 119,311 284,718

Wholesale funding facilities maturity analysis

Longer than 3 and not longer than 12 months 1,340,000 780,000 1,340,000 780,000

Longer than 1 and not longer than 5 years 2,276 2,848 2,276 2,848 1,342,276 782,848 1,342,276 782,848

2010 2009 2010 2009

$'000 $'000 $'000 $'000

26. NOTES PAYABLE

SPE Noteholders - - 350,030 236,549

On 28 July 2009 the Holding Entity established a new securitisation facility (Light Trust No. 2) and issued $263.000 million term Residential

Mortgage Backed Securities "RMBS". Refer Note 45 "Events Subsequent to Reporting Date" in the Annual Report for the year ended 30 June

2009.

Consolidated

Credit Union

Credit Union

Wholesale funding (National Australia Bank Ltd, Westpac Banking Corporation Ltd and Waratah Finance Pty Ltd) represents amounts drawn

by the Consolidated Entity, at balance date, from three separate warehouse facilities whereby the equitable ownership of qualifying mortgage

receivables are sold whilst their legal ownership is retained. As the majority of the benefits associated with the sold receivables remain with

the Holding Entity, the transactions have been accounted for as a borrowing facility in these financial statements.

The borrowings from Credit Union Services Corporation (Australia) Ltd include $50.000 million (2009: $50.000 million) under ongoing facilities

which are reviewed annually and secured by fixed and floating charge over the assets and undertakings of the Holding Entity.

Consolidated

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

27. INCOME TAX PAYABLE

Income Tax payable 4,926 - 5,266 -

28. DEFERRED TAX LIABILITIES

The balance comprises temporary differences

attributable to:

Amounts recognised in profit or loss

Prepayments 880 720 880 720

Depreciation 1,798 - 1,798 -

Intangibles 5,454 - 5,454 -

Other 118 326 118 326

Financial assets at fair value through profit or loss 2,434 1,088 - -

10,684 2,134 8,250 1,046

Amounts recognised directly in Equity

Cash flow hedges 32 - 32 - Total deferred tax liabilities 10,716 2,134 8,282 1,046

Movements:

Opening balance 2,134 5,530 1,046 5,530


Charged/(Credited) to profit or loss (Note 8) (1,434) (475) (1,434) (1,563)

Charged/(Credited) to Equity 8,141 (2,921) 6,795 (2,921)Closing balance 10,716 2,134 8,282 1,046

- 2,108 - 1,020

Deferred tax liabilities to be settled within 12 months 10,716 26 8,282 26 10,716 2,134 8,282 1,046

2010 2009 2010 2009

$'000 $'000 $'000 $'000

29. EMPLOYEE BENEFITS

Provision for annual leave 4,365 2,085 4,415 2,143

Provision for banked hours 80 92 80 92

Provision for long service leave 7,683 3,611 7,704 3,632 12,128 5,788 12,199 5,867

a) Superannuation commitments

2010 2009 2010 2009

No. No. No. No.

b) Number of employees at year end

Equivalent full time 901 456 910 467

The Holding Entity has established superannuation funds for employees of the Consolidated Entity, which existed for the full financial year.

The benefit is the provision of retirement lump sums via accumulation type funds.

Consolidated

Deferred tax liabilities to be settled after more than 12 months

Consolidated

The basis of contributions to the funds are by way of employer and employee contributions. The employer contributions meet the requirements

of the superannuation guarantee charge. The obligation to contribute to the funds is to ensure compliance with the superannuation guarantee

charge.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax

liabilities and when the deferred income taxes relate to the same fiscal authority.

Credit Union

Credit Union


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2010 2009 2010 2009

$'000 $'000 $'000 $'000

30. SUBORDINATED DEBT

At the beginning of the year 20,000 30,000 20,000 30,000


Repayment made during the year (25,000) (10,000) (25,000) (10,000)5,000 20,000 5,000 20,000

Deferred borrowing costs 668 668 668 668 Accumulated amortisation (668) (632) (668) (632)

- 36 - 36

Net Subordinated unsecured notes 5,000 19,964 5,000 19,964

2010 2009

$'000 $'000

31. REDEEMED PREFERENCE SHARE CAPITAL ACCOUNT

Redeemed Member shares

Opening Balance 441 417

Transfer from retained earnings 48 24 Closing Balance 489 441

32. RESERVES

(i) General reserve for credit losses

(ii) Hedging reserve - cash flow hedges

(iii) Asset revaluation reserve

(iv) Retained Earnings

(v) Fair Value Reserve - Available-for-Sale Financial Assets


On the 23 December 2009 the Holding Entity repaid in full a $15.000 million Series 5 Subordinated Capital Notes issue maturing 15 December

2014. The repayment of the issue was the result of the Holding Entity exercising its option under the Trust Deed to repay the entire face value

of these notes to registered holders on the 15 December 2009.

On 5 June 2000 the Holding Entity offered to the public, via prospectus, fifteen year Series 3 Subordinated Unsecured Notes with a face

value of $100 per note. A total of 50,000 notes were subsequently allotted on 30 June and will mature on 31 July 2015 with an aggregate

face value of $5.000 million. These notes qualify as Tier 2 capital and are listed on the Australian Securities Exchange. On 31 July 2010 the

Holding Entity exercised its option under the Trust Deed to repay the entire face value of these notes to registered holders.

The revaluation reserve relates to property, plant and equipment, and investment in associates measured at fair value in accordance with

applicable Australian Accounting Standards.

On the 23 March 2010 the Holding Entity repaid in full a $10.000 million Subordinated Capital Notes issue maturing 23 March 2015. The

repayment of the issue was the result of the Holding Entity exercising its option under the Trust Deed to repay the entire face value of these

notes to registered holders on the 23 March 2010.

Credit Union

Retained earnings is the proportion of after-tax profit that is held by the Consolidated Entity.

Under the Corporations Act 2001 (S 254K) redeemable preference shares (Members $2 Shares) may only be redeemed out of the Credit

Union's profit or through a new issue of shares for the purpose of the redemption. The Holding Entity therefore has transferred the value of

member shares redeemed since 1 July 1999 (the date that the Corporations Act 2001 applied to the Holding Entity), from retained earnings

to the redeemed preference share capital account.

The Fair Value Reserve is the difference in the carrying amount and the fair value of the Available-for-Sale financial assets held by the

Consolidated Entity.

The Australian Prudential Regulatory Authority ("APRA") requires Authorised Deposit-Taking Institutions ("ADI's") to maintain a prescribed

level of provision for regulatory purposes. The difference between the impairment provisions calculated under AIFRS and those required by

APRA is represented by the General reserve for credit losses. The reserve has been appropriated from retained earnings.

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to

hedge transactions that have not yet occurred.

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32. RESERVES (continued)

(vi) Other equity reserves

2010 2009 2010 2009

$'000 $'000 $'000 $'000

33. CONCENTRATION OF ASSETS AND LIABILITIES

(a) Available-for-Sale financial assets62,050 50,000 62,050 50,000

(b) Loans and advances

South Australia 3,886,795 1,603,558 3,886,795 1,603,558

Northern Territory 546,635 412,185 546,635 412,185

Victoria 265,840 - 265,840 -

New South Wales 196,569 124,415 196,569 124,415

Western Australia 53,849 42,172 53,849 42,172

Queensland 31,487 - 31,487 -

Australian Capital Territory 7,054 - 7,054 -

Tasmania 1,657 - 1,657 - 4,989,886 2,182,330 4,989,886 2,182,330

(c) Member deposits

South Australia 3,044,844 1,407,445 3,044,522 1,407,445

Northern Territory 290,109 228,787 290,109 228,787

Victoria 219,030 14 219,030 14

New South Wales 247,371 - 247,371 -

Western Australia 16,575 86 16,575 86

Queensland 93,636 - 93,636 -

Australian Capital Territory 15,902 - 15,902 -

Tasmania 7,583 - 7,583 - 3,935,050 1,636,332 3,934,728 1,636,332

(d) Borrowings





Other 2,276 2,848 2,276 2,848 1,222,965 498,130 1,222,965 498,130

The other equity reserves represent the retained earnings of Savings & Loans Credit Union (S.A.) Limited recognised upon the merger with

the Holding Entity.

Deposits with Credit Union Services Corporation (Australia) Ltd

The Holding Entity has an exposure to groupings of individual deposits

which concentrate risk and create exposure to particular geographic

segments as follows:

Credit Union

The Holding Entity has an exposure to groupings of individual loans

which concentrate risk and create exposure to particular geographic

segments as follows:

As at 30 June 2010, the Holding Entity has no loan assets which

represent 10% or more of capital (2009: $Nil).

