Australian Securities and Investments Commission
Section 1: Agency overview and resources	31
1.1	Strategic direction	31
1.2	Agency resource statement	32
1.3	Agency measures table	33
1.4	Additional estimates and variations	34
1.5	Breakdown of additional estimates by Appropriation Bill	35
Section 2: Revisions to agency outcomes and planned performance	36
2.1	Resources and performance information	36
Section 3: Explanatory tables and budgeted financial statements	40
3.1	Explanatory tables	40
3.2	Budgeted financial statements	41

Australian Securities and Investments Commission
Section 1: Agency overview and resources
1.1	Strategic direction
There has been no significant change to the strategic direction of the Australian Securities and Investments Commission (ASIC) from that outlined in the Portfolio Budget Statements 2010-11 (pages 153-154).
ASIC is seeking an additional $2 million in appropriations though Appropriation Bill (No. 3) 2010-11 for the helping our kids understand finances measure. Details of this measure appear on page 209 of the Mid‑Year Economic and Fiscal Outlook 2010-11.

1.2	Agency resource statement
Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and departmental classification.
Table 1.1: Australian Securities and Investments Commission resource statement — additional estimates for 2010-11 as at Additional Estimates February 2011

Table 1.1: Australian Securities and Investments Commission resource statement — additional estimates for 2010-11 as at Additional Estimates February 2011 (continued)

1    Appropriation Bill (No. 3) 2010-11.

1.3	Agency measures table
Table 1.2 summarises new Government measures taken since the 2010-11 Budget.
Table 1.2: Agency measures since Budget

Note:	Only measures included in the Mid-Year Economic and Fiscal Outlook or that impact on Appropriation Bills No. 3 and No. 4 are included.

1.4	Additional estimates and variations
Table 1.3 details the additional estimates resulting from new measures since the 2010‑11 Budget.
Table 1.3: Additional estimates and variations to outcomes from measures since the 2010-11 Budget

Table 1.4: Additional estimates and variations to outcomes from other variations
ASIC does not have any other variations since the 2010-11 Budget that affect additional estimates.

1.5	Breakdown of additional estimates by Appropriation Bill
The following table details the additional estimates sought for ASIC through Appropriation Bill No. 3.  ASIC is not seeking funding through Appropriation Bill No. 4.
Table 1.5: Appropriation Bill (No. 3) 2010-11

Section 2: Revisions to agency outcomes and planned performance
2.1	Resources and performance information
There has been no change to outcomes or the outcome strategies for ASIC from that included in the Portfolio Budget Statements 2010-11 (pages 157 and 162).
Outcome 1
Outcome 1 Strategy
There has been no change to the outcome strategy for Outcome 1 from that included in the Portfolio Budget Statements 2010-11.
Table 2.1: Budgeted expenses and resources for Outcome 1

Program 1.1: Research, policy, compliance, education and information initiatives
There has been no change to the program objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2010-11.
Table 2.2: Program 1.1 expenses

Program 1.2: Enforcement / deterrence
There has been no change to the program objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2010‑11.
Table 2.3: Program 1.2 expenses

Outcome 2
Outcome 2 Strategy
There has been no change to the outcome strategy for Outcome 2 from that included in the Portfolio Budget Statements 2010-11.
Table 2.4: Budgeted expenses and resources for Outcome 2

Program 2.1: Legal infrastructure for companies and financial services providers
There has been no change to the program objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2010-11.
Table 2.5: Program 2.1 expenses

Program 2.2: Banking Act and Life Insurance Act, unclaimed moneys and special accounts
There has been no change to the program objective, expenses, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2010-11.

Section 3: Explanatory tables and budgeted financial statements
3.1	Explanatory tables
3.1.1	Estimates of special account flows
Special accounts provide a means to set aside and record amounts used for specific purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by ASIC.
Table 3.1.1: Estimates of special account flows

(A) Administered.
(D) Departmental.

