2007 – 2008

Annual Report

Minister for Sport and Recreation

Hon Terry Waldron MLA Minister for Sport and Recreation

In accordance with Section 61 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament the annual report for the Professional Combat Sports Commission for the period 1 July 2007 to 30 June 2008.

The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006.

Simon Watters Colin Brown Chairman Member 17 September 2008 17 September 2008

Professional Combat Sports Commission 246 Vincent Street Leederville WA 6903

Contents

Summary of Highlights ...... 1

Corporate Overview ...... 4

Responsible Minister ...... 4 Commissioners...... 4 Mission...... 5 Objectives of the Commission...... 5 Vision...... 5 How the Commission Operates ...... 5 Enabling Legislation ...... 5 Legislation Impacting on the Activities of the Commission ...... 6

Chairman’s Report...... 7

Meeting the Government’s Strategic Outcomes ...... 9

Corporate Legislation and Compliance...... 10

Major Partners of the Commission...... 10

Certification of Performance Indicators for the year ended 30 June 2008………….…..10

Performance Indicators...... 12

Service 1...... 12 Desired Outcome ...... 12 Effectiveness Indicators...... 12 Service 2...... 13 Efficiency Indicator ...... 13

Financial Statements for year ended 30 June 2008 ...... 14

Summary of Highlights

1. Professional Combat Sports Amendment Bill 2008 The review of the Professional Combat Sports Act 1987 has been ongoing over the past two years. The need to initiate legislative changes through parliamentary processes was identified and has progressed significantly. Cabinet approved Parliamentary Counsel to commence drafting of amendments to the Professional Combat Sports Act 1987 to reflect concerns mentioned within the Cabinet Minute on 25 November 2007. The key amendments are:

• Interpretation of a contest to encompass contests promoting paid public attendance but lacking a recognised state regulatory body. • Inclusion of a rule approval process relative to the conduct of contests, given the evolving nature of combat sports.

The commission has consistently communicated with the Parliamentary Counsel’s Office and have largely endorsed the third draft of the Professional Combat Sports Amendment Bill 2008. The Bill will be finalised this year and continue through relevant parliamentary and government processes.

2. Combat Sports Working Group Report and Recommendations

The Combat Sports Working Group Report was completed in June 2007. Recommendations within the report are provided to enhance combat sports, specifically the safety and well-being of participants, focusing on four specific areas:

1. Formation of an amateur representative body or legislation. 2. Developing, endorsing and gazetting combat sports rules. 3. Risk management at fight promotions. 4. Provision of training opportunities for industry participants.

The report and some of the key recommendations have been promoted to the industry. Relevant outcomes to the report and recommendations to date have included: • Development and provision of a combat sport event risk management checklist. • Provision of theoretical and practical training/competency opportunities for ring officials. • Development/refinement of combat sport rules for and muay thai in addition to draft rules for mixed martial arts. • Commencement of significant legislative amendments via the Professional Combat Sports Amendment Bill 2008.

3. Officials Registration, Training and Recognition

Following on from the introduction of ring officials seminars and competency tests for the ‘07/’08 period, the commission is continuing training opportunities on an annual basis. The commission will be conducting ring official workshops for both boxing and Muay Thai in July 2008.

Page 1 The workshops coincide with the commission registration period and will be compulsory for judges, referees and timekeepers to attend. It is important for training opportunities to be provided to ring officials. The workshops will be a component of registration as the commission strives for greater consistency in the competency, integrity and duty of care responsibilities of officials.

In addition, acknowledging the importance of ring officials the commission has developed a “Minimum Fee Schedule for Appointed Officials.” The schedule is recommended as the commission is unable to enforce fees. The schedule has been promoted to registered promoters and officials for consideration. The commission hopes that the schedule will be a useful tool in negotiations between promoters and appointed officials. Given the time, expertise and commitment provide by ring officials, it is a reasonable expectation that some recognition and reward is provided.

4. Mixed Martial Arts

Mixed martial arts are a combat sport under the parameters of the Professional Combat Sports Act 1987. The commission received an enquiry in July 2007 to conduct professional mixed martial arts contests within a fight promotion. The fight promotion marketed as “King of the Cage” was proposed for October 2007.

