NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Effective Date of AASB 9 and Transition Disclosures
(effective from 1 January 2015)
AASB 9 Financial Instruments addresses the
classification, measurement and derecognition of
financial assets and financial liabilities. The standard is
not applicable until 1 January 2015 but is available for
early adoption.
The adoption of AASB 9 (2010) is expected to have an
impact on the Group. The Group has yet to determine
the extent of the impact of the new guidelines but has
conducted some preliminary discussions to assess the
potential impact to the Group. The Group has decided
not to early adopt AASB 9.
(ii) AASB 13 Fair Value Measurement and AASB
2011-8 Amendments to Australian Accounting
Standards arising from AASB 13 (effective
1 January 2013)
AASB 13 was released in September 2011. It explains
how to measure fair value and aims to enhance fair
value disclosures. The Group has yet to determine
which, if any, of its current measurement techniques
will have to change as a result of the new guidance. It
is therefore not possible to state the impact, if any, of
the new rules on any of the amounts recognised in the
financial statements. However, application of the new
standard will impact the type of information disclosed
in the notes to the consolidated financial statements.
The Group does not intend to adopt the new standard
before its operative date being 1 July 2013.
(iii) Revised AASB 119 Employee Benefits and, AASB
2012-10 Amendments to Australian Accounting
Standards arising from AASB 119 (September 2012)
AASB 119 changes the definition of short-term and
other long-term employee benefits to clarify the
distinction between the two. For defined benefit
plans, removal of the accounting policy choice for
recognition of actuarial gains and losses is not
expected to have any impact on the Group. However,
the Group may need to assess the impact of the
change in measurement principles of expected return
on plan assets. AASB 119 is effective for annual
periods beginning on or after 1 January 2013 with early
adoption permitted. The Group does not intend to
adopt the new standard before its operative date being
1 July 2013.
There are no other standards that are not yet effective
and that are expected to have a material impact on the
entity in the current or future reporting periods and on
foreseeable future transactions.
(c) Parent entity
financial information
The financial information for the parent entity,
Australian Rail Track Corporation Ltd, disclosed in
note 40 has been prepared on the same basis as the
consolidated financial statements.
(d) Principles of consolidation
(i) Subsidiaries
The consolidated financial statements incorporate
the assets and liabilities of all entities controlled
by the Australian Rail Track Corporation Ltd
(‘’company’’ or ‘’parent entity’’) as at 30 June 2013
and the results of the controlled entities for the
year then ended. Australian Rail Track Corporation
Ltd and its controlled entities are referred to in this
financial report as the “consolidated entity” or “the
Group”. The effects of all transactions between
entities in the consolidated entity are eliminated
in full.
Where control of an entity is obtained during
a financial year, its results are included in the
Consolidated Income Statement from the date
on which control commences. Where control of
an entity ceases during a financial year, its results
are included for that part of the year during which
control existed.
Investments in subsidiaries are accounted for at cost
in the individual financial statements of Australian Rail
Track Corporation Ltd.
(e) Revenue recognition
Revenue is measured at the fair value of the
consideration received or receivable to the extent
it is probable the economic benefit will flow to the
Group and the revenue can be reliably measured.
Amounts disclosed as revenue are net of returns, trade
allowances, rebates and amounts collected on behalf
of third parties.
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