4.78 MB - Perth Airport

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NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2005 (CONTINUED) NOTE 30. RECONCILIATION OF OPERATING LOSS AFTER INCOME TAX TO NET CASH INFLOW FROM OPERATING ACTIVITIES Consolidated Parent 2005 2004 2005 2004 $’000 $’000 $’000 $’000 Profit from operating activities after income tax expense 345 2,337 345 2,337 Depreciation and amortisation 16,819 15,367 16,819 15,203 Borrowing costs: Primary debt holders 38,744 42,501 38,744 42,125 Subordinated debt holders 20,626 14,340 20,626 14,340 Profit on sale of property, plant and equipment (10) (11) (10) (11) Bad debts written off 30 41 30 41 Work in progress written-off 26 767 26 767 Change in operating assets and liabilities, net of effects from purchase of business Increase in trade debtors (2,590) (6,660) (2,590) (6,660) Decrease in inventories 7 (5) 7 (5) Increase in other operating assets (1,934) (1,236) (1,934) (1,236) Decrease in creditors & accruals (3,615) 1,306 (3,615) 1,306 Increase in other provisions 1,315 348 1,315 348 Gain on exchange rate 29 (17) 29 (17) Net cash inflow from operating activities 69,792 69,078 69,792 68,538 NOTE 31. RECONCILIATION OF NON-CASH FINANCING & INVESTING ACTIVITIES Proceeds from sale of infrastructure, plant and equipment 12,000 - 12,000 - Repayment of borrowings – subordinated debt holders (12,000) - (12,000) - NOTE 32. SEGMENT NOTE The company has one business segment that provides and operates airport facilities at Perth, WA, Australia. - - - - NOTE 33. IMPACT OF ADOPTING AUSTRALIAN EQUIVALENTS TO IFRS WAC is in the process of transitioning its accounting policies and financial reporting from current Australian Accounting Standards (AGAAP) to Australian equivalents of International Financial Reporting Standards (AIFRS) which will be applicable for the financial year ended 30 June 2006. In 2004, the company allocated internal resources and engaged expert consultants to conduct impact assessments to identify key areas that would be impacted by the transition to AIFRS. As a result of these procedures, WAC established a project team to address each of the areas in order of priority. Priority has been given to the preparation of an opening balance sheet in accordance with AIFRS as at 1 July 2004, WAC’s transition date to AIFRS. This will form the basis of accounting for AIFRS in the future, and is required when WAC prepares its first fully AIFRS compliant financial report for the year ended 30 June 2006. Set out below are the key areas where accounting policies are expected to change on adoption of AIFRS and our best estimate of the quantitative impact of the changes on total equity as at the date of transition and 30 June 2005 and on net profit for the year ended 30 June 2005. The figures disclosed are management’s best estimates of the quantitative impact of the changes as at the date of preparing the 30 June 2005 financial report. The actual effects of transition to AIFRS may differ from the estimates disclosed due to (a) ongoing work being undertaken by the AIFRS project team; (b) potential amendments to AIFRSs and Interpretations thereof being issued by the standard-setters and IFRIC; and (c) emerging accepted practice in the interpretation and application of AIFRS and UIG Interpretations. 34
(a) Reconciliation of equity as presented under AGAAP to that under AIFRS Consolidated Parent Notes 30 June 05 ** 1 July 04 * 30 June 05 ** 1 July 04* $’000 $’000 $’000 $’000 Total equity under AGAAP 207,673 198,914 207,673 198,914 Adjustments to land & buildings (i) (32,482) (32,482) (32,482) (32,482) Adjustments to intangibles (ii) 48,658 44,640 48,658 44,640 Write-off costs previously capitalised (iii) (348) (200) (348) (200) Adjustment to income taxes (iv) (74,638) (69,833) (74,638) (69,833) Total equity under IFRS 148,863 141,039 148,863 141,039 * This column represents the adjustments as at date of transition to AIFRS. ** This column represents the cumulative adjustment as at the date of transition to AIFRS and those for the year ended 30 June 2005. (i) Under AASB 117 Leases, WAC is required to record land under lease as an operating lease and up front payments as a prepayment of rent, unless the land qualifies as an investment property under AASB 140 Investment Property. As a result, the revaluation of land booked in June 2004 which does not relate to investment property under AGAAP is required to be reversed. It is the opinion of WAC’s