NSW THOROUGHBRED RACING BOARD - Racing NSW

Notes
to the Financial Statements for the year ended 30 June, 2003
NOTE 1:
STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONT.)
h) Employee Benefits: Provision is
made for the Board’s liability for
employee benefits arising from
services rendered by employees
to balance date. Employee
benefits expected to be settled
within one year together with
entitlements arising from wages
and salaries, annual leave and
sick leave which will be settled
after one year, have been
measured at the amounts
expected to be paid when the
liability is settled, plus related
on-costs. Other employee
benefits payable later than one
year have been measured at the
present value of the estimated
future cash outflows to be made
for those benefits.
Contributions are made by the
Board to an employee
superannuation fund and are
charged as expenses when
incurred.
i) Cash: For the purposes of the
statement of cash flows, cash
includes deposits at call with
financial institutions and other
highly liquid investments with
short periods to maturity which
are readily convertible to cash on
hand and are subject to an
insignificant risk of changes in
value, net of outstanding bank
overdrafts.
j) Revenue: Revenue from the sale
of goods is recognised upon the
delivery of goods to customers.
Interest revenue is recognised on
a proportional basis taking into
account the interest rates
applicable to the financial assets.
Revenue from the rendering of a
service is recognised upon the
delivery of the service to the
customers.
All revenue is stated net of the
amount of goods and services tax
(GST).
k) Trade, Stakes payments and
other creditors: These amounts
represent liabilities for goods and
services provided to the Board
prior to the end of the financial
year and which are unpaid. The
amounts are unsecured and are
usually paid within 30 days of
recognition.
l) Breeders and Owners Bonus
Scheme: The NSW Thoroughbred
Racing Board created the
Breeders and Owners Bonus
Scheme which is administered by
the Board through it’s appointed
sub committee. The scheme is an
incentive scheme to encourage
the use by breeders of stallions
based in New South Wales.
Nomination fees are collected
from stallions and their eligible
progeny. A contribution is made
by the industry via the TAB
Distribution. Prize money is then
paid out of these funds to eligible
racehorse and stallion owners
according to published criteria.
The expenses of managing the
scheme are also deducted via a
management fee. Scheme surpluses
at year end are rolled over into the
following year for payment in future
periods. Any scheme deficit is to be
funded by a further deduction from
industry funds through the TAB
distributions.
m) Insurance: Premiums received are
recognised from the attachment
date and are measured over the
period of insurance in a pattern in
accordance with the incidence of
risk.
Liabilities for outstanding claims
are recognised for direct and
inwards reinsurance business and
measured as the present value of
expected future payments.
n) Goods and Services Tax (GST):
Revenues and 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 these
circumstances the GST is
recognised as part of the costs of
the acquisition of the asset or as
part of an item of the expense.
Receivables and payables in the
statement of financial position
are shown inclusive of GST.
o) Comparative Figures: Where
required by Accountings
Standards comparative figures
have been adjusted to conform
with changes in presentation for
the current financial year.
p) Non-Current Assets: The carrying
amounts of non-current assets
valued on the cost basis are
reviewed to determine whether
they are in excess of their
recoverable amount at balance
date. If the carrying amount of a
non-current asset exceeds its
recoverable amount, the asset is
written down to the lower
amount. The recoverable amount
is assessed on the basis the
expected net cash flows which
will be received from the assets
employment and subsequent
disposal. The expected net cash
flows have not been discounted
to present values in determining
recoverable amounts. The writedown
is recognised in the
statement of financial performance
in the reporting period in which it
occurs.
q) Going Concern: The financial
statements have been prepared
on a going concern basis, which
contemplates continuity of
normal activities and the
realisation of assets and
settlement of liabilities in the
normal course of business.
At 30 June 2003, the Board has a
net asset deficiency of $2,564,949.
The improvement in the asset
deficiency was impacted by the
reduction in the estimated claims
liability by $758,554 and a
positive revaluation on land and
buildings of $871,020 based on
the net market value of the asset.
The provision for the prudential
margin remains at 25% of
estimated claims liability.
The Members of the Board are of
the opinion that the Board will
continue to be able to pay its
debts as and when they fall due
on the basis that the Intra-code
Agreement allows the Board to
levy an administration charge on
wagering receipts received from
TAB Limited
NOTE 2:
CONSOLIDATED OPERATIONS
The NSW TRB - Administration
includes the administrative functions
of the Board in accordance with the
Thoroughbred Racing Board Act 1996.
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