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 other 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.
(x) 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.
(y) 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
where 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
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