NOTE 11
SUBSIDIARIES
Significant investment in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following
principal non - operating subsidiaries in accordance with the accounting policy described in note 1(g):
Name of subsidiary
Country of incorporation
Equity holding
2015
%
2014
%
ARTC Services Company Pty Ltd
Australia
100
100
Standard Gauge Company Pty Ltd
Australia
100
100
NOTE 12
CONTINGENCIES
The Group accounts for costs associated with rectifying rail access related incidents following their
occurrence. Income from subsequent insurance and other recoveries are only recognised when there
is a contractual arrangement in place and the income is virtually certain of being received. As a result,
certain potential insurance and or other recoveries have not been recognised at year end, as their
ultimate collection is not considered virtually certain.
A contingent liability exists at reporting date relating to the following:
(a) Unresolved indirect tax issues for which the potential liability is not able to be quantified with any
certainty but is unlikely to have a material impact to the users of the financial statements.
(b) Unresolved coal revenue allocations arising from the review by the Australian Competition
and Consumer Commission (ACCC) of ARTC’s - Hunter Valley Access Undertaking Compliance
Submissions for 2013 onwards, which is in its preliminary stages. This may result in a reduction in
allowable revenue as per the 2013 and 2014 compliance submissions of which the impact is not
expected to be known until the 2015/16 financial year. However, it is expected that any revenue
reduction will be recovered over future years. The liability is not able to be quantified with any
certainty due to the preliminary nature of the review.
98
