2007 Financial statements

Note 50 - Rio Tinto Limited balance sheet

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As at 31 December

	Note	2007 A$m	2006 A$m
Non current assets
Investments	51	6,912	6,969
Loans to subsidiaries	51	232	239
Trade and other receivables		5	31
Available for sale financial assets	51	8	9
Other		1	1
Tax recoverable		-	164
		7,158	7,413
Current assets
Loans to subsidiaries	51	6,099	4,465
Cash and cash equivalents		1	1
		6,100	4,466
Current liabilities
Loans from subsidiaries		(238)	(283)
Trade and other payables		-	(2)
Tax payable		(385)	(935)
		(623)	(1,220)
Net current assets		5,477	3,246
Non current liabilities
Loans from subsidiaries		(2,835)	(2,956)
Deferred tax liabilities	51	(1)	(4)
		(2,836)	(2,960)
Net assets		9,799	7,699
Shareholders' equity
Share capital		1,587	1,587
Other reserves		624	575
Retained earnings		7,588	5,537
Total equity	51	9,799	7,699

Notes	Expand
Prepared under Australian IFRS (AIFRS). In relation to Rio Tinto Limited there are no significant measurement differences between AIFRS and EU IFRS. Investments in subsidiaries are accounted for at cost. Such investments include both investments in shares issued by the subsidiary and other parent entity interests that in substance form part of the parent entity's investment in the subsidiary. These include investments in the form of interest free loans which have no fixed repayment terms and which have been provided to subsidiaries as an additional source of long term capital. Loans from subsidiaries on equivalent terms are deducted from investments. Trade amounts receivable from subsidiaries and payable to subsidiaries in the normal course of business and other amounts advanced on commercial terms and conditions are included in receivables or payables as appropriate. Interest free loans which have been assessed as, in substance, forming part of the parent entity's investment in the subsidiary to which the loan was issued have been reclassified during the period. 2006 comparatives have been reclassified to enhance comparability.

Reclassification of interest free loans

	31 December 2006 as reported in 2006	Reclassification	31 December 2006 as reported in 2007
Currents Assets -Loans to subsidiaries	4,527	(62)	4,465
Non Current Assets -Investments	7,835	(866)	6,969
Non Current Assets -Loans to subsidiaries	303	(64)	239
Current liabilities -Loans from subsidiaries	(517)	234	(283)
Non Current liabilities -Loans from subsidiaries	(3,713)	757	(2,956)

The accounts were approved by the directors on 5 March 2008 and signed on their behalf by:

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