A. About this Report
WSA Co Limited (WSA, the Company) is an unlisted public company incorporated and domiciled in Australia. It is a company limited by shares and is wholly-owned by the Commonwealth of Australia.
WSA is a Government Business Enterprise (GBE), incorporated under the Corporations Act 2001 (Cth) and operating under the Public Governance, Performance and Accountability Act 2013 (Cth).
WSA was established to develop and operate Western Sydney International Airport. The planned project completion date is 24 December 2026.
This Financial Report includes the financial statements and notes to the financial statements for the year ended 30 June 2019. WSA is a for-profit entity for the purpose of preparing the Financial Report.
The Financial Report was authorised for issue by the Board of Directors on 30 August 2019.
Statement of Compliance
This Financial Report is a general-purpose financial report which has been prepared in accordance with:
- Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB).
- International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
- Corporations Act 2001 (Cth).
- Public Governance, Performance and Accountability Act 2013 (Cth) (PGPA Act).
Basis of preparation
The Financial Report:
- Has been prepared on a historical cost basis.
- Has been prepared on a going concern basis.
- Is presented in Australian dollars, the functional currency of the Company.
- Is presented with values rounded to the nearest thousand dollars ($000), unless otherwise stated, in accordance with ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191.
- There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
- Comparatives cover the period from the date of incorporation on 7 August 2017 to 30 June 2018
Significant accounting estimates and judgments
In the process of applying the Company’s accounting policies, Management has made a number of judgments and applied estimates and assumptions to future events. Estimates and judgments that are material, or have the potential to be material to the financial report, are found in the following notes:
Accounting estimate or judgment
Determination of useful lives of property, plant and equipment
Capital funding and liquidity
The Company has incurred a loss after tax for the year ended 30 June 2019 of $252.0m and is currently in a net assets position of $62.1m. The Company has sufficient funds to meet its existing financial obligations at Statement of Financial Position date.
The Company has entered into an Equity Subscription Agreement (ESA) with its Shareholder, the Commonwealth Government, which provides access to funding of up to $5.3b to construct the Airport’s Functional Specifications. This primarily includes airside civil infrastructure, runways and taxiways, terminal and car park, which were identified by the Government as the minimum requirements to operate a functioning Airport.
The Shareholder is committed to make equity funding available as needed to ensure the project can be executed as planned.
Directors believe that the ESA will enable the Company to meet its financial obligations as and when they fall due and therefore this Financial Report has been prepared on a going concern basis.
WSA has the option to develop additional infrastructure it considers desirable for the Airport, and to consider the means by which these additional facilities will be funded. Once operational, the Directors anticipate that the business will no longer be dependent on Shareholder funding.