Annual Report 2011 Australian Grand Prix Corporation

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2011ReceivablesIncludes short and long term trade credit and accounts receivable, grants, taxes and interestreceivable.Sales of Goods and ServicesRefers to revenue from the direct provision of goods and services and includes fees and chargesfor services rendered, sales of goods and services and fees from regulatory services. User chargesincludes sale of goods and services revenue.Supplies and ServicesSupplies and services generally represent cost of goods sold and the day-to-day running costs,including maintenance costs, incurred in the normal operations of the Corporation.TransactionsTransactions 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 within anentity such as depreciation where the owner is simultaneously acting as the owner of the depreciatingasset and as the consumer of the service provided by the asset. Taxation is regarded as mutuallyagreed interactions between the government and taxpayers. Transactions can be in kind (e.g.assets provided/given free of charge or for nominal consideration) or where the final consideration iscash. In simple terms, transactions arise from the policy decisions of the government.Australian Grand Prix Corporation Annual Report 2011 67