2014-01-13 Deamalgamation Report Attachment

Page 21 of 95

FTF Lae       a          Methodology - 30 June 2013                                     Methodology - 31 December 2013
          Land held for resumption | Based on where the land is located as at 30 June 2013. The new Based on the location of the land or other assets assumed as at 30
                                  council and continuing council should receive land held for     June 2013, adjusted for any agreed movements in land or other assets
                                  development in their geographical areas                        to 31 December 2013
          Inventory               Inventory which relates to specific plant and machinery,        Based on the allocation of inventory as at 30 June 2013, adjusted for
                                  infrastructure or work in progress should go to the new council or movements related to the new council and continuing council
                                  continuing council where the specific plant and machinery,      operations to 31 December 2013
                                  infrastructure or work in progress is allocated
                                                                                                  Inventory which relates to specific plant and machinery, infrastructure or
                                  Residual inventory should be based on the percentage of inventory | work in progress should go to the new council or continuing council
                                  contributed by the new council and continuing council at        where the specific plant and machinery, infrastructure or work in
                                  amalgamation                                                    progress is allocated
                                                                                                  Residual inventory should be based on the percentage of inventory
                                                                                                  contributed by the new council and continuing council at amalgamation
         Prepayments              Based on balance of prepayments as at 30 June 2013 attributable to | Based on the balance of prepayments as at 31 December 2013 for the
                                  the new council and continuing council (i.e. allocated in accordance | new council and continuing council.
                                  with the underlying transaction).
         Property, plant and      Based on the physical location of the PP&E as at 30 June 2013. The | Based on the physical location of PP&E assumed as at 30 June 2013,
        equipment                 new council and continuing council should receive PP&E in their adjusted for any agreed movements in PP&E to 31 December 2013
                                  geographical areas
                                                                                                  The new council and continuing council should receive all PP&E
                                  Where there is uncertainty / disagreement, the allocation should be | required in their geographical area
                                  based on the balance of PP&E held as at 30 June 2012
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          Intangible assets       Based on the physical location of the assets to which the intangible | Based on the balance of intangible assets as at 30 June 2013, adjusted

          Capital work in progress | Based on the physical location of the capital works in progress as at | Based on the balance of capital works in progress as at 30 June 2013,
                                  30 June 2013. The new council and continuing council should     adjusted for any movements in capital works in progress to 31
                                  receive all capital works in progress in their geographical area December 2013. The new council and continuing council should receive
                                                                                                  all capital works in progress in their geographical area.
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