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
Borrowings
Group – Note B14 Current borrowings: $1,063m Non-Current borrowings: $16,580m
THT – Note D10 Current borrowings: $351m Non-Current borrowings: $7,316m
TIL – Note D10 Current borrowings: $614m Non-Current borrowings - Nil
Key audit matter
How our audit addressed the key audit matter Our procedures included, amongst others: Obtaining confirmations from banks to confirm a sample of borrowings. Reading the most up-to-date borrowing agreements with the financiers to develop an understanding of the terms associated with the facilities and the amount of facility available for drawdown. Where debt is regarded as non-current, considering the Group's assessment whether there is an unconditional right to defer payment such that there were no repayments required within 12 months from the balance date. Assessing the accounting treatment of capitalised borrowing costs arising from new arrangements and borrowing costs related to terminated facilities. Performing tests of the design and operation of relevant controls over the treasury function including board review of the funding plan and approval of debt agreements and financial institutions used.
Borrowings are an integral part of the Transurban Group’s business model as it is the key source of funds used by the business to fund new projects and upgrades to existing concession assets. Each of the borrowing agreements has its own set of terms and conditions and therefore assessment of the treatment of the agreements and their impact on the financial statements is required. We considered this to be a key audit matter for the Group, THT and TIL given the size of the borrowings balances, the number of borrowing agreements in place and the importance of the funding structure for continued growth.
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