2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013Interest RevenueInterest includes interest received on deposits and other investments and the unwinding overtime of the discount on financial assets. Interest income is recognised using the effectiveinterest method which allocates the interest over the relevant period.Net realised and unrealised gains and losses on the revaluation of investments do not formpart of income from transactions, but are reported either as part of income from othereconomic flows in the net result or as unrealised gains or losses taken directly to equity,forming part of the total change in net worth in the comprehensive result.Government Contributions - RecurrentGovernment contributions are recognised as revenue when the Corporation gains control ofthe underlying assets. The Corporation is deemed to have assumed control when thecontributions are received or receivable.Government Contributions – Non-recurrentThe Corporation undertakes works within Albert Park under licence from Parks Victoria in itscapacity of the Committee of Management for Albert Park. Government contributions inrelation to capital works have been recorded as revenue in the current financial year. Thesecapital works have been transferred to Parks Victoria free of charge.Fair Value of Assets and Services received free of charge or for nominal considerationContributions of resources received free of charge or for nominal consideration arerecognised at fair value when control is obtained over them, irrespective of whether thesecontributions are subject to restrictions or conditions over their use. Contributions in the formof services are only recognised when a fair value can be reliably determined and the serviceswould have been purchased if not received as a donation.(i) Expenses from TransactionsExpenses are recognised as they are incurred and reported in the financial year to which theyrelate.Event management and staging and recurrent engineeringEvent management and staging and recurrent engineering expenses include those costsrelating to the assembly, dismantling and servicing of event infrastructure. It includes any noncapitalexpenditure on areas in and around the Albert Park and Phillip Island circuits.Administration expensesDepreciation and amortisationAll items of infrastructure, plant and equipment that have finite useful lives are depreciated.Depreciation is calculated on a straight-line basis, at rates that allocate the asset’s value, lessany estimated residual value, over its estimated useful life.The estimated useful lives, residual values and depreciation method are reviewed at the endof each reporting period, and adjustments made when necessary.3434Australian Grand Prix Corporation Annual Report 2013