101 / 132
(g) Non-current liabilities - Defined benefit plans (continued)
NOTE 7
NON-FINANCIAL ASSETS AND LIABILITIES (CONTINUED)
(h) Current liabilities - Deferred income government grants
Accounting policy
Defined benefit plan
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. Net interest
expense and other expenses related to defined benefit plans are recognised in profit or loss.
The defined benefit asset or liability recognised in the consolidated balance sheet represents the
present value of the defined benefit obligation, less the fair value of the plan assets. Any asset
resulting from this calculation is limited to the present value of available refunds and reductions in
future contributions to the plan.
The corporate bond market rate as per the G100 is utilised when discounting employee benefit
liabilities as of 30 June 2017.
Accounting policy
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance
that the grant will be received and the Group will comply with all attached conditions. Where the
grants have attached conditions and/or are project specific, they are recognised at their fair value
and initially credited to deferred income upon receipt, then recognised in the consolidated income
statement over the period necessary to match them with the costs that they are intended to
compensate. Where those grants relate to expenditure that is to be capitalised, they are credited
to the consolidated income statement on a straight line basis over the expected lives of the related
assets from the date of commissioning. Grants that compensate the Group for expenses incurred
are recognised in the income statement on a systematic basis in the periods in which expenses are
recognised e.g. Inland Rail Project.
Consolidated
2017
2016
Current
$’000
Non-
current
$’000
Total
$’000
Current
$’000
Non-
current
$’000
Total
$’000
Deferred income -
government grants
70,577 425,537 496,114
55,868 421,549 477,417
70,577 425,537 496,114
55,868 421,549 477,417
The grants received primarily arise from rail projects delivered under the Infrastructure Investment
Programme, including the Inland Rail Project, to improve efficiency and safety of the National Land
Transport Network. Previously the Company has been awarded other grants from the Government
of Victoria and other state funded projects.
99