A new accounting method revealed Forestry Tasmania’s financial losses over the last three years were far higher than first reported. Source: ABC News
Government businesses have overhauled the way they report their annual results, in line with changes imposed on the private sector by the Australian Securities and Investments Commission.
It means state-owned companies are now required to include non operating costs, like asset revaluations and superannuation liabilities when reporting their final results.
Under the new formula, Forestry Tasmania’s $12 million loss in 2010-11 becomes $129 million.
The following year its loss amounted to $71 million, again significantly higher than the reported $27.5 million.
A significant decline in the value of the state forest estate is mostly to blame.
It has fallen by more than $200 million over the past four years.
Forestry Tasmania remains in the red. Its latest annual report shows it posted a $13 million loss last financial year.
The company is getting a $110 million lifeline from the State Government and acknowledges the funding has helped it stay afloat.
