SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-K/A
                                 Amendment No. 1

              Annual Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2006

                         COMMISSION FILE NUMBER 1-15863

                                 IA GLOBAL, INC.
                                 ---------------
             (Exact name of registrant as specified in its charter)

                    DELAWARE                           13-4037641
                    --------                           ----------
         (State or other jurisdiction of            (I.R.S. Employer
         incorporation or organization)            Identification No.)

           101 CALIFORNIA STREET, SUITE 2450, SAN FRANCISCO, CA 94111
           ----------------------------------------------------------
                    (Address of principal executive offices)

Registrant's telephone number, including area code: (813) 261-5157

Securities registered pursuant to Section 12(b) of the Act:

   COMMON STOCK, $.01 PAR VALUE            The American Stock Exchange
   ----------------------------            ---------------------------
        (Title of class)            Name of Each Exchange on which registered

Securities registered pursuant to Section 12(g) of the Act:

                                      NONE

         Indicate by check mark whether the registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes...X...    No.......

         Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]

         Indicate by check mark whether the registrant is an accelerated filer
(as defined in Exchange Act Rule 12b-2). Yes.......    No...X...

         The aggregate market value of the common equity held by non-affiliates
of the registrant as of March 27, 2007 was approximately $21,832,040.

         The number of shares of the registrant's common stock outstanding as of
March 27, 2007: 152,917,157 shares of Common Stock.   Explanatory Note

As required by Rule 3-09 of Regulation S-X, IA Global, Inc. (the "Company") is
filing this Form 10-K/A to its Annual Report on Form 10-K for the year ended
December 31, 2006 (the "Annual Report") to amend Item 15, Exhibits and Financial
Statement Schedules, to include the audited financial statements of Australian
Secured Financial Limited ("ASFL") for the year ended June 30, 2007. The Company
has a 36% equity interest in ASFL. Item 15 is also being amended to include
reference to the ASFL financial statements and the related report of the
entity's independent certified public accounting firm, and to file the consent
of the independent certified public accounting firm related to their opinion
contained in this filing. Additionally, in connection with the filing of this
Form 10-K/A and pursuant to Securities and Exchange Commission ("SEC") rules,
the Company is including currently dated certifications under Sections 302 and
906 of the Sarbanes-Oxley Act of 2002. In accordance with Rule 12b-15 under the
Securities and Exchange Act of 1934, as amended, the text of the amended item
(Item 15) is set forth in its entirety in the attached pages hereto.

This Form 10-K/A does not otherwise update any exhibits as originally filed and
does not otherwise reflect events occurring after the original filing date of
the Annual Report. Accordingly, this Form 10-K/A should be read in conjunction
with the Company's filings with the SEC subsequent to the filing of the Annual
Report.

                                     - 2 -PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) FINANCIAL STATEMENTS:

         The following financial statements of the Registrant and reports of
independent registered public accounting firm are filed as a part of this
Report.

                   INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

                                                                         Page
                                                                      ----------

         Report of Independent Registered Public Accounting Firm....      #

         Consolidated Balance Sheets
              as of December 31, 2006 and 2005......................      #

         Consolidated Statements of Operations
              for the years ended December 31, 2006, 2005 and 2004..      #

         Consolidated Statement of Stockholders' Equity (Deficiency)
              for the years ended December 31, 2006, 2005 and 2004..      #

         Consolidated Statement of Cash Flows
              for the years ended December 31, 2006, 2005 and 2004..      #

         Notes to Consolidated Financial Statements.................      #

         Australian Secured Financial Limited Financial Statements
         for the year ended June 30, 2007 ..........................  F-1 - F-35

# Previously filed with the Registrant's Annual Report on Form 10-K for the year
ended December 31, 2006 and filed on April 2, 2007.

(b) EXHIBITS:

EXHIBIT
NUMBER   EXHIBIT DESCRIPTION
-------  -------------------

3.1      Certificate of Incorporation, as amended, of Registrant (1)

3.2      Certificate of Amendment, dated January 3, 2004, to the Certificate of
         Incorporation of the Registrant (2)

3.3      Certificate of Designation of Preferences and Rights of the
         Registrant's Series A convertible preferred stock (3)

3.4      By-laws of Registrant, as amended (4)

3.5      Certificate of Amendment, dated June 17, 2004, to the Certificate of
         Incorporation of the Registrant, filed herewith.

3.6      Certificate of Amendment of Restated Certificate of Incorporation of IA
         Global, Inc. dated June 7, 2005. (6)

3.7      Certificate of Designation of Preferences and Rights of the
         Registrant's Series B Convertible Preferred Stock (7)

                                      - 3 -3.8      Certificate Eliminating Reference to a Series B Convertible Preferred
         Shares of Stock from the Certificate of Incorporation of IA Global,
         Inc. dated October 18, 2006. (8)

3.9      Certificate of Designations, Rights and Preferences of the Series A-1
         Preferred Stock of IA Global, Inc. dated October 18, 2006. (8)

4.1      Form of Certificate evidencing shares of common stock (1)

10.1     1999 and 2000 Stock Option Plans (5)*

10.2     Amendment 3 to Senior Secured Promissory Note dated January 6, 2006
         between IA Global, Inc., IA Global Acquisition Co. and Ominira
         Networks, LLC (9)

10.3     Business Outsourcing Basic Contract signed October 6, 2004 between KDDI
         and Global Hotline. (English Translation) (28)

10.4     Notice of Conversion of Series B Convertible Preferred Stock between IA
         Global, Inc. and Inter Asset Japan LBO No 1 Fund dated January 30,
         2006. (10)

10.5     Letter dated February 1, 2006 between IA Global, Inc and Ominira
         Networks LLC. (11)

10.6     Partner Contract dated December 22, 2005 between IA Partners Co Ltd and
         Internet Service Partners. (English translation) (12)

10.7     Amendment to Employment Agreement dated February 14, 2006 between IA
         Global, Inc. and Mark Scott. (13)*

10.8     Agreement For Repayment of Hideki Anan Note Receivable dated March 10,
         2006 amongst Hideki Anan, Global Hotline, Inc. and IA Global, Inc. (14)

10.9     Compensation Committee Charter dated March 14, 2006. (14)

10.10    Amendment 4 to Senior Secured Promissory Note dated March 27, 2006
         between IA Global, Inc., IA Global Acquisition Co. and Ominira Networks
         LLC. (15)

10.11    Share Sale Agreement dated April 4, 2006 among IA Global, Inc., Rex
         Tokyo Co Ltd and Hiroyuki Ejima. (16)

10.12    Amendment 3 to Senior Secured Promissory Note dated April 11, 2006
         between Global Hotline, Inc. and GMB International Inc. (17)

10.13    Financial Loan Agreement dated March 29, 2006 between Rex Tokyo Co Ltd
         and The Bank of Tokyo-Mitsuibishi UFJ, Ltd. (English translation)(7)

10.14    Agency Contract dated April 14, 2006 between Japan Telecom Invoicing,
         Inc. and Global Hotline, Inc. (English translation)(7)

10.15    Agreement dated April 25, 2006 between Global Hotline, Inc. and KDDI
         Networks and Solutions. (English translation)(7)+

10.16    Agency Ordering Agreement dated May 10, 2006 between IA Partners Co Ltd
         and AFLAC Co Ltd. (English translation) (18)

10.17    Business Agency Contract dated May 10, 2006 between IA Partners Co Ltd
         and AFLAC Co Ltd. (English translation)(18)

10.18    Working Capital Loan dated June 30, 2006 between Global Hotline Inc.
         and Risona Bank Co Ltd. (English translation)(18)

                                      - 4 -10.19    Standard Bank Transaction Agreement dated July 31, 2006 between Global
         Hotline, Inc. and Mitsui Sumitomo Bank Co Ltd. (English
         translation)(19)

10.20    Term Sheet dated October 11, 2006 by and between IA Global, Inc. and
         Australian Secured Financial Limited. (20)

10.21    Agency Contract dated July 1, 2006 between IA Partners Co Ltd and
         American Home Assurance Company. (English Translation) (19)

10.22    Share Exchange Agreement dated October 19, 2006 amongst IA Global,
         Inc., Australian Secured Financial Limited ("ASFL") and the selling
         shareholders of ASFL. (21)

