2011 REPORT ANNUAL - Racing NSW

RACING NSW COUNTRY LTD
ACN 075 186 873
NOTES TO AND FORMING PART OF THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2011
NOTE 1: STATEMENT OF ACCOUNTING Depreciation
POLICIES
The depreciable amount of all plant and equipment is
a) Introduction
calculated on a straight line basis over their estimated
This financial report is for Racing NSW Country Ltd as an useful lives as follows:
individual company. The company is limited by guarantee Motor Vehicles 5 years
and is incorporated and domiciled in Australia. Its Plant & Equipment 5 years
registered office and principle place of business is Level 7, The asset's residual values and useful lives are reviewed,
51 Druitt St Sydney NSW. and adjusted if appropriate, at each balance date.
“A description of the nature of the company’s operations An asset's carrying amount is written down immediately to
and principle activities is included on page (ii) of the its recoverable amount if the assets carrying amount is
directors report. “
greater than its estimated recoverable amount. Gains and
The financial report was authorised for issue by the losses on disposal are determined by comparing proceeds
directors on the 25th October 2011. The company has the with the carrying amount. These gains or losses are
power to amend and reissue this financial report. included in the statement of comprehensive income.
e) Trade receivables
b) Basis of Preparation Trade receivables are recognised initially at fair value and
The principal accounting policies adopted in the subsequently measured at amortised cost, less provision
preparation of the financial report are set out below. These for doubtful debts. Trade receivables are due for
policies have been consistently applied to all the years settlement no more than 30 days from the date of
presented, unless otherwise stated.
recognition.
The financial report is a general purpose financial report Collectability of trade receivables is reviewed on an
which has been prepared in accordance with Australian ongoing basis. Debts which are known to be uncollectible
Accounting Standards, other author itative are written off. A provision for doubtful receivables is
pronouncements of the Australian Accounting Standards established when there is objective evidence that the
Board, Interpretations and the Corporations Act 2001. company will not be able to collect all amounts due
The report is prepared on an accruals basis and is based on according to the original terms of receivables. The amount
historical costs and does not take into account changing of the provision is the difference between the asset’s
money values or, except where stated, current valuations carrying amount and the present value of estimated future
of non-current assets. Cost is based on the fair values of the cash flows, discounted at the original effective interest rate.
consideration given in exchange for assets. The financial Cash flows relating to short term receivables are not
report is prepared in Australian currency.
discounted if the effect of discounting is immaterial. The
c) Statement of Compliance
amount of the provision is recognised in the statement of
The financial report complies with the Australian
comprehensive income.
Accounting Standards, which include Australian Amounts receivable from Racingcorp Pty Ltd are
Equivalents to International Financial Reporting Standards receivable as follows:
(AIFRS). Compliance with AIFRS ensures that the financial Quarterly product fee – Three working days from the end
report of the company complies with International of each quarter
Financial Reporting Standards (IFRS).
Wagering incentive fee – Twenty working days from the
d) Plant and Equipment
end of each six-month period ended December and June.
Each class of Plant and Equipment is carried at cost less, f) Investments and other financial assets
where applicable, any accumulated depreciation and The company classifies its financial assets in respect of loans
impairment.
to race clubs as ‘loans and receivables’.
“At each reporting date, the directors review a number of Loans and receivables are non derivative financial assets
factors affecting plant and equipment, including their with fixed or determinable payments that are not quoted
carrying values, to determine which of these assets, in an active market. They arise when the company
grouped into cash-generating units, may be impaired. If provides money, goods or services directly to a debtor with
impairment indicators exist, the recoverable amount of the no intention of selling the receivable. They are included in
assets, being the higher of the assets; "fair value less costs to current assets, except for those with maturities greater
sell" and "value in use", are compared to the carrying values. than 12 months after the balance date which are classified
Any excess of the assets' carrying value over their as non current assets. Loans and receivables are included
recoverable amount is expensed in the statement of in receivables in the statement of financial position (notes
comprehensive income as an impairment expense. “ 10 and 11).
As the future economic benefits of the company's assets Regular purchases and sales of financial assets are
are not primarily dependent on their ability to generate net recognised on trade date, the date on which the company
cash inflows, and if deprived of the asset, the company will commits to purchase or sell the asset. Financial assets are
replace the asset's remaining future economic benefits, initially recognised at fair value plus transaction costs for all
"Value in use" is determined as the depreciated loans and receivables. Investments are derecognised when
replacement cost of the asset, rather than by using the rights to receive cash flows from the financial assets
discounted future cash flows.
have expired or have been transferred and the company
has transferred substantially all the risks and rewards of
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