2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013ProvisionsProvision is made for benefits accruing to employees in respect of wages and salaries, annualleave and long service leave for services rendered to the reporting date.Wages and salaries and annual leaveLiabilities for wages and salaries, including non-monetary benefits and annual leave arerecognised in the provision for employee benefits, classified as current liabilities. Those liabilitieswhich are expected to be settled within 12 months of the reporting date are measured at theirnominal values.Those liabilities that are not expected to be settled within 12 months are also recognised in theprovision for employee benefits as current liabilities, but are measured at the present value ofthe amounts expected to be paid when the liabilities are settled using the remuneration rateexpected to apply at the time of settlement.Long Service LeaveLiability for long service leave (LSL) is recognised in the provision for employee benefits.Unconditional LSL is disclosed in the notes to the financial statements as a current liability evenwhere the corporation does not expect to settle the liability within 12 months because it willnot have the unconditional right to defer the settlement should an employee take leave within12 months.The components of this current LSL liability are measured at:- Nominal value – component that the Corporation expects to settle within 12 months- Present value – component that the Corporation does not expect to settle within 12monthsConditional LSL is disclosed as a non-current liability. There is an unconditional right to deferthe settlement of the entitlement until the employee has completed the requisite years ofservice. The non-current liability is measured at present value.Any gain or loss following revaluation of the present value of the non-current LSL liability isrecognised as a transaction, except to the extent that a gain or loss arises due to changes inbond interest rates, for which it is then recognised as an ‘other economic flow’. (refer note 1(j))Employee benefits on-costsEmployee benefits on-costs such as payroll tax, workers compensation and superannuationare recognised separately from the provision for employee benefits.(o) LeasesA lease is a right to use an asset for an agreed period of time in exchange for payment.Leases are classified at their inception as either operating or finance leases based on theeconomic substance of the agreement so as to reflect the risks and rewards incidental toownership. Leases of property, plant and equipment are classified as finance leaseswhenever the terms of the lease transfer substantially all the risks and rewards of ownership tothe lessee. All other leases are classified as operating leases.4242Australian Grand Prix Corporation Annual Report 2013