Annual Report 2007-08 - Plumbing Industry Commission

NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2008
1.15 Leasehold improvements
The cost of improvements to or on leasehold properties is depreciated over the unexpired period of the lease or the estimated useful life of
the improvement to the Commission, whichever is the shorter.
Leasehold improvements held at the reporting date are being depreciated over two years.
1.16 Tax status
The activities of the Commission are exempt from federal income tax and the State’s Tax Equivalent system. The Commission is registered
for GST and payroll tax.
1.17 Creditors and accruals
Creditors and accrued expenses represent liabilities for goods and services provided to the Commission prior to balance date and which are
unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
1.18 Employee benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and contract bonuses
when it is probable that settlement will be required and they are capable of being measured reliably.
Provisions made in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the
remuneration rate expected to apply at the time of settlement.
Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value
of the estimated future cash outflows to be made by the Plumbing Industry Commission in respect of services provided by employees up
to the reporting date.
Consideration is given, when assessing expected future payments, to expected future wage and salary levels, experience of employee
departures and periods of service.
Expected future payments are discounted using interest rates on national Government guaranteed securities with terms to maturity that
match, as closely as possible, the estimated cash outflows.
1.19 Plumbing Industry Commission (PIC) Trust No 1
The purpose of the Trust includes awarding of scholarships, awards and the promotion of better plumbing standards. An initiative has been
created to increase the numbers of plumbing apprenticeships, retraining of existing plumbers, development of specific training resources
and to provide funding for research for 5 Star water and energy savings required in the domestic and commercial building arena. A separate
reserve has been established for amounts that can be paid at the discretion of the Trust’s independent trustees.
1.20 Rounding of amounts
Amounts in the financial report have been rounded to the nearest dollar.
1.21 Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
• where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an
asset or as part of an item of expense; or
• for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows
are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities
which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
PLUMBING INDUSTRY COMMISSION 2007–08 Financial REPORT 63