Transurban FY26 Corporate Report Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2026
B3
Basis of preparation (continued)
Key accounting estimates and judgements The preparation of the Group's financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also need to exercise judgement in applying the Group’s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to final outcomes deviating from estimates and assumptions made. Detailed information about each of these key accounting estimates and judgements is included in the following notes: • Potential impacts of climate-related risks and opportunities Note B3 • Constraining revenue recognition relating to legal proceedings Notes B5 and B20 • Provision for income taxes and recoverability of deferred tax assets Note B6 • Fair value of derivatives and other financial instruments Note B14 • Recoverability of goodwill, other intangible assets and equity accounted investments Concession Summary and Note B20 • Determination of CityLink and West Gate Tunnel cash generating unit Note B16 • Measurement of the maintenance provision Note B17 • Measurement of promissory notes and concession notes Note B18 • Assessment of control of NorthWestern Roads Group (NWRG), Sydney Transport Partners (STP JV), and Transurban Chesapeake (TC) Note B20 • Contingencies Note B23
KEY ACCOUNTING ESTIMATE AND JUDGEMENT Potential impacts of climate-related risks and opportunities
Climate-related risks and opportunities (climate-related risks) have been considered in the Group’s key accounting estimates and judgements made in the preparation of the Group financial statements, including in determining the recoverability of intangible assets and equity accounted investments, and the measurement of maintenance provisions. These considerations are based on reasonable and supportable information, informed by Climate Change Adaptation Plans, the Group’s Enterprise Risk Management processes, historical experience and scenario analysis, and are consistent with those applied in the FY26 Sustainability Report (Climate Statements). Management have determined that climate-related risks do not have a material effect on the Group’s financial position, financial performance or cash flows as at the reporting date. The inherent uncertainty in assessing climate-related risks, including the timing and severity of impacts and future policy and regulatory developments, may result in actual outcomes being different from those assumed in the preparation of the Group financial statements. Impairment assessments for intangible assets and equity accounted investments are based on a range of assumptions reflecting management's best estimate of expected operating conditions. Based on the assessments performed, climate-related risks are not considered to have a material impact on the impairment outcomes at the reporting date. Maintenance provisions under the Group’s concession arrangements are based on a range of assumptions reflecting management’s best estimate of asset conditions and lifecycle planning. Based on the assessments performed, climate-related risks are not considered to have a material impact on the measurement of maintenance provisions at the reporting date. Further information on climate-related financial disclosures is included in the FY26 Sustainability Report (Climate Statements) from page 34 of the FY26 Corporate Report.
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