Racing Australia Annual Report 2015
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The defined benefit obligation recognised in the
Statement of Financial Position represents the present
value of the defined benefit obligation, adjusted for
unrecognised post service cost, net of the fair value of
the plan assets. Any asset resulting from this calculation
is limited to post service cost, plus the present value of
available funds and reductions in future contributions to
the plan.
Racing Victoria has agreed in writing dated 8 December
2008 to indemnify Racing Australia Pty Ltd in respect of
any unfunded liabilities in the defined benefits fund that
are incurred and payable by Racing Australia Pty Ltd in
relation to defined benefits to the two former Racing
Victoria Limited employees who are members of the
defined benefits fund.
(g) Goods and services tax
Revenues, expenses and assets are recognised net of
the amount of goods and services tax (GST), except:
i. where the amount of GST incurred is not recoverable
from the taxation authority, it is recognised as part
of the cost of acquisition of an asset or as part of an
item of expense; or
ii. for receivables and payables which are recognised
inclusive of GST.
The net amount of GST recoverable from, or payable to,
the taxation authority is included as part of receivables
or payables.
Cash flows are included in the statement of cash flows
on a gross basis. The GST component of cash flows
arising from investing and financing activities which is
recoverable from, or payable to, the taxation authority is
classified as operating cash flows.
(h) 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.
Sale of goods
Sale of goods revenue is recognised at the point of
sale, which is where the customer has taken delivery of
the goods, the risk and rewards are transferred to the
customer and there is a valid sales contract. Amounts
disclosed as revenue are net of sales returns and trade
discounts.
Rendering of services
Rendering of services revenue from publishing
services, owners and breeders services, trainer and
racing services, digital services and technical services
is recognised when it is received or when the right to
receive payment is established.
Interest
Interest revenue is recognised as interest accrues
using the effective interest method. This is a method
of calculating the amortised cost of a financial asset
and allocating the interest income over the relevant
period using the effective interest rate, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset at the
net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or
when the right to receive payment is established.
(i) Impairment of non-financial assets
Goodwill and other intangible assets that have an
indefinite useful life are not subject to amortisation and
are tested annually for impairment or more frequently
if events or changes in circumstances indicate that
they might be impaired. Other non-financial assets are
reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised
for the amount by which the assets carrying amount
exceeds its recoverable amount.
Recoverable amount is the higher of an assets fair value
less the cost of disposal and value-in-use. The value-
in-use is the present value of the estimated future cash
flows relating to the asset using a pre-tax discount rate
specific to the asset or cash-generating unit to which
the asset belongs. Assets that do not have independent
cash flows are grouped together to form a cash-
generating unit.
(j) Intangible assets – computer software and
databases
Computer software and databases are recorded at
cost less accumulated amortisation and impairment.
Amortisation is charged on a straight line basis over its
estimated useful life being 3 years. The estimated useful
life and amortisation method is reviewed at the end of
each annual reporting period.
Racing Australia Pty Ltd
| ACN 105 994 330 and Controlled Entities | Annual Report for the Financial Year Ended 30 June 2015