10.23    Senior Secured Promissory Note dated September 6, 2006 between IA
         Global, Inc. and Global Hotline, Inc. (19)

10.24    Loan Application form dated September 11, 2006 between IA Partners Co
         Ltd and Risona Bank. (English translation)(19)

10.25    Contract of Monetary Loan for Consumption dated September 29, 2006
         between Global Hotline and Mitsui Sumitomo Bank. (English
         translation)(19)

10.26    Loan Application Form dated November 27, 2006 between Global Hotline,
         Inc. and Risona Bank Co Ltd. (English translation)(22)

10.27    The audited financial statements of AuSec as of June 30, 2006 and 2005,
         respectively, and for the respective years then ended. (23)

10.28    The unaudited Pro Forma Combined Condensed Consolidated Balance Sheet
         and Statement of Operations of the Company, with ASFL, as of September
         30, 2006 and the unaudited Pro Forma Combined Condensed Consolidated
         Statement of Operations of the Company, with ASFL, for the year ended
         December 31, 2006, respectively. (23)

10.29    Outsource Business Services Agreement dated December 28, 2006 between
         Global Hotline, Inc. and KDDI Network and Solutions, Inc. Appendix to
         Outsource Business Services Agreement dated December 28, 2006 between
         Global Hotline, Inc. and KDDI Network and Solutions, Inc. (English
         translation) (27) +

10.30    Special Bank Credit Facility Contract Amendment dated December 29, 2006
         between Global Hotline, Inc. and Mitsui Sumitomo Bank Co. Ltd. (English
         translation) (24)

10.31    Special Bank Credit Facility Contract dated December 26, 2006 between
         IA Partners Co. Ltd. and Mitsui Sumitomo Bank Co. Ltd. (English
         translation)(24)

10.33    Mitsui Sumitomo Co. Ltd. Standard Terms and Conditions. (English
         translation)(24)

10.34    Financial Support for Direct Marketing Agreement between IA Partners Co
         Ltd and Aflac Co Ltd. (English translation) (27) +

10.35    Amendment to Employment Agreement dated January 24, 2007 between IA
         Global, Inc. and Mark Scott. (25)*

10.36    Employment Agreement dated February 8, 2007 between IA Global, Inc. and
         Mr. Schneideman. (26)*

10.37    Business Outsourcing Basic Contract signed October 6, 2004 between KDDI
         and Global Hotline. (English Translation)(28)

                                      - 5 -14.1     Code of Conduct and Ethics dated January 24, 2006. (10)

21.1     Subsidiaries of the Registrant (27)

23.1     Consent of Sherb & Co., LLP (27)

23.2     Consent of Bentleys MRI Brisbane Partnership, filed herewith.

31.1     Section 302 Certifications, filed herewith.

31.2     Section 302 Certifications, filed herewith.

32.1     Section 906 Certifications, filed herewith.

32.2     Section 906 Certifications, filed herewith.
__________

*    Indicates a management contract or compensatory plan.

+    Certain confidential material contained in the document has been omitted
     and filed separately with the Securities and Exchange Commission pursuant
     to Rule 406 of the Securities Act of 1933, as amended or Rule 24b-2 of the
     Securities and Exchange Act of 1934, as amended.

(1)  Filed as an exhibit to Registrant's Registration Statement on Form S-1, as
     amended (File No. 333-71733), and incorporated herein by reference.

(2)  Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     January 3, 2004, and incorporated herein by reference.

(3)  Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     November 8, 2001, and incorporated herein by reference.

(4)  Filed as an exhibit to Registrant's Registration Statement on Form 8-A
     (File No. 1-15863), and incorporated herein by reference.

(5)  Filed as an exhibit to Registrant's From S-8, dated June 21, 2004, and
     incorporated herein by reference.

(6)  Filed as an exhibit to Registrant's Registration Statement on Form S-3
     (File No. 333-127205), dated August 4, 2005, and incorporated herein by
     reference.

(7)  Filed as an exhibit to Registrant's Quarterly Report on Form 10-Q for the
     quarter ended March 31, 2006 and filed May 15, 2006, and incorporated
     herein by reference.

(8)  Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     October 19, 2006 and filed on October 24, 2006, and incorporated herein by
     reference.

(9)  Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     January 6, 2006 and filed January 6, 2006, and incorporated herein by
     reference.

(10) Filed as an exhibit to Registrant's Current Report on Form 8-K/A, dated
     January 24, 2006 and filed on January 31, 2006 and incorporated herein by
     reference.

(11) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     February 1, 2006 and filed February 7, 2006, and incorporated herein by
     reference.

(12) Filed as an exhibit to Registrant's Annual Report on Form 10-K, dated April
     17, 2006 and filed April 17, 2006, and incorporated herein by reference.

                                      - 6 -(13) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     February 14, 2006 and filed February 17, 2006, and incorporated herein by
     reference.

(14) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated March
     10, 2006 and filed March 15, 2006, and incorporated herein by reference.

(15) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated March
     27, 2006 and filed March 31, 2006, and incorporated herein by reference.

(16) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated April
     4, 2006 and filed April 7, 2006, and incorporated herein by reference.

(17) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated April
     11, 2006 and filed April 11, 2006, and incorporated herein by reference.

(18) Filed as an exhibit to Registrant's Quarterly Report on Form 10-Q for the
     quarter ended June 30, 2006 and filed August 11, 2006, and incorporated
     herein by reference.

(19) Filed as an exhibit to Registrant's Quarterly Report on Form 10-Q for the
     quarter ended September 30, 2006 and filed November 14, 2006, and
     incorporated herein by reference.

(20) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     October 11, 2006 and filed on October 13, 2006, and incorporated herein by
     reference.

(21) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     October 19, 2006 and filed on October 24, 2006, and incorporated herein by
     reference.

(22) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     November 27, 2006 and filed on December 1, 2006, and incorporated herein by
     reference.

(23) Filed as an exhibit to Registrant's Current Report on Form 8-K/A, dated
     October 19, 2006 and filed on December 22, 2006, and incorporated herein by
     reference.

(24) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     December 26, 2006 and filed on January 17, 2007, and incorporated herein by
     reference.

(25) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     January 24, 2007 and filed on January 29, 2007, and incorporated herein by
     reference.

(26) Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
     February 8, 2007 and filed on February 23, 2007, and incorporated herein by
     reference.

(27) Filed as an exhibit to Registrant's Annual Report on Form 10-K for the year
     ended December 31, 2006 and filed on April 2, 2007 and incorporated herein
     by reference.

(28) Filed as an exhibit to Registrant's Quarterly Report on Form 10-Q for the
     quarter ended June 30, 2005 and filed on August 15, 2005 and incorporated
     herein by reference.

                                      - 7 -Australian Secured Financial Limited

ABN 74 120 340 507





General Purpose Financial Report

For the year ended

30 June 2007

(in Australian $s)




















F-1


AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities




DIRECTORS' REPORT

Your directors present their report on the company and its controlled entities for the year ended 30 June 2007.

The names of the directors in office at any time during, or since the end of, the year are:

John Paul Margerison

Jonathan Philip Pepper

Alan Charles Margerison

Russell Murphy( appointed 15th of June 2007)

Directors have been in office since the 22nd of June 2006 to the date of this report unless otherwise stated.

The consolidated profit of the economic entity for the financial year after providing for income tax and eliminating outside equity interests amounted to $668,609.

The economic entity traded for 4 days during the period ended 30 June 2006, as such there is minimal comparative information available.

During the financial year ended 30 June 2007, two 100% owned subsidiaries of Australian Secured Financial Limited were established. Auslink Limited ABN 36 122 521 251, a second short term lending company was incorporated on the 3rd of November 2006. ADJ Services Pty Ltd, a service entity for the group was incorporated on the 19th of September 2006. ADJ Services Pty Ltd provides such services as lending administration and marketing services, registry services, and information technology services. No other significant changes in the economic entitys state of affairs occurred during the period. Therefore the entities which are included in the economic entity are:

Australian Secured Financial Limited

Australian Secured Investments Limited

Auslink Limited

ADJ Services Pty Limited

No significant change in the nature of these activities occurred during the period.

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the economic entity, the results of those operations, or the state of affairs of the economic entity in future financial years.

Likely developments in the operations of the economic entity and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the economic entity.

The economic entitys operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory.

