NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Financial Instruments: Recognition and
Measurement. This new version supersedes
the AASB 9 versions issued in December
2009 and December 2010 and includes a
model for classification and measurement,
a new expected credit loss model for
calculating impairment on financial assets
and a substantially reformed approach to
hedge accounting.
The changes to the classification and
measurement of financial assets and the new
impairment model are not expected to have
any impact on the Group.
AASB 9 is effective for annual reporting
periods beginning on or after 1 January 2018,
with early adoption permitted.
Amendments to AASB 9 (December
2009 & 2010 editions and AASB 2013-
9) issued in December 2013 included the
new hedge accounting requirements,
which incorporated changes to hedge
effectiveness testing, treatment of hedging
costs, risk components that can be hedged
and disclosures.
The Group does not currently intend to early
adopt and will continue to monitor its position,
particularly around hedging requirements to
determine whether early adoption will provide
any financial benefits.
(ii) AASB 15 Revenue from Contracts
with Customers
The AASB has issued a new standard for
the recognition of revenue. This will replace
AASB 118 which covers contracts for goods
and services and AASB 111 which covers
construction contracts.
The new standard is based on the principle
that revenue is recognised when control of a
good or service transfers to a customer. This
means that revenue will be recognised when
control of goods or services is transferred,
rather than on transfer of risk and rewards,
as is currently the case under AASB 118.
Early adoption of this standard is permitted.
The International Accounting Standards
Board (IASB) in its July 2015 meeting decided
to confirm its proposal to defer the effective
date of IFRS 15 (the international equivalent
of AASB 15) from 1 January 2017 to 1 January
2018. The amendment to give effect to the
new effective date for IFRS 15 is expected
to be issued in September 2015. At this time,
it is expected that the AASB will make a
corresponding amendment to AASB 15, which
will mean that the application date of this
standard for the Group will move from 1 July
2017 to 1 July 2018.
The Group has yet to complete a full review
of the impact of the new standard and has
decided not to early adopt.
There are no other standards that have
been issued or amended but are not
yet effective that are expected to have
a material impact on the Group in the
current or future reporting periods and on
foreseeable future transactions.
(f) Parent entity
financial information
The financial information for the Parent entity,
Australian Rail Track Corporation Ltd, disclosed
in note 18 has been prepared on the same basis
as the consolidated financial statements.
(g) 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 2015 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.
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