Consolidated

As at 30 June 2010, the Holding Entity has no deposit liabilities with an

outstanding balance in excess of 10% or more of its total liabilities (2009:

$Nil).

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

34. COMMITMENTS

a) Capital expenditure commitments

Property, plant & equipment 3,663 2,272 3,663 2,272

Payable not later than 1 year 2,535 2,272 2,535 2,272

b) Lease expenditure commitments

Non-cancellable operating leases

not later than 1 year 13,256 7,397 13,452 7,648

later than 1 and not later than 2 years 10,988 13,033 10,988 13,209

later than 2 and not later than 5 years 16,061 7,452 16,061 7,542

later than 5 years 3,956 5,515 3,956 5,515

Aggregate lease expenditure contracted for at 30 June 44,261 33,397 44,457 33,914

2010 2009 2010 2009

$'000 $'000 $'000 $'000

(c) Credit commitments

Loans approved not disbursed 87,583 56,148 87,583 56,148

Members unused credit facility 451,990 118,486 451,990 118,486 539,573 174,634 539,573 174,634

35. CONTINGENCIES

2010 2009 2010 2009

$'000 $'000 $'000 $'000

(a) Guarantees

The Consolidated Entity has issued guarantees as follows:

Guarantee issued for members 2,471 - 2,471 -

(b) Credit Union Financial Support System Limited

Agrees, in conjunction with other members, to fund the operating costs of CUFSS.

May be required to advance funds of up to 3% (excluding permanent loans) of total assets to another Credit Union requiring financial

support;

May be required to advance permanent loans of up to 0.2% of total assets per financial year to another Credit Union requiring financial

support;

Details of contingent liabilities and contingent assets where the probability of further payments/receipts is not considered remote are set out

below, as well as details of contingent liabilities and contingent assets, which although considered remote, the Directors consider should be

disclosed.

The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that the future sacrifice of

economic benefits will be required or the amount is not capable of reliable measurement.

Consolidated

With effect from 1 July 1999, the Holding Entity is a party to the Credit Union Financial Support System ("CUFSS"). CUFSS is a voluntary

scheme that all Credit Unions who are affiliated with Credit Unions Services Corporation (Australia) Limited ("Cuscal") have agreed to

participate in. CUFSS is a company limited by guarantee, each Credit Union's guarantee being $100. As a member of CUFSS, the Holding

Entity:

Estimated capital expenditure contracted for at balance date but not

provided for:


The Consolidated Entity leases various office and branch premises under non-cancellable leases expiring within one - seven years. The

leases have varying terms, escalation clauses and renewal rights. On renewal the terms of the leases are renegotiated.


Credit Union

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

36. STANDBY BORROWING FACILITIES

The Holding Entity has the following borrowing facilities:

(a) Overdraft facility

Gross facility amount 10,000 1,500 10,000 1,500

Less: current borrowing - (722) - - Net available 10,000 778 10,000 1,500

(b) Wholesale funding facilities (Note 25)

Gross facility amount 1,342,276 782,848 1,342,276 782,848

Less: current borrowing (1,222,965) (498,130) (1,222,965) (498,130)Net undrawn 119,311 284,718 119,311 284,718

37. SECURITISATION

2010 2009

$'000 $'000

Light Trust No.1 186,615 236,549

Light Trust No.2 176,615 -

Waratah Finance Pty Ltd 649,398 -

Titan No. 12 Trust 231,290 36,314

Integrity Trust 2,276 2,848 1,246,194 275,711

2010 2009 2010 2009

$'000 $'000 $'000 $'000

38. AUDITORS' REMUNERATION

(a) Audit services

KPMG

Audit and review of the financial reports 263 133 273 133

Other regulatory audit services 29 20 29 20 292 153 302 153

(b) Taxation services KPMG 55 157 55 157

(c) Other assurance services KPMG 82 7 115 23

(d) Other services

KPMG

IT advisory 3 - 3 -

Due Diligence 70 - 70 - 73 - 73 -

During the year the following fees were paid or payable for services

provided by the auditor of the Consolidated Entity:

In the ordinary course of business, the Consolidated Entity enters into transactions that result in the transfer of financial assets to third parties

or special purpose entities on an arms length basis. The information below sets out the Consolidated Entity's retained interest in transferred

assets.

The Consolidated Entity has transferred retail mortgage loans and advances to Light Trust No. 1., Light Trust No. 2., Titan No. 12, Waratah

Finance Pty Ltd and Integrity Trust, but has retained substantially all of the risks and rewards associated with the transferred assets. Due to

the retention of substantially all the risks and rewards on these assets, the Consolidated Entity continues to recognise these assets as loans

and advances to members and the transfers are accounted for as secured financing transactions.

Credit Union

Consolidated

Consolidated


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39. INVESTMENT IN CONTROLLED ENTITIES

Name of entity 2010 2009 2010 2009

% % $ $

Australian Central Credit Union Ltd

Australian Central Services Pty Ltd 100 100 - -

Australian Central Travel Pty Ltd 100 100 2 2

Financial Solutions Australasia Pty Ltd 100 100 4,987,973 4,987,973

70 Light Square Pty Ltd 100 100 - -

Flinders Finance Pty Ltd* 100 - 160,000 -

Lets Talk Home Loans Group Pty Ltd* 100 - 1 -

Austral Financial Planning Pty Ltd* 100 - 1 -

Financial Solutions Australasia Pty Ltd was audited in 2009/10.

40. ECONOMIC DEPENDENCY

The Holding Entity has an economic dependency on the following suppliers of services:

(a) Credit Union Services Corporation (Australia) Ltd

(b) First Data Resources Australia Ltd

(c) Datacom Systems

(d) Fiserv (ASPAC) Pte Ltd

(e) CU Technology Development Ltd

(f) Data Action Pty Ltd

(g) Anittel Pty Ltd

This company provides the Holding Entity with the rights to and the production of members cheques, ATM management services, Redicards

and Visa cards, provides finance facilities, settlement with bankers, electronic funds deposit, central banking and money market services.

Book value of shares/units

held% held by Holding Entity

All controlled entities are incorporated in Australia. All shares held are in ordinary shares. The amounts disclosed in relation to investments in

controlled entities in this note have not been rounded to the nearest one thousand dollars in order to disclose amounts which would otherwise

have been rounded down to zero.

This company operates the switching system that links rediATM's, other approved EFT suppliers, Visa acquirers and merchants to the Holding

Entity's computer systems.

* These entities were acquired though the merger with Savings and Loans Credit Union (S.A.) Limited.

Australian Central Travel Pty Ltd, 70 Light Square Pty Ltd, Flinders Finance Pty Ltd, Lets Talk Home Loans Pty Ltd and Austral Financial

Planning Pty Ltd are small proprietary companies and have not been audited.

This company has been engaged to host a communication service for the Holding Entity.

This company is a member of an international group which owns core computer software which the Holding Entity operates.

This company operates a computer bureau which operates a processing system of the Holding Entity.

This company holds the Australian Credit Union licence for the Fiserv computer software and sub-licenses the software, and provides ongoing

support to the Holding Entity.

This company has been engaged to provide data processing and desktop management services to the Holding Entity.

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2010 2009 2010 2009

$'000 $'000 $'000 $'000

41. NOTES TO THE STATEMENTS OF CASH FLOWS

(a) Reconciliation of cash and cash equivalents

For purposes of the Statements of Cash Flows, cash

and cash equivalents comprise the following:

Cash and cash 38,132 11,512 44,982 13,686

Available-for-Sale investment securities with maturity < 3 months 312,736 233,000 317,986 236,250

Held-to-Maturity investment securities with maturity < 3 months 15,850 - 15,850 -

Overdraft - (722) - - 366,718 243,790 378,818 249,936

Profit for the period 22,158 7,260 22,983 7,538

Adjustments for:

Depreciation and amortisation 8,456 5,921 8,651 6,068

Increase / (decrease) in provision for impairment 421 (155) 421 (155)

Amortisation of fair value adjustments upon merger 4,983 - 4,983 -

Net change in fair value of financial assets/liabilities at fair value (5,971) (3,441) - -

Bad debts written off 2,069 1,421 2,069 1,421

(Decrease) / increase in provision for employee benefits (521) 563 (528) 541

Increase in provision for income tax 4,926 - 5,266 -

(Increase) / decrease in current tax assets 2,923 (2,556) 2,508 (2,444)

Decrease in provision for deferred tax (1,242) (1,262) (1,244) (1,254)