Dividends paid or declared since the start of the financial year are as follows:

a.
        Dividends declared or paid during the year ended 30 June 2007 were $1,500,000.


The service company DJ Capital Pty Ltd has paid a premium in respect of a contract insuring the directors of the company (as named above), against a liability incurred as such a director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. The new service company ADJ Services Pty Ltd will pay this insurance premium in future.

No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who has been an auditor of the economic entity.

No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

The company was not a party to any such proceedings during the period.

F-2


AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



Directors and Company officers





Jonathan Pepper  Director/Secretary

Jon has a background spanning 11 years in financial services and banking, commencing with Suncorp Metway, a prominent, national, publicly listed provider of banking, insurance and investment services.



During his tenure with that group he was involved in the provision of personal and business banking services where he was afforded the opportunity to develop skills in the areas of lending, collections, deposit taking, distribution, planning, reporting, coaching and general management of large teams with a strong focus on building a profitable business.



Jon is a director and shareholder of the company and his role within the company is to foster relationships with intermediaries, initiate new loan applications, contribute to credit committee, manage collections and oversee the lending and credit process. Jon holds a Diploma of Mortgage Lending (Finsia).





John Margerison  Director

John is a director of companies that include Australian Secured Investments Limited, DJ Capital Holdings Limited & DJ Capital Solutions Limited. He has broad investment and finance background and draws from experience gained in retail & aged care sectors, the conduct of residential subdivision/property renovation & ownership of a retail and service based business.



John is a director and shareholder of the company with a brief to identify transaction viability or potential issues that may affect the group. John holds a Bachelor of Commerce Degree (Bond University) a Diploma of Financial Planning (Securities Institute) and a Diploma of Mortgage Lending (Finsia).





Alan Margerison  Director

Alan was the President, Chief Executive Officer of IA Global Inc., a publicly listed company on the American Stock Exchange (symbol:IAO), from October 2002 to August 2005. IA Global Inc. acts as a holding company making strategic acquisitions of growth businesses in Japan and the US.



In 2005, Alan was appointed as a Director of Australian Secured Investments Limited a subsidiary of the company. Alan holds a Bachelor of Laws (QUT), and a Diploma of Mortgage Lending (Finsia).





Russell Murphy  Director

Russell has over 30 years experience in property finance. Before joining the group six years ago, he spent the prior 17 years in various senior roles with an institution where he managed loan portfolios variously for its bank, mortgage trust, finance company, life insurance company and general insurance company.



Russell is a director of Advance Investment Securities Australia Pty Ltd, member of a residential and commercial distribution group active in Australia and New Zealand. He has a Diploma of Financial Services (Tribeca) and is a Senior Associate of F.I.N.S.I.A and a member of the Australian Institute of Company Directors. He is a director of Australian Secured Investments Limited (AuSec), participates in AuSecs Investment and Credit Committee & contributes to the raising of funds for the company from Debenture sales.



F-3

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



Directors Meetings



The following table sets out the number of director meetings held during the year and the number of meetings attended by each director (while they were a director). During the year there have been 10 board meetings of Australian Secured Financial Limited between 1 July 2006 and 30 June 2007.




Board Meetings
        No. of  meetings held
        No. of  meetings attendedJohn  Margerison
        10
        9Jonathan  Pepper
        10
        9Alan Margerison
        10
        10Russell Murphy
        1
        1



Auditors Independence Declaration



A copy of the auditors independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.



Signed in accordance with a resolution of the Board of Directors:



Director
        /s/ Alan Margerison
 


Alan Margerison



Dated this 15th day of October, 2007



F-4

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



AUDITORS INDEPENDENCE DECLARATION

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF AUSTRALIAN SECURED FINANCIAL LIMITED



I declare that, to the best of my knowledge and belief, during the year ended 30 June 2007 there have been:


(i)
        no contraventions of the auditor independence requirements as set out in theCorporations Act 2001in relation to the audit; and



(ii)
        no contraventions of any applicable code of professional conduct in relation to the audit.


Bentleys MRI Brisbane Partnership

Chartered Accountants



/s/ PM Power

PM Power



Date: 10/10/07

F-5

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



INCOME STATEMENT  FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




Note
        Economic Entity
        Parent Entity2007$
        2006$
        2007$
        2006$Revenue
        3
        5,785,285
        -
        1,751,844
        -Discount on acquisition of subsidiary
        4 b
        -
        637,041
        -
        -Finance costs
        4 a
        (2,637,577)
        -
        (148,109)
        -Other expenses  from ordinary activities
        4 c
        (2,105,617)
        -
        (50,113)
        -Profit before income tax
        
        1,042,091
        637,041
        1,553,622
        -Income tax  expense
        5
        (373,482)
        -
        (4,086)
        -Profit  attributable to members of the parent entity
        
        668,609
        637,041
        1,549,536
        -Dividends per share (cents)
        
        -
        -
        36.45
        -



The accompanying notes from part of these financial statements.



F-6

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



BALANCE SHEET AS AT 30 JUNE 2007

(in Australian $s)




Note
        Economic Entity
        Parent Entity2007$
        2006$
        2007$
        2006$ASSETSCash and cash equivalents
        9
        1,973,875
        3,914,792
        197,539
        200Trade and other receivables
        10
        113,687
        171,716
        
        -Loans and advances to customers
        11
        30,905,341
        22,166,613
        
        -Other  assets
        12
        2,625
        2,329
        927
        -Property, plant and equipment
        13
        118,260
        -
        -
        -Deferred tax assets
        14
        157,443
        -
        -
        -Intangible assets
        15
        8,400
        -
        -
        -Other  financial assets
        16
        -
        -
        1,408,600
        1,400,000TOTAL ASSETS
        
        33,279,631
        26,255,450
        1,607,066
        1,400,200LIABILITIESTrade and other payables
        18
        1,969,242
        1,102,436
        3,240
        -Promissory notes and other liabilities evidenced by  paper
        19
        31,164,418
        24,225,154
        1,350,000
        1,400,000Current tax liabilities
        20
        136,502
        287,295
        4,086
        -Deferred tax  liabilities
        20
        3,614
        3,324
        -
        -TOTAL  LIABILITIES
        
        33,273,776
        25,618,209
        1,357,326
        1,400,000NET ASSETS
        
        5,855
        637,241
        249,740
        200EQUITYIssued capital
        21
        200,204
        200
        200,204
        200Reserves
        
        -
        -
        -
        -Retained  earnings
        
        (194,349)
        637,041
        49,536
        -TOTAL EQUITY
        
        5,855
        637,241
        249,740
        200



The accompanying notes from part of these financial statements.



F-7

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2007

(in Australian $s)




Share CapitalEconomic  Entity
        Note
        Ordinary$
        Partly paid ordinary shares$
        Retained earnings$
        Total$Balance at 1 July 2005Shares issued during the period
        
        200
        -
        -
        200Profit attributable to members of economic entity
        
        -
        -
        637,042
        637,042Dividends paid  or provided for
        
        -
        -
        -
        -Balance  at  30 June 2006
        
        200
        -
        637,042
        637,242Shares issued during the period
        21
        200,004
        -
        -
        200,004Profit attributable to members of economic entity
        
        -
        -
        668,609
        668,609Share of  associates revaluation increments
        
        -
        -
        
        -Sub-total
        
        200,204
        -
        1,305,651
        1,505,855Dividends paid  or provided for
        
        -
        -
        (1,500,000)
        (1,500,000)Balance at 30  June 2007
        21
        200,204
        -
        (194,349)
        5,855Parent EntityBalance at 1 July 2005
        
        200
        -
        -
        200Profit  attributable to members of parent entity
        
        -
        -
        -
        -Sub-total
        
        200
        -
        -
        200Dividends paid  or provided for
        
        -
        -
        -
        -Balance at 30  June 2006
        
        200
        -
        -
        200Shares issued during the period
        21
        200,004
        -
        -
        200,004Profit attributable to members of parent entity
        
        -
        -
        1,549,536
        1,549,536Revaluation  increment
        
        -
        -
        -
        -Sub-total
        
        200,204
        -
        1,549,536
        1,749,740Dividends paid  or provided for
        
        -
        -
        (1,500,000)
        (1,500,000)Balance at 30  June 2007
        21
        200,204
        -
        49,536
        249,740