In considering the first promotion permit application relative to martial arts, the commission exercised due diligence. The Commission advised the promoter that a range of terms and conditions relative to credentials of ring officials, rules, references, engineering specifications, insurance and other requirements would need to be met to the commission’s satisfaction.

Unfortunately, promotion of the “King of the Cage” event was underway prior to an official decision by the commission. Given the unique and perceived gladiatorial nature of the event, a diverse range of negative and positive discussions resulted within the media, parliament and the broader public. Despite this, the commission reviewed the application on its merits and that of the imposed terms and conditions. The commission sanctioned the event and it proceeded without incident.

The popularity of mixed martial arts continues locally and throughout the world. The healthy community debate regarding the “King of the Cage” has provided a further catalyst to expedite legislative change. It should also assist in instigating participants of combat sports and the commission to engage further.

5. (WBA) Light Heavyweight Championship

Sunday 16 December 2008, Perth was fortunate enough to host the WBA Light Heavyweight Championship title fight. Western Australia’s defeated Croatian title holder Stipe Drews to claim the world crown that he yearned.

On 24 March 2008, Danny Green announced his retirement after a decorated 16 year career in amateur and professional boxing ranks.

Page 2 6. Commission Operations - Policy and Procedures Manual

As a means to enhance clarity on the role of the commission and officer, a draft policy and procedures manual has been developed. The manual will be an ongoing ‘working’ document of policies and procedures and reference relevant documents such as commission applications and conditions. The document will be integral in ensuring the commission is prepared for the succession of commissioners and officers in the future.

The Commission acknowledges the need to review administrative documentation to complement the manual and prepare for legislative change. Conditions relative to matchmaking, permit authorisation, medical requirements, risk management and other issues will continue to need attention.

7. Professional Fight Promotions in Western Australia

Sixteen fight promotion permit applications were received by the commission, 15 of which were conducted in Western Australia during 2007-08. The one exception was the cancellation of the Green Machine fight promotion due to the retirement of Danny Green. A significant growth is evident when comparing to the ten fight promotions conducted in 2006/07. Ten of the fight promotions were boxing related, four Muay Thai and the other mixed martial arts.

A professional boxing promotion was taken to Kalgoorlie. The promoter is to be commended for successfully conducting a promotion in regional Western Australia which might lead to future regional promotions.

Page 3 Corporate Overview The Professional Combat Sports Commission is committed to developing a safe professional combat sports industry in Western Australia that is easily accessible, encourages maximum participation and develops talent.

Responsible Minister The Professional Combat Sports Commission reports to the Hon John Kobelke MLA in his capacity as Minister for Sport and Recreation.

Commissioners Detective InspectorTom Clay and Detective Inspector Pryce Scanlan acted as the Commissioner of Police nominee for a large proportion of the year until formally replaced by Detective Inspector Steve George in April 2007.

Mr Simon Watters Chairman Dr Richard Choong Nominee of the Australian Medical Association to 31 October 2007 Dr Parbodh Gogna Nominee of the Australian Medical Association from 1 November 2007 Detective Inspector Tom Clay Nominee of the Commissioner of Police to 30 September 2007 Detective Inspector Pryce Scanlan Nominee of the Commissioner of Police from 3 April 2008 Detective Inspector Steve George Nominee of the Commissioner of Police from 4 April 2008 Mr Colin Brown Nominee of the Director General of the Department of Sport and Recreation Ms Margaret Sherlock Representative of persons who are or who have been registered as contestants in a class other than a class relevant to boxing Ms Annette Backshall Representative of persons who are or who have been registered as contestants in a class relevant to boxing Mr Kevin Junior A person with knowledge of the industry relating to combat sports other than boxing Mr John (Bill) Fanderlinden A person with knowledge of the boxing industry

Page 4

Mission The mission of the Professional Combat Sports Commission is to improve all aspects of safety and organisation of professional combat sports in Western Australia.