272 (30) 272 (30)

Change in assets and liabilities:

Increase in interest payable 5,247 521 5,390 272

Increase / (decrease) in payables and other liabilities 10,455 118 8,778 (4,253)

Decrease in net loans and advances 17,753 - 17,753 -

(Increase) / decrease in interest receivable (7,751) 2,736 (7,744) 2,749

Decrease in provisions (4,633) - (4,633) -

(Increase) / decrease in other assets (7,391) 760 (6,817) 618

Net cash inflow from operating activities 52,154 11,856 58,108 11,071

(b) Reconciliation of profit after income tax to net cash inflow from

operating activities

Consolidated

Net profit / (loss) on sale of property, plant & equipment and

investments

Credit Union

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42. RELATED PARTIES

(a) Directors

(i) Chair - Non-ExecutiveW. R. Cossey AM (Appointed 1 December 2009)

(ii) Deputy Chair - Non-ExecutiveJ.L. Cossons

(iii) Executive DirectorP.H.T. Evers (Managing Director) (Retired 30 November 2009)

(Appointed 21 December 2009)(iv) Non-Executive DirectorsDr. R. H. S. BrooksS. M. Day (Appointed 1 December 2009)E. T. McGuirkJ. McMahon (Appointed 1 December 2009)K. A. Skipper AM (Appointed 1 December 2009)M. W. Coleman (Resigned 31 March 2010)A. F. C. Digance (Retired 30 November 2009)G.V. Rech (Retired 30 November 2009)

(b) Other key management personnel

Name PositionD. Bateman General Manager Advice and RelationshipsA. Hamilton General Manager Marketing and Product ManagementD. Mattiske-Wood General Manager Organisational DevelopmentG. Strawbridge General Manager Finance and Treasury

General Manager TechnologyGeneral Manager Retail BankingGeneral Manager Risk

(c) Key management personnel compensation

2010 2009 2010 2009$'000 $'000 $'000 $'000

2,231 1,716 2,231 1,716 152 151 152 151

- - - - Termination benefits 200 - 200 -

2,583 1,867 2,583 1,867

(d) Loans to key management personnel

Loans

T. Hampton (appointed 1 December 2009)

L. Wilkinson (appointed 1 December 2009)D. Lewis (appointed 1 December 2009)

Short-term employee benefitsPost-employment benefits - superannuation


The following were Directors of the Consolidated Entity at any time during the reporting period and unless otherwise indicated wereDirectors for the entire period.

Loans to Directors and key management personnel are either unsecured or secured by registered mortgage over eligible security inaccordance with standard lending policies.

The following persons, employed by the Holding Company, also had authority and responsibility for planning, directing and controlling the activities of the Consolidated Entity, directly or indirectly, during the financial year:

Other long term benefits

The key management personnel compensation included in "personnel expenses" (see Note 7) are as follows:

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42. RELATED PARTIES (Continued)

(d) Loans to key management personnel (continued)

(i) Aggregates for key management personnel

Consolidated$'000 $'000 $'000

2010 2,770 205 3,973 2009 1,836 132 2,770

(e) Other transactions with key management personnel

(f) Non-key management personnel disclosures

Controlled entities

Key personnel

(ii) Transactions with related parties

2010 2009$'000 $'000

Financial Solutions Australasia Pty Ltd

Management fee income 206 329 Receivable 1,776 1,856

Australian Central Services Pty Ltd

Management fee income 63 41 Payable 39 25

All Loans to Directors including their related parties are made on normal member terms and conditions which apply to each class ofloan.

Interest paid and

payable for the

year

All loans to management personnel are made on normal staff terms and conditions that are applicable to normal staff benefitpackages.

Closing Balance

Opening

Balance

Apart from the details disclosed in this note, no key management personnel has entered into a material contract with the HoldingEntity or the Consolidated Entity since the end of the previous year and there were no material contracts involving Key Managementpersonnel interests existing at year end.

Aggregate amounts included in the Holding Entity accounts that resulted from transactions withFinancial Solutions Australasia Pty Ltd:

Aggregate amounts included in the Holding Entity accounts that resulted from transactions withAustralian Central Services Pty Ltd:

The key management personnel who conducted loan accounts with the Holding Entity during the year were W.R. Cossey, J.L.Cossons, P.H.T. Evers, A. Hamilton, D. Lewis and T. Hampton.

Credit Union

Disclosures relating to key management personnel of the Consolidated Entity are set out in Note 42 (b) to (e).

(i) The Holding Entity has related party transactions with its subsidiaries with the transactions set out below.

Interests in controlled entities are set out in Note 39.

As required to be a member of the Holding Entity, each Key Management Personnel holds one $2 share.

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42. RELATED PARTIES (Continued)

(f) Non-key management personnel disclosures (continued)

(ii) Transactions with related parties (continued)

2010 2009$'000 $'000

Light Trust No. 1

Residual unitholder income (217) (1,364) Loan 186,615 236,549

Net Swap Income 1,662 3,442

Light Trust No. 2

Residual unitholder income (3,662) - Loan 176,615 - Net Swap Income 4,309 -

Flinders Finance Pty Ltd

Interest Paid by the Holding Entity 3 -

Lets Talk Home Loans Group Pty Ltd

Other Revenue received by the Holding Entity 24 - Interest Paid by the Holding Entity 7 -

Lets Talk Home Loans Group Pty Ltd has funds on deposit with the Holding Entity of $140,884for which it is paid a commercial interest rate.

Aggregate amounts included in the Holding Entity accounts that resulted from transactions withLets Talk Home Loans Group Pty Ltd:

Aggregate amounts included in the Holding Entity accounts that resulted from transactions withLight Trust No. 1:

Aggregate amounts included in the Holding Entity accounts that resulted from transactions withLight Trust No. 2:

Flinders Finance Pty Ltd has funds on deposit with the Holding Entity of $180,930 for which itis paid a commercial interest rate.

Aggregate amounts included in the Holding Entity accounts that resulted from transactions withFlinders Finance Pty Ltd:

Credit Union

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43. FINANCIAL INSTRUMENTS

a) Financial risk management objectives

b) Terms, conditions and accounting policies

c) Liquidity risk management

Liquidity

2010 2009

% %

Liquidity holdings 17.51 14.57

The Holding Entity and the Consolidated Entity as part of its daily operations is exposed to a range of risks. The management of

these risk exposures involves a number of activities including the identification of particular risks, quantifying the risk exposure,

implementing procedures to control and mitigate the risks, and risk reporting.

The Holding Entity and the Consolidated Entity have in place an enterprise wide risk management process. The process is

managed though the Risk Committee, and is supported by a documented risk management plan, risk policies and strategies,

internal controls and procedures and a Business Risk and Continuity Plan.

The risk management process involves establishing the context and the identification, analysis, treatment, communication and

ongoing monitoring of risks. A risk register has been established as part of the risk management process that enables a structured

and logical assessment and reporting of identified risks including their consequences and likelihood, and the assessment of

established risk mitigation controls.

The Consolidated Entity's accounting policies, including terms and conditions of each class of financial asset, financial liability and

equity instrument, both recognised and unrecognised at the balance date, are disclosed in Note 1.

The Consolidated Entity has in place information systems and a structured process to monitor and manage liquidity risk. The

management process incorporates specific liquidity management strategies and liquidity contingency plans that manage liquidity

on a daily basis under normal situations and assumed adverse scenarios. The liquidity strategy requires the holding of surplus

funds in high quality liquid assets ("HQLA"), the availability of appropriate standby lines of funding, maintenance of reliable sources

of funding (retail and wholesale) and daily liquidity projections.

Consolidated

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Consolidated Entity's

approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities

when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to its reputation.

APRA Prudential standards place specific management and reporting requirements on credit unions in relation to liquidity risk. The

Prudential Standards provide that liquidity strategies and liquidity holdings can be based on either a scenario analysis or on a

minimum liquidity holdings basis. APRA has approved the adoption by the Holding Entity of a minimum liquidity holding basis

whereby the Holding Entity is required to maintain a minimum holding in specified HQLA at all times. The Holding Entity and the

Consolidated Entity complied with all APRA liquidity requirements throughout the year.

50


AN

NU

AL REPO

RT 2010Not

es to

the

Acco

unts

AU

STR

ALI

AN

CEN

TRA

L C

RED

IT U

NIO

N LT

D A

ND

ITS

CO

NTR

OLL

ED E

NTI

TIES

FO

R TH

E YE

AR E

ND

ED 3

0 JU

NE

2010

AU

ST

RA

LIA

N C

EN

TR

AL

CR

ED

IT U

NIO

N L

TD

AN

D I

TS

CO

NT

RO

LL

ED

EN

TIT

IES

NO

TE

S T

O T

HE

AC

CO

UN

TS

FO

R T

HE

YE

AR

EN

DE

D 3

0 J

UN

E 2

01

0

43.

