consistent with underlying concession agreements. o assessed the design and tested operating effectiveness of review and approval controls in relation to toll price changes. o performed data analytics to recalculate toll revenue.
Agreed the relevant details for a selection of journal entries impacting revenue to supporting documentation.
Recoverability of concession intangible assets, assets under construction and equity accounted investments
Group – Notes B16 and B22
THT – Notes D12 and D14
TIL – Note D14
Key audit matter
How our audits addressed the key audit matter We performed the following procedures, amongst others: Assessed the design and tested the operating effectiveness of key controls over a selection of the forecast and budgeting processes impacting the models. Evaluated the impairment indicator assessment considering the requirements under the Australian Accounting Standards. Assessed, with the assistance of PwC valuation experts, whether the discount rates used in the models were appropriate by comparing them to market data and comparable companies. Assessed the appropriateness of significant assumptions used within the impairment assessment models, including expected traffic performance and growth rates.
Each toll road within the Group is governed by a concession agreement between entities within the Group and the transport authority of the region in which the concession is granted. The right to toll the roads within the Group are recognised on the consolidated balance sheet(s) either as concession intangible assets, assets under construction or within equity accounted investments. Concession intangible assets and assets under construction Where the road is held by a controlled entity, the asset is recognised at the cost of construction or price paid at acquisition. Equity accounted investments The Group also has interests in toll roads held through equity accounted investments and has a 50% ownership interest in each of: Sydney Transport Partners Joint Venture (STP JV), NorthWestern Roads Group (NWRG), Transurban Chesapeake (TC) and the A25. These investments are held on the consolidated balance sheet(s) and recognised as equity accounted investments.
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