2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013The annual financial statements represent the audited general purpose financial statements for theAustralian Grand Prix Corporation (the Corporation).The purpose of the report is to provide users with information about the Corporation’s stewardship ofresources entrusted to it.To gain a better understanding of the terminology used in this report, a glossary of terms and styleconventions can be found in Note 26.1. Summary Of Significant Accounting Policies(a) Statement of ComplianceThe Corporation’s financial statements are a general purpose financial report which has beenprepared on an accrual basis in accordance with the Financial Management Act 1994 andapplicable Australian Accounting Standards (AASs) which include Interpretations issued bythe Australian Accounting Standards Board (AASB). In particular they have been presented ina manner consistent with the requirements of the AASB 1049 Whole of Government andGeneral Government Sector Financial Reporting.In complying with AASs, the Corporation has, where relevant, applied those paragraphsapplicable to not-for-profit entities.Accounting policies are selected and applied in a manner which ensures that the resultingfinancial information satisfies the concepts of relevance and reliability, thereby ensuring thatthe substance of the underlying transactions or other events is reported.The annual financial statements were authorised for issue by the Chairman of the Board on27 August 2013.(b) Basis of Accounts Preparation and MeasurementThe accrual basis of accounting has been applied in the preparation of these financialstatements whereby assets, liabilities, equity, income and expenses are recognised in thereporting period to which they relate, regardless of when cash is received or paid.These financial statements are presented in Australian dollars, the functional and presentationcurrency of the Corporation.In the application of AASs, management is required to make judgements, estimates andassumptions about carrying values of assets and liabilities that are not readily apparent fromother sources. The estimates and associated assumptions are based on professionaljudgement derived from historical experience and various other factors that are believed tobe reasonable under the circumstances. Actual results may differ from these estimates. Theestimates and assumptions that have a significant risk of causing a material adjustment to thecarrying amounts of assets and liabilities within the next financial year are discussed below.• Estimated impairment of non-financial assetsThe Corporation assesses impairment of all assets at each reporting date byevaluating conditions specific to the Corporation and to the particular asset that maylead to impairment. These may include asset performance, economic and politicalenvironments and future expectations. Given the specific nature of the Corporation’sassets, management considered that the indicators of impairment were significantenough and as such have been tested for impairment in this financial period.3030Australian Grand Prix Corporation Annual Report 2013