Financial statements | Contents
Section B: Notes to the Group financial statements for the year ended 30 June 2025
Items not recognised
B24 Contingencies Contingencies accounting policy Contingent assets
Contingent assets are possible recoveries whose existence will only be confirmed by uncertain future events not wholly within the control of the Group. Contingent assets are not recognised on the balance sheet unless they are virtually certain but are disclosed if the inflow of economic resources is probable. Contingent liabilities Contingent liabilities are possible obligations whose existence will only be confirmed by uncertain future events and present obligations where the transfer of economic resources is not probable or cannot be reliably estimated. Contingent liabilities are not recognised on the balance sheet unless they are probable but are disclosed if the outflow of economic resource is possible but not remote. The Group is exposed to contingent risks and liabilities arising from the conduct of its business including: • Direct and indirect construction risk, including remediation of concession intangible assets and potential claims, material delays and disputes in respect of projects in delivery; • Ongoing Court proceedings, claims and possible claims against the Group; and • Contracts that involve terms such as warranties, indemnities or guarantees. Such matters are often highly complex and uncertain. Where appropriate, provisions and other liabilities have been recognised. Further details on some specific contingencies of the Group are set out below, in Note B5 and Note B21.
KEY ACCOUNTING ESTIMATE AND JUDGEMENT Construction contracts
The Group (including its equity accounted investments) is exposed to direct and indirect construction risk, including remediation of concession intangible assets and claims, potential claims, material delays and disputes. In addition, the Group (including its equity accounted investments) has initiated claims against others in connection with its construction projects. In overseeing construction projects, from time to time payments may be made in excess of contracted amounts to facilitate their continued progression. The Design and Construction subcontractor on the West Gate Tunnel Project has experienced a number of challenges. Claims are not unusual towards the end of a project and any claims if received by the Group would be assessed in accordance with the contractual framework. Note B17 discusses the accounting for maintenance expenses where the Group has a present obligation to remediate concession intangible assets. The Group (including its equity accounted investments) assesses each claim it is a party to for the purposes of preparing financial statements in accordance with the accounting standards. Contingent assets and liabilities may exist in respect of actual or possible recoveries, claims and commercial payments arising from these matters. As at 30 June 2025, any inflow of economic resources associated with these matters is not considered virtually certain and any possible payments relating to actual or potential future claims or possible commercial payments to other parties in excess of, or separate to the amounts stipulated in the Design and Construction contracts or other contracts, are not considered probable of being made. Further information has not been included in this report because disclosure of the information would be likely to result in unreasonable prejudice to the Group (including its equity accounted investments). Other contractual arrangements The Group has received claims from other parties with respect to the Group’s obligations under its services contracts. As at 30 June 2025, it has not been established that a present obligation exists. Further information has not been included in this report because disclosure of the information would be likely to result in unreasonable prejudice to the Group. During the period, a Supreme Court of Victoria judgement was received in relation to litigation commenced by ConnectEast (owner of EastLink in Melbourne) against the Group in relation to fees payable by ConnectEast under a tolling services arrangement with the Group. This matter is specific to CityLink under the Melbourne CityLink Act 1995. The judgement requires compensation payable by the Group to ConnectEast for a period of four sample years (2015, 2017, 2019 and 2020). The proceeding was commenced in 2020 and the Statement of Claim referred to a fee for each year since 2009. The Group has appealed the decision. The Group has recognised provisions as at 30 June 2025. Further information about these provisions has not been included in this report because disclosure of the information would be likely to result in unreasonable prejudice to the Group. Refer to Note B2.
Parent entity The Parent entity does not have any contingent assets or contingent liabilities as at reporting date.
B25 Commitments The Group’s unrecognised capital commitments as at 30 June 2025 are $15 million (2024: $299 million) and relate primarily to the West Gate Tunnel Project. Share of commitments related to equity accounted investments The Group’s share of unrecognised commitments related to equity accounted investments as at 30 June 2025 are $241 million (2024: $533 million) and relate primarily to Fredericksburg Extension and the 495 Express Lanes Northern Extension in TC. Subsequent events Other than as disclosed elsewhere in this report, in the interval between the end of the financial year and the date of this report, no further matter or circumstance has arisen that has significantly affected, or may significantly affect, the Group’s operations, the results of those operations, or Group’s state of affairs, in future years. B26
167
Made with FlippingBook Digital Publishing Software