FIN

AN

CIA

L I

NS

TR

UM

EN

TS

(C

on

tin

ued

)

c)

Liq

uid

ity r

isk m

an

ag

em

en

t (c

on

tin

ued

)

Co

ntr

actu

al

un

dis

co

un

ted

cash

flo

ws

Co

nso

lid

ate

d Fin

an

cia

l L

iab

ilit

ies

Carr

yin

g A

mo

un

t O

ver

5 y

ears

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

No

n D

eri

vati

ve F

inan

cia

l li

ab

ilit

ies

Paya

ble

s d

ue t

o o

ther

financia

l in

stitu

tions

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Deposits

3,9

34,7

28

1,6

36,3

32

3,9

40,5

36

1,6

38,5

45

1,8

15,8

69

898,2

87

1,2

20,9

43

480,4

40

822,5

05

249,2

77

81,1

56

10,5

41

63

-

Tra

de a

nd o

ther

paya

ble

s92,8

98

29,3

68

92,8

98

29,3

68

-

-

92,8

98

29,3

68

-

-

-

-

-

-

Borr

ow

ings

1,2

22,9

65

498,1

30

1,2

26,8

88

500,8

73

-

-

1,2

26,8

88

500,8

73

-

-

-

-

-

-

Note

s P

aya

ble

350,0

30

236,5

49

350,5

74

266,6

60

-

-

-

-

-

-

-

-

350,5

74

266,6

60

Subord

inate

d d

ebt

5,0

00

19,9

64

5,0

00

26,4

15

-

-

-

-

-

-

-

-

5,0

00

26,4

15

Deri

vati

ve F

inan

cia

l li

ab

ilit

ies

Inte

rest

rate

sw

aps

(22,5

15)

(2

1,5

68)

(2

3,5

98)

(2

7,6

36)

-

-

(8

,284)

(534)

(6

,248)

(2,1

85)

(9,0

66)

(24,9

17)

-

-

To

tal

cash

flo

ws

5,5

83,1

06

2,3

98,7

75

5,5

92,2

98

2,4

34,2

25

1,8

15,8

69

898,2

87

2,5

32,4

45

1,0

10,1

47

816,2

57

247,0

92

72,0

90

(1

4,3

76)

355,6

37

293,0

75

Ho

ldin

g E

nti

ty Fin

an

cia

l L

iab

ilit

ies

Carr

yin

g A

mo

un

t O

ver

5 y

ears

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

No

n D

eri

vati

ve F

inan

cia

l li

ab

ilit

ies

Paya

ble

s d

ue t

o o

ther

financia

l in

stitu

tions

-

722

-

722

-

-

-

722

-

-

-

-

-

-

Deposits

3,9

35,0

50

1,6

36,3

32

3,9

40,5

36

1,6

38,5

45

1,8

15,8

69

898,2

87

1,2

20,9

43

480,4

40

822,5

05

249,2

77

81,1

56

10,5

41

63

-

Tra

de a

nd o

ther

paya

ble

s452,6

94

260,9

48

498,3

99

291,0

58

-

-

135,1

69

24,3

98

-

-

-

-

363,2

30

266,6

60

Borr

ow

ings

1,2

22,9

65

498,1

30

1,2

26,8

88

500,8

73

-

-

1,2

26,8

88

500,8

73

-

-

-

-

-

-

Note

s P

aya

ble

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Subord

inate

d d

ebt

5,0

00

19,9

64

6,6

16

26,4

15

-

-

-

-

-

-

-

-

6,6

16

26,4

15

Deri

vati

ve F

inan

cia

l li

ab

ilit

ies

Inte

rest

rate

sw

aps

(14,4

02)

(1

9,4

26)

(2

0,1

69)

(2

0,6

92)

-

-

(7

,458)

(534)

(5

,420)

(2,1

85)

(7,2

91)

(24,9

17)

-

6,9

44

To

tal

cash

flo

ws

5,6

01,3

07

2,3

96,6

70

5,6

52,2

70

2,4

36,9

21

1,8

15,8

69

898,2

87

2,5

75,5

42

1,0

05,8

99

817,0

85

247,0

92

73,8

65

(1

4,3

76)

369,9

09

300,0

19

Less t

han

3 m

on

ths

3-1

2 m

on

ths

1-5

years

The

table

sbelo

wsum

marise

the

matu

rity

pro

file

of

the

Consolid

ate

dE

ntity

'sand

the

Hold

ing

Entity

'sfinancia

llia

bili

ties

as

at

30

June

2010

based

on

contr

actu

alundis

counte

dre

paym

ent

oblig

ations.

Repaym

ents

whic

hare

subje

ct

tonotice

are

treate

das

notice

where

giv

en

imm

edia

tely

.H

ow

ever,

the

Consolid

ate

dE

ntity

or

the

Hold

ing

Entity

exp

ect

that

many

mem

bers

will

not

request

repaym

ent

on

the

earlie

st

date

the

Consolid

ate

dE

ntity

or

the

Hold

ing

Entity

could

be

required

topay

and

the

table

sdo

not

reflect

the

cash

flow

sin

dic

ate

dby

the

Consolid

ate

dE

ntity

'sor

the

Hold

ing

Entity

'sdeposit

rete

ntion

his

tory

.D

erivatives

desig

ned

ina

hedgin

gre

lationship

are

inclu

ded

toth

eir

contr

actu

al m

atu

rity

.

Co

ntr

actu

al

Cash

flo

ws

Co

ntr

actu

al

Cash

flo

ws

On

dem

an

d

On

dem

an

dL

ess t

han

3 m

on

ths

3-1

2 m

on

ths

1-5

years

51


AN

NU

AL

REPO

RT 2

010

54




43. FINANCIAL INSTRUMENTS (Continued)

d) Credit risk management

Note

2010 2009

$'000 $'000

Cash and cash equivalents 10 44,982 13,686

Trade and other receivables 11 28,408 10,982

Loans and advances 13 4,979,923 2,179,221

15 822,627 50,000

15 35,850 292,500

19 107 -

23 22,622 21,568

5,934,519 2,567,957

2010 2009 2010 2009

$'000 $'000 $'000 $'000

109 - - -

1,074 344 - -

1,183 344 - -

850 328 - -

333 16 - -

1 - 30 days 165,133 55,162 - - 31 - 60 days 8,625 1,831 - - 61 - 90 days 3,946 307 - -

5,046 659 - -

182,750 57,959 - -

3,269 751 - -

179,481 57,208 - -

4,805,953 2,124,027 31,282 10,721

6,957 1,258 - -

4,985,767 2,181,251 31,282 10,721

Investment Securities

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the

Consolidated Entity. The Consolidated Entity has adopted a policy of only dealing with credit worthy counterparties and obtaining

sufficient or other security where appropriate, as a means of mitigating the risk of financial loss from defaults.

The Group holds collateral against loans and advances to members in the form of mortgage interests over real property. Estimates

of fair value are based on the value of collateral assessed at the time of borrowing, and generally are not updated except when a

loan is individually assessed as impaired. Collateral usually is not held against placement with other financial institutions, and no

such collateral was held at 30 June 2010 or 2009.

The Consolidated Entity's maximum exposure to credit risk at the reporting date was:

The Consolidated Entity's maximum exposure to credit risk at balance date in relation to each class of recognised financial assets

is the carrying amount of those assets as indicated in the statement of financial position. The maximum credit exposure does not

take into account the value of any collateral or other security held, in the event other entities/parties fail to perform their obligations

under the financial instruments in question. Collateral takes the form of mortgage interests over real property. The value of

collateral held against individual exposures is generally only assessed at the time of borrowing or when a specific review of that

exposure is undertaken in accordance with policy.

