2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013Operating LeaseOperating lease payments are recognised as an expense in the comprehensive operatingstatement on a straight line basis over the lease term, except where another systematic basisis more representative of the time pattern of the benefits derived from the use of the asset.The leased asset is not recognised in the balance sheet.The cost of leasehold improvements is capitalised as an asset and depreciated over theremaining term of the lease or the estimated useful life of the improvements, whichever is theshorter.All incentives for the agreement of a new or renewed operating lease are recognised as anintegral part of the net consideration agreed for the use of the leased asset, irrespective ofthe incentive’s nature or form or the timing of payments.In the event that lease incentives are received to enter into operating leases, the aggregatecost of incentives are recognised as a reduction of rental expenses over the term on astraight-line basis, unless another more systematic basis is more representative of the timepattern in which economic benefits from the leased asset are consumed.(p) Foreign Currency Transactions and BalancesAll foreign currency transactions during the financial year are brought to account using theexchange rate in effect at the date of the transaction. Foreign monetary items existing at theend of the reporting period are translated at the closing rate at the date at the end of thereporting period. Non-monetary assets carried at fair value that are denominated in foreigncurrencies are translated at the rates prevailing at the date when the fair value wasdetermined.Foreign currency translation differences are recognised in ‘other economic flows’ andaccumulated in the cash flow hedge reserve in the period in which they arise.(q) Contingent assets and contingent liabilitiesContingent assets and contingent liabilities are not recognised in the balance sheet, but aredisclosed by way of a note (refer to Note 19) and if quantifiable are measured at nominalvalue. Contingent assets and liabilities are presented inclusive of GST receivable andpayable respectively.(r) New accounting standards and interpretationsCertain new accounting standards and interpretations have been published that are notmandatory for the 30 June 2013 reporting period. The Department of Treasury and Financehas assessed the impact of the new standards and has advised the Corporation of theirapplicability and early adoption where applicable.As at 30 June 2013, the following standards and interpretations have been issued but were noteffective. They become effective for the first financial statements for the reporting periodscommencing after the stated operative dates as follows:Australian Grand Prix Corporation Annual Report 2013 4343