The accompanying notes form part of these financial statements



F-8

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




Note
        Economic Entity
        Parent Entity2007$
        2006$
        2007$
        2006$CASH FLOWS FROM OPERATING ACTIVITIESReceipts from  customers
        
        392,216
        -
        -
        -Proceeds from  bank account (interest)
        
        447,494
        -
        1,844
        -Dividends  Received
        
        -
        -
        1,750,000
        -Interest  received from loans
        
        5,044,073
        -
        -
        -Payments to  suppliers and employees
        
        (2,001,717)
        -
        (47,800)
        -Finance costs  paid
        
        (1,619,021)
        -
        (148,109)
        -Income tax  paid
        
        (681,428)
        -
        -
        -Net cash  provided by (used in) operating activities
        22
        1,581,617
        -
        1,555,935
        -CASH FLOWS FROM INVESTING ACTIVITIESPurchase of  property, plant and equipment
        
        (120,185)
        -
        -
        -Goodwill  acquired
        
        (8,400)
        -
        -
        -Purchase of  subsidiary net of cash acquired
        
        -
        2,514,592
        (8,600)
        (1,400,000)Loans issued  to Customers
        
        (61,182,407)
        -
        -
        -Proceeds from  repayments of Customer loans
        
        52,149,190
        -
        -
        -Net cash  provided by (used in) investing activities
        
        (9,161,802)
        2,514,592
        (8,600)
        (1,400,000)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from  issue of shares
        
        200,004
        200
        200,004
        200Proceeds from  borrowings
        
        8,325,000
        1,400,000
        -
        1,400,000Proceeds from  issue of Debentures
        
        13,697,926
        -
        -
        -Proceeds from  issue of subordinated debt
        
        1,987,187
        -
        -
        -Repayment of  subordinated debt
        
        (805,454)
        
        -
        -Repayment of  Debentures
        
        (12,370,395)
        
        -
        -Repayment of  borrowings
        
        (3,895,000)
        -
        (50,000)
        -Dividends paid
        
        (1,500,000)
        -
        (1,500,000)
        -Net cash  provided by (used in) financing activities
        
        5,639,268
        1,400,200
        (1,349,996)
        1,400,200Net increase  in cash held
        
        (1,940,917)
        3,914,792
        197,339
        200Cash at  beginning of year
        
        3,914,792
        -
        200
        -Cash at end of  year
        9
        1,973,875
        3,914,792
        197,539
        200



The accompanying notes form part of these financial statements

F-9

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 1: Statement of Significant Accounting Policies

The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report covers Australian Secured Financial Limited (the company) and the following 100% owned subsidiaries:


1.
        Australian Secured Investments Limited - a company limited by shares, incorporated and domiciled in Australia.



2.
        Auslink Limited - a company limited by shares, incorporated and domiciled in Australia.



3.
        ADJ Services Pty Ltd - a company limited by shares, incorporated and domiciled in Australia.


The company and its subsidiaries is referred to hereafter as the economic or consolidated entity.

The financial report of Australian Secured Financial Limited complies with all Australian equivalents to International Financial Reporting Standards (IFRS) in their entirety.

The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of Preparation

The accounting policies set out below have been consistently applied to all years presented.

Reporting Basis and Conventions

The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Accounting Policies


a.
        Principles of Consolidation


A controlled entity is an entity controlled by Australian Secured Financial Limited. Control exists where Australian Secured Financial Limited has the capacity to dominate the decision making in relation to the financial and operating policies of another entity so that the other entity operates with Australian Secured Financial Limited to achieve the objectives of Australian Secured Financial Limited. Details of the controlled entities are contained in Note 17.

All inter-company balances and transactions between entities in the economic entity, including any unrealised profits or losses, have been eliminated on consolidation.

Where a controlled entity has entered or left the economic entity during the year its operating results have been included from the date control was obtained or until the date control ceased.


b.
        Income Tax


The movement for current income tax expenses is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the balance sheet date.

F-10

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

Australian Secured Financial Limitedand its wholly-owned subsidiaries have formed an income tax consolidated group under the Tax Consolidation Regime.


c.
        Financial Instruments


Recognition

Financial instruments are initially measured at cost which is equal to fair value on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Loans and receivables

Loans and receivables are measured at cost on trade date, this includes all transaction and other associated costs when the obligation exists. Interest is recorded as unearned income and amortised over the life of the loan.

Held to maturity investments

Held to maturity investments are recorded at initial cost, less any costs associated with the initial investment.

Promissory notes and other liabilities evidenced by paper - Debentures

Given the cash flows arising under interest payment options, the present value of the future cash flows over the life of the note will equal (or be insignificantly different) to the issue price. Therefore the debenture is initially recorded at cost. This will be the equivalent of amortised cost across the life of the debenture.

Impairment

At each reporting date, the company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement.


d.
        Provisions


Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

F-11

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




e.
        Property, Plant and Equipment


Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

Depreciation

The depreciable amount of all fixed assets is depreciated on a straight line basis over their useful lives to the consolidated group commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are:


Class of Fixed Asset
        Depreciation RatePlant and  equipment
        2.5   40%

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.


f.
        Cash and Cash Equivalents


Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of twelve months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.


g.
        Revenue


Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Interest revenue received in advance is recognised as a liability and recognised through the term of the loan.

All revenue is stated net of the amount of goods and services tax (GST).


h.
        Goods and Services Tax (GST)


Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST recognised as part of the cost of acquisition of the asset or part of an item of the expense.

All revenue is stated net of the amount of goods and services tax (GST).

F-12

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




i.
        Critical accounting estimates and judgments


The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group.


j.
        Key estimates  Impairment


The company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates. No impairments were recognised during the year as no impairment triggers were identified.

Impairment of Assets


k.
        Loans and advances to customers


Loans and advances to customers are measured at cost which is equal to fair value. Loans are tested for impairment on a regular basis by the credit committee, which consists of senior lenders and management.


l.
        Comparative Figures


There is minimal comparative information available as the economic entity traded for only 4 days during the period ended 30 June 2006.

(in Australian $s)




Economic Entity
        Parent EntityNote 3:  Revenue
        Note
        2007$
        2006$
        2007$
        2006$Operating  activities
        dividends  received
        
        -
        -
        1,750,000
        -
        interest  received
        
        5,358,978
        -
        1,844
        -
        management  Fees
        
        419,455
        -
        -
        -
        loan Fees
        
        6,852
        -
        -
        -Total Revenue
        
        5,785,285
        -
        1,751,844
        -Non-operating  activities
        gain on  disposal of property, plant and equipment
        
        -
        -
        -
        -
        gains on  disposal of non-current investments
        
        -
        -
        -
        -Other Income
        
        -
        -
        -
        -



F-13

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




Note 4: Profit from Ordinary Activities
        Economic Entity
        Parent Entitya. Expenses
        2007$
        2006$
        2007$
        2006$Cost of salesFinance costs: external
        2,045,334
        -
        -
        - related  entities
        297,754
        -
        148,109
        -Total borrowing costs
        2,343,088
        -
        148,109
        -Bad and doubtful debts:  trade receivables
        294,489
        -
        -
        -  wholly-owned subsidiaries
        -
        -
        -
        -Total bad and  doubtful debts
        294,489
        -
        -
        -Total Finance  costs
        2,637,577
        -
        148,109
        -b. Significant Revenue and ExpensesDiscount on  acquisition of Australian Secured Investments Limited
        -
        637,041
        -
        -Total
        -
        637,041
        -
        -c. General Administration Expenses  Depreciation and amortisation
        1,925
        -
        -
        -  Employment costs
        487,580
        
        -
        -  General administration
        26,303
        -
        12,940
        -  Legal Fees
        24,401
        -
        2,280
        -  Management Fees
        1,565,408
        -
        34,893
        -Total General  and Administration Expenses
        2,105,617
        -
        50,113
        -