Consolidated

Loans and advances to

members

Exposure to credit risk

Financial assets at fair value through profit or loss

Interest rate swaps used for hedging

Less: Allowance for impairment

- Mortgage secured

- Other loans

Gross amount

Gross amount

90 days +

Carrying Amount

Less: Allowance for impairment

Carrying amount

Total Carrying Amount

Past due but not impaired

Available-for-Sale investment securities

Held-to-Maturity investment securities

Exposure to credit risk

Individually impaired

Neither past due nor impaired

Includes accounts with renegotiated terms

52


AN

NU

AL REPO

RT 2010





e) Capital adequacy

Capital Adequacy 2010 2009

% %

Risk weighted capital 12.47 13.08

Total Capital ratio 12.47 13.08

$'000 $'000

Qualifying capital 307,204 134,791

Total qualifying capital 307,204 154,977

Total risk weighted assets 2,462,761 1,184,838

f) Market risk management

g) Market risk sensitivity analysis

30 June 2010 30 June 2009

50 bp rise 50 bp fall 100 bp rise 100 bp fall 50 bp rise 50 bp fall 100 bp rise 100 bp fall

Consolidated

Equity Sensitivity 0.29% (0.28%) 0.58% (0.56%) 3.86% (3.86%) 7.73% (7.73%)

Net Revenue Sensitivity 0.77% (1.21%) 2.02% (1.81%) 4.94% (4.94%) 9.88% (9.88%)

Holding Entity

Equity Sensitivity 0.69% (0.67%) 1.36% (1.36%) (4.95%) 4.95% (9.90%) 9.90%Net Revenue Sensitivity 0.92% (1.36%) 2.33% (2.11%) (16.13%) 16.13% (32.25%) 32.25%

Market risk is the risk of exposure to changes to financial prices affecting the value of positions held by the Holding Entity as part of

its normal trading activities. As the Holding Entity does not deal in foreign exchange contracts or commodities, market risk for the

Consolidated Entity consists solely of interest rate risk.

During the financial year ended 30 June 2009 APRA reviewed the Holding Entity's Internal Capital Adequacy Assessment Process

("ICAAP"). The capital management plan ensures the ongoing capital management of the Holding Entity is maintained with the

level and extent of the risks the Holding Entity is exposed to from its activities. The Holding Entity and Consolidated Entity complied

with all APRA capital adequacy requirements throughout the year.

The management of interest rate risk against interest rate gap limits is supplemented by monitoring the sensitivity of the

Consolidated Entity's net interest revenue and net financial assets or "market value of equity" to standard interest rate scenarios.

Standard interest rate scenarios include 50 and 100 basis point (bp) parallel falls and rises in all yield curves. Sensitivity outcomes

are assessed relative to either a 12 month forecast net interest margin sensitivity, or the Consolidated Entity's current capital base,

for market value of equity sensitivity.

The management of interest rate risk is explained in more detail at Note (h) below.

Consolidated

The management of the capital of a financial institution is a fundamental part of its risk management process as an essential

element of capital is its availability to absorb future, unexpected and unidentified losses.

APRA Prudential Standards require ADI's to maintain at all times a minimum ratio of capital to risk weighted assets. As part of its

risk management process, the Holding Entity has developed a methodology with financial modelling to assist in determining the

optimum level of capital that is consistent with assessed risk exposure and business activity. The optimum capital is managed

within a range well above the minimum required by APRA and incorporates an assessment of the combined risk exposure for

operations, market, credit and strategic risk.

53


AN

NU

AL

REPO

RT 2

010

56

Not

es to

the

Acco

unts

AU

STR

ALI

AN

CEN

TRA

L C

RED

IT U

NIO

N LT

D A

ND

ITS

CO

NTR

OLL

ED E

NTI

TIES

FO

R TH

E YE

AR E

ND

ED 3

0 JU

NE

2010

AU

ST

RA

LIA

N C

EN

TR

AL

CR

ED

IT U

NIO

N L

TD

AN

D IT

S C

ON

TR

OL

LE

D E

NT

ITIE

S

NO

TE

S T

O T

HE

AC

CO

UN

TS

FO

R T

HE

YE

AR

EN

DE

D 3

0 J

UN

E 2

010

43.

FIN

AN

CIA

L I

NS

TR

UM

EN

TS

(C

on

tin

ued

)

h)

Inte

rest

rate

ris

k m

an

ag

em

en

t

Co

nso

lid

ate

d

Fix

ed

in

tere

st

rate

matu

rin

g i

n :

Fin

an

cia

l in

str

um

en

ts1 y

ear

or

less

Over

1 t

o 5

years

Mo

re t

han

5

years

N

on

in

tere

st

beari

ng

To

tal

carr

yin

g a

mo

un

t as p

er

Sta

tem

en

t o

f F

inan

cia

l

Po

sit

ion

Weig

hte

d a

vera

ge e

ffecti

ve

inte

rest

rate

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

%%

(i)

Fin

an

cia

l assets

Cash a

nd c

ash e

quiv

ale

nts

9,6

50

2,1

57

-

20

-

-

-

-

35,3

32

11,5

09

44,9

82

13,6

86

-

Tra

de a

nd o

ther

receiv

able

s-

-

-

-

-

-

-

-

28,4

08

10,9

52

28,4

08

10,9

52

--

Loans a

nd a

dvances

3,0

45,7

17

1,2

23,1

77

509,0

70

330,3

20

1,3

13,9

42

525,5

55

111,1

94

100,1

68

-

-

4,9

79,9

23

2,1

79,2

21

7.2

5%

6.6

7%

Investm

ents

:

A

vaila

ble

-for-

Sale

investm

ent

securi

ties

-

-

780,1

85

50,0

00

41,0

00

-

-

-

1,4

42

-

822,6

27

50,0

00

5.7

3%

3.0

9%

H

eld

-to-M

atu

rity

investm

ent

securi

ties

-

-

35,8

50

292,5

00

-

-

-

-

-

-

35,8

50

292,5

00

4.9

1%

3.8

5%

O

ther

investm

ents

-

-

-

-

-

-

-

-

12,9

05

5,7

03

12,9

05

5,7

03

-

-

To

tal

fin

an

cia

l assets

3,0

55,3

67

1,2

25,3

34

1,3

25,1

05

672,8

40

1,3

54,9

42

525,5

55

111,1

94

100,1

68

78,0

87

28,1

63

5,9

24,6

95

2,5

52,0

61

6.9

3%

6.2

0%

(ii)

Fin

an

cia

l li

ab

ilit

ies

Payable

s d

ue t

o o

ther

financia

l

institu

tions

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Deposits

1,7

69,6

09

892,4

98

2,0

40,4

36

728,0

31

81,0

99

10,0

14

-

-

43,5

84

5,7

89

3,9

34,7

28

1,6

36,3

32

4.5

5%

3.2

4%

Oth

er

financia

l lia

bili

ties

Tra

de a

nd o

ther

payable

s-

-

-

-

-

-

-

-

92,8

98

29,3

68

92,8

98

29,3

68

--

Borr

ow

ings

-

-

1,2

22,9

65

498,1

30

-

-

-

-

-

-

1,2

22,9

65

498,1

30

5.8

4%

4.1

8%

Note

s P

ayable

-

-

350,0

30

236,5

49

-

-

-

-

-

-

350,0

30

236,5

49

5.7

4%

3.4

7%

Subord

inate

d d

ebt

-

-

5,0

00

14,9

89

-

-

-

4,9

75

-

-

5,0

00

19,9

64

9.5

1%

5.8

6%

To

tal

fin

an

cia

l li

ab

ilit

ies

1,7

69,6

09

892,4

98

3,6

18,4

31

1,4

77,6

99

81,0

99

10,0

14

-

4,9

75

136,4

82

35,1

57

5,6

05,6

21

2,4

20,3

43

4.8

3%

3.4

3%

(iii

) In

tere

st

rate

sw

ap

s

(1,1

20,8

08)

(5

45,0

00)

(4

74,4

19)

(240,0

00)

(6

46,3

88)

(305,0

00)

-

-

-

-

-

-

(1

.71%

)(1

.37%

)

Flo

ati

ng

in

tere

st

rate

The H

old

ing E

ntity

and

the C

onsolid

ate

d E

ntity

's e

xposure

to inte

rest

rate

ris

ks a

nd t

he e

ffective inte

rest

rate

s o

f financia

l assets

and f

inancia

l lia

bili

ties a

t th

e b

ala

nce d

ate

, are

as f

ollo

ws:

Both

the

Hold

ing

Entity

'sand

the

Consolid

ate

dE

ntity

'sactivitie

spri

mari

lyexp

ose

them

toth

efinancia

lri

sks

of

changes

inin

tere

st

rate

s.

