Note 21: Equity Accounted Investments
| Forecast | Actual | |||
|---|---|---|---|---|
|
Original Budget $m |
Estimated Actuals $m |
30 June 2010 $m |
30 June 2009 $m |
|
| 7,712 | 7,505 | Tertiary Education Institutions | 7,740 | 7,417 |
| 1,485 | 1,420 | Other | 1,309 | 1,360 |
| 9,197 | 8,925 | Total equity accounted investments | 9,049 | 8,777 |
Tertiary Education Institutions (TEIs)
TEIs are Crown entities, and the Government has a number of legislative powers with respect to them in the interests of public accountability and has some significant reserve controls in the event of an institution facing financial risk. However, the Government does not determine the operating and financing policies of TEIs, if they are not at financial risk, but rather is committed to safeguarding their academic freedom and autonomy. By so doing, the Government obtains the benefits of an effective tertiary education sector. Their relationship to the Crown is managed by a plan agreed between them and the Tertiary Education Commission.
The applicability of the test for consolidation in accounting standards as it applies to TEIs and the Government is unclear, and is still under consideration by the relevant accounting authorities. In the interim the TEIs have been included in the accounts as a 100% equity accounted investment.
The financial year of TEIs is the academic year ending 31 December. Half-year information is used to incorporate TEI information into the financial statements. All other associates have a 30 June balance date.
Summarised financial information in respect of TEIs is set out below:
| Forecast | Actual | |||
|---|---|---|---|---|
|
Original Budget $m |
Estimated Actuals $m |
30 June 2010 $m |
30 June 2009 $m |
|
Operating Results |
||||
| 2,246 | 2,200 | Revenue from Crown |
2,232 | 2,068 |
| 2,018 | 1,977 | Other revenue | 1,968 | 1,913 |
| (4,011) | (4,126) | Expenses | (3,992) | (3,932) |
| 253 | 51 | Net surplus | 208 | 49 |
Net worth |
||||
Assets |
||||
| 766 | 1,127 | Financial assets | 707 | 1,127 |
| 7,603 | 7,377 | Property, plant and equipment | 7,638 | 7,290 |
| 692 | 477 | Other assets | 1,013 | 476 |
| 9,061 | 8,981 | Total assets | 9,358 | 8,893 |
Liabilities |
||||
| 176 | 174 | Borrowings | 189 | 174 |
| 1,173 | 1,302 | Other liabilities | 1,429 | 1,302 |
| 1,349 | 1,476 | Total liabilities | 1,618 | 1,476 |
| 7,712 | 7,505 | Net worth | 7,740 | 7,417 |
