2022 Corporate Report

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Section B: Notes to the Group financial statements for the year ended 30 June 2022

Page 8 reference destination: Basis of preparation of our FS

Section B: Notes to the Group financial statements for the year ended 30 June 2022

B3 Basis of preparation The Group financial statements are general purpose financial statements which: • Have been prepared in accordance with the Corporations Act 2001 , Australian Accounting Standards (AAS) and other authoritative pronouncements of the Australian Accounting Standards Board (AASB); • Have adopted all accounting policies in accordance with AASs and, where a standard permits a choice in accounting policy, the policy adopted by the Group has been disclosed in these financial statements; • Have applied the option under ASIC Corporations (Stapled Group Reports) Instrument 2015/838 to present the consolidated financial statements in one section (Section A) and all other reporting group members in a separate section (Section C); • Comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB); • Have been prepared under the historical cost convention, as modified by the revaluation of other financial assets and liabilities (including derivative financial instruments); • Are presented in Australian dollars, which is the Group's functional and presentation currency; • Have been rounded to the nearest million dollars, unless otherwise stated, in accordance with ASIC Corporations (Rounding in Financial/Director's Reports) Instrument 2016/191 ; and • Have restated the presentation of comparative amounts, where applicable, to conform to the current period presentation. Going concern The financial statements have been prepared on a going concern basis, which assumes the continuity of normal operations, in particular over the next 12 months from the financial statements release date of 18 August 2022. In determining the appropriateness of the going concern basis of preparation, the Directors have considered the uncertainties related to COVID-19 impacts on traffic, near-term interest rates and inflation on the Group’s liquidity and operations. The Group has assessed cash flow forecasts and its ability to fund THL's net current liability position as at 30 June 2022 of $1,095 million (2021: net current asset position of $1,793 million). Scenario analysis was undertaken, which includes judgement, of reasonably possible changes in traffic volume, near-term interest rates and inflation. This analysis indicates that the Group is expected to be able to continue to operate within available liquidity levels and the terms of its debt facilities, and to fund THL's net current liability position as at 30 June 2022, for the 12 months from the date of this report. The Group has also forecast that it does not expect to breach any financial covenants within the 12 months from the date of this report. Financial covenant forecasts utilised the same underlying cash flow forecasts as those used in the going concern assessment. Corporate and non-recourse debt financial covenants are calculated on a trailing 12 month basis. Furthermore, the Directors have also taken the following matters into consideration in forming the view that the Group is a going concern: • The Group has cash and cash equivalents of $2,020 million as at 30 June 2022; • The Group has available a total of $2,727 million of undrawn general purpose borrowing facilities across a number of financial providers with a maturity beyond 12 months. Additionally, the Group has a further $63 million of undrawn borrowing facilities to provide funding for the Group's capital projects; • The Group is expected to have the ability to fund THL's net current liability position through the generation of free cash and the use of undrawn facilities in the 12 months from the date of this report; and • Payment of future dividends and distributions remains at the discretion of the Board.

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