The

Hold

ing

Entity

utilis

es

ext

ensiv

em

odelli

ng

techniq

ues

toid

entify

the

valu

eat

risk

tonet

inte

rest

incom

eand

the

mark

et

valu

eof

equity,

giv

en

anum

ber

ofassum

ed

changes

inm

ark

etin

tere

stra

tes.T

he

Board

has

inpla

ce

am

ark

etri

sk

polic

yw

hic

hsets

risk

limits

above

whic

hth

eH

old

ing

Entity

isre

quir

ed

toactively

hedge

its

exp

osure

thro

ugh

the

use

ofon-b

ala

nce

sheetm

eth

ods

or

thro

ugh

financia

lin

str

um

ents

such a

s inte

rest

rate

sw

aps.

54


AN

NU

AL REPO

RT 2010Not

es to

the

Acco

unts

AU

STR

ALI

AN

CEN

TRA

L C

RED

IT U

NIO

N LT

D A

ND

ITS

CO

NTR

OLL

ED E

NTI

TIES

FO

R TH

E YE

AR E

ND

ED 3

0 JU

NE

2010

AU

ST

RA

LIA

N C

EN

TR

AL

CR

ED

IT U

NIO

N L

TD

AN

D IT

S C

ON

TR

OL

LE

D E

NT

ITIE

S

NO

TE

S T

O T

HE

AC

CO

UN

TS

FO

R T

HE

YE

AR

EN

DE

D 3

0 J

UN

E 2

010

43.

FIN

AN

CIA

L I

NS

TR

UM

EN

TS

(C

on

tin

ued

)

h)

Inte

rest

rate

ris

k m

an

ag

em

en

t (c

on

tin

ued

)

Ho

ldin

g E

nti

ty

Fix

ed

in

tere

st

rate

matu

rin

g i

n :

Fin

an

cia

l in

str

um

en

tsF

loati

ng

in

tere

st

rate

1 y

ear

or

less

Over

1 t

o 5

years

Mo

re t

han

5

years

N

on

in

tere

st

beari

ng

To

tal

carr

yin

g a

mo

un

t as p

er

Sta

tem

en

t o

f F

inan

cia

l

Po

sit

ion

Weig

hte

d a

vera

ge e

ffecti

ve

inte

rest

rate

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

%%

(i)

Fin

an

cia

l assets

Cash a

nd c

ash e

quiv

ale

nts

9,6

50

3

-

-

-

-

-

-

28,4

82

11,5

08

38,1

32

11,5

12

1.0

5%

-

Tra

de a

nd o

ther

receiv

able

s-

-

-

-

-

-

-

-

29,8

60

12,5

24

29,8

60

12,5

54

--

Loans a

nd a

dvances

3,0

45,7

17

1,2

23,1

77

509,0

70

330,3

20

1,3

13,9

42

525,5

55

111,1

94

100,1

68

-

-

4,9

79,9

23

2,1

79,2

21

7.2

5%

6.6

7%

Investm

ents

:

A

vaila

ble

-for-

Sale

investm

ent

securi

ties

-

-

774,9

35

50,0

00

41,0

00

-

-

-

1,4

33

-

817,3

68

50,0

00

5.7

3%

3.0

9%

H

eld

-to-M

atu

rity

investm

ent

securi

ties

-

-

35,8

50

288,5

00

-

-

-

-

-

-

35,8

50

288,5

00

4.9

1%

3.8

5%

O

ther

investm

ents

-

-

-

-

-

-

-

-

31,2

52

10,6

91

31,2

52

10,6

91

--

To

tal

fin

an

cia

l assets

3,0

55,3

67

1,2

23,1

80

1,3

19,8

55

668,8

20

1,3

54,9

42

525,5

55

111,1

94

100,1

68

91,0

27

34,7

24

5,9

32,3

85

2,5

52,4

78

6.9

3%

6.1

9%

(ii)

Fin

an

cia

l li

ab

ilit

ies

Payable

s d

ue t

o o

ther

financia

l

institu

tions

-

722

-

-

-

-

-

-

-

-

-

722

-

-

Deposits

1,7

69,6

09

892,4

98

2,0

40,7

58

728,0

31

81,0

99

10,0

14

-

-

43,5

84

5,7

89

3,9

35,0

50

1,6

36,3

32

4.5

5%

3.2

4%

Oth

er

financia

l lia

bili

ties

Tra

de a

nd o

ther

payable

s-

-

-

-

-

-

-

-

452,6

94

260,9

48

452,6

94

260,9

48

-

-

Borr

ow

ings

-

-

1,2

22,9

65

498,1

30

-

-

-

-

-

-

1,2

22,9

65

498,1

30

5.8

4%

4.1

8%

Note

s P

ayable

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Subord

inate

d d

ebt

-

-

5,0

00

14,9

89

-

-

-

4,9

75

-

-

5,0

00

19,9

64

9.5

1%

5.8

6%

To

tal

fin

an

cia

l li

ab

ilit

ies

1,7

69,6

09

893,2

19

3,2

68,7

23

1,2

41,1

50

81,0

99

10,0

14

-

4,9

75

496,2

78

266,7

37

5,6

15,7

09

2,4

16,0

96

4.4

8%

3.1

0%

(iii

) In

tere

st

rate

sw

ap

s

1,4

86,5

35

444,3

15

(5

50,7

45)

(240,0

00)

(9

33,7

90)

(204,3

15)

(2

,000)

-

-

-

-

-

(1.7

1%

)(1

.52%

)

55


AN

NU

AL

REPO

RT 2

010

58

Not

es to

the

Acco

unts

AU

STR

ALI

AN

CEN

TRA

L C

RED

IT U

NIO

N LT

D A

ND

ITS

CO

NTR

OLL

ED E

NTI

TIES

FO

R TH

E YE

AR E

ND

ED 3

0 JU

NE

2010

AU

ST

RA

LIA

N C

EN

TR

AL

CR

ED

IT U

NIO

N L

TD

AN

D IT

S C

ON

TR

OL

LE

D E

NT

ITIE

S

NO

TE

S T

O T

HE

AC

CO

UN

TS

FO

R T

HE

YE

AR

EN

DE

D 3

0 J

UN

E 2

010

43.

FIN

AN

CIA

L I

NS

TR

UM

EN

TS

(C

on

tin

ued

)

i) N

et

fair

valu

es

Co

nso

lid

ate

d

Carr

yin

g

am

ou

nt

Fair

valu

eC

arr

ying

am

ount

Fair v

alu

eM

eth

od

s a

nd

assu

mp

tio

ns u

sed

to

dete

rmin

e n

et

fair

valu

es

No

te$'0

00

$'0

00

$'0

00

$'0

00

Assets

carr

ied

at

fair

valu

e

Ava

ilable

-for-

Sale

inve

stm

ent

securities

15

822,6

27

822,6

27

50,0

00

50,0

01

Estim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

n c

urr

ent

mark

et

rate

s f

or

sim

ilar

arr

angem

ents

.

Oth

er

inve

stm

ents

15

12,9

05

12,9

05

5,7

03

5,7

03

Oth

er

inve

stm

ents

repre

sents

share

s in u

nlis

ted c

om

panie

s f

or

whic

h f

air v

alu

e c

annot

be r

elia

bly

measure

d a

s

no a

ctive

mark

et

exi

sts

for

these a

ssets

. T

here

are

no c

urr

ent

inte

ntions t

o d

ispose o

f th

ese inve

stm

ent.

835,5

32

835,5

32

55,7

03

55,7

04

Assets

carr

ied

at

am

ort

ised

co

st

Cash a

nd c

ash e

quiv

ale

nts

10

44,9

82

44,9

82

13,6

86

13,6

86

Bein

g c

ash a

t call

deposits,

the c

arr

ying a

mount

is t

he n

et

fair v

alu

e.

Tra

de a

nd o

ther

receiv

able

s11

28,4

08

28,4

08

10,9

52

10,9

52

Carr

ying a

mount

has b

een a

ssum

ed f

or

net

fair v

alu

e a

s t

here

are

no m

ark

ets

for

these a

ssets

but,

should

they

be r

edeem

ed,

it is e

xpecte

d t

hat

their c

arr

ying a

mount

would

be r

ecove

red.

Loans a

nd a

dva

nces

13

4,9

79,9

23

4,9

88,5

82

2,1

79,2

21

2,1

93,7

51

The n

et

fair v

alu

e o

f im

paired loans h

as b

een e

stim

ate

d b

y th

eir c

arr

ying a

mount

net

of

the a

ggre

gate

pro

visio

n

for

impairm

ent.

T

he n

et

fair v

alu

e o

f oth

er

loans h

as b

een e

stim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

,

based o

n c

urr

ent

rate

s o

ffere

d b

y th

e C

onsolid

ate

d E

ntity

for

loans w

ith s

imila

r te

rms.

