Territory Stories

Annual Report 2015 Motor Accidents (Compensation) Commission (MACC)

Details:

Title

Annual Report 2015 Motor Accidents (Compensation) Commission (MACC)

Other title

Tabled paper 1556

Collection

Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT

Date

2015-11-19

Description

Deemed

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Details/C2019C01622

Parent handle

https://hdl.handle.net/10070/273151

Citation address

https://hdl.handle.net/10070/799706

Page content

Northern Territory Motor Accidents (Compensation) Commission Annual Report 2015 Notes to the Financial Statements - 30 June 2015 Page 28 Motor Accidents (Compensation) Commission Notes to the Financial Statements 30 June 2015 Motor Accidents (Compensation) Commission Annual Report 2014/2015 15 All purchases and sales of financial assets that require delivery of the asset within the time frame established by regulation or market convention (regular way transactions) are recognised on the date of settlement, being the date the asset is delivered to or by MACC. In cases where the period between trade and settlement exceeds this time frame, the transaction is also recognised at settlement date. Financial assets are derecognised when the rights to receive future cash flows from the assets have expired, or have been transferred, and MACC has transferred substantially all the risks and rewards of ownership or control of the asset. Finance revenue, comprising trust distributions and interest, is brought to account on an accruals basis. Revenue on investments in unlisted unit trusts is deemed to accrue on the date the distributions are declared. Investment property During the year the Freehold Land and Building at 24 Mitchell Street was reclassified from Property Plant and Equipment to Investment Property. The transfer of TIO Insurance and Banking businesses to owners and its subsequent sale changed the status of the property as at 1 January 2015. The property is valued using the fair value as the date of the revaluation less any impairment losses. A valuation is conducted annually and is based on an external property valuation report. Any change in the valuation is accounted for through the profit and loss. h)! Fire service levy and other charges - TIO Insurance & Banking A liability for fire service levy and other charges is recognised on certain business written to the reporting date. Levies and charges payable are expensed on the same basis as the recognition of premium revenue, with the portion relating to unearned premium being recorded as an asset. i)! Taxes Income tax For the period 1 July to 31 December 2014, TIO Insurance and Banking businesses are assessable for income tax by the Australian Taxation Office under the National Tax Equivalent Regime (NTER). Under this arrangement, TIO Insurance and Banking businesses are required to be assessed in accordance with the Income Tax Assessment Act (as amended). TIO Insurance and Banking businesses elected under S148 (2) of the Income Tax Assessment Act, to have allowed as a deduction reinsurance payments to non-resident reinsurers. TIO Insurance & Banking: The income tax expense or revenue for the period is the tax payable on the current periods taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and unused tax losses. Motor Accidents (Compensation) Commission Notes to the Financial Statements 30 June 2015 Motor Accidents (Compensation) Commission Annual Report 2014/2015 14 Deferred acquisition costs are amortised in accordance with the expected pattern of the incidence of risk under the general insurance contracts to which they relate. This pattern of amortisation corresponds to the earning pattern of the corresponding premium revenue. Liability Adequacy Test Refer to Note 2 (b) g)! Assets backing insurance liabilities MACC actively manages its investment portfolio to ensure that investments mature in accordance with the expected pattern of future cash flows arising from insurance liabilities. MACC undertook a process of identifying and matching all assets which arise from the issuing of insurance contracts. This review determined that the following assets are held to back insurance liabilities. These assets comprise: Receivables: Premium receivables, reinsurance and other recoveries. Financial Assets: Investment assets, cash and cash equivalents and overdrafts. All assets backing insurance liabilities that are owned by TIO Insurance and Banking businesses were transferred to owners effective 1 January 2015. Receivables Refer to note 2.3(e) Financial Assets Investment assets held to back insurance liabilities, have been categorised as at fair value through profit and loss. Initial recognition is at fair value in the Statement of Financial Position and subsequent measurement is at fair value with any resultant gains or losses recognised in the Statement of Profit or Loss and Other Comprehensive Income. Details of fair value for financial assets are listed below: Financial asset Details of how fair value is determined. Listed fixed interest securities, units in listed unit trusts and Government securities. Initially recognised at cost and the subsequent fair value is taken as the quoted bid price of the instrument at the reporting date. Unlisted fixed interest securities. Initially recognised at cost and the subsequent fair value is measured based on valuations using rates of interest equivalent to the yields obtainable on comparable investments at the reporting date. Units in unlisted unit trusts. Initially recognised at cost and the subsequent fair value is measured at fund managers valuation at the reporting date. Cash assets and bank overdrafts. Initially recognised at cost and the subsequent fair value is measured at face value of the amounts deposited or drawn.


Aboriginal and Torres Strait Islander people are advised that this website may contain the names, voices and images of people who have died, as well as other culturally sensitive content. Please be aware that some collection items may use outdated phrases or words which reflect the attitude of the creator at the time, and are now considered offensive.

We use temporary cookies on this site to provide functionality.
By continuing to use this site without changing your settings, you consent to our use of cookies.