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
B18
Construction obligation liability
West Gate Tunnel Project The West Gate Tunnel Project is being funded by additional tolling income from a concession extension of CityLink and the receipt of future tolling income from the West Gate Tunnel Project. The CityLink concession deed was amended in April 2019, requiring the recognition of an incremental asset within other intangible assets and a corresponding liability. The liability represents the Group’s obligation to complete construction of the West Gate Tunnel Project, attributable to the remaining CityLink funding sources payments (the construction obligation liability). The construction obligation liability will reduce as payments are made in connection with the CityLink funding sources. Construction obligation liability accounting policy The construction obligation liability is measured at the present value of the remaining CityLink funding sources payments. The calculations to discount these amounts to their present value are based on the estimated timing and profile of expenditure. The estimated nominal value of the remaining funding sources payments attributable to CityLink is $155 million as at 30 June 2024 (2023: $462 million) with $155 million due within one year (2023: $462 million due within three years). The asset under construction attributable to CityLink funding sources began to amortise from 1 July 2019. Current Non-current West Gate Tunnel Project West Gate Tunnel Project Total $M $M $M Carrying amount at 1 July 2023 335 111 446 Amounts paid/utilised (308) — (308) Unwinding of discount — 14 14 Transfer 125 (125) — Carrying amount at 30 June 2024 152 — 152
Carrying amount at 1 July 2022
432
364
796
Amounts paid/utilised Unwinding of discount
(377)
— 27
(377)
—
27 —
Transfer
280 335
(280)
Carrying amount at 30 June 2023
111
446
KEY ACCOUNTING ESTIMATE AND JUDGEMENT The construction obligation liability is measured at the present value of the remaining CityLink funding sources payments. Assumptions are made in determining the timing and profile of the CityLink funding sources payments, based on the expected cash flows to be paid through completion of construction of the West Gate Tunnel Project, which are discounted to their present value. The current balance represents the payments the Group expects to be made within 12 months from the reporting date, with the non-current portion being the present value of payments beyond 12 months from the reporting date.
165
164
Made with FlippingBook Digital Publishing Software