directors, that the treatment of Operating Land as a prepayment of rent (and the subsequent inability to revalue) under AIFRS, is not based on sound business principles. As a result the adjustment to derecognise the value of operating land may not be made in the regulatory accounts presented to the ACCC as at 30 June 2006. (ii) Under AASB 3 Business Combinations, WAC has elected to reopen the original acquisition of Perth Airport on 2 July 1997. As a result, the intangible assets have been restated in accordance with AASB 138 Intangible Assets. This has resulted in a number of changes to the intangible assets as previously measured under AGAAP, including the recognition of several new intangible assets. (iii) Costs relating to the Aviation Development Programme were previously carried forward as an intangible asset. Under AASB 138 Intangible Assets, these costs do not meet the criteria to be carried forward as an intangible asset and are written off accordingly. (iv) Under AGAAP, WAC had not recognised any deferred income tax assets or liabilities. Under AASB 112 Income Taxes, WAC is required to use the balance sheet liability method, rather than the current income statement method which recognises deferred tax balances where there is a difference between carrying value of an asset or liability and its tax base. This results in the recognition of a deferred tax liability. Additionally under AGAAP the future income tax benefit associated with tax losses carried forward was not recognised under AIFRS. This asset has been recognised and netted with the liability. (b) Reconciliation of net profit under AGAAP to that under AIFRS Year Ended 30 June 2005 Note Consolidated Parent $’000 $’000 Net profit as reported under AGAAP 345 345 Amortisation of intangibles derecognised (i) 4,643 4,643 Write-off costs previously capitalised (ii) (148) (148) Amortisation/depreciation land & buildings (iii) 976 976 Amortisation contract intangibles (iv) (1,119) (1,119) Revaluation of investment properties (v) 7,932 7,932 Adjustment to income tax expense (vi) (4,805) (4,805) Net profit under AIFRS 7,824 7,824 (i) Under AASB 3 Business Combinations, WAC has elected to reopen the original acquisition of Perth Airport on 2 July 1997. As a result, the intangible assets have been restated in accordance with AASB 138 Intangible Assets. This has resulted in several intangible assets recognised under AGAAP being derecognised, therefore amortisation expense recorded during the year has been reversed. (ii) Costs relating to the Aviation Development Programme were previously carried forward as an intangible asset. Under AASB 138 Intangible Assets, these costs do not meet the criteria to be carried forward as an intangible asset and are written off accordingly. Therefore costs capitalised during the year under AGAAP are required to be expensed under AIFRS. 35
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PERTH AIRPORT 2004/2005 ANNUAL REPO
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CONTENTS Chairman’s Review 2 CEO
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During the year, WAC undertook the
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An agreement with Conservation Volu
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ABOUT ABOUT PERTH AIRPORT Strategic
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Mr Peter Taylor Mr Ron Doubikin Mr
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HIGHLIGHTS HIGHLIGHTS 2004/2005 Pro
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TOTAL BREAK-UP IN DOMESTIC AND INTE
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FINANCIAL STATISTICS 2004/2005 FIVE
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CASHFLOW CASHFLOW SUMMARY CASHFLOW
Page 27: COMMUNITY SUPPORT Many community gr
Page 31: INVESTMENT IN INFRASTRUCTURE Westra
Page 35: RETAIL & GROUND TRANSPORT REVENUE G
Page 39: ENVIRONMENT ENVIRONMENT STRATEGY On
Page 42 and 43: PERTH AIRPORT 2004/2005 FINANCIAL R
Page 44 and 45: REPORT DIRECTORS’ REPORT Your dir
Page 46 and 47: SECURITY MANAGEMENT The company is
Page 48 and 49: CORPORATE GOVERNANCE STATEMENT The
Page 50 and 51: STATEMENT OF FINANCIAL PERFORMANCE
Page 52 and 53: STATEMENT OF CASH FLOWS FOR THE FIN
Page 54 and 55: NOTES TO THE FINANCIAL STATEMENTS 3
Page 80 and 81: INDEPENDENT AUDIT REPORT TO MEMBERS
Page 82 and 83: REVIEW REVIEW OF OPERATIONS For the
Page 84: Westralia Airports Corporation Pty
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