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Significant investment in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the
following principal non-operating subsidiaries in accordance with the accounting policy.
Name of subsidiary
Country of incorporation
Equity holding
2017
%
2016
%
ARTC Services Company Pty Ltd
Australia
100
100
Standard Gauge Company Pty Ltd
Australia
100
100
The gain or loss relating to the effective portion of forward foreign exchange contracts hedging
the imported goods is recognised in the consolidated income statement within ‘infrastructure
maintenance’. However, when the forecast transaction that is hedged results in the recognition of a
non-financial asset (for example, inventory or fixed assets) the gains and losses previously deferred
in equity are transferred from equity and included in the initial measurement of the cost of the asset.
The deferred amounts are ultimately recognised in profit or loss as infrastructure maintenance in the
case of goods relating to maintenance, or as depreciation in the case of fixed assets.
When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the
criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in
equity and is recognised when the forecast transaction is ultimately recognised in the consolidated
income statement. When a forecast transaction is no longer expected to occur, the cumulative gain
or loss that was reported in equity is immediately transferred to the consolidated income statement.
Accounting policy
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 2016 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.
Investments in subsidiaries are accounted for at cost in the individual financial statements of
Australian Rail Track Corporation Ltd and are not material to the Group.
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NOTE 12
SUBSIDIARIES
(d) Fair value measurements (continued)
NOTE 11
FINANCIAL RISK MANAGEMENT (CONTINUED)