ity with IFRS requires the use of certain critical
accounting estimates. It also requires management
to exercise its judgement in the process of applying
the Group’s accounting policies. The areas involving
a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to
the financial statements are disclosed in note 3.
(b) New accounting standards
and interpretations
Certain new accounting standards and
interpretations have been published that are not
mandatory for 30 June 2012 reporting periods
and have not yet been applied in preparing these
consolidated financial statements. The Group’s
assessment of the impact of these new standards
and interpretations is that they are not expected
to have a significant effect on the consolidated
financial statements of the Group, except for AASB
9 Financial Instruments, which becomes mandatory
for the Group’s 2016 consolidated financial
statements and could change the classification and
measurement of financial assets. The Group has not
determined the extent of the impact and does not
intend to early adopt the standard.
(c) Parent entity financial information
The financial information for the parent entity,
Australian Rail Track Corporation Ltd, disclosed in
note 41 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 2012 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.
(i) Access revenue
Access revenue recorded in the Consolidated
Income Statement comprises amounts received
and receivable by the consolidated entity granting
operators access to the rail network during the year.
(ii) Interest Income
Interest income is recognised as interest accrues
using the effective interest method. This is a
method of calculating the amortised cost of a
financial asset and allocating the interest income
over the relevant period using the effective
interest rate, which is the rate that exactly
discounts estimated future cash receipts through
the expected life of the financial asset to the net
carrying amount of the financial asset.
(iii) Country Regional Network revenue
CRN revenue recorded in the Consolidated
Income Statement comprises amounts received
and receivable by the consolidated entity for the
recovery of expenditure on the CRN as per the
Note 01
Summary of significant accounting policies (continued)
61
