Maintenance provision
Group - Note B17
THT
TIL - Not applicable
Key audit matter
How our audit addressed the key audit matter We performed the following procedures, amongst others:
The concession agreements contain clauses that require the Group to make future payments for the maintenance of the toll roads. The maintenance provisions recognised are calculated by estimating the net present value of future payments using discounted cash flow models (the models), requiring significant judgement. We considered this to be a key audit matter for the Group due to the complexity of the concession arrangements and models, and judgement required to estimate the maintenance provisions.
Considered the relevant obligations in the concession agreements and assessed whether the Group has accounted for its maintenance obligations in accordance with the requirements of Australian Accounting Standards. Assessed the design and tested the operation of a selection of relevant controls over the maintenance forecast and budgeting processes impacting the models. Tested a sample of amounts paid/utilised and compared them to relevant supporting documentation.
Assessed whether the discount rates used in the models were appropriate by comparing them to market data.
Evaluated the Group’s ability to forecast maintenance spend by comparing historical forecasted spend with actuals. Assessed the mathematical accuracy and methodology of the models with regard to the requirements of the Australian Accounting Standards. Assessed the reasonableness of the disclosures in the financial report having regard to the requirements of Australian Accounting Standards.
Other information
The directors of Transurban Holdings Limited, Transurban Infrastructure Management Limited (as the responsible entity of Transurban Holding Trust) and Transurban International Limited (collectively referred to as “the directors”) are responsible for the other information. The other information comprises the information included in the Corporate Report for the year ended 30 June 2026, but does not include the financial reports and our auditor’s report thereon. Our opinion on the financial reports does not cover the other information and accordingly we do not express any form of assurance conclusion thereon through our opinion on the financial reports. We have issued a separate opinion on the remuneration report. We have also issued a separate limited assurance conclusion on Selected Subject Matter Information included within the Corporate Report and Sustainability Data Pack and a separate review conclusion and audit opinion on specified disclosures included within the Sustainability Report in accordance with the scope of Australian Standard on
Made with FlippingBook Digital Publishing Software