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Forest NSW Annual Report 2012

Notes to the financial statements For the year ended 30 June 2012 1. Corporate Information adopted in the preparation of the financial the effect of discounting is immaterial. Anmeasured at the original invoice amount whereThe accrual basis of accounting has been Forestry Commission Division is a Division of statements. invoiced receivable is due for settlement within the Government Service established pursuant thirty days of invoicing. The financial statement is presented in to Part 3 of the Schedule 1 to the Public Australian dollars and all values are rounded to If there is objective evidence at year end that a Sector Employment and Management Act 2002 the nearest thousand dollars unless otherwise receivable may not be collectable, its carrying (PSEMA). It is a not for profit entity as profit is stated. amount is reduced by means of an allowance not its principal objective. It is consolidated for doubtful debts and the resulting loss is as part of the Forestry Commission of New South Wales (trading as Forests NSW) and the (c) Significant accounting recognised in the Statement of Comprehensive NSW Total Sector Accounts. It is domiciled judgements, estimates and the year and bad debts are written off againstIncome. Receivables are monitored during in Australia and its principal office is located 121-131 Oratava Avenue, West Pennant Hills, assumptions the allowance when they are determined to NSW, 2125. In the application of accounting standards, when a receivable is derecognised is alsobe irrecoverable. Any other loss or gain arising Forestry Commission Division’s objective is to management is required to make judgements, recognised in the Statement of Comprehensive provide personnel services to Forests NSW. estimates and assumptions about the carrying Income. values of assets and liabilities that are not Personnel Service provided to Forests NSW readily apparent from other sources. The (f) Trade and Other Payables is based on a signed Memorandum of estimates and associated assumptions are Understanding established on 17 March 2006. based on historical experience and various Payables include accrued wages, salaries, and Forestry Commission Division commenced factors that are believed to be reasonable related on costs (such as payroll tax, fringe operation on 17 March 2006 and assumed under the circumstance, the results of which benefits tax and workers’ compensation the responsibility for the employees and form the basis to make the judgements. insurance) where there is certainty as to the employee-related liabilities of the section 10 of The estimates and underlying assumptions amount and timing of settlement. the Forestry Act 1916 of Forests NSW. are reviewed on an ongoing basis. Revisions A payable is recognised when a present Forestry Commission Division is a special to accounting estimates are recognised in obligation arises under a contract or otherwise. purpose service entity pursuant to Part 3 the year in which the estimate is revised if the It is derecognised when the obligation expires of Schedule 1 of PSEMA and Forests NSW revision affects only that year, or in the year of or is discharged, cancelled or substituted. A administers and has dominant control of its revision and future years if the revision affects short-term payable with no stated interest rate day to day operation. both. is measured at historical cost if the effect of discounting is immaterial. Information about assumptions and estimation 2. Summary of Significant notes: (g) provisions and expensesEmployee Benefitsuncertainties are included in the followingccounting PoliciesProvisions are made for liabilities of uncertainNote 2 (g) Employee BenefitsA (a) Statement of Compliance Note 3 Employee Defined Benefits Employee benefit provisions representamount or uncertain timing of settlement. This general purpose financial report complies (d) Revenue recognition expected amounts payable in the future in with Australian Accounting Standards, which respect of unused entitlements accumulated include Accounting Interpretations. Revenue is recognised at the fair value of the as at the reporting date. Liabilities associated The financial statements for the year ended 30 with, but that are not, employee benefitsconsideration received or receivable. Revenue June 2012 has been authorised for issue by the (such as payroll tax) are recognised separately.from the rendering of personnel services Director-General of the Department of Trade & Superannuation and leave liabilities areis recognised when the service is provided Investment, Regional Infrastructure & Services, recognised as expenses and provisions whenand only to the extent that the associated Mr. Mark Paterson AO, on 20 September, 2012. the obligations arise, which is usually throughrecoverable expenses are recognised. (e) Trade and Other the rendering of service by employees. (b) Basis of Preparation Receivables Long-term annual leave (i.e. that is not These general purpose financial statements expected to be taken within twelve months) have been prepared in accordance with A receivable is recognised when it is probable is measured at present value using a discount Australian Accounting Standards and that the future cash inflows associated with it rate equal to the market yield on government Interpretations, the Public Finance and Audit will be realised and it has a value that can be bonds in accordance with AASB 119 Employee Act 1983, and the Public Finance and Audit measured reliably. It is derecognised when the Benefits. (General) Regulation 2010 and specific contractual or other rights to future cash flows Long Service leave liability was actuarially directions issued by the Treasurer. from it expire or are transferred. assessed as at 30 June 2012. Superannuation Generally, the historical cost basis of A receivable is measured initially at fair value liability for defined benefit funds for NSW state accounting has been adopted and the financial and subsequently at amortised cost using employees are actuarially assessed by Pillar statements do not take into account changing the effective interest rate method, less any Administration prior to each reporting date money values or current valuations. However, allowance for doubtful debts. A short-term and are measured at the present value of the certain provisions are measured at fair value. receivable with no stated interest rate is estimated future payments. Forests NSW Annual Report 2011–12 Social, Environmental and Economic Performance 101


Forest NSW Annual Report 2012
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