Concise Consolidated Statement of Changes in Equity

For the year ended 30 June 2007

	2007 $m	2006 $m
Total equity at the beginning of the year	43.1	38.1
Profit for the year	33.8	43.6
Adjustment on first-time adoption of AASB 139	-	(27.6)
Total income and expense for the year	33.8	16.0
Less Dividends payable	(33.8)	(11.0)
Total equity at the end of the year	43.1	43.1

 

The accompanying discussion and analysis, and notes form part of these concise financial statements.

Discussion and Analysis of the Concise Consolidated Statement of Changes in Equity

Although TCorp is not subject to any regulatory capital requirements, it seeks to maintain a level of capital consistent with that required by the Australian Prudential Regulation Authority (APRA) for regulated financial institutions.  TCorp’s low capital base relative to the size of TCorp’s assets is able to be maintained in recognition of the low risk nature of TCorp’s assets.  All of TCorp’s loans to Government agencies are subject to guarantee by the New South Wales Government, and securities held are of high credit quality. 

In 2006 adjustments to retained profits arising from the first-time adoption of accounting standard AASB 139: Financial Instruments: Recognition and Measurement totalled $27.6 million. These adjustments were reflected as an expense for the period in the Concise Consolidated Statement of Changes in Equity.