2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013Revaluation increases and decreases relating to individual assets within a class ofinfrastructure, plant and equipment, are offset against one another within that class but arenot offset in respect of assets in different classes. Any revaluation surplus is not normallytransferred to accumulated funds on de-recognition of the relevant asset.Capital WorksAll fixed capital works constructed within Albert Park have been transferred to a third party,Parks Victoria, free of charge, in accordance with the licence agreements.Intangible assetsPurchased intangible assets are initially recorded at cost. Subsequently, intangible assets withfinite useful lives are carried at cost less accumulated amortisation and accumulatedimpairment losses. Costs incurred subsequent to initial acquisition are capitalised when it isexpected that additional future economic benefits will flow to the Corporation.When recognition criteria in AASB 138 Intangible Assets are met, internally generatedintangible assets are recognised at cost less accumulated amortisation and impairment.Refer to Note 1(i) Depreciation and Amortisation and Note 1(j) Impairment of non-financialassets.Other non-financial assetsOther non-financial assets include prepayments which represent payments in advance ofreceipt of goods or services or that part of expenditure made in one accounting periodcovering a term extending beyond that period.(n) LiabilitiesPayablesPayables consist of:• contractual payables, such as accounts payable. Accounts Payable representliabilities for goods or services provided to the Corporation prior to the end of the financialyear that are unpaid, and arise when the Corporation becomes obliged to make futurepayments in respect of the purchases of goods and services; and• statutory payables, such as goods and services tax and fringe benefits tax payables.Contractual payables are classified as financial instruments and categorised as financialliabilities at amortised cost (refer to Note 1(k)). Statutory payables are recognised andmeasured similarly to contractual payables, but are not classified as financial instruments andnot included in the category of financial liabilities at amortised cost, because they do not arisefrom a contract.Deferred incomeDeferred income consists of revenue received during the period which relates to activities tobe conducted in future financial years.Australian Grand Prix Corporation Annual Report 2013 4141