F-14

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




Economic Entity
        Parent EntityNote 5: Income Tax Expense
        2007$
        2006$
        2007$
        2006$a.
        The components of tax expense comprise:Current tax (Note 20)
        530,635
        -
        4,086
        -Deferred  tax  asset/liability movements (Note  20)
        (157,153)
        -
        -
        -Income tax  expense
        373,482
        -
        4,086
        -b.
        The prima facie tax on profit from ordinary  activities before income tax is reconciled to the income tax as follows:Prima facie tax payable on profit from ordinary  activities before income tax at 30% (2006: 30%)
        economic  entity
        312,627
        191,112
        466,086
        -Add:Tax effect of:
        franking credits on dividends received
        -
        -
        198,000
        -
        unfranked dividends received
        63,000
        -
        -
        -
        deferred tax liability
        -
        -
        -
        -
        non-deductible depreciation and amortisation
        -
        -
        -
        -
        other  non-assessable items
        -
        (191,112)
        -
        -375,627
        -
        664,086
        -Less:Tax effect of:
        other
        (2,145)
        -
        -
        -
        dividend franking credits
        -
        -
        (660,000)
        -
        recoupment of  prior year tax losses not previously brought to account
        -
        -
        -
        -Income tax  attributed to members of the group
        373,482
        -
        4,086
        -The applicable weighted average effective tax rates  are as follows:
        36%
        0%
        30%
        0%



F-15

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 6:  Dividends
        Note
        Consolidated  Group
        Parent Entity2007
        2006
        2007
        2006$
        $
        $
        $Distributions paidDeclared franked ordinary dividend of $1,500,000 (2006: nil) franked at the tax rate of 88% (2006: nil%)
        
        1,500,000
        -
        1,500,000
        -Balance of franking account at year end adjusted for franking credits arising from
        opening balance
        
        287,294
        -
        -
        -
        payment of provision for income tax
        
        136,501
        287,294
        4,086
        -
        tax instalments paid in year
        
        394,134
        -
        -
        -
        franking credits on dividends received
        
        -
        -
        660,000
        -
        dividends recognised as receivables, and franking debits arising from payment of proposed dividends, and franking credits that may be prevented from distribution in subsequent financial years
        
        -
        -
        (565,714)
        -Balance of franking account 30 June 2007
        
        817,929
        287,294
        98,372
        -



Note 7: Key Management Personnel Compensation

Key Management Personnel

Directors

John Paul Margerison

Jonathan Philip Pepper

Alan Charles Margerison

Russell Murphy

Other Key Management Personnel

Kiara Brace  Chief Operating Officer




Short-term benefits
        Post employment benefit
        Total2007
        Salary & Fees
        Superannuation
        Bonus
        Non-Cash Benefits
        Superannuation$
        $
        $
        $
        $
        
        $Total  compensation
        464,955
        39,497
        -
        -
        -
        
        504,4522006Total  compensation
        -
        -
        -
        -
        -
        
        -



F-16

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 8: Auditors Remuneration
        Economic Entity
        Parent Entity2007$
        2006$
        2007$
        2006$Remuneration of the auditor of the parent entity  for:
        auditing or reviewing the financial report
        64,538
        2,000
        17,240
        2,000
        Factual findings report
        5,720
        -
        -
        -
        due diligence services
        -
        -
        -
        -
        taxation services provided by related practice of  auditor
        -
        -
        -
        -Remuneration of other auditors of subsidiaries for:
        auditing or reviewing the financial report of  subsidiaries
        -
        -
        -
        -
        other services
        -
        -
        -
        -70,258
        2,000
        17,240
        2,000Note 9: Cash and cash equivalentsCash at bank and in hand
        
        473,875
        2,414,792
        197,539
        200Short-term  bank deposits
        
        1,500,000
        1,500,000
        -
        -1,973,875
        3,914,792
        197,539
        200The effective  interest rate on short-term bank deposits was 6.10%(2006: 5.64%); these  deposits are at call.Reconciliation  of cashCash at the  end of the financial year as shown in the statement of cash flows is  reconciled to items in the balance sheet as follows:Cash and cash  equivalents
        
        1,973,875
        3,914,792
        197,539
        2001,973,875
        3,914,792
        197,539
        200



Cash not Available to Use

Cash not available for use as at 30 June 2007 was:$985,430. This is a requirement of Australian Secured Investments Limited Australian Financial Services Licence. Paragraph 11 (i)(j) of the Licence requires $50,000; plus 5% of adjusted liabilities between $1 million $100 million to be set aside for Australian Secured Investments Ltd to conform with the conditions set out in the Licence agreement. This condition was met for the year ended 30 June 2007.

A licence deposit of $20,000 is also maintained with the National Australia Bank as required by the Australian Securities and Investment Commission.

F-17

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




Note
        Economic Entity
        Parent EntityNote 10: Trade  and other receivables
        
        2007$
        2006$
        2007$
        2006$CURRENTTrade debtors
        
        37,500
        -
        -
        -Provision for  impairment of receivables
        
        -
        -
        -
        -Accrued loan  interest
        
        55,076
        133,534
        -
        -Accrued bank  interest
        
        12,046
        -
        -
        -GST receivable
        
        9,065
        38,182
        -
        -113,687
        171,716
        -
        -Note 11: Loans  and advances to customersCURRENTLoans issued
        31,199,830
        22,166,613
        -
        -Less provision  for doubtful debts
        (294,489)
        -
        -
        -30,905,341
        22,166,613
        -
        -Note 12: Other  AssetsCURRENTWithholding  credits
        -
        2,329
        -
        -Formation  costs
        2,625
        -
        927
        -2,625
        2,329
        927
        -Note 13: Property, Plant and EquipmentPlant and equipment:At cost
        
        120,185
        
        -
        -Accumulated depreciation
        
        (1,924)
        
        -Total plant and equipment
        
        118,261
        
        -
        -



F-18

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




FreeholdLand
        Buildings
        Plant and Equipment
        Leased Plant and Equipment
        Total$
        $
        $
        $
        $a.
        Movements in Carrying AmountsMovement in the carrying amounts for each class of property, plant and equipmentEconomic Entity:Balance at 1 July 2006Additions
        -
        -
        120,185
        -
        120,185Disposals
        -
        -
        -
        -
        -Depreciation expense
        -
        -
        (1,925)
        -
        (1,925)Balance at 30 June 2007
        -
        -
        118,260
        -
        118,260




e.
        Impairment Losses


No impairment loss was recognised in the income statement during the period as no impairment triggers existed, if an impairment trigger did exist it would be separately presented in the income statement as impairment loss.

Note 14: Deferred Tax Asset


Economic Entity
        Parent Entity2007
        2006
        2007
        2006$
        $
        $
        $Balance (Refer Note 20)
        
        157,443
        -
        -
        -157,443
        -
        -
        -



Note 15: Intangible Assets




GoodwillCost
        8,400
        -
        -
        -Net carrying Value
        8,400
        -
        -
        -Reconciliation of GoodwillBalance at beginning of year
        -
        -
        -
        -Additions
        8,400
        -
        -
        -Disposals
        -
        -
        -
        -Closing carrying value at 30 June 2007
        8,400
        -
        -
        -



F-19

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 16: Other financial assets


Economic Entity
        Parent Entity2007
        2006
        2007
        2006$
        $
        $
        $Investment in subsidiary companies
        
        -
        -
        1,408,600
        1,400,000-
        -
        1,408,600
        1,400,000



Note 17: Subsidiary Companies

Interests are held in the following subsidiary company


Subsidiary
        Principal Activity
        Country of Incorporation
        
        Share OwnershipInterest &voting power
        Carrying amount of Investment2007%
        2006%
        2007$
        2006$Australian SecuredInvestments Limited
        Short term loans
        Australia
        
        100
        100
        1,408,400
        1,400,000Auslink Limited
        Short term loans
        Australia
        
        100
        -
        100
        -ADJ Services Pty Ltd
        Serviceentity
        Australia
        100
        -
        100
        -



Note 18: Trade or other payables


Economic Entity
        Parent EntityCURRENT
        
        2007
        2006
        2007
        2006$
        $
        $
        $Unearned revenue
        
        256,201
        179,180
        -
        -Trade payables
        
        66,342
        -
        3,240
        -Accrued  expenses
        
        1,646,699
        923,256
        -
        -1,969,242
        1,102,436
        3,240
        -



F-20

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 19: Promissory notes and other liabilities evidenced by paper


Note
        Economic Entity
        Parent EntityCURRENT
        
        2007$
        2006$
        2007$
        2006$SecuredDebenture Certificates Issued
        
        17,740,324
        21,897,146
        -
        -UnsecuredSubordinated loans
        
        1,181,733
        -
        -
        -NON-CURRENTSecuredDebenture Certificates Issued
        
        6,412,361
        928,008
        -
        -UnsecuredLoan
        
        5,830,000
        1,400,000
        1,350,000
        1,400,00031,164,418
        24,225,154
        1,350,000
        1,400,000



Debenture certificates are secured by a floating charge over the Australian Secured Investments Limited assets and a first registered mortgage.