Held

-to-M

atu

rity

inve

stm

ent

securities

15

35,8

50

35,9

13

292,5

00

292,4

79

E

stim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

n c

urr

ent

mark

et

rate

s f

or

sim

ilar

arr

angem

ents

.

5,0

89,1

63

5,0

97,8

85

2,4

96,3

59

2,5

10,8

67

Lia

bil

itie

s c

arr

ied

at

fair

valu

e

Inte

rest

rate

sw

aps

19,2

3(2

2,5

15)

(22,5

15)

(21,5

68)

(21,5

68)

Estim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

n c

urr

ent

mark

et

rate

s f

or

sim

ilar

arr

angem

ents

.(2

2,5

15)

(22,5

15)

(21,5

68)

(21,5

68)

Lia

bil

itie

s c

arr

ied

at

am

ort

ised

co

st

Paya

ble

s d

ue t

o o

ther

financia

l in

stitu

tions

21

-

-

-

C

arr

ying a

mount

appro

xim

ate

s n

et

fair v

alu

e d

ue t

o t

he s

hort

term

natu

re o

f th

e d

ebt.

Deposits

22

3,9

34,7

28

3,9

40,5

36

1,6

36,3

32

1,6

38,4

13

T

he n

et

fair v

alu

e o

f deposits h

as b

een e

stim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

n c

urr

ent

rate

s

off

ere

d b

y th

e C

onsolid

ate

d E

ntity

for

deposits w

ith s

imila

r te

rms.

Tra

de a

nd o

ther

paya

ble

s24

92,8

98

92,8

98

29,3

68

29,3

68

Carr

ying a

mount

appro

xim

ate

s n

et

fair v

alu

e b

ecause o

f th

e s

hort

term

to s

ett

lem

ent

of

the a

mounts

due.

Borr

ow

ings

25

1,2

22,9

65

1,2

26,8

88

498,1

30

498,6

98

E

stim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

n c

urr

ent

mark

et

rate

s f

or

sim

ilar

arr

angem

ents

.

Note

s P

aya

ble

26

350,0

30

350,5

74

236,5

49

234,4

99

E

stim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

n c

urr

ent

mark

et

rate

s f

or

sim

ilar

arr

angem

ents

.

Subord

inate

d d

ebt

30

5,0

00

5,1

11

19,9

64

20,0

84

Estim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

n c

urr

ent

mark

et

rate

s f

or

sim

ilar

arr

angem

ents

.

5,6

05,6

21

5,6

16,0

07

2,4

20,3

43

2,4

21,0

62

The f

air v

alu

es o

f financia

l assets

and f

inancia

l lia

bili

ties,

togeth

er

with t

he c

arr

ying a

mounts

show

n in t

he s

tate

ment

of

financia

l positio

n a

re a

s f

ollo

ws:

30 J

un

e 2

010

30 J

une 2

009

56


AN

NU

AL REPO

RT 2010Not

es to

the

Acco

unts

AU

STR

ALI

AN

CEN

TRA

L C

RED

IT U

NIO

N LT

D A

ND

ITS

CO

NTR

OLL

ED E

NTI

TIES

FO

R TH

E YE

AR E

ND

ED 3

0 JU

NE

2010

AU

ST

RA

LIA

N C

EN

TR

AL

CR

ED

IT U

NIO

N L

TD

AN

D IT

S C

ON

TR

OL

LE

D E

NT

ITIE

S

NO

TE

S T

O T

HE

AC

CO

UN

TS

FO

R T

HE

YE

AR

EN

DE

D 3

0 J

UN

E 2

010

43.

FIN

AN

CIA

L I

NS

TR

UM

EN

TS

(C

on

tin

ued

)

i) N

et

fair

valu

es (

co

nti

nu

ed

)

Carr

yin

g

am

ou

nt

Fair

valu

eC

arr

ying

am

ount

Fair v

alu

eM

eth

od

s a

nd

assu

mp

tio

ns u

sed

to

dete

rmin

e n

et

fair

valu

es

No

te$'0

00

$'0

00

$'0

00

$'0

00

Assets

carr

ied

at

fair

valu

e

Ava

ilable

-for-

Sale

inve

stm

ent

securities

15

817,3

68

817,3

68

50,0

00

50,0

00

Estim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

n c

urr

ent

mark

et

rate

s f

or

sim

ilar

arr

angem

ents

.

Oth

er

inve

stm

ents

15

31,2

52

31,2

52

10,6

91

10,6

91

Oth

er

inve

stm

ents

repre

sents

share

s in u

nlis

ted c

om

panie

s f

or

whic

h f

air v

alu

e c

annot

be r

elia

bly

measure

d a

s

no a

ctive

mark

et

exi

sts

for

these a

ssets

. T

here

are

no c

urr

ent

inte

ntions t

o d

ispose o

f th

ese inve

stm

ent.

848,6

20

848,6

20

60,6

91

60,6

91

Assets

carr

ied

at

am

ort

ised

co

st

Cash a

nd c

ash e

quiv

ale

nts

10

38,1

32

38,1

32

11,5

12

11,5

12

Bein

g c

ash a

t call

deposits,

the c

arr

ying a

mount

is t

he n

et

fair v

alu

e.

Tra

de a

nd o

ther

receiv

able

s11

29,8

60

29,8

60

12,5

54

12,5

54

Carr

ying a

mount

has b

een a

ssum

ed f

or

net

fair v

alu

e a

s t

here

are

no m

ark

ets

for

these a

ssets

but,

should

they

be r

edeem

ed,

it is e

xpecte

d t

hat

their c

arr

ying a

mount

would

be r

ecove

red.

Loans a

nd a

dva

nces

13

4,9

79,9

23

4,9

88,5

82

2,1

79,2

21

2,1

93,7

51

The n

et

fair v

alu

e o

f im

paired loans h

as b

een e

stim

ate

d b

y th

eir c

arr

ying a

mount

net

of

the a

ggre

gate

pro

visio

n

for

impairm

ent.

T

he n

et

fair v

alu

e o

f oth

er

loans h

as b

een e

stim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

,

based o

n c

urr

ent

rate

s o

ffere

d b

y th

e C

onsolid

ate

d E

ntity

for

loans w

ith s

imila

r te

rms.

Held

-to-M

atu

rity

inve

stm

ent

securities

15

35,8

50

35,9

13

288,5

00

288,4

78

E

stim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

n c

urr

ent

mark

et

rate

s f

or

sim

ilar

arr

angem

ents

.

5,0

83,7

65

5,0

92,4

87

2,4

91,7

87

2,5

06,2

95

Lia

bil

itie

s c

arr

ied

at

fair

valu

e

Inte

rest

rate

sw

aps

19,2

3(1

4,4

02)

(14,4

02)

(19,4

26)

(19,4

26)

(14,4

02)

(14,4

02)

(19,4

26)

(19,4

26)

Estim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

n c

urr

ent

mark

et

rate

s f

or

sim

ilar

arr

angem

ents

.

Lia

bil

itie

s c

arr

ied

at

am

ort

ised

co

st

Paya

ble

s d

ue t

o o

ther

financia

l in

stitu

tions

21

-

-

722

722

Carr

ying a

mount

appro

xim

ate

s n

et

fair v

alu

e d

ue t

o t

he s

hort

term

natu

re o

f th

e d

ebt.

Deposits

22

3,9

35,0

50

3,9

40,2

13

1,6

36,3

32

1,6

38,4

13

T

he n

et

fair v

alu

e o

f deposits h

as b

een e

stim

ate

d u

sin

g d

iscounte

d c

ash f

low

analy

sis

, based o

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REPO

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62





l) Fair value hierarchy

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

either direclty (i.e., as prices) or indirectly (i.e., derived from prices).- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Consolidated Entity

30 June 2010 Level 1 Level 2 Level 3 Total

$'000 $'000 $'000 $'000

Available-for-Sale financial assets - 822,627 - 822,627

- 6,552 - 6,552

Derivative financial assets - 107 - 107

- 829,286 - 829,286

Derivative financial liabilities - (22,622) - (22,622) - 806,664 - 806,664

Holding Entity

30 June 2010 Level 1 Level 2 Level 3 Total

$'000 $'000 $'000 $'000

Available-for-Sale financial assets - 817,368 - 817,368

- 6,552 - 6,552

Derivative financial assets - 8,220 - 8,220

- 832,140 - 832,140

Derivative financial liabilities - (22,622) - (22,622) - 809,518 - 809,518

As this is the first year of adoption, comparative information is not required to be disclosed.

The table below analyses financial instruments carried at fair value, by valuation method for the Consolidated Entity.

