Corporate Report for the year ended 30 June 2022
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Section B: Notes to the Group financial statements for the year ended 30 June 2022
Section B: Notes to the Group financial statements for the year ended 30 June 2022
B19 Maintenance provision Movement in maintenance provision
Current Non-current $M $M
Carrying value at 1 July 2021 Additional provision recognised
144
934 121
—
(105)
— 33
Amounts paid/utilised Unwinding of discount
—
108
(108)
Transfer
—
1
Foreign exchange movements Carrying value at 30 June 2022
147
981
Current Non-current $M $M
Carrying value at 1 July 2020 Additional provision recognised
104
1,102
—
117
Amounts paid/utilised Unwinding of discount
(90)
— 35
—
Transfer
138
(138) (166)
Disposals through loss of control of subsidiary 1
(6) (2)
Foreign exchange movements Carrying value at 30 June 2021
(16)
144
934
1. Relates to the deconsolidation of the Group’s ownership interest in TC upon divestment of a 50% ownership interest (refer to Note B24).
KEY ESTIMATE AND JUDGEMENT As part of its obligations under the service concession arrangements, the Group assumes responsibility for the maintenance and repair of installations of the publicly owned roads it operates (including associated tolling equipment and systems). The Group records a provision for its present obligation to maintain the roads held under concession deeds. The Group periodically reassesses the estimate of its present obligation, which includes consideration of the results of routine inspections performed over the condition of the roads it operates. Any incremental maintenance and repair activities identified through this process are assessed for whether they are the sole responsibility of the Group or whether they are the responsibility of other parties. To the extent the Group believes other parties are responsible for the maintenance or repair or remediation, the Group may initiate claims on those parties. These assessments inform the timing and extent of planned future maintenance activities, notwithstanding the provision recorded at period end continues to capture the Group’s maintenance and repair obligations under the concession deeds. The 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 expenditure occurring on the roads.
170 170
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