F-21

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 20: Tax


Note
        Economic  Entity
        Parent Entitya.
        
        
        2007$
        2006$
        2007$
        2006$CURRENTIncome tax
        
        136,502
        287,295
        4,086
        -NON-CURRENTDeferred tax liability comprises:Other
        
        3,614
        3,324
        -
        -b.
        AssetsNON-CURRENTDeferred tax assets comprise:Carry forward subsidiary losses
        
        147,804
        -
        -
        -Provisions
        
        9,639157,443
        -
        -
        -c.
        Reconciliationsi.
        Gross  MovementsThe overall movement in the deferred tax account is  as follows:Opening balance
        
        (3,324)
        -
        -
        -(Charge)/credit to income statement
        
        157,153
        -
        -
        -Credit on  acquisition of subsidiary
        
        -
        (3,324)
        -
        -Closing  balance
        
        153,829
        (3,324)
        -
        -ii.
        Deferred Tax  LiabilityThe movement in deferred tax liability for each  temporary difference during the year is as follows:OtherAt 1 July 2006
        
        (3,324)
        -
        -
        -Charged to the income statement
        
        (290)
        -
        -
        -Credit on  acquisition of subsidiary
        
        -
        (3,324)
        -
        -At 30 June  2007
        
        (3,614)
        (3,324)
        -
        -



F-22

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




Note
        Economic Entity
        Parent Entity2007$
        2006$
        2007$
        2006$(iii)
        Deferred Tax AssetsThe movement in deferred tax assets for each  temporary difference during the year is as follows:At 1 July 2006
        
        -
        -
        -
        -Carry forward losses of subsidiary credited to the  income statement
        
        147,804
        -
        -
        -Provisions  credited to the income statement
        
        9,639At 30 June  2007
        
        157,443
        -
        -
        -



Note 21: Issued Capital


4,114,288  fully paid ordinary shares
        200,204
        200
        200,204
        200200,204
        200
        200,204
        200



The company has authorised share capital amounting to 4,114,288 ordinary shares of no par value.




a.
        Ordinary Shares
        No.
        No.
        No.
        No.At the beginning of reporting period
        20,000
        -
        20,000
        -Shares issued during period
        11/10/2006
        4,094,288
        20,000
        4,094,288
        20,000At reporting  date
        4,114,288
        20,000
        4,114,288
        20,000



On 22/06/2006 the company issued 20,000ordinary shares at $0.01each called to 0.01 cents.

On 08/08/2006 the company split the original 20,000 shares into 4,000,000 ordinary shares.

On 02/10/2006 the company issued 114,288 ordinary shares.

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held

At the shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands

F-23

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 22: Cash Flow Information


Economic Entity
        Parent Entity2007
        2006
        2007
        2006a.
        Reconciliation of Cash Flow from Operations with  Profit from Ordinary Activities after Income Tax
        $
        $
        $
        $Profit from ordinary activities after income tax
        668,609
        637,041
        1,549,536
        -Non-cash flows in profit from ordinary activitiesDiscount on acquisition of subsidiary
        -
        (637,041)
        -
        -Depreciation
        1,925
        -
        -
        -Changes in assets and liabilities, net of the  effects of purchase and disposal of subsidiaries
        
        
        -(Increase) / decrease in trade and term debtors
        58,029
        -
        -
        -(Increase) / decrease in other assets
        (296)
        -
        (927)
        -Increase / (decrease) in prepayments
        -
        -
        -
        -(Increase) / decrease in deferred tax balances
        (157,153)
        -
        -
        -Increase / (decrease) in payables
        866,806
        -
        3,240
        -Increase / (decrease in current tax liabilities
        (150,793)
        -
        4,086
        -Increase /  (decrease) in provisions
        294,489
        -
        -
        -Cashflow from  operations
        1,581,616
        -
        1,555,935
        -



Note 23: Events After the Balance Sheet Date


a.
        There has not  been any matter or circumstance, other than referred to in the financial  statements or notes thereto, that has arisen since the end of the financial  year, that has significantly affected or may significantly affect, the  operations of the company, the results of these operations, or the state of  affairs of the company if future financial years.b.
        The financial  report was authorised for issue by the Board of Directors on the date that  the directors declaration was signed.

Note 24: Segment Reporting


a.
        Business Segment
The company  operates in one business segment being the issue of debentures and secured  loans primarily to businesses in Australia.b.
        Geographical  Segment
The company  operates in the one geographical segment being Australia.



F-24

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 25: Related Party Transactions



Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.



Australian Secured Financial Limited:



Following on from the financial year end 30 June 2006, an unsecured loan of $1,400,000 at an interest rate of 10% per annum was loaned to the company by Baildon Pty Ltd, a company related to Mr J Margerison and Mr A Margerison. The balance outstanding on this loan as at 30 June 2007 was $1,350,000 (2006:$ 1,400,000).



During the period Australian Secured Financial Limited paid $4,018 in legal professional fees to Davis Lawyers, a company related to Mr Paul Davis. (2006 : nil )



During the year Australian Secured Investments Ltd paid $1,750,000 in dividends franked at 88% to Australian Secured Financial Limited.



Management services were provided to the company during the year by DJ Capital Pty Ltd and Blue Wave Projects, entities associated with directors Mr John Margerison, Mr Alan Margerison and Mr Jonathan Pepper. Fees charged for these services were $25,501 and $9,392 respectively.



Auslink Limited:



During the period an unsecured loan of   $3,500,000 at an interest rate of 12% per annum was made by Baildon Pty Ltd, a company related to Mr J Margerison and Mr A Margerison. The balance outstanding on this loan as at 30 June 2007 was $910,000 (2006: nil).



During the period an unsecured line of credit loan of $3,000,000 at an interest rate of 10.5% per annum with a Line fee of $45,000 per annum payable monthly, was made by the Charles and Colinette Margerison trust, an entity related to Mr J Margerison and Mr A Margerison. The balance outstanding on this loan as at 30 June 2007 was $1,550,000 (2006: nil).



During the period an unsecured loan of $1,500,000 at an interest rate of 12% per annum, was made by the Charles and Colinette Margerison trust, an entity related to Mr J Margerison and Mr A Margerison. The balance outstanding on this loan as at 30 June 2007 was $1,430,000 (2006: nil).



During the period an unsecured loan of $800,000 at an interest rate of 12% per annum, was made by Caldy Properties Pty Ltd, a shareholder of Australian Secured Financial Limited. The balance outstanding on this loan as at 30 June 2007 was $590,000 (2006: nil).



During the period Australian Secured Investments Limited assigned seven loans to Auslink Ltd, a company owned 100% by Australian Secured Financial Limited. The total of these seven loans amounted to $1,641,184 (2006: nil).



During the period Auslink Limited paid $6,251 in legal professional fees to Davis Lawyers, a company related to Mr Paul Davis. (2006 : nil )



Australian Secured Investments Limited:



During the period an unsecured subordinated loan of $540,000 at an interest rate of 8% per annum, was made by IA Global Inc, a shareholder of Australian Secured Financial Limited. The balance outstanding on this loan as at 30 June 2007 was $181,733 (2006: nil).



During the period an unsecured subordinated loan of $50,000 at an interest rate of 8% per annum, was made by Pepper family trust, a shareholder of Australian Secured Financial Limited. The balance outstanding on this loan as at 30 June 2007 was nil (2006: nil).



F-25

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 25: Related Party Transactions (continued)



During the period an unsecured subordinated loan of $500,000 at an interest rate of 12% per annum, was made by Nvesta Pty Ltd, a shareholder of Australian Secured Financial Limited. The balance outstanding on this loan as at 30 June 2007 was $500,000 (2006: nil).



During the period an unsecured subordinated loan of $100,000 at an interest rate of 8% per annum, was made by Baddas Investments Pty Ltd, a shareholder of Australian Secured Financial Limited. The balance outstanding on this loan as at 30 June 2007 was nil (2006: nil).



During the period an unsecured subordinated loan of $280,000 at an interest rate of 8% per annum, was made by McFraui Pty Ltd, a shareholder of Australian Secured Financial Limited. The balance outstanding on this loan as at 30 June 2007 was nil (2006: nil).



