(b) Contingencies of the Parent entity
The Parent entity accounts for costs associated with rectifying rail access related incidents following
their occurrence. Income from subsequent insurance and other recoveries is only recognised when
there is a contractual arrangement in place and the income is probable 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 probable.
A contingent liability exists at reporting date relating to the following:
(i) Unresolved indirect tax issues for which the potential liability is not able to be quantified with any
certainty but are unlikely to have a material impact to the users of the financial statements.
(ii) Unresolved coal revenue allocations arising from the review by the 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.
(c) Contractual commitments for the acquisition of property, plant
or equipment
As at 30 June 2015, the Parent entity had contractual commitments for the acquisition of property,
plant or equipment totalling $160.1m (2014: $301.2m). These commitments are not recognised as
liabilities as the relevant assets have not yet been received.
NOTE 18
PARENT ENTITY FINANCIAL INFORMATION
(CONTINUED)
104
