4.78 MB - Perth Airport

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 3. INCOME TAX (CONTINUED)
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
The directors estimate that the potential future income
tax benefit at 30 June 2005 not brought to account is:
Tax losses - operating 9,848 15,745 9,848 15,745
Timing differences (6,340) 9,667 (6,340) 9,667
3,508 25,412 3,508 25,412
Tax Losses
All tax losses of WAC are now held by ADG, however due to the entry into tax sharing arrangements the future benefit of tax losses will
be recognised by WAC when and if ADG is able to recognise this benefit.
This benefit for tax losses will only be obtained if:
(i) future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised
is derived;
(ii) the conditions for deductibility imposed by tax legislation continued to be complied with; and
(iii) no changes in tax legislation adversely affect the consolidated entity in realising the benefit from the deductions for the losses.
Tax Consolidation Legislation
WAC’s parent, Airstralia Development Group Pty Ltd elected to form a tax consolidation group for income tax purposes with effect from
1 July 2003. The Australian Taxation Office has been formally notified of this decision. Members of the group will enter into a tax sharing
arrangement in order to allocate income tax expense to the wholly-owned subsidiaries on a stand alone basis.
As a consequence of using the stand-alone basis, timing differences arise due to items being brought to account in different periods for
tax funding and accounting purposes. These are carried in the Statement of Financial Position as tax funding assets and liabilities that are
expected to affect future payments to the head entity under the tax funding agreement.
Tax funding assets are not brought to account unless realisation of the asset is assured beyond reasonable doubt. Tax funding assets
referable to tax losses are only carried forward when realisation of the benefits is virtually certain.
Revenue and expenses arising under the tax funding agreement are disclosed as income tax expense in the Statement of Financial
Performance. Income tax expense is calculated on the accounting profit after allowing for permanent differences.
NOTE 4. CASH ASSETS
Cash at bank and on hand 8,566 8,822 8,566 8,822
NOTE 5. CURRENT RECEIVABLES
Trade debtors (a) 9,768 8,971 9,768 8,971
Less: Provision for doubtful debts (75) (257) (75) (257)
9,693 8,714 9,693 8,714
Other debtors (a) 8,982 7,371 8,982 7,371
18,675 16,085 18,675 16,085
(a) Terms and conditions
Trade debtors are non-interest bearing and generally on 30 day terms.
Other debtors generally arise from transactions outside the usual operating activities of the consolidated entity and are non-interest bearing.
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