During the period an unsecured subordinated loan of $500,000 at an interest rate of 11% per annum, was made by Baildon Pty Ltd, a company related to Mr J Margerison and Mr A Margerison. The balance outstanding on this loan as at 30 June 2007 was $500,000 (2006: nil).



During the period Australian Secured Investments Limited assigned seven loans to Auslink Ltd, a company owned 100% by Australian Secured Financial Limited. The total of these seven loans amounted to $1,641,184 (2006: nil).



During the period Australian Secured Investments Limited assigned two loans to DJ Capital Solutions Ltd, a company related to Mr John Margerison and Mr Jonathan Pepper. The total of these two loans amounted to $3,780,045 (2006: $2,635,166 for three loans).



Australian Secured Investments Limited paid $1,407,318 to DJ Capital Pty Ltd, a company related to Mr John Margerison and Mr Jonathan Pepper for management fees in relation to operating expenses for the year ended 30 June 2007.



During the period Australian Secured Investments Limited paid $226,231.30 in legal professional fees (a significant proportion of which was on charged in loan service fees) to Davis Lawyers, a company related to Mr Paul Davis (2006: $62,136).



ADJ Services Pty Ltd



During the year ADJ Services Pty Ltd paid $114,000 (2006: Nil) to DJ Capital Pty Ltd, a company associated with directors Mr John Margerison, Mr Alan Margerison and Mr Jonathan Pepper, in management fees for services rendered.



Legal fees of $399 (2006: Nil) were paid to Davis Lawyers a company related to Mr Paul Davis.



During the year ADJ Services Pty Ltd received the amount of $500 (2006: Nil) from the Charles and Colinette Margerison trust, an entity related to Mr J Margerison and Mr A Margerison. This fee was for administration services provided.



During the year ADJ Services Pty Ltd received the amount of $154 (2006: Nil) from the Nursing Home trust, an entity related to Mr J Margerison and Mr A Margerison. This fee was for administration services provided.



During the year ADJ Services Pty Ltd received the amount of $100 (2006: Nil) from American Capital Reserve Pty Ltd, an entity related to Mr J Margerison, Mr J Pepper and Mr A Margerison. This fee was for administration services provided.



During the year ADJ Services Pty Ltd received the amount of $9,090 (2006: Nil) from Loanbase Pty Ltd, an entity related to Mr J Margerison and Mr A Margerison. This fee was for administration services provided.



During the year ADJ Services Pty Ltd received the amount of $25,000 (2006: Nil) from McFraui Pty Ltd, an entity related to Mr J Margerison. This fee was for administration services provided.



F-26

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 26: Financial Instruments


a.
        Financial Risk  ManagementThe  companys financial instruments consist mainly of deposits with  banks, loans and advances to customers, promissory notes and other  liabilities (debentures).The main  purpose of non-derivative financial instruments is to raise finance for  company operations.The company  does not have any derivative instruments at 30 June 2007.i.
        Treasury Risk  ManagementAn investment  and credit committee consisting of senior executives of the company meet on  a regular basis to analyse interest rate exposure and to evaluate treasury  management strategies in the context of the most recent economic conditions  and forecasts.ii.
        Financial  RisksThe main risks  the company is exposed to through its financial instruments are interest  rate risk, liquidity risk and credit risk.iii.
        Interest rate  riskInterest rate  risk is managed through the issuing of debentures of various terms ranging  from one month to five years at fixed rates, with loans issued to customers  being short term ranging from one to six months. For further details on  interest rate risk refer to Note 26(b).iv.
        Foreign  currency riskThe company is  not exposed to fluctuations in foreign currencies.v.
        Liquidity riskThe company  manages liquidity risk by monitoring forecast cash flows and ensuring that  adequate unutilised borrowing facilities are maintained. The Board of  Directors also ensures that sufficient Net Tangible Assets and Surplus  Liquid Funds are maintained at all times.vi.
        Credit riskThe maximum  exposure to credit risk, excluding the value of any collateral or other  security, at balance date to recognised financial assets, is the carrying  amount, net of any provisions for impairment of those assets, as disclosed  in the balance sheet and notes to the financial statements.The company  does not have any material credit risk exposure to any single receivable or  group of receivables under financial instruments entered into by the  economic entity.vii.
        Price risk
The company is  not exposed to any material commodity price risk.

F-27

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




b.
        Interest Rate RiskThe economic entitys exposure to  interest rate risk, which is the risk that a financial  instruments value will fluctuate as a result of changes in market  interest rates and the effective weighted average interest rates on those  financial assets and financial liabilities, is as follows:




Weighted Average Effective Interest Rate
        
        Fixed Interest Rate MaturingFloating Interest Rate
        Within 1 Year
        1 to 5 Years2007%
        2006%
        2007$
        2006$
        2007$
        2006$
        2007$
        2006$Financial  Assets:Cash and cash  equivalents
        6.10
        5.64
        473,675
        2,414,592
        1,500,000
        1,500,000
        -
        -Receivables
        -
        -
        -
        -
        -
        -
        -
        -Loans
        20.16
        17.48
        30,905,341
        22,166,613
        -
        -
        -
        -Total Financial Assets
        
        
        31,379,016
        24,581,205
        1,500,000
        1,500,000
        -
        -Financial  Liabilities:
Tax Liability
        -
        -
        -
        -
        -
        -
        -
        -Subordinated  debt
        10.27
        -
        -
        -
        1,181,733
        -
        -
        -Loans
        11.10
        10.00
        -
        -
        -
        -
        5,830,000
        1,400,000Payables
        -
        -
        -
        -
        -
        -
        -
        -Debentures
        8.53
        8.04
        -
        -
        17,740,324
        21,897,146
        6,412,361
        928,008Total Financial Liabilities
        
        
        -
        -
        18,922,057
        21,897,146
        12,242,361
        2,328,008




Non-interest Bearing
        Total2007$
        2006$
        2007$
        2006$Financial  Assets:Cash and cash  equivalents
        -
        200
        1,973,875
        3,914,792Receivables
        113,687
        171,716
        113,687
        171,716Loans
        -
        -
        30,905,341
        22,166,613Total Financial Assets
        113,687
        171,916
        32,992,903
        26,253,121Financial  Liabilities:Tax liability
        136,502
        287,295
        136,502
        287,295Subordinated debt
        -
        -
        1,181,733
        -Loans
        -
        -
        5,830,000
        1,400,000Payables
        1,969,242
        1,102,436
        1,969,242
        1,102,436Debentures
        -
        -
        24,152,685
        22,825,154Total Financial Liabilities
        2,105,744
        1,389,731
        33,270,162
        25,614,885



F-28

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




c.
        Net Fair Values




The net fair values of assets and liabilities approximate there carrying their carrying value. The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the Balance Sheet and in the Notes to the Financial Statements.



Note 27: Financial Institution Disclosures




a.
        Average Balance Sheet and Related Interest





Average balance
        Interest
        Average rate$
        $
        $
        $
        %
        %30 June2007
        30 June2006
        30 June2007
        30 June2006
        30 June2007
        30 June2006AssetsCash
        2,944,334
        3,914,792
        447,494
        -
        6.10
        5.64Loans
        26,535,977
        22,166,613
        4,911,484
        -
        20.16
        17.4829,480,311
        26,081,405
        5,358,978
        -LiabilitiesPromissory notes and other liabilities evidenced by paper
        27,694,786
        24,225,154
        2,343,088
        -
        8.53
        8.0427,694,786
        24,225,154
        2,343,088
        -
        -
        -




b.
        Concentration of assets, liabilities and off balance sheet items




Geographical




N.S.W
        QLD
        VIC
        W.A
        Other$
        $
        $
        $
        $
        $
        $
        $
        $
        $On balance sheet
        2007
        2006
        2007
        2006
        2007
        2006
        2007
        2006
        2007
        2006Assets  loans
        5,025,072
        8,108,118
        15,390,966
        12,405,124
        9,193,300
        1,351,818
        698,039
        -
        597,964
        301,5535,025,072
        8,108,118
        15,390,966
        12,405,124
        9,193,300
        1,351,818
        698,039
        -
        597,964
        301,553Liabilities   Debentures
        13,724,813
        15,332,780
        2,313,202
        1,547,783
        3,810,125
        3,134,296
        1,764,642
        1,356,122
        2,539,903
        1,454,173Liabilities   Loans
        -
        -
        5,830,000
        1,400,000
        -
        -
        -
        -
        -
        -Liabilities   Subordinated debt
        -
        -
        1,000,000
        -
        -
        -
        -
        -
        181,733
        -13,724,813
        15,332,780
        9,143,202
        2,947,783
        3,810,125
        3,134,296
        1,764,642
        1,356,122
        2,721,636
        1,454,173



Australian Secured Financial Limited and its controlled entities do not keep any off balance sheet assets or liabilities. There are no other significant concentrations of assets and liabilities related to particular industries/customer groups or foreign currency.



