The schemes are all defined benefit schemes at
least a component of the final benefit is derived
from a multiple of the member’s salary and
years of membership. All schemes are closed to
new members.
Actuarial gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in which
they occur, in other comprehensive income.
The defined benefit asset or liability recognised in
the Balance Sheet represents the present value
of the defined benefit obligation, adjusted for
unrecognised past service cost, net of the fair
value of the plan assets. Any asset resulting from
this calculation is limited to past service cost,
plus the present value of available refunds and
reductions in future contributions to the plan.
State Authorities Superannuation
Scheme(SASS)
SASS is a split benefit scheme, which means
it is made up of an accumulation style
contributor‑financed benefit and a defined benefit
style employer‑financed benefit.
Employees can elect to contribute between 1%
and 9% of their salary to SASS and can vary
their contribution rate each year. Generally, each
percentage of salary that a member contributes
each year buys the member one benefit
point which is used in the calculation of the
employer‑financed benefit.
State Authorities Non‑Contributory
Superannuation Scheme (SANCS)
SANCS is a productivity‑type superannuation
benefit accrued by SASS members in addition to
their contributory scheme benefits. Calculated at
3% of final average salary or final salary, depending
on the mode of exit, for each year of service from 1
April 1988. It is fully employer‑financed.
State Superannuation Scheme (SSS)
SSS is a defined benefit scheme subsidised
by the employer. Contributions to the defined
contribution fund are recognised as an expense as
they become payable.
(aa) Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the
issue of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds.
(ab) Foreign currency translation
(i) Functional and presentation currency
Both the functional and the presentation currency of
ARTC and its subsidiaries is Australian dollars ($).
(ii) Transactions and balances
Foreign currency transactions are translated
into the functional currency using the exchange
rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting
from the settlement of such transactions and
from the translation at year end exchange rates
of monetary assets and liabilities denominated
in foreign currencies are recognised in other
comprehensive income, except when they are
deferred in other comprehensive income as
qualifying cash flow hedges and qualifying net
investment hedges or are attributable to part of
the net investment in a foreign operation.
(ac) Going concern
As at 30 June 2012, the Group has a net deficiency
of current assets over current liabilities of $70.6m
(2011, $96.9m surplus). Despite this deficiency,
the financial statements have been prepared
on a going concern basis having due regard to
the equity injection of $116.7m received from
the Commonwealth Government in July 2012
as detailed in note 39, the availability of $530m
of unutilised funds through a Syndicated Debt
Facility Agreement as detailed in note 2(c) and the
expected continued positive cash flows from the
Group’s operating activities.
Note 01
Summary of significant accounting policies (continued)
69
