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)
(f) Revenue (cont’d)
Fees for the provision of services received but not earned in the period are recognised as income
in advance under current liabilities (Note 15).
(g) Expenses
Operating expenses comprise management fees payable to the operator of the Light Rail and
Monorail systems, depreciation, employee entitlements, maintenance and administration and
marketing expenses. Operating expenses are recognised in profit or loss on an accrual basis as
services are utilised.
(h) Insurance
The Group arranges insurance cover for property, public liability, workers’ compensation through
a private insurance company.
(i) Taxation
Tax equivalent
As a NSW Government owned Group, the Group is exempt from paying Commonwealth
income tax on profits. However, the for-profit Group is subject to the NSW Tax Equivalent
regime so that tax at prevailing rate of company income tax (30% for 2011-12) is payable on
the accounting profit earned to the NSW Office of State Revenue. Under this tax equivalent
regime deferred tax assets and liabilities are not recognised in the financial statements.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except where the
amount of GST incurred is not recoverable from the Australian Taxation Office, in which case
it is recognised as part of the cost of acquisition of an asset or as part of an item of expense.
Receivables and payables are recognised inclusive of GST. The net amount of GST
recoverable from or payable to the Australian Taxation Office is included as part of
receivables or payables.
Cash flows are included in the statement of cash flows on a gross basis inclusive of GST. The
GST component of cash flows arising from investing and financing activities which is
recoverable from or payable to the Australian Taxation Office is classified as operating cash
flows.
(j) Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in
hand and short-term deposits with an original maturity of three months or less. For the purposes
of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents
as defined above.
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Transport for NSW Annual Report 2011–12