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Forest NSW Annual Report 2012

Forestry Commission Division Annual Financial Statements Year ended 30 June 2012 ABN 83 326 008 792 Notes to the financial statements For the year ended 30 June 2012 All other employee benefit liabilities (i.e. for amount of future benefit that employees have financial statements. None of these is expected benefits falling due wholly within twelve earned in return for their service in the current to have a significant effect on the financial months after reporting date) are assessed and prior periods; that benefit is discounted to statements of Forestry Commission Division. by management and are measured at the determine its present value. Any unrecognised undiscounted amount of the estimated future past service costs and the fair value of any plan payments. assets are deducted. Expected future payments are discounted using market yields at reporting The amount recognised for superannuation date on national government bonds with terms and long service leave provisions is the net to maturity and currency that match, as closely total of the present value of the defined benefit as possible, the estimated future cash outflows. obligation at the reporting date, minus the fair value at that date of any plan assets out of The calculation is performed annually by which the obligations are to be settled directly. Pillar Administration, who is the appointed trustee of the defined benefit plans for NSW The amount recognised in the Statement of public service. When the calculation results Comprehensive Income for superannuation in a benefit to the Forestry Commission, the and long service leave is the net total of current recognised asset is limited to the total of service cost, interest cost, the expected return any unrecognised past service costs and the on any plan assets, and actuarial gains and present value of economic benefits available losses. Actuarial gains or losses are recognised in the form of any future refunds from the plan as income or expense in the year they occur. or reductions in future contributions to the The actuarial assessment of superannuation plan. In order to calculate the present value of and long service leave provisions uses the economic benefits, consideration is given to Projected Unit Credit Method and reflects any minimum funding requirements that apply estimated future salary increases and the to any plan in the Forestry Commission. An benefits set out in the terms of the plan. The economic benefit is available to the Forestry liabilities are discounted using the market yield Commission if it is realisable during the life of rate on government bonds of similar maturity the plan, or on settlement of the plan liabilities. to those obligations. Actuarial assumptions When the benefits of a plan are improved, the are unbiased and mutually compatible and portion of the increased benefit relating to past financial assumptions are based on market service by employees is recognised in profit or expectations for the period over which the loss on a straight-line basis over the average obligations are to be settled. period until the benefits become vested. To the extent that the benefits vest immediately, Defined Contribution Plans the expense is recognised immediately in comprehensive income. A defined contribution plan is a post- employment benefit plan under which an The Forestry Commission recognises all actuarial gains and losses arising from defined entity pays fixed contributions into a separate benefit plans in other comprehensive income entity and will have no legal or constructive obligation to pay further amounts. Obligations and all expenses related to defined benefit plans in personnel expenses in comprehensive for contributions to defined contribution plans income. are recognised as an employee benefit expense in profit or loss in the periods during which The Forestry Commission recognises gains services are rendered by employees. and losses on the curtailment or settlement of a defined benefit plan when the curtailment Defined Benefit Plans or settlement occurs. The gain or loss on curtailment comprises any resulting change A defined benefit plan is a post-employment in the fair value of plan assets, change in the benefit plan other than a defined contribution present value of defined benefit obligation plan. In NSW defined benefit schemes (which and any related actuarial gains and losses and are called the Pooled Fund Schemes) include past service cost that had not previously been the: recognised. State Authorities Superannuation Scheme (h) Adoption of new and State Superannuation Scheme revised Accounting State Authorities Non-Contribution Standards. Superannuation Scheme (Basic Benefit) A number of new standards, amendments to The Forestry Commission’s net obligation in standards and interpretations are effective for respect of defined benefit plans is calculated annual periods beginning after 1 July 2012, separately for each plan by estimating the and have not been applied in preparing these 102 Forests NSW Annual Report 2011–12 Social, Environmental and Economic Performance


Forest NSW Annual Report 2012
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