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
ownership. k) Goods and Services Tax (GST)
Loans and receivables are carried at amortised cost using Revenues, expenses and assets are recognised net of
the effective interest method.
the amount of GST, except where the amount of GST
The company assesses at each balance date whether there incurred is not recoverable from the Australian
is objective evidence that a financial asset or group of Taxation Office. In these circumstances the GST is
financial assets is impaired.
recognised as part of the cost of acquisition of the
g) Employee Benefits
asset or as part of an item of expense. Trade debtors
and trade creditors in the Statement of Financial
Provision is made for the company’s liability for employee
Position are shown inclusive of GST.
benefits arising from services rendered by employees to
balance date. Employee benefits expected to be settled l) Critical Accounting Estimates and Judgements
within one year have been measured at the amounts Estimates and judgements are continually evaluated
expected to be paid when the liability is settled, plus related and are based on historical experience and other
on-costs. Other employee benefits payable later than one factors, including expectations of future events that
year have been measured at the present value of the may have a financial impact on the company and that
estimated future cash outflows to be made for those are believed to be reasonable under the
benefits. Contributions are made by the company to circumstances.
accumulation employee superannuation funds and are No critical accounting estimates and judgements have
charged as expenses when incurred.
been required to be made in the preparation of the
h) Cash and Cash Equivalents
financial report.
For the purposes of the Statement of Cash Flows, cash and m) New Accounting Standards and Interpretations not
cash equivalents includes cash on hand and at bank, deposits yet mandatory or early adopted
held at call with financial institutions, other short term, highly Australian Accounting Standards and Interpretations
liquid investments with maturities of three months or less, that have recently been issued or amended but are not
that are readily convertible to known amounts of cash and yet mandatory, have not been early adopted by the
which are subject to insignificant risk of changes in value and company for the annual reporting period ended 30
bank overdrafts.
June 2011. The company has not yet assessed the
i) Revenue Recognition
impact of these new or amended Accounting
Revenue is measured at the fair value of the consideration Standards and Interpretations.
received or receivable. Amounts disclosed as revenue are
net of returns, trade allowances and amounts collected on NOTE 2: INCOME TAX
behalf of third parties. Revenue is recognised for the major The company is a not-for-profit organisation established for
business activities as follows:
the promotion of thoroughbred racing in country NSW
(i) Distributions pursuant to the Racing Distribution and is exempt from income tax pursuant to the provisions
Agreement
of Section 50-45 of the Income Tax Assessment Act
(ii) Television broadcast royalty
(1997).
Revenue from television broadcast is recognised upon NOTE 3: ECONOMIC DEPENDENCY
delivery of service to customers.
The company received 80% of its total income from NSW
(iii) Administration charge funding
Racing Pty Ltd under the Racing Distribution Agreement
Administration charge funding is recognised as with Tabcorp Ltd. This represents the distribution of
revenue on receipt of the funding.
wagering receipts governed by this agreement.
Consequently, the company is economically dependent on
(iv) Interest
Tabcorp Ltd.
Interest revenue is recognised on a time proportion
basis using the effective interest method.
(v) Sponsorship
NOTE 4: SEGMENT REPORTING
Sponsorship revenue is recognised over the period to
The company operates solely in the thoroughbred racing
which the sponsorship relates.
industry and derives all its income and incurs all expenses in
that industry.
(vi) Other Revenues
Totalizator commissions from non-TAB meetings,
distribution from Racing NSW surpluses and other
miscellaneous revenue items are recognised when
received.
j) Trade and Other Payables
These amounts represent liabilities for goods and
services provided to the company 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.
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