4.78 MB - Perth Airport

(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.
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