2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 201315. Equity2013 2012$’000’s$’000’s(a) Contributed CapitalContributed Capital at the beginning of the year 10,739 10,739Contributed Capital at the end of the year 10,739 10,739(b)Cashflow hedge reserveReserve at the beginning of the year (21,404) (25,124)Current year reserve 10,764 3,720Reserve at the end of the year (10,640) (21,404)(c) Asset revaluation reserveReserve at the beginning of the year 3,224 3,357Current year reserve - (133)Reserve at the end of year 3,224 3,224(d) Accumulated surplusAccumulated surplus at the beginning of the year 11,057 14,580Current year net (loss)/ surplus 1,036 (3,523)Accumulated surplus at the end of the year 12,093 11,05716. Financial InstrumentsThe Corporation’s financial instruments comprise of:• Cash assets;• Term deposits;• Receivables;• Payables; and• Derivatives.Details of the significant accounting policies and methods adopted, including the criteria forrecognition, the basis of measurement, and the basis on which income and expenses arerecognised, with respect to each class of financial asset, financial liability and equity instrumentare disclosed in Note 1 to the financial statements.The main purpose in holding financial instruments is to prudentially manage the Corporation’sfinancial risks within government policy parameters.The Corporation’s activities expose it to a variety of financial risks including interest rate risk,foreign exchange risk, liquidity risk and credit risk. The Corporation manages these financial risks inaccordance with the financial risk policy. The Corporation uses different methods to measuredifferent types of risk to which it is exposed. Primary responsibility for the identification andmanagement of financial risks rests with the Audit and Risk Committee of the Corporation.Australian Grand Prix Corporation Annual Report 2013 5353