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.
(w) 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).
The schemes are all defined benefit schemes at
least a component of the final benefit is derived
from a multiple of the member’s salary and years of
membership. All schemes are closed to new members.
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.
The defined benefit asset or liability recognised in the
Consolidated Balance Sheet represents the present
value of the defined benefit obligation, adjusted for
unrecognised past service cost, net of the fair value
of the plan assets. Any asset resulting from this
calculation is limited to past service cost, plus the
present value of available refunds and reductions in
future contributions to the plan.
State Authorities Superannuation Scheme (SASS)
SASS is a split benefit scheme, which means it is made
up of an accumulation style contributor financed benefit
and a defined benefit style employer financed benefit.
Employees can elect to contribute between 1% and 9%
of their salary to SASS and can vary their contribution
rate each year. Generally, each percentage of salary
that a member contributes each year buys the member
one benefit point which is used in the calculation of the
employer financed benefit.
State Authorities Non Contributory Superannuation
Scheme (SANCS)
SANCS is a productivity type superannuation benefit
accrued by SASS members in addition to their
contributory scheme benefits. Calculated at 3% of final
average salary or final salary, depending on the mode
of exit, for each year of service from 1 April 1988. It is
fully employer financed.
State Superannuation Scheme (SSS)
SSS is a defined benefit scheme subsidised by the
employer. Contributions to the defined contribution fund
are recognised as an expense as they become payable
(x) Contributed equity
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax,
from the proceeds.
(y) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of
the Group’s entities are measured using the currency of
the primary economic environment in which the entity
operates (‘the functional currency’). The consolidated
financial statements are presented in Australian
dollars, which is Australian Rail Track Corporation
Ltd’s functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the
functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of
such transactions and from the translation at year
end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in
profit or loss, except when they are deferred in equity
as qualifying cash flow hedges and qualifying net
investment hedges or are attributable to part of the
net investment in a foreign operation.
NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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