annual report 2011–12 - Parliament of New South Wales - NSW ...

A.C.N. 156 211 906 Pty Ltd
Notes to the financial statements
For the period from 12 March 2012 to 30 June 2012
2. Summary of Accounting Policies (Cont’d)
(b) Statement of Compliance
The consolidated general purpose financial statements of the Group have been prepared in
accordance with the requirements of Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board.
(c) Basis of consolidation
The Group financial statements consolidate those of the parent entity and all of its subsidiary
companies (Note 1 above) for the period from 12 March 2012 to 30 June 2012. Subsidiary
companies are all the entities which the Group has the power to control the financial and
operating policies. The Group obtains and exercises control through 100% ownership of the
voting rights and the power to appoint the board of directors. All subsidiaries have a reporting
date 30 June.
All transactions and balances between the Group companies are eliminated on consolidation.
Amounts reported in the financial statements have been adjusted where necessary to ensure
consistency with the accounting policies adopted by the Group.
(d) Significant accounting judgements, estimates and assumptions
In the application of accounting standards, management is required to make judgements,
estimates and assumptions about the carrying values of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on historical
experience and various factors that are believed to be reasonable under the current set of
circumstances. Actual results may differ from these estimates.
Management evaluates these judgements, estimates and assumptions on an ongoing basis.
Revisions to estimates are recognised in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future periods if the revision effects
both current and future periods.
Significant judgements, estimates and assumptions made by management in the preparation of
the consolidated financial statements and included in the appropriate notes are outlined below:
Business combinations:
Management uses valuation techniques in determining the fair value of the various elements
of a business combination (Note 2(e) and Note 9). Valuation uncertainty relates to cost
estimations and assumptions about the condition of the assets.
Impairment:
In assessing impairment, management estimates the recoverable amount of each asset or
cash generating units based on expected future cash flows and uses an interest rate to
discount them. Estimation uncertainty relates to assumptions about future operating results
and the determination of a suitable discount rate.
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Transport for NSW Annual Report 2011–12