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Forest NSW Annual Report 2012

Forests NSW Consolidated Annual Financial Reports Year ended 30 June 2012 ABN 43 141 857 613 Notes to and forming part of the financial statements For the year ended 30 June 2012 A provision for onerous contracts is recognised (x) Grants twelve months is measured at present value in when the expected benefits to be derived by Government grants are recognised as income accordance with AASB 119 Employee Benefits. Forests NSW from a contract are lower than the over the periods necessary to match them Market yields on government bonds are used unavoidable cost of meeting its obligations with related costs which they are intended to to discount long-term annual leave. under the contract. compensate, on a systematic basis. Long Service Leave (u) Leased Assets (y) Employee Benefits A liability for long service leave is recognised Leases are classified as finance leases if at the in the Forestry Commission Division and end of the lease term, the risk and ownership Salaries & Wages is measured in accordance with AASB 119 of the leased assets substantially accrued to Employee Benefits as the present value of the lessee. Liability for salaries & wages is recognised in expected future payments to be made in Forestry Commission Division and measured respect of services provided by employees Finance leases are capitalised at the inception in respect of employees’ services up to the up to the reporting date. Consideration is of the lease based on the lower of fair value of reporting date at nominal amounts based on given to expected future wage and salary the leased assets or the present value of the the amounts expected to be paid when the levels, experience of employee departures and minimum lease payments. liabilities are settled. periods of service. Expected future payments All other leases are classified as operating Workers Compensation Insurance are discounted using interest rates on notional leases. Operating lease payments are government guaranteed securities with terms recognised as expenses in the Statement of Forests NSW public servants are insured to maturity that match, as closely as possible, Comprehensive Income on a straight-line basis for workers compensation with the NSW the estimated future cash outflows. over the lease term. Treasury Managed Fund (TMF). Forests NSW The long service leave liability is assessed by (v) Dividend of the Workers Compensation Act 1987is a licensed self insurer under the provisions actuaries at 30 June each year. The dividend is calculated according to for employees of the Forestry Commission Sick Leave TPP 09-6 Financial Distribution Policy for Division (field workers). In accordance with Government Businesses. The dividend payable regulations that govern the operations of Sick leave is non-vesting and is expensed as of $5 254 000 (2011: $14 000 000) is calculated Workers Compensation, an independent incurred. In line with past results, sick leave based on profit / loss adjusted for certain non- actuary has determined the value of the taken in future periods is expected to be well cash items. outstanding claims liability as at 30 June below entitlements in those periods so no 2012 for the Forestry Commission Division. In provision is necessary at 30 June. (w) Revenue Recognition addition, separate insurance cover is held with Defined Contribution Plansprivate insurance companies for excess total Revenues are recognised at the fair value of incident and total claims costs for the Forestry the consideration received net of the amount Commission Division. A defined contribution plan is a post- of goods and services tax (GST) payable to the From 17 March 2006 onwards, the NSW employment benefit plan under which an taxation authority. Government proclaimed the PSELAA (Public entity pays fixed contributions into a separate entity and will have no legal or constructive (i) Sale of Timber and Related Act 2006). As of that date, all related employee obligation to pay further amounts. ObligationsSector Employment Legislation Amendment Activities costs and entitlements are recognised as are recognised as an employee benefit expensefor contributions to defined contribution plans Revenue from the sale of timber and related Personnel Services from the supply of labour in profit or loss in the periods during which activities is recognised (net of returns, related services from both DPI and Forestry services are rendered by employees. discounts and allowances) when the significant Commission Division. risks and rewards of ownership transfer to the Employee related liabilities are transferred from Defined Benefit Plans buyer. Forests NSW statutory accounts to DPI and Forestry Commission Division in accordance A defined benefit plan is a post-employment (ii) Forest Management Services with the established memorandum of benefit plan other than a defined contribution Revenue from forest management services is understanding. In the Forests NSW Statement schemes (which are called the Pooled Fundplan. In the NSW public service, defined benefitof Financial Position, they are disclosed typically received in advance, with the amount Schemes) include the :as current and non-current provision of received representing the net present value and as agreed within individual contractual employment benefits and personnel services. State Authorities Superannuation Scheme arrangements. Revenue from forest (SASS) management services is then recognised over Annual Leave State Superannuation Scheme (SSS) the period of the contractual term unless it is State Authorities Non-Contribution refunded. Liability for annual leave is recognised in the Superannuation Scheme (SANCS - BasicForestry Commission Division and measured in respect of employees’ services up to the Benefit) (iii) Rental Income reporting date at nominal amounts based The Economic Entity’s net obligation in respect Revenue from investment properties is on the amounts expected to be paid when of defined benefit plans is calculated separately recognised on a straight line basis over the the liabilities are settled. Long-term annual for each plan by estimating the amount of period of the lease. leave that is not expected to be taken within future benefit that employees have earned 62 Forests NSW Annual Report 2011–12 Social, Environmental and Economic Performance


Forest NSW Annual Report 2012
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