Objectives of the Commission are to: ! Develop guidelines for proper standards in professional combat sports; ! Establish standards for the training of persons involved in professional combat sports; ! Provide protection for all those involved in professional combat sports; ! Ensure the physical safety of professional contestants; and ! Advise the Minister for Sport and Recreation on professional combat sport matters.

Vision The vision of the commission is continued improvement in the monitoring of the health and safety of professional contestants and officials at contests through:

! Detection of diseases passed on by contact with body fluids; ! Presence of required medical equipment and staff at contests; ! Pre and post medical examinations; ! Protection of professional contestants and officials through stringent medical requirements for registration; ! Requiring serology and general medical certificates; ! Improvement in the efficiency and administration of professional combat sports promotions; and ! Appropriateness of venues.

How the Commission Operates ! Provision of statewide leadership and coordination to the professional combat sports industry; ! Establishes partnerships within the industry, across government and with other stakeholders; ! Involves clients in all aspects of service planning and delivery; and ! Provision of consultancy services to individuals and organisations delivering professional combat sports.

Enabling Legislation The Professional Combat Sports Commission is established as a statutory authority under Section 4 of the Professional Combat Sports Act 1987.

Page 5 Legislation Impacting on the Activities of the Commission In performance of its functions the Professional Combat Sports Commission complies with the following legislation: ! Equal Opportunity Act 1984 ! Disability Services Act 1993 ! Financial Management Act 2006 ! Salaries and Allowances Act 1975 ! State Supply Commission Act 1991 ! State Records Act 2000. ! Freedom of Information Act 1992 ! Government Employees Superannuation Act 1987 ! Occupational Health and Safety Act 1984 ! Workers’ Compensation and Rehabilitation Act 1981 (as amended Workers’ Compensation and Rehabilitation Amendment Act 1993). ! Public Interest Disclosure Act 2003

Page 6

Chairman’s Report

The professional combat sports industry in Western Australia is growing, evidenced by the number of promotions increasing from ten in 2006/07 to fifteen in 2007/08. The trend in the types of fight promotions over the past three financial years has changed from being predominantly Muay Thai in the initial year to boxing over the past two years. The first commission sanctioned mixed martial arts contests were also conducted in October 2007 with the “King of the cage” event being held at the Perth Convention Centre. In accordance with legislation and imposed conditions, Commissioners and the Executive Officer attended all fight promotions in Western Australia involving professional combat sport contests. Attendance involved supervision of the official weigh-in and the ensuing professional contests of fight promotions. The Commission, under the parameters of the Professional Combat Sports Act 1987, continues to ensure that the professional contests comply with the legislation. Concerns raised by the public, government and commission in relation to amateur contests have resulted in a thorough review of the Professional Combat Sports Act 1987. The commission is now pleased that the extensive consultation process over the past two years, is now close to fruition and legislative change. The Professional Combat Sports Amendment Bill 2008 has progressed through multiple drafts and will be finalised this year. The commission looks forward to the Bill being expedited through parliament and the ensuing changes to the accompanying Professional Combat Sports Regulations 2004. Significant amendments within the Bill will enhance safety and control measures of combat sports. Key amendments include: • Interpretation of a “contest” to include contests in which paid public attendance is actively promoted, ensuring all contests (formerly professional only) will be encompassed by the legislation. Exemptions will apply to recognised self-regulating amateur bodies. • Combat sport rules approval process. This will ensure the Minister and Commission have a clearly defined function in regulating the rules. The rules approval process has become more relevant in light of the controversial “King of the Cage” mixed martial arts event that was conducted. This event resulted in positive and negative debate within the community. The decision to sanction the event was not taken lightly. The commission endeavoured to be thorough and objective in making the decision but not surprisingly, received negative feedback from the community. A positive is that the event has brought the need for the progression of the Professional Combat Sports Amendment Bill 2008 to the fore. Complementing the progression of the Professional Combat Sports Amendment Bill 2008 is the promotion of the Combat Sports Working Group Report and its recommendations. Participants of relevant combat sports are now becoming better informed of the direction of legislative change and strategies relative to risk management and training.