3.2	Budgeted financial statements
3.2.1	Analysis of budgeted financial statements
Budgeted departmental Comprehensive income statement
ASIC is currently budgeting for a break‑even operating result for 2010-11 and for the remainder of the forward estimates.
Total expenses are estimated to be $396.4 million for 2010‑11. The expenditure will be used to fund activities that contribute towards achieving the outcome and program objectives outlined in Section 2.
Budgeted departmental balance sheet
This statement shows the financial position of ASIC. It helps decision makers to track the management of ASIC’s assets and liabilities.
ASIC’s budgeted equity (or net asset position) for 2010‑11 is $131.7 million.
The 2010‑11 equity position reflects the cumulative effect of capital injections of $56.9 million received during 2010‑11.
Budgeted departmental statement of cash flows
The budgeted statement of cash flows provides important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.
Departmental statement of changes in equity — summary of movement
This statement shows the changes in the equity position of ASIC. It helps decision‑makers to track the management of ASIC’s equity.
Departmental capital budget statement
This statement shows details of capital appropriations received by ASIC. It helps decision‑makers to track the acquisition of new non‑financial assets.
Statement of Asset Movements — Departmental
This statement shows details of gross asset movements during the year. It helps decision‑makers to analyse movements of non‑financial assets.
Schedule of administered activity
Schedule of budgeted income and expenses administered on behalf of government
The schedule of budgeted income and expenses administered on behalf of government shows the revenue and expenses associated with the collection of revenue under the Corporations Act 2001 and ASIC’s responsibilities in administering unclaimed moneys under the Banking Act 1959 and the Life Insurance Act 1995.
Other non‑taxation revenue represents the amount of fees and charges budgeted to be levied under the Corporations Act 2001 and estimated receipts of unclaimed moneys under the Banking Act 1959 and the Life Insurance Act 1995.
Expenses represent budgeted payments of unclaimed moneys, refund of overpaid fees and charges levied under the Corporations Act 2001, bad debt expense and payments to registered insolvency practitioners to investigate breaches of directors’ duties and fraudulent conduct.
Schedule of budgeted assets and liabilities administered on behalf of government
The amount shown for receivables in 2010-11 and in the forward estimates is the estimated amount of fees and charges under the Corporations Act 2001 remaining unpaid at 30 June.
The amounts shown in other payables for 2010-11 and the forward estimates represent the estimated amount of refunds relating to the over payments of annual review and other fees under the Corporations Act 2001.
Schedule of budgeted administered cash flows
Budgeted administered cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.
3.2.2	Budgeted financial statements
Departmental financial statements
Table 3.2.1: Budgeted departmental comprehensive income statement
(for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity — summary of movement (budget year 2010-11)

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements — Departmental

Prepared on Australian Accounting Standards basis.

Schedule of administered activity
Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Notes to the financial statements
Basis of accounting
The budgeted financial statements have been prepared on an Australian Accounting Standards basis.
Budgeted agency financial statements
Under the Australian Government’s accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that agencies control (departmental transactions) are separately budgeted for and reported on from transactions that agencies do not have control over (administered transactions). This ensures that agencies are only held fully accountable for the transactions over which they have control.
Departmental items are those assets, liabilities, revenues and expenses in relation to an agency or authority that are controlled by the agency. Departmental expenses include employee and supplier expenses and other administrative costs, which are incurred by the agency in providing its goods and services.
Administered items are revenues, expenses, assets and liabilities that are managed by an agency or authority on behalf of the Australian Government according to set government directions. Administered expenses and administered revenues include fees, fines and expenses that have been earmarked for a specific purpose by the government.
Appropriations in the accrual budgeting framework
Under the Australian Government’s accrual budgeting framework, separate annual appropriations are provided for:
•	departmental appropriations representing the Australian Government’s purchase of programs from agencies;
•	departmental capital appropriations for investments by the Australian Government for either additional equity or loans in agencies;
•	administered expense appropriations for the estimated administered expenses relating to an existing outcome or a new outcome; and
•	administered capital appropriations for increases in administered equity through funding non‑expense administered payments.
Departmental
Asset valuation
ASIC has adopted fair value as a basis for valuing its leasehold improvements and plant and equipment. Valuation is conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets fair values as at the reporting date.
Asset recognition threshold
Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition.
Leases
A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non‑current assets, and operating leases under which the lessor effectively retains substantially all such risks and benefits.
Where a non‑current asset is acquired by means of a finance lease, the asset is capitalised at the lower of fair value or the present value of minimum lease payments at the inception of the lease and a liability recognised for the same amount. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.
Operating lease payments are charged to the income statement on a basis that is representative of the pattern of benefits derived from the lease assets.
Depreciation and amortisation
Computer equipment is depreciated using the declining‑balance method whilst, for all other plant and equipment, the straight‑line method of depreciation is applied. Leasehold improvements are amortised on a straight‑line basis over the lesser of the estimated life of the improvements or the unexpired period of the lease.
Depreciation/amortisation rates (useful lives) are reviewed at each balance date and necessary adjustments are recognised.
Receivables
A provision is raised for any doubtful debts based on a review of the collectability of all outstanding accounts as at year‑end.
Bad debts are written off during the year in which they are identified. 
Provisions and payables
Provisions and payables represent liabilities for miscellaneous accruals and employee benefits, including accrued salary and leave entitlements, provisions for making‑good leased premises and lease incentives. No provision for sick leave is required as all sick leave is non‑vesting.
Administered
Schedule of budgeted revenues and expenses administered on behalf of government
Revenues
Non‑taxation revenues are predominately comprised of Corporations Act 2001 fees and charges and collections of unclaimed moneys under the Banking Act 1959 and the Life Insurance Act 1995.
Write down and impairment of assets
Write down and impairment of assets represents waivers and write‑offs of corporations law fees.
Schedule of budgeted assets and liabilities administered on behalf of government
Financial assets
The financial assets include corporations law debt invoiced and still outstanding at year‑end.
Schedule of budgeted administered cash flows
All cash collected by ASIC for corporations law revenue, is transferred to the Official Public Account (OPA) at the close of business each day. Cash collected for Banking Act 1959 unclaimed moneys and Life Insurance Act 1995 unclaimed moneys is transferred to the OPA when received.