2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013Standard/InterpretationAASB 13 FairValueMeasurementAASB 119EmployeeBenefitsAASB 1053Application ofTiers ofAustralianAccountingStandardsSummaryThis Standard outlines therequirements for measuring the fairvalue of assets and liabilities andreplaces the existing fair valuedefinition and guidance in otherAustralian accounting standards.AASB 13 includes a ‘fair valuehierarchy’ which ranks thevaluation technique inputs intothree levels using unadjustedquoted prices in active markets foridentical assets or liabilities; otherobservable inputs; andunobservable inputs.In this revised Standard for definedbenefit superannuation plans, thereis a change to the methodology inthe calculation of superannuationexpenses, in particular there is nowa change in the split betweensuperannuation interest expense(classified as transactions) andactuarial gains and losses(classified as ‘Other economicflows – other movements in equity’)reported on the comprehensiveoperating statement.This Standard establishes adifferential financial reportingframework consisting of twotiers of reporting requirementsfor preparing general purposefinancial statements.Applicable forannual reportingperiods beginningonImpact on Corporationfinancial statements1 Jan 2013 Disclosure for fair valuemeasurements usingunobservable inputs arerelatively detailedcompared to disclosure forfair value measurementsusing observable inputs.Consequently, the Standardmay increase the disclosuresrequired assets measuredusing depreciatedreplacement cost.1 Jan 2013 Not-for-profit entities are notpermitted to apply thisStandard prior to themandatory applicationdate.While the totalsuperannuation expense isunchanged, the revisedmethodology is expected tohave a negative impact onthe net result fromtransactions a few Victorianpublic sector entities thatreport superannuationdefined benefit plans.1 July 2013 The Victorian Government iscurrently considering theimpacts of ReducedDisclosure Requirements(RDRs) for certain publicsector entities, and has notdecided if RDRs will beimplemented in theVictorian public sector.45Australian Grand Prix Corporation Annual Report 2013 45