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RACING AUSTRALIA ANNUAL REPORT 2016
NOTES TO AND FORMING PART OF
THE FINANCIAL STATEMENTS
For the year ended 30 June 2016
Current and deferred tax for the year
Current and deferred tax is recognised as an expense
or income in the income statement, except when it
relates to items credited or debited directly to equity,
in which case the deferred tax is also recognised directly
in equity, or where it arises from the initial accounting
for a business combination, in which case it is taken into
account in the determination of goodwill or excess.
(c) Trade and Other Payables
Trade and other payables are recognised when the
consolidated entity becomes obliged to make future
payments resulting from the purchase of goods and
services. Due to their short term nature, they are
measured at amortised cost and are not discounted.
The amounts are unsecured and are usually paid within
30 days of recognition.
(d) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand;
cash in banks, deposits held at-call with banks, other
short-term highly liquid investments with original
maturities of three months or less.
The Thoroughbred Trainers Service Centre Limited
holds monies in trust on behalf of it clients. As these
monies are not held by the Thoroughbred Trainers
Service Centre Limited they are not brought to account
in the balance sheet.
(e) Plant and equipment
Plant and equipment is stated at historical cost less
accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the
acquisition of the item. In the event that settlement of all
or part of the purchase consideration is deferred, cost is
determined by discounting the amounts payable in the
future to their present value at the date of acquisition.
Depreciation is provided on plant and equipment.
Depreciation is calculated on a straight line basis so
as to write off the net cost or other revalued amount of
each asset over its expected useful life to its estimated
residual value. The estimated useful lives, residual
values and depreciation method are reviewed at the
end of each annual reporting period.
The following estimated useful lives are used in the
calculation of depreciation:
Plant and equipment
3 – 5 years
(f) Employee Benefits
Short term employee benefits
Liabilities for wages and salaries, including non-monetary
benefits, annual and long service leave expected to
be settled within 12 months of the reporting date are
measured at the amounts expected to be paid when
the liabilities are settled.
Other long term employee benefits
The liability for annual leave and long service leave not
expected to be settled within 12 months of the reporting
date are measured as the present value of expected
future payments to be made in respect of services
provided by employees up to the reporting date using
the projected unit credit method. Consideration is given
to expected future wage and salary levels, experience
of employee departures and periods of service.
Expected future payments are discounted using market
yields at the reporting date on national government
bonds with terms to maturity and currency that match as
closely as possible the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation
plans are expensed in the period in which they are
incurred.
Defined Benefits Plan
For the company’s defined benefit superannuation plan,
the cost of providing benefits is determined using the
projected unit credit method, with actuarial valuations
being carried out at each reporting date.
Past service cost is recognised immediately to the
extent that the benefits are already vested, and
otherwise is amortised on a straight line basis over the
average period until the benefits become vested.
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 Australia Limited
| ACN 105 994 330 and Controlled Entities | Annual Report for the Financial Year Ended 30 June 2016