QR financial report 2008/09 - Queensland Rail

QR LIMITED Financial REPORTNotes to the financial statementsNotes to the financial statementsQR LIMITED Financial REPORT66 672008/0930 June 2009 (continued)30 June 2009 (continued)2008/0936 Related party transactions (CONTINUED)(f) Terms and conditionsAll other transactions were made on normal commercial terms and conditions and at market rates, except that there are no fixed terms for therepayment of loans between the parent and its subsidiaries. All loans are non interest bearing.Outstanding balances are unsecured.(g) Transactions with State of Queensland controlled entitiesThe Group is a Queensland Government Owned Corporation, with all shares held by the Shareholding Ministers on behalf of the state of Queensland.The value of these related party transactions and balances, as reported in the balance sheet and income statement, are discussed below:37 Business combination(a) Summary of acquisitionQR has made no acquisitions in 2009.The acquisition of Golden Bros. Group Pty Ltd by Logistics Australasia Pty Ltd (a wholly-owned subsidiary of QR Limited) was completed in 2008.(b) Purchase consideration2009 2008Note $’000 $’000Consolidated2009$’000Nature of TransactionOther assets 9, 10 103,982 106,193 Short term investment (QTC), transport servicescontracts and accounts receivable.Loans 23, 26 6,446,374 5,201,000 Unsecured loan facility (QTC).Other liabilities 22, 25, 28 439,431 373,615 Interest payable, unearned revenue, accountspayable and dividend payable.Equity injection 29 578,443 449,400 Equity contributions.Revenue 5 1,190,547 1,156,955 Sales, community service obligation, governmentconcessions and interest revenue.Interest expense 7 303,611 306,491 QTC loan interest (includes financing cost).Other expense 7 241,026 219,432 Electricity, payroll tax, audit fees, licences andpermits, rates and water payments.Dividend paid 31 156,785 151,493 Dividend paid.Outflow of cash to acquire subsidiary, net of cash acquiredCash consideration - 9,053 - -Less: Balances acquiredCash - 145 - -Outflow of cash - 8,908 - -2008$’0002009$’000Parent2008$’000(c) Assets and liabilities acquiredNo assets or liabilities were acquired through business combinations in 2009.The assets and liabilities arising from the acquisition in 2008 are as follows:Acquiree’scarrying amount2008 2008Fair value$’000 $’000Cash 145 145Trade receivables 2,204 2,204Inventories 19 19Other current assets 268 268Plant and equipment 2,106 2,106Deferred tax asset 530 530Intangible assets 628 628Trade payables (2,366) (2,366)Provisions current (14) (14)Other current liabilities (511) (511)Provisions non-current (33) (33)Other non-current liabilities (115) (115)Net assets 2,861 2,861The goodwill is attributable to the workforce savings. The fair value of assets and liabilities are based on discounted cash flow models.38 SubsidiariesThe consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accountingpolicy described in note 1(b):Name of entityCountry ofincorporationClass of sharesEquity holdingOn Track Insurance Pty Ltd Australia Ordinary 100 100QR Intermodal Pty Ltd Australia Ordinary 100 100Interail Australia Pty Ltd Australia Ordinary 100 100Logistics Australasia Pty Ltd Australia Ordinary 100 100Golden Bros. Group Pty Ltd Australia Ordinary 100 100CRT Group Pty Ltd Australia Ordinary 100 100NHK Pty Ltd Australia Ordinary 100 100Australian Rail Pty Ltd Australia Ordinary 100 100Australia Eastern Railroad Pty Ltd Australia Ordinary 100 100Australian Railroad Group Employment Pty Ltd Australia Ordinary 100 100Australia Western Railroad Pty Ltd Australia Ordinary 100 100AWR Lease Co Pty Ltd Australia Ordinary 100 100QR Passenger Pty Ltd Australia Ordinary 100 -QR Network Pty Ltd Australia Ordinary 100 -QR Surat Basin Pty Ltd Australia Ordinary 100 1002009%2008%