Annual Report 2011 Australian Grand Prix Corporation

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011(p) Accounting for goods and services tax (GST)Income, expenses and assets are recognised net of the amount of associated GST, unless the GSTincurred is not recoverable from the taxation authority. In this case, it is recognised as part of thecost of acquisition of the asset or as part of the expense.Receivables and payables are stated inclusive of the amount of GST receivable or payable. Thenet amount of GST recoverable from, or payable to, the taxation authority is included with otherreceivables or payables in the balance sheet.Cash flows are presented on a gross basis. The GST components of the cash flows arising frominvesting or financing activities which are recoverable from, or payable to the taxation authority,are presented as operating cash flow.(q) Foreign Currency Transactions and BalancesAll foreign currency transactions during the financial year are brought to account using theexchange rate in effect at the date of the transaction. Foreign monetary items existing at the endof the reporting period are translated at the closing rate at the date at the end of the reportingperiod. Non-monetary assets carried at fair value that are denominated in foreign currencies aretranslated at the rates prevailing at the date when the fair value was determined.Foreign currency translation differences are recognised in ‘other economic flows’ and accumulatedin the cash flow hedge reserve in the period in which they arise.(r) Contingent assets and contingent liabilitiesContingent assets and contingent liabilities are not recognised in the balance sheet, but aredisclosed by way of a note and if quantifiable are measured at nominal value. Contingent assetsand liabilities are presented inclusive of GST receivable and payable respectively.(s) New accounting standards and interpretationsCertain new accounting standards and interpretations have been published that are not mandatoryfor the 30 June 2011 reporting period. The Department of Treasury and Finance has assessed theimpact of the new standards and has advised the Corporation of their applicability and earlyadoption where applicable.As at 30 June 2011, the following standards and interpretations (applicable to the Corporation) hadbeen issued but were not mandatory for the financial year ending 30 June 2011. The Corporationhas not early adopted these standards.42Australian Grand Prix Corporation Annual Report 2011