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RACING AUSTRALIA ANNUAL REPORT 2016
Intangible assets – Australian Stud Book
The Australian Stud Book is recorded at cost and is
subject to annual impairment testing. The directors
consider that the Australian Stud Book has an indefinite
life and as a result, has not been amortised.
(k) Non Repayable Grants to Principal Racing
Authorities (PRAs)
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 (PRAs).
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
Accounting Standards issued by the AASB that are not
yet mandatorily applicable to the company, together
with an assessment of the potential impact of such
pronouncements on the company when adopted in
future periods, are discussed below:
AASB 9: Financial Instruments and associated
Amending Standards (applicable to annual reporting
periods beginning on or after 1 January 2018).
The Standard will be applicable retrospectively
(subject to the provisions on hedge accounting) and
includes revised requirements for the classification
and measurement of financial instruments, revised
recognition and recognition requirements for
financial instruments, and simplified requirements
for hedge accounting. The key changes that may
affect the company on initial application include
certain simplifications to the classification of financial
assets, simplifications to the accounting of embedded
derivatives, upfront accounting for expected credit loss,
and the irrevocable election to recognise gains and
losses on investments in equity instruments that are not
held for trading in other comprehensive income.
AASB 9 also introduces a new model for hedge
accounting that will allow greater flexibility in the ability
to hedge risk, particularly with respect to the hedging of
non-financial items. Should the entity elect to change its
hedge policies in line with the new hedge accounting
requirements of the Standard, the application of such
accounting would be largely prospective.
Although the directors anticipate that the adoption
of AASB 9 may have an impact on the company’s
financial instruments, including hedging activity, it is
impracticable at this stage to provide a reasonable
estimate of such impact.
AASB 16: Leases (applicable to annual reporting periods
beginning on or after 1 January 2019).
When effective, this Standard will replace the current
accounting requirements applicable to leases in
AASB 117: Leases and related Interpretations. AASB
16 introduces a single lessee accounting model that
eliminates the requirement for leases to be classified as
operating or finance leases.
The main changes introduced by the new Standard
include:
> recognition of a right-to-use asset and liability for all
leases (excluding short-term leases with less than
12 months of tenure and leases relating to low-value
assets);
> depreciation of right-to-use assets in line with AASB
116: Property, Plant and Equipment in profit or loss
and unwinding of the liability in principal and interest
components;
> variable lease payments that depend on an index
or a rate are included in the initial measurement
of the lease liability using the index or rate at the
commencement date;
> by applying a practical expedient, a lessee is
permitted to elect not to separate non-lease
components and instead account for all components
as a lease; and
> additional disclosure requirements.
The transitional provisions of AASB 16 allow a
lessee to either retrospectively apply the Standard
to comparatives in line with AASB 108: Accounting
Policies, Changes in Accounting Estimates and Errors
or recognise the cumulative effect of retrospective
application as an adjustment to opening equity on the
date of initial application.
NOTES TO AND FORMING PART OF
THE FINANCIAL STATEMENTS
For the year ended 30 June 2016
Racing Australia Limited
| ACN 105 994 330 and Controlled Entities | Annual Report for the Financial Year Ended 30 June 2016