Where there are a number of similar
obligations, the likelihood that an outflow will
be required in settlement is determined by
considering the class of obligations as a whole.
A provision is recognised even if the likelihood
of an outflow with respect to any one item
included in the same class of obligations may
be small.
Provisions are measured at the present
value of management’s best estimate of the
expenditure required to settle the obligation
at the reporting date.
(v) Employee benefits
(i) Short‑term obligations
Liabilities for wages and salaries, including
non‑monetary benefits and annual leave
expected to be settled within 12 months of
the reporting date are recognised in respect of
employees’ services up to the reporting date and
are measured at the amounts expected to be paid
when the liabilities are settled.
(ii) Other long‑termemployee benefit obligations
The liability for long service leave and
associated on‑costs is accumulated from
the date of commencement. They are
measured at the amounts expected to be
paid when the liabilities are settled and
discounted to determine their present value.
Consideration is given to expected future
wage and salary levels with an allowance for
expected future increases.
(w) Major periodic maintenance
Maintenance of infrastructure assets is classified
as major periodic maintenance if it is part of a
systematic planned program of works, occurs
on a cyclical basis and is significant in monetary
values. Major periodic maintenance may
include significant corrective works, component
replacement programs, and similar activities and
these costs are expensed in the consolidated
entity’s accounts.
(x) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised
net of the amount of associated GST, unless the
GST incurred is not recoverable from the taxation
authority. In this case it is recognised as part of
the cost of acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of
the amount of GST receivable or payable. The
net amount of GST recoverable from, or payable
to, the taxation authority is included with other
receivables or payables in the Consolidated
Balance Sheet.
Cash flows are presented on a gross basis.
The GST components of cash flows arising
from investing or financing activities which
are recoverable from, or payable to the
taxation authority, are presented as operating
cash flows.
Commitments and contingencies are disclosed
net of the amount of GST recoverable from, or
payable to, the taxation authority.
(y) Rail infrastructure assets
The rail infrastructure assets vested in the
Group at 1 July 1998 covered all interstate
mainline track and associated land, trackside
and related assets under Commonwealth
jurisdiction, and include rail, sleepers,
ballast, designated crossing loops, turnouts,
signals and communications equipment,
bridges, culverts, tunnels and specified
rolling stock.
(z) Defined Benefit Fund
ARTC is a member of the following
superannuation schemes: State Authorities
Superannuation Scheme (SASS), State
Authorities Non‑Contributory Superannuation
Scheme (SANCS) and the State
Superannuation Scheme (SSS).
Note 01
Summary of significant accounting policies (continued)
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