Annual Report 2011 Australian Grand Prix Corporation

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011The Corporation is predominantly funded by ticket sales and sponsorship of the events and fundsprovided by the Victorian Government.(d) Scope and Presentation of Financial StatementsComprehensive Operating StatementIncome and expenses in the comprehensive operating statement are classified according towhether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistentwith the whole of government reporting format and is allowed under AASB 101 Presentation offinancial statements.‘Transactions’ and ‘other economic flows’ are defined by the Australian system of governmentfinance statistics: concepts, sources and methods 2005 Cat. No. 5514.0 published by the AustralianBureau of Statistics (see note 26)‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions,usually an interaction between two entities by mutual agreement. They also include flows withinan entity such as depreciation where the owner is simultaneously acting as the owner of thedepreciating asset and as the consumer of the service provided by the asset. Taxation is regardedas mutually agreed interactions between the government and taxpayers. Transactions can bein kind (e.g. assets provided/given free of charge or for nominal consideration) or where the finalconsideration is cash.‘Other economic flows’ are changes arising from market remeasurements. They include:• Gains and losses from disposals, revaluations and impairments of non-financial physical andintangible assets;• Fair value changes of financial instruments.The net result is equivalent to profit or loss derived in accordance with AAS’s.Balance SheetAssets and liabilities are presented in liquidity order with assets aggregated into financial assets andnon-financial assets.Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12months) are disclosed in the notes, where relevant.Cash Flow StatementCash flows are classified according to whether or not they arise from operating, investing or financingactivities. This classification is consistent with requirements under AASB 107 Statement of cash flows.Statement of Changes in EquityThe statement of changes in equity presents reconciliation of each non-owner and owner equityopening balance at the beginning of the reporting period to the closing balance at the end of thereporting period. It also shows separately changes due to amounts recognised in the comprehensiveresult and amounts recognised in other comprehensive income related to no-owner changesin equity.30Australian Grand Prix Corporation Annual Report 2011