RACING AUSTRALIA ANNUAL REPORT 2023 39 NOTES TO THE FINANCIAL STATEMENTS NOTE 1: SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Basis of preparation These general-purpose financial statements have been prepared in accordance with the Australian Accounting Standards - Simplified Disclosures issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001. Racing Australia Limited is a company, incorporated and domiciled in Australia and is the parent entity. The financial report was authorised for issue by the Directors on the date shown on the Director’s declaration attached to the financial report. Historical cost convention The financial statements have been prepared under the historical cost convention. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entities and company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumption and estimates are significant to the financial statements are disclosed at the end of note 1. Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 18. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Racing Australia Limited (‘parent entity’) as at 30 June 2023 and the results of all subsidiaries for the year then ended. Racing Australia Limited and its subsidiaries are referred to in these financial statements as the ‘consolidated entity’. Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases. Intercompany transactions, balance and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity. Foreign currency translation The financial statements are presented in Australian Dollars which is Racing Australia Limited’s functional and presentational currency. Revenue Recognition Revenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Commercial services Racing Australia provides a variety of commercial services to the various entities within horse racing in Australia. Underlying these services are contracts, which stipulate the performance obligations of the agreement. Revenue is recognised over a period of time as the service is provided. Trainers & Racing Service Centre Nominations are made through various platforms and are at fixed rates per horse nomination. Once the horse is nominated into a race or trial, the revenue is recognised. These revenues are recognised at a point in time. Registrar of Racehorses (ROR) ROR’s role is to record information regarding the ownership and identity of thoroughbred racehorses for racing in Australia and for export. The registration and naming process of all thoroughbred racehorses in Australia is handled by the ROR. Registration and naming fees are charged and are recognised once the registration or name change is performed. These revenues are recognised at a point in time. Australian Stud Book The Australian Stud Books principal function includes the identification procedures along with DNA testing of FOR THE YEAR ENDED 30 JUNE 2023
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