any other calls as those calls fall due. The Act requires the Commonwealth to pay all levy monies collected to the DSAF and also prohibits the Commonwealth from discontinuing the levy until all obligations of the DSAF have been met. The DSAF has recognised these as rights receivable from the Commonwealth, equal to the amount of the DSAF’s net liabilities. The Act enables the rights to be recognised, they are probable of receipt, and the amounts recognised are reliably measurable given their direct relationship to the net amount of the DSAF’s liabilities at any point in time. The Company, in its capacity as Trustee, is not required to recognise the revenues, expenses, assets and liabilities of the DSAF in its own financial statements. Further, the separate financial statements of the Dairy Adjustment Authority report the detail of the administration expenses incurred in fulfilling its responsibilities. Section 86A of Schedule 2 of the Dairy Produce Act 1986 provides that the Company is entitled to be fully indemnified against any liability (including any liability as to costs) incurred by it in keeping and administering, or purporting to keep and administer, the DSAF, and any such indemnification is to be paid out of the assets of the DSAF. It is anticipated the final Program payments will be completed during the 2008 financial year when the final payments are made to eligible dairy entities. The Dairy Industry Adjustment Levy will continue to be received by the DSAF with the effect of settling the borrowings over the following financial year. The current estimated time for the conclusion of the DSAF is during the 2008/09 financial year. As at the reporting date, the following is a summary of the financial position of the DSAF: 2007 2006 $’000 $’000 Assets Levy rights receivable 413,151 632,088 Other operating assets 22,297 14,461 Total assets 435,448 646,549 Liabilities Producer entitlements payable 206,930 401,888 Interest bearing liabilities 225,000 240,000 Other operating liabilities 3,518 4,661 Total liabilities 435,448 646,549 Net assets of the DSAF as at the reporting date - -
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