Annual Report for 2006/07 - Metro Tasmania

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14Notes to the Financial StatementsFor the year ended 30 June 20071. Reporting EntityMetro Tasmania Pty Ltd (the ‘Company’) is a Tasmanian State Owed Company domiciled in Australia. The address of the company’sregistered office is 212 – 220 Main Road, Moonah, Tasmania. The consolidated financial statements as at and for the year ended 30June 2007 comprise the Company and its subsidiary (together referred to as ‘Metro’).2. Basis Of Preparation(a) Statement of complianceThe financial report is a general purpose financial report which has been prepared in accordance with Australian AccountingStandards (AASBs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and theCorporations Act 2001. The consolidated and Company financial reports comply with the IFRSs and interpretations adopted by theInternational Accounting Standards Board.The financial statements were authorised for issue by the directors on 10 September 2007.Notes to the Financial StatementsNew standards and interpretations not yet adoptedThe following standards and amendments were available for early adoption at the date of authorisation of the financial report buthave not been applied by the consolidated entity in these financial statements:• AASB 7 Financial instruments: Disclosure (August 2005) and consequential amendments to other accounting standards from itsissue, replacing the presentation requirements of financial instruments in AASB 132. AASB 7 is applicable for annual reportingperiods beginning on or after 1 January 2007.• AASB 8 Operating Segments (February 2007) and consequential amendments to other accounting standards from its issue,replacing AASB 114 for entities whose debt or equity instruments are traded in a public market. AASB 8 is applicable for annualreporting periods beginning on or after 1 January 2009.• AASB 101 Presentation of Financial Statements (October 2006) revised standard. AASB 101 is applicable for annual reportingperiods beginning on or after 1 January 2007.• AASB 2006-1 Amendments to Accounting Standards AASB 121 (January 06) is applicable for annual reporting periods beginningon or after 31 December 2006.• AASB 2006-3 Amendments to Accounting Standards AASB 1045 (October 06) is applicable for annual reporting periodsbeginning on or after 31 December 2006.• AASB 2006-4 Amendments to Accounting Standards AASB 134 (December 06) is applicable for annual reporting periodsbeginning on or after 31 December 2006.• Interpretation 11 (AASB 2007-1) is applicable for annual reporting periods beginning on or after 1 March 2007.• Interpretation 12 (AASB 2007-2) is applicable for annual reporting periods beginning on or after 1 January 2008.The directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material financialimpact on the financial statements of the company or consolidated entity. These Standards and Interpretations will be first appliedin the financial report of the consolidated entity that relates to the annual reporting period beginning after the effective date of eachpronouncement.(b) Basis of measurementThe financial report has been prepared on an accrual basis and is based on historical costs and does not take into account changingmoney values except for land, buildings and buses which are measured at fair value. The accounting policies have been consistentlyapplied, unless otherwise stated.(c) Functional and presentation currencyThese consolidated financial statements are presented in Australian dollars, which is the Company’s functional currency and allvalues are rounded to the nearest thousand dollars ($000) unless otherwise stated under the option available under ASIC ClassOrder 98/100.(d) Use of estimates and judgementsThe preparation of financial statements requires management to make judgements, estimates and assumptions that effect theapplication of accounting. Actual results may differ from these estimates.Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in theperiod in which the estimate is revised and in any future periods affected.
3. Significant Accounting Policies(a) Basis of consolidationThe consolidated financial statements have been prepared by combining the financial statements of all the entities that comprise theeconomic entity, being Metro Tasmania Pty Ltd (the parent entity) and its controlled entity Metro Coaches (Tas) Pty Ltd. Refer to Note25. Consistent accounting policies have been employed in the preparation and presentation of the consolidated financial statements.In preparing the consolidated financial statements, all inter- company transactions, balances, income and expenses are eliminated in full.(b) Goods and Services Tax (GST)Revenue, expenses and assets are recognised net of the amount of GST, except for receivables and payables that are recognisedinclusive of GST.The net amount of GST recoverable from, or payable to, the Australian Taxation Office (ATO) is included as a current asset or liability inthe Balance Sheet.Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing andfinancing activities, which are recoverable from the ATO, are classified as operating cash flows.Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to the ATO.(c) RevenueTraffic operations revenueTraffic operation revenue is recognised at the time the service is provided.InterestInterest is recognised as it accrues.Sale of non- current assetsThe net gain (loss) of non current asset sales are included as income (expenses) at the date the date control passes to the buyer, usuallywhen an unconditional contract of sale is signed.The net gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and thenet proceeds on disposal.Assets which satisfy the criteria in AASB 5 ‘ Non- Current Assets Held for Sale’ are transferred to current assets and separatelydisclosed as assets held for sale on the face of the Balance Sheet. These assets are measured at the lower of carrying amount and fairvalue less costs to sell. These assets cease to be depreciated from the date which they satisfy the held for sale criteria.(d) Cash and cash equivalentsCash and cash equivalents comprise cash on hand, cash at banks and call deposits.(e) ReceivablesTrade receivables and other receivables are recorded at nominal amounts due less any provision for doubtful debts and are recognisedon delivery of services to customers. A significant volume of Metro’s operations are performed for the State Government or are receivedas cash fares. Accordingly, exposure to credit risk is minimal. An estimate for doubtful debts is made when collection of the full amountis no longer probable. Bad debts are written off when identified.(f) PayablesTrade and other payables represent liabilities for goods and services provided to Metro prior to the end of the financial year which areunpaid. Measurement is based on the agreed purchase/ contract cost. The amounts are unsecured and are usually paid within 30 daysof recognition.Notes to the Financial Statements15
Page 2 and 3: IntroductionThe Principal objective
Page 4 and 5: Chairperson’s ReviewChairperson
Page 6: Chief Executive Officer’s ReviewI
Page 9 and 10: Table 5 - Number of Buses in Servic
Page 11 and 12: Auditor’s independence declaratio
Page 13 and 14: Balance SheetAs at 30 June 200Conso
Page 15: Cash Flow StatementFor the year end
Page 19 and 20: Retirement benefitsDefined benefit
Page 21 and 22: 4. Revenue(a) Revenue from traffic
Page 23 and 24: 2007 ConsolidatedCategory Opening R
Page 25 and 26: Balance atBalance at1 Jul 2006 30 J
Page 27 and 28: 19. Retained Profits/ (Losses) Cons
Page 29 and 30: 2007Average effective Floating Less
Page 31 and 32: Balance sheet results as at 30 June
Page 33 and 34: Defined Benefit Obligations inclusi
Page 35 and 36: 30 June 2007 30 June 2006Expected R
Page 37 and 38: Funding and contribution informatio
Page 39 and 40: Providing safe, reliable and qualit

Annual Report for 2006/07 - Metro Tasmania

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