Transurban FY26 Corporate Report Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2026
B17 Maintenance provision
The Group’s service concession arrangements include certain obligations to maintain the publicly owned roads (underlying concession assets) it operates and in some cases it designed and constructed. These maintenance obligations may include: • obligations for routine or minor maintenance over the life of the concession arrangement, for which costs are expensed as incurred; and • major maintenance, remediation and handover obligations for which the Group recognises a maintenance provision reflecting its present obligation under the terms of the concession arrangement. Maintenance provision accounting policy The maintenance provision is included in the financial statements at the present value of expected future payments. The calculations to discount these amounts to their present value are based on the estimated timing and profile of expected expenditure.
Movements in maintenance provision
Current Non-current
Total
$M 196
$M
$M
Carrying amount at 1 July 2025 Additional provision recognised
1,103
1,299
34
282
316
(121)
— 26
(121)
Amounts paid/utilised Unwinding of discount
—
26 —
118 227
(118)
Transfer
1,293
1,520
Carrying amount at 30 June 2026
Current Non-current
Total
$M 164
$M
$M
Carrying amount at 1 July 2024 Additional provision recognised
1,004
1,168
—
215
215
Amounts paid/utilised Unwinding of discount
(123)
— 39
(123)
—
39 —
Transfer
155 196
(155)
Carrying amount at 30 June 2025
1,103
1,299
KEY ACCOUNTING ESTIMATE AND JUDGEMENT The maintenance provision represents management’s best estimate of the costs that are expected to be incurred in meeting its obligations, based on information available at the reporting date. It reflects how and when the maintenance obligations are expected to be met under the Group’s asset management programs. Given the length of the concession arrangements, there is inherent uncertainty in estimating the costs expected to be incurred in the future. Management periodically reassess its estimate of the present obligation, incorporating the results of routine inspections of the condition of underlying concession assets. Actual outcomes may differ to these estimates.
164
Made with FlippingBook Digital Publishing Software