F-29

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)




c.
        Maturities of Assets and Liabilities




Repayment dates



Assets:




2007$
        2006$
        2007$
        2006$
        2007$
        2006$Up to3 months
        Up to3 months
        3 monthsto 1 year
        3 monthsto 1 year
        1 yearto 5 years
        1 yearto 5 yearsAssetsCash
        473,875
        2,414,792
        -
        1,500,000
        1,500,000
        -Receivables
        113,687
        171,716
        -
        -
        -
        -Loans
        26,116,464
        16,301,841
        4,729,480
        5,864,772
        59,397
        -26,704,026
        18,888,349
        4,729,480
        7,364,772
        1,559,397
        -LiabilitiesInterest-bearing  liabilities
        12,450,378
        3,706,609
        11,995,183
        18,190,537
        6,718,857
        -Payables
        1,969,242
        1,102,436
        -
        -
        -
        2,328,00814,419,620
        4,809,045
        11,995,183
        18,190,537
        6,718,857
        2,328,008




d.
        Losses on loans and advances




Australian Secured Financial Limiteds subsidiary Australian Secured Investments Limited credit committee analyses all loans on a monthly basis and any loans or portions of loans which are deemed uncollectible are reported to the board of directors. The board will direct the accounting department of such details. The uncollectible monies outstanding on the loan will then be recognised as an expense and the loan balance reduced to its fair value. During the period Auslink Limited recorded Impairment losses on three loans recognised and current at 30 June 2007 amounted to $294,489 (2006: nil).



F-30

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 28: Change in Accounting Policy




a.
        The company has adopted the following Accounting Standards for  application on or after 1 January 2005:AASB 132: Financial Instruments: Disclosure and PresentationAASB 139: Financial Instruments: Recognition and MeasurementThe changes resulting from the adoption of AASB 132 relate primarily  to increased disclosures required under the standard and do not affect the  value of amounts reported in the financial statements.The adoption of AASB 139 has resulted in no material differences in  the recognition and measurement of the groups financial  instruments. The group has elected to adjust comparative information  resulting from the introduction of AASB 139 as permitted under the  transitional provisions of this standard. As such, AeIFRS have been applied  to comparative information. Adjustments that have resulted due to the  introduction to AASB 139 have been applied retrospectively as included in  Note 2 of this report.b.
        Statement of Compliance
The financial report complies with Australian Accounting Standards  which include Australian equivalents to International Financial Reporting  Standards (AIFRS). This ensures that the financial  report also complies with International Financial Reporting Standards  (IFRS).c.
        Application of accounting standards and Australian Accounting  Interpretations
Certain new accounting standards and interpretations have been  published that are not mandatory for 30 June 2007. The directors  assessment of the impact of the new standards and amendments (to the extent  relevant to the Company) and interpretations is set out below:
AASB  7 Financial Instruments: Disclosures,
AASB  101 Presentation of Financial Statements,
AASB  2005-10 Amendments to Australian Accounting Standards  [AASB101,AASB 115, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023  & AASB 1038],
AASB  2007-4 Amendments to Australian Accounting Standards arising
from  ED 151 and Other Amendments [AASB1, 2, 3, 4, 5, 6, 7, 102, 114,  116, 117, 118, 119, 120, 121, 127, 128, 129, 130, 131, 132, 133, 134, 136,  137, 138, 139, 141, 1023 & 1038] and
AASB  2007-6 Amendments to Australian Accounting Standards arising from  AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116  & AASB 138 and Interpretations 1 & 12]
AASB  8 Operating Segments and AASB 2007-3  Amendments to Australian Accounting Standards arising from AASB 8
[AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB  134, AASB 136, AASB 1023 & AASB 1038]
AASB  2007-7 Amendments to Australian Accounting Standards [AASB 1,  AASB 2, AASB 4, AASB 5, AASB 107 & AASB 128].
AASB 7, AASB 2005-10, AASB 8, AASB 2007-3 and AASB 2007-7 are  applicable to annual reporting periods beginning on or after 1 January 2007.  AASB 2007-4 and AASB 2007-6 are applicable to annual reporting periods  beginning on or after 1 July 2007 and 1 January 2009 respectively. The  company has not adopted these standards early. Application of these  standards
will not affect any of the amounts recognised in the financial  statements, but will impact the type of information disclosed in relation to  the Companys financial instruments.

F-31

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

(in Australian $s)



Note 29: Company Details

The registered office of the company is:

Australian Secured Financial Limited

Level 1

Corporate Centre

2 Corporate Court

BUNDALL QLD 4217

F-32

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



DIRECTORS DECLARATION



The directors of the company declare that:


1.
        The financial  statements and notes, as set out in page 6to32, are in  accordance with theCorporations Act 2001:a.
        comply with  Accounting Standards and the Corporations Regulations 2001; andb.
        give a true  and fair view of the financial position as at 30 June 2007 and of the  performance for the period ended on that date of the company and economic  entity.2.
        In the  directors opinion there are reasonable grounds to believe that  the company will be able to pay its debts as and when they become due and  payable.

This declaration is made in accordance with a resolution of the Board of Directors.



Director
        /s/ Alan Margerison
 


Alan  Margerison



Dated this 15th day of October, 2007

F-33

AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF

AUSTRALIAN SECURED FINANCIAL LIMITED

Report on the financial report

We have audited the accompanying financial report of Australian Secured Financial Limited (the company) and Australian Secured Financial Limited and Controlled Entities (the consolidated entity), which comprises the balance sheet as at 30 June 2007, and the income statement, statement of changes in equity and cash flow statement for the year ended on that date, a summary of significant accounting policies and other explanatory notes and the directors declaration of the consolidated entity comprising the company and the entities it controlled at the years end or from time to time during the financial year.

Directors responsibility for the financial report

The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 28b, the directors also state, in accordance with Accounting Standard AASB 101: Presentation of Financial Statements, that compliance with the Australian equivalents to International Financial Reporting Standards (IFRS) ensures that the financial report, comprising the financial statements and notes,
complies with IFRS.

Auditors responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Australian Auditing Standards do not differ in any significant respect with the audit standards of the Public Company Accounting Oversight Board (United States). These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entitys preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of Australian Secured Financial Limited on xx October 2007, would be in the same terms if provided to the directors as at the date of this auditors report.

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AUSTRALIAN SECURED FINANCIAL LIMITEDABN 74 120 340 507 and Controlled Entities



Auditors Opinion

In our opinion:


a.
        the financial report of Australian Secured Financial Limited and  Australian Secured Financial Limited and Controlled Entities is in  accordance with the Corporations Act 2001, including:(i)      giving  a true and fair view of the companys and consolidated  entitys financial position as at 30 June 2007 and of their  performance for the year ended on that date; and(ii)     complying  with Australian Accounting Standards (including the Australian Accounting  Interpretations) and the Corporations Regulations 2001.b.
        the financial report also complies with International Financial  Reporting Standards as disclosed in Note 28b.



Bentleys MRI Brisbane Partnership

Chartered Accountants



/s/ PM Power



PM Power

Partner

Date

Level 26, 10 Eagle Street

BRISBANE QLD 4001


Dated this
        16th  day of October 2007



F-35

SIGNATURES

         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, IA Global, Inc. (the "Registrant") has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.

                                        IA GLOBAL, INC.

Date: December 31, 2007             By: /s/ Derek Schneideman
                                        ---------------------
                                        Derek Schneideman
                                        Chief Executive Officer and
                                        Director

                                    By: /s/  Mark Scott
                                        ---------------
                                        Mark Scott
                                        Chief Operating and Financial Officer,
                                        Director and Secretary