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NOTES TO THE FINANCIAL STATEMENTS CONTINUED

The Group Parent Entity

Note
2007
$’000
2006
$’000
2007
$’000
2006
$’000
NOTE 30 — COMMITMENTS AND LEASES
(CONTINUED)
Operating leases — as lessor
Future operating lease rentals for owned properties not recognised
and receivable:
Within one year
Later than one year but not later than five years
Later than five years
10,367
16,923
10,947
6,064
13,727
8,781
—
—
—
—
—
—
38,237 28,572 — —
The Group receives rental income from a number of properties,
both owned and leased. With exception to sub-leases under the head
lease, leases are for periods ranging between 1 to 18 years and have
varying terms, escalation clauses and renewal options. There are
approximately 700 sub-leases under the Thredbo head lease. Thredbo
sub-leases consist of long term accommodation sub-leases for holiday
apartments, chalets and lodges and also retail sub-leases for shops.
Long term accommodation sub-leases are typically for period mirroring
the head lease, which was renewed for a further 50-year period on
29 June 2007 (refer above).
Finance lease commitments — as lessee
Finance lease rentals are payable as follows:
Within one year
Later than one year but not later than five years
Later than five years
5,316
15,005
—
5,209
20,111
—
—
—
—
—
—
—
Less: Future lease finance charges
20,321
(2,434)
25,320
(2,664)
—
—
—
—
17,887 22,656 — —
The present value of lease payments are as follows:
Within one year
Later than one year but not later than five years
Later than five years
4,385
13,502
—
4,275
18,381
—
—
—
—
—
—
—
17,887 22,656 — —
Finance lease liabilities provided for in the accounts:
Current 22
Non-current 22
4,385
13,502
4,275
18,381
—
—
—
—
Total lease liabilities 17,887 22,656 — —
Of the above lease, $17,194,000 is in respect to land and buildings.
The lease term is for a remaining four-year period at the end of which
time the controlled entity has an option to purchase the property at
no additional cost. If the option was not exercised, a nominal value
would be recovered in respect of the property.
The remaining balance of $693,000 is in respect of plant and
equipment. The lease term is for a remaining 18-month period at the
end of which time the controlled entity has an option to purchase the
equipment at no additional cost.
Finance lease commitments guaranteed by the Parent Entity: — — 7,113 5,778

Finance lease commitments — as lessor

Neither the Group nor the Parent Entity has finance lease or hire purchase arrangements in place where they act as a lessor.

Details of contingent liabilities and contingent assets which although considered remote the directors consider should be disclosed,
are as follows:

NOTE 31 — CONTINGENT ASSETS AND LIABILITIES

Litigation

The nature of the Group’s operations results in claims for personal injury being received from time to time. The directors believe
that the outcome of any current claims outstanding, which are not provided against in the financial statements, will not have a
significant impact on the operating result of the Group or the Company in future reporting periods.

The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future
sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.

Taxation — overseas controlled entities

Certain overseas controlled entities are in dispute with their local tax authority over the level of value-added tax payable on certain
supplies. The Group has provided for or paid the full amount currently in dispute. A contingent asset totalling $4,866,000 exists in
relation to the amount provided for or paid which is in dispute.

In addition, there is future potential for further amounts to be disputed by the local tax authority. This potential amount is estimated
to be $5,200,000. A provision has not been established for this amount as the success of any claim, beyond the amount already
paid or provided, is not currently considered probable.

The Group Parent Entity

2007
$’000
2006
$’000
2007
$’000
2006
$’000
Controlled entities
The Parent Entity has guaranteed the obligations of some controlled
entities in respect of a number of lease commitments.
The operating lease commitments not included in the Parent Entity’s
financial statements are due:
Not later than one year
Later than one year but not later than five years
Later than five years
—
—
—
—
—
—
54,271
103,192
120,650
55,692
126,309
154,041
— — 278,113 336,042
The Parent Entity has guaranteed the Group’s share of other
commitments in respect of financing and other arrangements
of certain controlled entities: — — 6,894 13,623
Certain controlled entities hold interests in partnerships
(refer Note 36), and as such are jointly and severally
liable for 100% of all liabilities incurred by those partnerships.
The total assets of the partnerships are sufficient to meet such
liabilities. The partnerships’ liabilities not included in the Group’s
financial statements, amounted to: 29,555 35,789 — —
In addition, the Parent Entity or a controlled entity has guaranteed
the obligations of entities within the Group in respect of the lease
commitments of certain partnerships. The partnerships’ operating
lease commitments, not included in the Group’s financial statements,
guaranteed by the Parent Entity or a controlled entity are due:
Not later than one year
Later than one year but not later than five years
Later than five years
47,700
183,898
283,660
43,378
167,672
262,385
15,252
58,868
95,761
14,913
57,672
100,315
515,258 473,435 169,881 172,900
The Parent Entity has also guaranteed the Group’s share of other
commitments in respect of financing and other arrangements of
certain partnerships: — 556 — 556
Associates
The Parent Entity or a controlled entity has guaranteed the Group’s
share of obligations made by certain associates (refer Note 35) in
respect of operating lease commitments: 55,195 62,981 55,195 62,981