Another priority for the commission has been to continue the provision of officials training opportunities as a component of registration processes. Following on from

Page 7 the engagement of international and interstate expertise in 2007, the commission has appointed local officials in 2008 to conduct ringside officials workshops in boxing and Muay Thai. Competency and duty of care are integral components of officiating combat sports and the commission is striving to enhance officials through these training means. Two workshops have been approved by the commission and will be conducted in July by Mr Gary Ingraham and Mr Dean Woodhams. In March 2008, the commission was shocked to hear of the retirement of our own, Danny Green. Danny has had an outstanding professional and amateur boxing career over many years. The commission has been appreciative of the professionalism of his promotional team, Green Machine Promotions and the excitement he has brought to WA boxing. The commission was very proud like many local boxing and sports followers when he claimed the WBA light-heavyweight title at Challenge Stadium in December 2007. We wish Danny and his family the very best for the future. Danny Green has had a positive impact on local boxing and it will be interesting to see the impact that his retirement might have. It comes at a time when the number of boxing promotions has peaked over the past twelve months. Hopefully the next wave of local boxers coming through will continue to have opportunities to progress and maximise their careers. The growth in boxing promotions has not been detrimental to Muay Thai which continues to be popular amongst spectators and well conducted by promoters. The commission’s main function is to ensure “legislation compliance” and in doing so, maximise the safety and well being of participants. Whilst working within these parameters the commission will continue to be proactive in areas such as ring officials training, safety and risk management. The Professional Combat Sports Amendment Bill 2008 will have a significant impact on the combat sports sector and its participants. The commission is hopeful that it will be a positive impact and encourage likeminded participants to work together and support the commission in the regulation of their sports. Participant safety is a priority, as it should be across all sports.

Simon Watters Barrister-at-Law Chairman

Page 8 Meeting the Government’s Strategic Outcomes The Professional Combat Sports Commission’s strategic intent is to ensure its alignment with strategic outcomes identified in the Government’s Strategic Planning Framework – Better Planning: Better Services document.

Specific contributions are detailed in the following table.

Goal Commission Contribution to Strategic Outcomes People and ! Monitoring the health and safety of professional Communities contestants and officials at contests. ! Development of guidelines for proper standards in professional combat sports. ! Creating a professional sport industry that is safe for youth 18 to 25 years of age. ! Encouraging promoters of professional combat sports events to provide a family friendly activity. ! Improved access to promotions by people with disabilities. ! Supporting the initiatives of the Department of Sport and Recreation on People and Communities. The Economy ! Assisting promoters to conduct events involving interstate and international contestants and officials. ! Supporting the initiatives of the Department of Sport and Recreation on the economy. The Environment ! Supporting the initiatives of the Department of Sport and Recreation on the environment. The Regions ! Encouraging people in regions to participate in professional combat sports as officials. ! Supporting the initiatives of the Department of Sport and Recreation on regions. Governance ! Sound financial management, including unqualified audited financial statements. ! Supporting the initiatives of the Department of Sport and Recreation on Governance.

Page 9 Corporate Legislation and Compliance ! No Freedom of Information applications were received. ! Publications produced by the commission available to the public are the: o Professional Combat Sports Act 1987 o Professional Combat Sports Act Regulations 1990 o Professional Combat Sports Amendment Act 2004 o Western Australian Professional Combat Sports Handbook o Annual Report 2004-2005 ! A ministerial directive was provided to review and consider changes to the Professional Combat Sports Act 1987. ! The commission has discretion to charge for rendered services and goods subject to ministerial approval. ! In compliance with Principle 6 of the State Records Act 2000 the Professional Combat Sports Commission is required to report on its compliance with the Act. The Professional Combat Sports Commission has a Recordkeeping Plan approved by the State Records Advisory Committee (SRAC). ! As part of the requirements for the recordkeeping plan the Department of Sport and Recreation conducts record keeping training for staff. Each induction program addresses the roles and responsibilities of the employees in regard to compliance with the Recordkeeping Plan. ! In compliance with section 175ZE of the Electoral Act 1907, the Professional Combat Sports Commission is required to report on its compliance with the Act. The Professional Combat Sports Commission report on expenditure with: Advertising Agencies $0 Market Research Agencies $0 Polling Agencies $0 Direct Mail Agencies $0 Media Advertising Agencies $0 TOTAL EXPENDITURE $0

