NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
AASB 9 Financial Instruments, AASB 2009-11
Amendments to Australian Accounting Standards
arising from AASB 9, AASB 2010-7 Amendments to
Australian Accounting Standards arising from AASB
9 (December 2010) and AASB 2012-6 Amendments
to Australian Accounting Standards - Mandatory
Effective Date of AASB 9 and Transition Disclosures
(effective from 1 January 2015).
AASB 9 Financial Instruments addresses the
classification, measurement and derecognition of
financial assets and financial liabilities. The standard is
not applicable until 1 January 2015 but is available for
early adoption.
The adoption of AASB 9 (2010) is expected to have an
impact on the Group. The Group has yet to determine
the extent of the impact of the new guidelines but has
conducted some preliminary discussions to assess the
potential impact to the Group. The Group has decided
not to early adopt AASB 9.
There are no other standards that are not yet effective
and that are expected to have a material impact on the
entity in the current or future reporting periods and on
foreseeable future transactions.
(f) Parent entity financial
information
The financial information for the parent entity,
Australian Rail Track Corporation Ltd, disclosed in
note 20 has been prepared on the same basis as the
consolidated financial statements.
(g) 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 2014 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.
(ii) Joint arrangements
Under AASB 11 Joint Arrangements investments
in joint arrangements are classified as either joint
operations or joint ventures. The classification
depends on the contractual rights and obligations of
each investor, rather than the legal structure of the
joint arrangement. Australian Rail Track Corporation
Ltd currently has a joint operation in place.
The Group recognises its direct right to the assets,
liabilities, revenues and expenses of joint operations
and its share of any jointly held or incurred assets,
liabilities, revenues and expenses. These have been
incorporated in the financial statements under the
appropriate headings and have not resulted in any
changes to the previous accounting treatment.
(h) 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 recognised comprises amounts received
and receivable by the consolidated entity granting
operators access to the rail network during the year.
(j) Interest revenue and
borrowing expenses
Interest revenue 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
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