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RACING AUSTRALIA ANNUAL REPORT 2016
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(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 Limited (‘parent entity’) as at 30 June 2016 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 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.
Equity interests in a subsidiary not attributable, directly
or indirectly, to the Consolidated Entity are presented
as "non-controlling interests". The Consolidated Entity
initially recognises non-controlling interests that are
present ownership interests in subsidiaries and are
entitled to a proportionate share of the subsidiary’s
net assets on liquidation at either fair value or at
the non-controlling interests’ proportionate share
of the subsidiary’s net assets. Subsequent to initial
recognition, non-controlling interests are attributed
their share of profit or loss and each component of
other comprehensive income. Non-controlling interests
are shown separately within the equity section of the
statement of financial position and statement of profit or
loss and other comprehensive income.
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 and 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
months after the reporting period. All other assets are
classified as non-current.
A liability is classified as current when: it is either
expected to be settled in normal operating cycle; it is
held primarily for the purpose of trading; it is due to be
settled within 12 months after the reporting period; or
there is no unconditional right to defer the settlement
of the liability for at least 12 months after the reporting
period. All other liabilities are classified as non-current.
Racing Australia Limited
| ACN 105 994 330 and Controlled Entities | Annual Report for the Financial Year Ended 30 June 2016