Major Partners of the Commission ! Peak industry organisations ! Sport and recreation service agencies, e.g. medical practitioners ! State departments, e.g. Sport and Recreation and Police ! Boxing and combat sport authorities in New South Wales, Victoria and South Australia ! Non-government organisations, e.g. Australian Medical Association WA Branch

Page 10 CERTIFICATION OF PERFORMANCE INDICATORS

FOR THE YEAR ENDED 30 JUNE 2008

We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Professional Combat Sports Commission's performance, and fairly represent the performance of the Professional Combat Sports Commission for the financial year ended 30 June 2008.

Chairman Member Simon Watters Colin Brown Date:17 September 2008 Date:17 September 2008

Page 11

Performance Indicators For each service, agencies are required to report measures of quantity, quality, timeliness and cost.

Consistent with this, the commission identified two services as a framework for external reporting.

Service 1 Desired Outcome Ensuring that professional contestants and officials taking part in professional contests can do so with reasonable confidence that the risks of contracting diseases from bodily fluids are minimal and that their contract with the promoter will be fulfilled.

Effectiveness Indicators

Percentage of registered professional combat sports contestants with a positive serology test.

Period Percentage of Positive Serology Tests 2006/07 0% 2005/06 0% 2004/05 0% 2003/04 0%

Percentage of instances of non-compliance with the Professional Combat Sports Act 1987 and its Regulations.

Period Percentage of Non-compliance 2007/08 7% 2006/07 0% 2005/06 10% 2004/05 17%

Page 12 Service 2 Efficiency Indicator The cost of issuing a permit for a contest registered by the Commission.

This measure is calculated by:

Total Operating Cost Number of Registered Promotions

Costs 2007/08 2006/07 2005/06 2004/05 $ $ $ $ Chairman’s fee 6,850 4,500 6,000 6,878

Commissioner fees and 16,530 14,629 17,837 7,513 allowances Commissioner 2,024 1,565 1,950 1,174 superannuation Operating costs 123,435 37,403 61,170 47,567

Total 148,639 58,097 86,957 63,132

Number of 15 10 10 6 Promotions Cost of issuing a 9,909 5,810 8,696 10,522 permit

The significant increase in costs of issuing permits arose as a result of changes to how the Department of Sport and Recreation charged for service costs which offset the efficiency gains as a result of more promotions being held. The increase in operating expenditure was offset by an increase in funding provided through the Sports Lotteries Grant.

Page 13 PROFESSIONAL COMBAT SPORTS COMMISSION

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008

Page 14 CERTIFICATION OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008

The accompanying financial statements of the Professional Combat Sports Commission have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the financial year ended 30 June 2008 and the financial position as at 30 June 2008.

At the date of signing we are not aware of any circumstances which would render any particulars included in the financial statements misleading or inaccurate.

Chief Financial Officer Member David Parrick Colin Brown Date:17 September 2008 Date:17 September 2008

Chairman Simon Watters Date:17 September 2008

Page 15 PROFESSIONAL COMBAT SPORTS COMMISSION INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2008

Note 2008 2007

$$

COST OF SERVICES

Expenses Members' remuneration 3 25,404 20,694 Supplies and services 4 122,205 35,144 Depreciation expense 5 1,030 2,259 Other expenses 6 - -

Total cost of services 148,639 58,097

Income Revenue

User charges and fees 7 3,790 2,688

Total revenue 3,790 2,688

Total income other than income from State Government 3,790 2,688

NET COST OF SERVICES 144,849 55,410

INCOME FROM STATE GOVERNMENT Grants 8 125,500 51,000 Resources received free of charge 8 - -

Total income from State Government 125,500 51,000

DEFICIT FOR THE PERIOD (19,349) (4,410)

The Income Statement should be read in conjunction with the accompanying notes.

