2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013superannuation contribution rate of 9% (2012: 9%). There were no amounts owing at the end ofthe year.24. Events Subsequent to Balance DateThere has not arisen in the interval between the end of the financial year and the date of signingthese financial statements, any item, transactions or event of a material and unusual nature likelyto affect significantly the operations of the Corporation, the results of those operations, or thestate of affairs of the Corporation, in subsequent financial years.25. Economic DependencyThe ongoing activities of the Corporation are dependent upon the Corporation being able toexercise its rights and perform its obligations under the Australian Grands Prix Act 1994 and thecontinued existence of certain contracts with international bodies concerning the staging of theFormula One Grand Prix at Albert Park and the staging of the Motorcycle Grand Prix at PhillipIsland. The contract in respect of the Formula One Grand Prix runs until 2015. The contract inrespect of the Motorcycle Grand Prix runs until 2016.The Corporation is economically dependent upon funding from the Victorian State Government.26. Glossary of TermsAmortisationAmortisation is the expense which results from the consumption, extraction or use over time of anon-produced physical or intangible asset. This expense is classified as an ‘other economic flow’.Comprehensive ResultTotal comprehensive result is the change in equity for the period other than changes arising fromtransactions with owners. It is the aggregate of net result and other non-owner changes in equity.CommitmentsCommitments include those operating, capital and other outsourcing commitments arising fromnon-cancellable contractual or statutory sources.DepreciationDepreciation is an expense that arises from the consumption through wear or time of a producedphysical or intangible asset. This expense is classified as a ‘transaction’ and so reduces the ‘netresult from transaction’.Employee Benefits ExpensesEmployee benefits expenses include all costs related to employment including wages andsalaries, leave entitlements, redundancy payments and superannuation contributions.Financial AssetA financial asset is any asset that is cash or a cash equivalent.Financial InstrumentA financial instrument is any contract that gives rise to a financial asset of one entity and a liabilityor equity instrument of another entity. Financial assets or liabilities that are not contractual (suchAustralian Grand Prix Corporation Annual Report 2013 6363