Note 7: Parent Entity Information

The parent entity of the consolidated Group is the Clean Energy Finance Corporation.

7.1 Parent Entity Accounting Policies

The accounting policies of the parent entity, which have been applied in determining the financial information shown below, are the same as those applied in the consolidated financial statements except as set out below.

Investments in subsidiaries are accounted for at cost. Dividends received from subsidiaries are recognised in profit or loss when a right to receive the dividend is established, provided that it is probable that the economic benefits will flow to the Parent and the amount of income can be measured reliably.

7.2 Parent Entity Statement of Comprehensive Income

for the period ended 30 June 2017

	Notes	2017 $’000	2016 $’000
NET COST OF SERVICES
Expenses
Employee benefits		21,058	17,570
Suppliers		6,544	4,865
Depreciation and amortisation		745	534
Concessional loan charges		11,433	6,876
Write-down and impairment of assets		2,129	83
Provision for irrevocable loan commitments		292	(178)
Total expenses		42,201	29,750
Own-source income
Own-source revenue
Interest and loan fee revenue		59,274	51,013
Interest on loan to subsidiary	7.4B	99	-
Distributions from equity investments		5,328	30
Total own-source revenue		64,701	51,043
Gains and losses
Other (losses) / gains		(92)	(156)
Total (losses) / gains		(92)	(156)
Total own-source income		64,609	50,887
Net contribution by services		22,408	21,137
Share of associates and joint ventures		(549)	-
Surplus from continuing operations		21,859	21,137
OTHER COMPREHENSIVE INCOME
Items subject to subsequent classification to net cost of services
Gains on Available-for-Sale financial assets		7,674	5,885
Net fair value loss taken to equity on cash flow hedge		(42)	-
Total other comprehensive income		7,632	5,885
Total comprehensive income		29,491	27,022

The above statement should be read in conjunction with the accompanying notes.

7.3 Parent Entity Statement of Financial Position

as at 30 June 2017

	Notes	2017 $’000	2016 $’000
ASSETS
Financial assets
Cash and cash equivalents		401,814	232,778
Trade and other receivables		8,320	3,853
Loans and advances		771,202	402,225
Loan to subsidiary	7.4B	5,906	-
Available-for-Sale financial assets		802,945	277,694
Other financial assets		278,380	306,594
Equity accounted investments		2,500	-
Investment in subsidiary	7.4A	250	-
Derivative financial assets		225	-
Total financial assets		2,271,542	1,223,144
Non-financial assets
Property, plant and equipment		944	1,021
Computer software		484	509
Prepayments		504	539
Total non-financial assets		1,932	2,069
Total assets		2,273,474	1,225,213
LIABILITIES
Payables and unearned income
Suppliers		2,280	1,324
Unearned income		15,678	5,536
Other payables		4,988	4,588
Total payables and unearned income		22,946	11,448
Provisions
Employee provisions		1,660	1,199
Other provisions		20,246	13,435
Total provisions		21,906	14,634
Total liabilities		44,852	26,082
Net assets		2,228,622	1,199,131
EQUITY
Contributed equity		2,108,363	1,108,363
Reserves		14,655	7,023
Retained surplus		105,604	83,745
Total equity		2,228,622	1,199,131

The above statement should be read in conjunction with the accompanying notes.

7.4: Notes to Parent Entity Financial Statements

7.4A: Investment in subsidiary

On 6 December 2016 the Corporation incorporated a new subsidiary, CEFC Investments Pty Ltd, and subscribed for 250,000 shares of $1 each.

7.4B: Loan to subsidiary

The Corporation has provided an unsecured loan facility to its subsidiary CEFC Investments Pty Ltd on the following terms:

Interest rate: 7.5%
Interest payment dates: 15 January and 15 July each year
Maturity date: 15 June 2026

The balance outstanding at 30 June 2017 was $5.9million and interest receivable for the year amounted to $0.1million.