ANNUAL REPORT 2004â05 - V/Line

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Lease IncentivesIncentives received on entering into operating leases are recognised as liabilities. The incentive of the lease is amortised over theremaining life of the lease.(p) Trade and other payablesLiabilities for trade creditors and other amounts are carried at cost, which is the fair value of the consideration to be paid in the future forgoods and services received, whether or not billed to the consolidated entity.The majority of payments are settled at the end of the month following the month of the invoice date.(q) Related party payablesPayables to related parties are carried at the principal amount. No interest is charged by the lender.(r) Maintenance and repairsRepairs and maintenance work on rolling stock are scheduled in accordance with V/Line's Rolling Stock Management Plan and the RailSafety Management Standards. Scheduled maintenance examinations on rolling stock are determined at set intervals depending on thetype of rolling stock.The Refurbishment program included in the Rolling Stock Management plan includes major examinations and overhauls of rolling stock.The consolidated entity treats these examinations as significant upgrades, which extend the useful life of the rolling stock. Included in theRefurbishment program is the replacement of major units such as traction and locomotive motors, generators, wheel sets and bogies.These items are capitalised and amortised over their useful life.All other maintenance examinations and minor work are treated as repairs and maintenance and expensed to the profit and loss whenincurred.(s) Goods and Services TaxRevenues, expenses and assets are recognised net of GST except where the amount of GST incurred is not recoverable, in which caseit is recognised as part of the cost of acquisition of an asset or part of an item of expense. The net amount of GST recoverable from, orpayable to, the Australian Taxation Office (ATO) is included as part of receivables or payables in the statement of financial position.(t) National Tax Equivalent Regime (NTER)By direction of the Treasurer of Victoria, under the State Owned Enterprise Act 1992, the consolidated entity entered into the NTER on 1October 2003. Any NTER expense payable is calculated on operating profit or loss adjusted for permanent and timing differencesbetween NTER income and accounting income.Tax-effect accounting is applied using the liability method whereby income tax is regarded as an expense and is calculated on theaccounting profit after allowing for permanent differences.To the extent timing difference occur between the time items are recognised in the financial statements and when items are taken intoaccount in determining taxable income, the net related taxation benefit or liability, calculated at current rates, is disclosed as a futureincome tax benefit or a provision for deferred income tax. The net future income tax benefit relating to tax losses and timing differencesis not carried forward as an asset unless the benefit is virtually certain of being realised.Future income tax benefits arising from tax losses are not brought to account at balance date, as realisation of the benefit is notregarded as virtually certain.(u) Employee benefitsProvision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. Thesebenefits include annual leave and long service leave.Per AASB 1028, liabilities arising in respect of wages and salaries, annual leave, sick leave and any other employee benefits expected tobe settled within twelve months of the reporting date are measured at their nominal amounts based on remuneration rates which areexpected to be paid when the liability is settled including related on-costs.All other employee benefit liabilities are measured at the present value of the estimated future cash outflows to be made in respect ofservices provided by employees up to the reporting date.In determining the present value of future cash outflows, the interest rates attaching to government guaranteed securities are used,which have terms to maturity approximating the terms of the related liability.50| V/LINE ANNUAL REPORT 2004-05
NOTES TO THE FINANCIAL STATEMENTSThe determination of the current and non-current portion of the employee benefits liabilities is based upon management's expectationand analysis of when employees are likely to take leave.Employee benefit expenses and revenues arising in respect of the following categories:• wages and salaries, annual leave, long service leave, sick leave and other leave benefits• other types of employee benefitsare charged against profits in their respective categories.The contributions made to superannuation funds by the consolidated entity are charged against profits when due.(v) Rounding of amountsAmounts in the financial report have been rounded to the nearest thousand dollars, or in other cases, to the nearest dollar.(w) Principles of ConsolidationThe consolidated financial statements incorporate the assets and liabilities of all entities controlled by V/Line Passenger Corporation(Parent entity) as at 30 June 2005 and the results of all controlled entities for the year then ended. V/Line Passenger Corporation and itscontrolled entities together are referred to in this financial report as the Consolidated entity. The effects of all transactions between entitieswithin the Consolidated entity are eliminated in full.Where control of an entity is obtained during a financial year, its results are included in the consolidated statement of financialperformance from the date on which control commences. Where control of an entity ceases during a financial year its results areincluded for that part of the year during which control existed.V/LINE ANNUAL REPORT 2004-05|51
Page 1 and 2: ANNUAL REPORT 2004-05
Page 3 and 4: REPORT 04-05 CONTENTSLETTER TO THE
Page 5 and 6: LETTER TO THE MINISTEROctober 2005T
Page 7 and 8: CHAIRMAN’S REPORTWhile we know th
Page 9 and 10: CEO’S REPORTDespite this focus on
Page 11 and 12: AN OVERVIEWTHE V/LINE RAIL AND COAC
Page 13 and 14: AN OVERVIEW (CONTINUED)THE YEAR IN
Page 15 and 16: MAJOR PROJECTSVLOCITY TRAINSThe int
Page 17 and 18: OUR CUSTOMERS“GRENVILLE DAWSONOUR
Page 19 and 20: OUR CUSTOMERS (CONTINUED)The redeve
Page 21 and 22: OUR CUSTOMERS (CONTINUED)V/LINE IN
Page 23 and 24: OUR OPERATIONS“GRAEME CLEAKTHE NE
Page 25 and 26: OUR OPERATIONS (CONTINUED)THE PERCE
Page 27 and 28: OUR OPERATIONS (CONTINUED)THE MAJOR
Page 29 and 30: OUR OPERATIONS (CONTINUED)Since 200
Page 31 and 32: OUR OPERATIONS (CONTINUED)SAFETY CH
Page 33 and 34: OUR EMPLOYEES“JOHN MITCHELLOUR MA
Page 35 and 36: OUR EMPLOYEES (CONTINUED)Early resu
Page 37 and 38: OUR EMPLOYEES (CONTINUED)New traini
Page 39 and 40: CORPORATE GOVERNANCEFROM LEFT: MERE
Page 41 and 42: CORPORATE GOVERNANCE (CONTINUED)COL
Page 43 and 44: FINANCIAL AND STATUTORY STATEMENTSS
Page 45 and 46: STATEMENT OF FINANCIAL PERFORMANCEF
Page 47 and 48: STATEMENT OF CASH FLOWSFOR THE YEAR
Page 49 and 50: TABLE OF CONTENTS NOTES TO THE FINA
Page 51: NOTES TO THE FINANCIAL STATEMENTS(i
Page 55 and 56: NOTES TO THE FINANCIAL STATEMENTSCO
Page 61 and 62: NOTES TO THE FINANCIAL STATEMENTSNO
Page 71 and 72: NOTES TO THE FINANCIAL STATEMENTS1.
Page 73 and 74: AUDITOR GENERAL’S STATEMENTV/LINE
Page 75: CONTACT DETAILSV/LINE PASSENGER PTY

ANNUAL REPORT 2004â05 - V/Line

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ANNUAL REPORT 2004â05 - V/Line