NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Derivatives are recognised initially at fair value; any
attributable transaction costs are recognised in profit
or loss as incurred. Subsequent to initial recognition,
derivatives are measured at fair value and changes are
recognised in comprehensive income and presented in
equity, unless ineffective in which case the ineffective
portion is recognised immediately in profit or loss.
Amounts accumulated in equity are transferred to
the consolidated income statement in the periods
when the hedged item affects profit or loss (for
instance when the delivery of the goods hedged
takes place). 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.
(y) 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.
(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).
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. Net interest expense
and other expenses related to defined benefit plans are
recognised in profit or loss.
The defined benefit asset or liability recognised
in the consolidated balance sheet represents the
present value of the defined benefit obligation, less
the fair value of the plan assets. Any asset resulting
from this calculation is limited to the present
value of available refunds and reductions in future
contributions to the plan.
(aa)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.
(ab)Going concern
The consolidated financial statements have been
prepared on a going concern basis, as the Director’s
believe that the Group will be able to meet the
mandatory repayment terms of the bond maturity and
banking facilities 6(d).
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