CQUniversity Annual Report - Central Queensland University

18
Central Queensland University
and Controlled Entities
Notes to the Financial Statements
for the year ended 31 December 2012
Internally generated software
Expenditure on research activities relating to internally generated intangible assets is recognised as an expense in the
period in which it is incurred. Costs associated with the development of computer software have been capitalised and are
amortised on a straight-line basis over the period of expected benefit to the university, namely 3 to 5 years.
Goodwill
Goodwill is initially recorded at the amount by which the purchase price for a business combination exceeds the fair value
attributed to the interest in the net fair value of identifiable assets, liabilities and contingent liabilities at date of acquisition.
Goodwill on acquisitions of subsidiaries is included in intangible assets. Changes in the ownership interests in a subsidiary
are accounted for as equity transactions and do not affect the carrying amount of goodwill. Goodwill is tested annually for
impairment and carried at cost less accumulated impairment losses. Gains and losses on disposal of an entity include the
carrying amount of goodwill relating to the entity sold.
(p)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year
which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
(q)
Employee benefits
(i) Wages, salaries and annual leave
Wages, salaries and annual leave due but unpaid at reporting date are recognised in the Statement of Financial Position at
the remuneration rates expected to apply at the time of settlement and include related on-costs.
For unpaid benefits expected to be paid within twelve (12) months, the liabilities are recognised at their undiscounted
values. For those benefits not expected to be paid within twelve (12) months, the liabilities are recognised at their present
value, calculated using market yields at the reporting date on national government bonds with maturities matching the term
to settlement. Regardless of the expected timing of settlements, provisions made in respect of employee benefits are
classified as a current liability, unless there is an unconditional right to defer the settlement of the liability for at least 12
months after the reporting date, in which case it would be classified as a non-current liability.
(ii) Sick leave
No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years
by employees is estimated to be less than the annual entitlement of sick leave.
(iii) Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present value
of expected future payments to be made in respect of services provided by employees up to the reporting date.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods of
service. Expected future payments are discounted using market yields at the reporting date on national government bonds
with terms to maturity that match, as closely as possible, the estimated future cash outflows.
(iv) Time off in lieu
Time off in lieu accrued is not recorded as a liability as it is considered immaterial and any payment of time in lieu is
recognised as an expense.
(v) Superannuation plans
Central Queensland University contributes to UniSuper and QSuper under arrangements where employees are entitled to
defined benefits and accumulated plan benefits on resignation, retirement, disability or death. Continuing employees may
contribute to the relevant plan an amount of between 0% and 7% of their wages and salaries. The University contributes to
the plan at the applicable rate for each fund – ranging from 3% to a maximum of 17%. A minimum of 9% is paid on behalf
of each eligible employee in accordance with the Superannuation Guarantee Administration Act 1992.
The University’s share of the superannuation plans assets and accrued vested benefits are not recognised in the financial
statements.
The UniSuper Defined Benefit Division (DBD) which is the predominant plan within the University, is a defined benefit plan
under superannuation law, however, as a result of amendments to Clause 34 of the UniSuper Trust Deed, it is deemed a
defined contribution plan under Accounting Statdard AASB 119 Employee Benefits. The DBD receives fixed contributions
from the consolidated entity and the consolidated entity’s legal or constructive obligation is limited to these contributions.
Additionally any acturarial risk and investment risk falls on the consolidated entity’s employees.
The University also contributes to QSuper (the Trustee for State Public Sector Superannualtion Scheme) in respect of
certain employees, however the University’s obligation is considered immaterial.