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
Recoverability of equity accounted investments – Transurban Chesapeake (TC)
Group – Note B25 Equity accounted investment: $3,013m
THT Equity accounted investment – not applicable
TIL – Note D15 Equity accounted investment: $3,037m
Key audit matter
How our audit addressed the key audit matter Our procedures included, amongst others: Performing tests of the design and operation of controls over a selection of the forecast and budgeting processes impacting the impairment assessment in the COVID-19 environment. Evaluating the impairment indicator assessment considering the requirements under the Australian Accounting Standards. Involving valuation experts to assess the
On 17 December 2020 Transurban entered into an agreement to divest 50% of its interest in its Transurban Chesapeake (TC) assets. The sale was completed on 31 March 2021 via disposal of the Group’s controlling interest in TC. As a result of the sale the Group recognises its retained 50% interest as an equity accounted for investment. The Group makes certain assumptions in assessing impairment indicators for its investment. These include assumptions around traffic volumes, long-term CPI and the discount rate. As disclosed in note B25, the equity accounted investment in TC is sensitive to reasonably possible changes in certain key assumptions. We considered this to be a key audit matter for the Group and TIL, due to the complexity and judgement involved in the impairment indicator assessment.
appropriateness of selected key assumptions used within the impairment indicator assessment.
to be a key audit
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