The South Australian Forestry Corporation (SAFC), trading under the name of ForestrySA, was established under the
South Australian Forestry Corporation Act 2000 on 1 January 2001. The SAFC is subject to the provisions of the
Public Corporations Act 1993. SAFC has the key responsibilities of:

• managing State–owned plantation forests including harvesting and delivery of forest products to customers

• supporting and facilitating forestry industry development

• providing recreational access to forest reserves

• managing native forests for conservation purposes

• providing policy support and advice to Government, the industry and the community.

In addition to its business operations, SAFC is funded for the provision of certain community service obligations (CSOs). These are:

• forest industry development

• forestry policy and legislative support

• community use of forests

• native forest management; and

• community protection (including fire protection).

Prior to the creation of SAFC on 1 January 2001 its functions were carried out by the ForestrySA business unit within the Department for Administrative and Information Services (DAIS), an administrative unit of the South Australian Government.

On 1 January 2001 all of the operations and employees of ForestrySA were transferred to SAFC. As at 1 January 2001, an amount of $24.983m was transferred from DAIS to SAFC and recognised as base capital within the equity component of the Statement of Financial Position. Effective also on that date, ForestrySA's net assets of $770.888m were transferred at no cost from DAIS to SAFC. The Statement of Financial Performance for the SAFC for the six months ended 30 June 2001 recognises this as a revenue item entitled ‘transfer of net assets from restructure.’ Refer to note 8 for additional information.

This treatment is consistent with applicable accounting standards and Urgent Issues Group (UIG) consensus views, including Australian Accounting Standards AAS29 ‘Financial Reporting by Government Departments' and UIG38 'Contributions by Owners Made to Wholly-Owned Public Sector Entities.'



		Financial Statement NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
THE SOUTH AUSTRALIAN FORESTRY CORPORATION
THE SOUTH AUSTRALIAN FORESTRY CORPORATION
	Contents >> Corporate Score Card >> Executive Introduction >> Corporate Overview >> Legislation Administered by the Corporation >> Significant Achievements and Inititives >> Key Initiatives and Targets for 2002/03 >> The Corporation Structure >> SA Forestry Corporation Board >> Business Performance >> Production Activities >> Forestry Protection >> Community Service Activities >> Corporate Sustainability >> Equal Employment Opportunity Programs >> Contractual Arrangements >> Fraud >> Use of Consultants >> Freedom of Information Statement >> Charter of the SA Forestry Corporation >> Forest Statistics >> Forestry SA Reserves >> Financial Statement • FinancialPerformance for the year ended 30 June 2002 • Financial Position as at 30 June 2002 • Cash Flows for the year ended 30 June 2002 >> Notes to and forming part of the Financial Statement • 1 Role and Function of the SAFC • 2 Accounting Policies • 3 - 13b • 14 - 24 • 25 - 28 • 29 Combined Full Year Results >> Auditor General’s Report	1 ROLE AND FUNCTION OF THE SOUTH AUSTRALIAN FORESTRY CORPORATION

			The South Australian Forestry Corporation (SAFC), trading under the name of ForestrySA, was established under the South Australian Forestry Corporation Act 2000 on 1 January 2001. The SAFC is subject to the provisions of the Public Corporations Act 1993. SAFC has the key responsibilities of: • managing State–owned plantation forests including harvesting and delivery of forest products to customers • supporting and facilitating forestry industry development • providing recreational access to forest reserves • managing native forests for conservation purposes • providing policy support and advice to Government, the industry and the community. In addition to its business operations, SAFC is funded for the provision of certain community service obligations (CSOs). These are: • forest industry development • forestry policy and legislative support • community use of forests • native forest management; and • community protection (including fire protection). Prior to the creation of SAFC on 1 January 2001 its functions were carried out by the ForestrySA business unit within the Department for Administrative and Information Services (DAIS), an administrative unit of the South Australian Government. On 1 January 2001 all of the operations and employees of ForestrySA were transferred to SAFC. As at 1 January 2001, an amount of $24.983m was transferred from DAIS to SAFC and recognised as base capital within the equity component of the Statement of Financial Position. Effective also on that date, ForestrySA's net assets of $770.888m were transferred at no cost from DAIS to SAFC. The Statement of Financial Performance for the SAFC for the six months ended 30 June 2001 recognises this as a revenue item entitled ‘transfer of net assets from restructure.’ Refer to note 8 for additional information. This treatment is consistent with applicable accounting standards and Urgent Issues Group (UIG) consensus views, including Australian Accounting Standards AAS29 ‘Financial Reporting by Government Departments' and UIG38 'Contributions by Owners Made to Wholly-Owned Public Sector Entities.'