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Racing Australia Annual Report 2015
The investment in the Single National System software
and database is recorded at cost less accumulated
amortisation and impairment. Amortisation is charged on
a straight line basis over its estimated useful life being
5 years. The estimated useful life and amortisation
method is reviewed at the end of each annual reporting
period.
(k) Non repayable grants to Principal Racing
Authorities (PRA’s)
Under the terms of the company constitution, net
surplus and the ongoing retained surpluses of the
company cannot be distributed as dividends to the
participating Principal Racing Authorities (PRA’s).
The company may pay to each Principal Racing
Authority (or set off in accordance with the Participation
Agreement) a proportion of any surplus calculated
in accordance with the constitution by way of a non
repayable grant. Such distributions to PRA’s are
classified as expenses within the Statement of Profit or
Loss and other comprehensive income.
(l) New Accounting Standards and Interpretations not
yet mandatory or early adopted
Australian Accounting Standards and Interpretations
that have recently been issued or amended but are
not yet mandatory have not been early adopted by
the consolidated entity for the annual reporting period
ended 30 June 2015. The consolidated entity has not
yet assessed the impact of these new or amended
Accounting Standards and Interpretations.
(m) Goodwill
Goodwill arises on the acquisition of a business.
Goodwill is not amortised. Instead, goodwill is tested
annually for impairment or more frequently if events
or changes in circumstances indicate that it might
be impaired, and is carried at cost less accumulated
impairment losses. Impairment losses on goodwill
are taken to profit and loss and are not subsequently
reversed.
(n) Principles of consolidation
The consolidated financial statements incorporate
the assets and liabilities of all subsidiaries of Racing
Australia Pty Ltd (‘parent entity’) as at 30 June 2015 and
the results of all subsidiaries for the year then ended.
Racing Australia Pty Ltd 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 the 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.
Where the consolidated entity loses control over
a subsidiary, it derecognises the assets including
goodwill, liabilities and non-controlling interest in the
subsidiary together with any cumulative translation
differences recognised in equity. The consolidated
entity recognises the fair value of the consideration
received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Investments in subsidiaries are accounted for at cost,
less any impairment, in the parent entity.
(o) Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue
of new shares or options are shown in equity as a
deduction, net of income tax, from the proceeds.
(p) Current and non-current classification
Assets and liabilities are presented in the statement
of financial position based on current and non-current
classification.
An asset is classified as current when: it is either
expected to be realised or intended to be sold or
consumed in normal operating cycle; it is held primarily
for the purpose of trading; it is expected to be realised
within 12 months after the reporting period; or the asset
is cash or cash equivalent unless restricted from being
exchanged or used to settle a liability by at least 12
NOTES TO AND FORMING PART OF
THE FINANCIAL STATEMENTS
For the year ended 30 June 2015
Racing Australia Pty Ltd
| ACN 105 994 330 and Controlled Entities | Annual Report for the Financial Year Ended 30 June 2015