Page 16 PROFESSIONAL COMBAT SPORTS COMMISSION BALANCE SHEET AS AT 30 JUNE 2008

Note 2008 2007 $$

ASSETS Current Assets Cash and cash equivalents 14 (a) 10,245 19,826 Receivables 9 - -

Total Current Assets 10,245 19,826

Non-Current Assets Property, plant and equipment 10 3,680 4,710

Total Non-Current Assets 3,680 4,710

TOTAL ASSETS 13,926 24,536

LIABILITIES Current Liabilities Payables 12 14,590 5,852

Total Current Liabilities 14,590 5,852

Total Liabilities 14,590 5,852

NET ASSETS (665) 18,684

EQUITY Accumulated surplus 13 (665) 18,684

Total Equity (665) 18,684

TOTAL EQUITY (665) 18,684

The Balance Sheet should be read in conjunction with the accompanying notes.

Page 17 PROFESSIONAL COMBAT SPORTS COMMISSION CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2008

Note 2008 2007 $$

CASH FLOWS FROM STATE GOVERNMENT Grants 125,500 51,000

Net cash provided by State Government 125,500 51,000

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES

Payments Members' sitting fees (25,404) (21,781) Supplies and services (113,467) (32,606)

Receipts User charges and fees 3,790 2,688 Net cash used in operating activities 14 (b) (135,081) (51,699)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of non-current physical assets - -

Net cash used in investing activities - -

Net (decrease) in cash and cash equivalents (9,581) (699)

Cash and cash equivalents at the beginning of period 14 (a) 19,826 20,525

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 14 (a) 10,245 19,826

The Cash Flow Statement should be read in conjunction with the accompanying notes.

Page 18 PROFESSIONAL COMBAT SPORTS COMMISSION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008

1 Australian equivalents to International Financial Reporting Standards

General

The Commission’s financial statements for the year ended 30 June 2008 have been prepared in accordance with Australian equivalents to international Financial Reporting Standards (AIFRS), which comprise a Framework for the Preparation and Presentation of Financial Statements the Framework) and Australian Accounting Standards (including the Australian Accounting Interpretations).

In preparing these financial statements the Commission has adopted, where relevant to its operations, new and revised Standards and interpretations from their operative dates as issued by the AASB and formerly the Urgent Issues Group (UIG).

2 Summary of significant accounting policies

General Statement

The financial statements constitute a general purpose financial report which has been prepared in accordance with Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board. Several of these are modified by the Treasurer's Instructions to vary application, disclosure, format and wording.

The Financial Management Act and the Treasurer’s Instructions are legislative provisions governing the preparation of financial statements and take precedence over the Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board.

Where modification is required and has a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements.

Basis of Preparation

The financial statements have been prepared on the accrual basis of accounting using the historical cost convention.

The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated.

(a) Income

Grants Revenue

Revenue is recognised at fair value when the Commission obtains control over the assets comprising the contributions, or when the grant has been approved by the Commission of Sport and Recreation.

Registrations and Permits

Revenue from registrations and permits is recognised when the Commission receives the appropriate fee.

(b) Property, Plant and Equipment Items of property, plant and equipment costing more than $1,000 are recognised on assets and the cost of utilising assets is expensed (depreciated) over their useful lives.

Items of property, plant and equipment costing less than $1,000 are immediately expensed direct to the Income Statement (other than when they form part of a group of similar items which are significant in total).

All items of property, plant and equipment and infrastructure are initially recognised at cost.

For items of property, plant and equipment acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

(c) Depreciation of non-current assets

All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner which reflects the consumption of their future economic benefits.

Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are:

Page 19 PROFESSIONAL COMBAT SPORTS COMMISSION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008

Plant and Equipment 3 - 5 years Computer Hardware 3 years

2 Significant accounting policies (continued)

(d) Impairment of Assets

Property, plant and equipment, infrastructure and intangible assets are tested for any indication of impairment at each reporting date. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. As the Commission is a not for profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated or where the replacement cost is falling. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or e