Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2024
Section B: Notes to the Group financial statements for the year ended 30 June 2024
B17
Maintenance provision
The Group’s service concession arrangements include certain obligations to maintain the publicly owned roads (concession intangible assets) it operates and in some cases the concession intangible assets it designed and constructed. These maintenance obligations may include: • obligations for routine or minor maintenance over the life of the concession intangible asset, for which costs are expensed as incurred; and • major maintenance, remediation and handover obligations for which the Group recognises a maintenance provision reflecting its present obligation under the concession deeds. Maintenance provision accounting policy The maintenance 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 expected expenditure.
Movement in maintenance provision
Current Non-current $M $M
Carrying amount at 1 July 2023 Additional provision recognised
143
971 182
5
(162)
— 29
Amounts paid/utilised Unwinding of discount
—
178 164
(178)
Transfer
1,004
Carrying amount at 30 June 2024
Current Non-current $M $M
Carrying amount at 1 July 2022 Additional provision recognised
147
981 123
14
Amounts paid/utilised Unwinding of discount
(138)
— 24
—
Transfer
125
(125)
Disposals through loss of control of subsidiary 1
(5)
(32)
Carrying amount at 30 June 2023
143
971
1. Relates to the sale of the Group’s controlling interest in A25 (refer to Note B21).
KEY ACCOUNTING ESTIMATE AND JUDGEMENT The maintenance provision reflects the Group’s best estimate of the costs that are expected to be incurred in meeting its obligations (based on information available at the reporting date) and reflects how and when the maintenance obligations under the concession deeds will be met under its asset management programs. Given the length of the service concession arrangements, uncertainty arises in estimating the costs expected to be incurred in the future. The Group periodically reassesses the estimate of its present obligation, which includes the results of routine inspections performed over the condition of the concession intangible assets. In addition, the Group assesses whether it has sole responsibility for the maintenance obligations or whether the obligations are the responsibility of other parties. To the extent the Group believes other parties are responsible for the maintenance activities, it may initiate claims on those parties and will consider those claims in assessing its present obligations.
164
163
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