2013 AnnuAl RepoRt - Australian Grand Prix

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Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013• impairment and reversal of impairment for financial instruments at amortised cost (refer toNote 1(k)); and• disposals of financial assetsRevaluations of financial instruments at fair valueRefer to Note 1(k) Financial InstrumentsOther gains/(losses) from other economic flowsOther gains/(losses) from other economic flows include the gains or losses from:• transfer of amounts from reserves and/or accumulated surplus to net result due todisposal or derecognition of reclassification; and• the revaluation of the present value of the long service leave liability due to changes inthe bond interest rates.(k) Financial InstrumentsFinancial instruments arise out of contractual agreements that give rise to a financial asset ofone entity and a financial liability or equity instrument of another entity. Due to the nature ofthe Corporation’s activities, certain financial assets and financial liabilities arise under statuterather than a contract. Such financial assets and financial liabilities do not meet the definitionof financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutoryreceivables arising from taxes, fines and penalties do not meet the definition of financialinstruments as they do not arise under contract. However, guarantees issued by the Treasureron behalf of the Corporation are financial instruments because, although authorised understatute, the terms and conditions for each financial guarantee may vary and are subject toan agreement.Where relevant, for note disclosure purposes, a distinction is made between those financialassets and financial liabilities that meet the definition of financial instruments in accordancewith AASB 132 and those that do not.The following refers to financial instruments unless otherwise stated.Categories of non-derivative financial instrumentsLoans and receivablesLoans and receivables are financial instrument assets with fixed and determinable paymentsthat are not quoted on an active market. These assets are initially recognised at fair valueplus any directly attributable transaction costs. Subsequent to initial measurement, loans andreceivables are measured at amortised cost using the effective interest method, less anyimpairment.Loans and receivables category includes cash and deposits (refer 1(l)), term deposits withmaturity greater than 3 months, trade receivables, loans and other receivables, but notstatutory receivables.Australian Grand Prix Corporation Annual Report 2013 3737
Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013Held-to-maturity financial assetsIf the Corporation has the positive intent and ability to hold nominated investments tomaturity, then such assets may be classified as held-to-maturity. Held-to–maturity financialassets are recognised initially at fair value plus any directly attributable transaction costs.Subsequent to initial recognition, held-to-maturity financial assets are measured at amortisedcost using the effective interest method, less any impairment losses.The held-to-maturity category includes certain term deposits and debt securities for which theCorporation intends to hold to maturity.The Corporation makes limited use of this classification because any sale or reclassification ofmore than an insignificant amount of held-to maturity investments not close to their maturitywould result in the whole category being reclassified as available-for–sale. The Corporationwould also be prevented from classifying investment securities as held-to-maturity for thecurrent and the following two financial years.Financial assets and liabilities at fair value through profit and lossFinancial assets are categorised as fair value through profit and loss at trade date if they areclassified as held for trading or designated as such upon initial recognition. Financialinstrument assets are designated at fair value through profit or loss on the basis that thefinancial assets form part of a group of financial assets that are managed by the Corporationbased on their fair values, and have their performance evaluated in accordance withdocumented risk management and investment strategies.Financial instruments at fair value through profit or loss are initially measured at fair value andattributable transaction costs are expensed as incurred. Subsequently, any changes in fairvalue are recognised in the net result as other economic flows. Any dividend or interest on afinancial asset is recognised in the net result from transactions.Financial liabilities at amortised costFinancial instrument liabilities are initially recognised on the date they are originated. They areinitially measured at fair value plus any directly attributable transaction costs. Subsequent toinitial recognition, these financial instruments are measured at amortised cost with anydifference between the initial recognised amount and the redemption value beingrecognised in the profit and loss over the period of the interest bearing liability, using theeffective interest rate method.Financial instrument liabilities measured at amortised cost include all payables, deposits heldand advances received, and interest-bearing arrangements other than those designated atfair value through profit or loss.Offsetting financial instrumentsFinancial instrument assets and liabilities are offset and the net amount presented in thebalance sheet when, and only when, the Corporation has the legal right to offset theamounts and intend either to settle on a net basis or to realise the asset and settle the liabilitysimultaneously.Reclassification of financial instrumentsSubsequent to initial recognition and under rare circumstances, non-derivative financialinstruments assets that have not been designated at fair value through profit3838Australian Grand Prix Corporation Annual Report 2013
Page 1 and 2: 2013AnnualReport
Page 3 and 4: 1. Report of the ChairmanThe Austra
Page 5: The inaugural Grand Prix Breakfast
Page 8 and 9: 2. General Informationa. Introducti
Page 10 and 11: • Build positive event brand perc
Page 12 and 13: Reporting & Consultative Structure
Page 14 and 15: • Laura AndersonMs Anderson is a
Page 16 and 17: Management of the Corporation as at
Page 18 and 19: Requests must satisfy the formal re
Page 20 and 21: Motorcycle Grand PrixThe 2012 AirAs
Page 22 and 23: e. Victorian Industry Participation
Page 24 and 25: Disclosures under the Whistleblower
Page 26 and 27: AUSTRALIAN GRAND PRIX CORPORATIONAU
Page 28 and 29: Balance Sheet as at 30 June 2013Not
Page 30 and 31: Cash Flow Statementfor the Financia
Page 32 and 33: Notes to and Forming Part of the Fi
Page 68 and 69: Australian Grand Prix Corporation A
Page 70 and 71: 5. Insurance attestationI, Andrew W
Page 72 and 73: The Australian Grand Prix Corporati

2013 AnnuAl RepoRt - Australian Grand Prix

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