The different levels have been identified as follows:

- Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities,

Financial assets designated at fair value

though profit or loss

Financial assets designated at fair value

though profit or loss

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44. BUSINESS COMBINATION

a) Savings & Loans Credit Union (S.A.) Limited

On 1 December 2009, Australian Central Credit Union Ltd merged with Savings & Loans Credit Union (S.A.) Limited by way

of a voluntary Transfer of Business pursuant to the Financial Sector (Business Transfer and Group Restructure) Act of 1999

(Cth) . Regulatory approval was obtained from the Australian Prudential Regulation Authority ("APRA") for the merger on 30

November 2009. The primary reasons for the merger were to provide a member-owned alternative to the major banks and

create as a direct result efficiencies and opportunities which will provide greater value, improved products and services as

well as a broader network of branches for members.

The merger, originally announced on 13 August 2009, was approved by both the members of Savings & Loans Credit Union

(S.A.) Limited and Australian Central Credit Union Ltd on 27 November 2009. The transaction is effective from 1 December

2009 with the transfer of the Savings & Loans Credit Union (S.A.) Limited assets and liabilities being legally undertaken on

that date.

Members of Savings & Loans Credit Union (S.A.) Limited became members of Australian Central Credit Union Ltd as at 1

December 2009, being deemed to have become members of Australian Central Credit Union Ltd on the earliest date when

they became members of Savings & Loans Credit Union (S.A.) Limited or Australian Central Credit Union Ltd. The member

shares issued to Savings & Loans members have the same rights and restrictions attached to them, as other Australian

Central Credit Union Ltd member shares.

The principal activities of Savings & Loans Credit Union (S.A.) Limited were the provision of retail financial services,

financial planning advice and acting as an insurance agent.

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FOR THE YEAR ENDED 30 JUNE 201044. BUSINESS COMBINATION (continued)

b) Identifiable assets and liabilities assumed

Pre-merger

carrying

amount

Recognised

values on

merger

30-Nov 1-Dec2009 2009

$'000 $'000

Assets

Cash and cash equivalents 24,098 24,098

Trade and other receivables 2,855 2,855

Current tax assets 1,200 1,200

Loans and advances

Gross value 2,813,959 2,821,074

Provision for impairment (2,619) (2,619)

Net loans and advances 2,811,340 2,818,455

Investments :

Available-for-Sale and other investment securities 353,485 350,399

Other investments 6,552 6,552

Property, plant and equipment 25,048 25,048

Deferred tax assets 12,650 15,063

Intangible assets - 19,910

Other financial assets - -

Other assets - -

Total Assets 3,237,228 3,263,580

Liabilities

Deposits 2,293,692 2,296,781

Other financial liabilities 18,632 18,632

Trade and other payables 32,683 34,538

Borrowings 715,029 715,041

Notes payable - -

Deferred tax liability 1,875 9,983

Employee benefits 6,860 6,860

Subordinated debt 10,000 10,000

Total Liabilities 3,078,771 3,091,835

158,457 171,745

c) Contingent liabilities

d) Separately recognised transactions

Fair value of identifiable net assets attributable to Savings & Loans Credit

Union (S.A.) Limited

No other contingent liabilities have been recognised other than those already disclosed in section (b) above in accordance

with AASB 3 Business Combinations and in Note 35.

The Holding Entity incurred merger related costs of $5.003 million in relation to external consultancy, legal fees, redundancy

and due diligence costs. These costs have been separately disclosed in Note 6, and are included under "Other Expenses"

in the consolidated statement of comprehensive income.

Due to the complexity and timing of this merger, the fair values currently determined are provisional and are subject to

further review during the twelve month period following merger. This may alter the carrying values of the assets and

liabilities currently disclosed at 30 June 2010.

The effective fair value of the identifiable assets and liabilities of Savings & Loans Credit Union (S.A.) Limited as at the date

of merger of 1 December 2009 were:

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FOR THE YEAR ENDED 30 JUNE 201044. BUSINESS COMBINATION (continued)

e) Contributions to combined results

45. EVENTS SUBSEQUENT TO REPORTING DATE

46. IMPACT OF ADOPTING TAXATION OF FINANCIAL ARRANGEMENTS ("TOFA")

From the date of merger (1 December 2009), it is estimated Savings & Loans Credit Union (S.A.) Limited has contributed

$51.826 million (pre-merger and pre fair value of derivatives) to net interest income, $12.328 million to non-interest income

and $16.339 million to the net profit after tax of the Consolidated Entity for the 7 months to 30 June 2010. If the date of the

merger had occurred at the beginning of the reporting period (1 July 2009), Savings & Loans Credit Union (S.A.) Limited

would have contributed an estimated $81.230 million to net interest income, $25.009 million to non-interest income and

$19.804 million to the net profit after tax of the Consolidated Entity. Fair value adjustments recognised upon merger have

been excluded from this result.

The Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 ("TOFA legislation") was enacted during the

prior year. The TOFA legislation provides a framework for the taxation of financial arrangements, potentially providing closer

alignment between tax and accounting requirements. The regime also includes comprehensive tax hedging rules that would

allow the tax recognition of gains and losses on many hedging instruments to be matched to the accounting recognition of

gains and losses of the underlying hedged items.

TOFA is mandatory for the Consolidated Entity for tax years beginning on or after 1 July 2010. There are specific transitional

provisions in relation to the taxation of existing financial arrangements outstanding at the transition date (i.e. there is a

choice to bring pre-commencement financial arrangements into the new regime subject to a balancing adjustment being

calculated on transition to be returned over the next succeeding four tax years).

The Consolidated Entity may make the election to bring pre-commencement financial arrangements into the new regime at

any time on or before the first tax return lodgement date in the tax year beginning on or after 1 July 2010.

The Consolidated Entity has undertaken a preliminary review of the potential effect of the TOFA legislation; it has not yet

determined whether it will bring pre-commencement financial arrangements into the TOFA regime, nor has it determined

what tax-timing methodology will be adopted in respect of financial arrangements within the scope of TOFA.

Other than as disclosed above, there has not arisen in the interval between the end of the financial year and the date of this

report, any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Holding

Entity, to affect significantly the operations of the Consolidated Entity, the results of those operations, or the state of affairs

of the Consolidated Entity in future financial years.

On the 31 July 2010 the Holding Entity repaid in full a $5.000 million Series 3 Subordinated Capital Notes issue maturing 31

July 2015. The repayment of the issue was the result of the Holding Entity exercising its option under the Trust Deed to

repay the entire face value of these notes to registered holders on 31 July 2010.

Upon the redemption of the subordinated debt issue, the Holding Entity will no longer be classified as a 'disclosing entity',

effective 31 July 2010 and no longer subject to the Australian Securities Exchange ("ASX") Listing Rules effective 13 August

2010. As such this releases the Holding Entity from disclosing entity requirements and consequently no future Half-Year

Financial Reports will be required to be prepared and lodged with the Australian Securities and Investments Commission

("ASIC").

At the July 2010 Board meeting, the Board confirmed that there are no reasons to believe that the Holding Entity may

become a disclosing entity before the end of the 2010/11 financial year. Consequently the Holding entity is now considered

a non-disclosing entity as at and from 30 June 2010.

On 26 August 2010 APRA issued a letter to all locally-incorporated authorised deposit-taking institutions titled "Regulatory

Capital Treatment for Securitisation". The letter states APRA's view of the capital treatment of a securitisation where the

originating ADI holds any part of the most subordinated tranche of the securitisation. The Holding Entity has undertaken an

assessment of the impact of the application of APRA's stated position on the regulatory capital treatment for securitisation

and has determined that it will have an immaterial impact on the capital adequacy ratio of the Consolidated Entity as

disclosed in Note 43 (e).

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RegisteredOffice

Australian Central Credit Union Ltd ABN 11 087 651 125

AFSL 244310

60 Light Square Adelaide SA 5000

Telephone

13 13 21 (Australian Central Division) 13 11 82 (Savings & Loans Division)

Email

[email protected] [email protected]

AnnualGeneralMeeting

Thursday, 28 October 2010 Grand Chancellor Adelaide on Hindley 65 Hindley Street, Adelaide 12.15pm (Central Daylight Saving Time)

Bankers

Cuscal Ltd National Australia Bank Limited

Auditors

KPMG

TaxAgent

KPMG

Solicitors

Fisher Jeffries Langes+


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Documents

AUSTRALIAN CENTRAL CREDIT UNION LTD AND ITS … · The Directors present their report together with the financial report of Australian Central Credit Union Ltd (the "Holding Entity")