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
Service concession arrangements (continued)
Group – Notes B17 – B21 Concession assets: $16,632m
THT – Notes D12, D14 Concession assets: $8,659m Assets under construction: $327m Concession notes receivable: $1,142m Construction obligation liability: $84m Other liabilities: $80m
TIL – Notes D12 – D13 Concession assets: $1,224m Concession financial asset: $369m Maintenance provision: $35m
Assets under construction: $4,009m Concession financial asset: $369m Maintenance provision: $1,128m Construction obligation liability: $796m Other liabilities: $140m
Key audit matter
How our audit addressed the key audit matter
With respect to the West Gate Tunnel project, we inspected key agreements for the revised terms for the delivery of the project and considered the accounting implications.
The concession assets’ recoverable amount and concession liabilities recognised are calculated by estimating the net present value of future cash flows of the concession agreements using discounted cash flow models (the models). This area requires significant judgement by the Group due to a number of uncertain assumptions that impact the timing and quantum of future cash flows generated by the toll road, specifically assumptions such as traffic flows, discount rates and growth rates. As disclosed in note B17, the A25 asset’s recoverable amount is sensitive to reasonably possible changes in certain key assumptions. We considered this to be a key audit matter for the Group, THT and TIL due to the complexity of the arrangements and judgement required to interpret the accounting requirements and calculate their impact on the financial statements.
221
Made with FlippingBook Annual report maker