Parks Victoria Annual Report 2000-01

Notes to the Financial Statements2.4 LeasingOperating Leases are not capitalised as Parks Victoria does notsubstantially assume all the risks and benefits associated withthe leased assets.2.5 Employee EntitlementsEmployee entitlement on-cost expenses such as payroll tax,Work Cover and similar on-costs have been included in therecognition of the following liabilities.Wages and Salaries, Annual Leave and Sick LeaveLiabilities for wages and salaries and annual leave arerecognised and measured as the amount unpaid at thereporting date at nominal pay rates in respect of employeeservices rendered up to that date.Sick leave payments are charged as an expense when incurredand no provision is made for sick leave entitlements in thefinancial statements.Long Service LeaveA liability for long service leave is recognised based onthe present value of expected future payments to be madein respect of service provided by employees up to thereporting date.The basis for calculating the current liability for long serviceleave is a percentage of the total provision based on priorexperience.SuperannuationThe majority of Parks Victoria employees are covered forSuperannuation by the Local Authorities SuperannuationBoard and the Victorian Superannuation Board.2.6 ReceivablesTrade receivables are carried at amounts due less a provisionfor doubtful debts. A provision for doubtful debts isrecognised to the extent that recovery of the outstandingreceivable balance is considered less than likely. Credit salesare normally on 30-day terms.2.7 Creditors and Accrued ExpensesLiabilities are recognised for amounts to be paid in the futurefor goods and services received, whether or not billed to theentity. Trade liabilities are normally settled on 30 days fromstatement or earlier.2.8 Revenue Recognition PolicyRevenue is recognised when invoiced by Parks Victoria orwhen external grants/funding are received.Where external grants/funding received has not yet been spentand there is a reciprocal transfer of the asset to the externalparty upon completion, then Parks Victoria records thisamount as deferred revenue.2.9 Recoverable Amounts of Non-Current AssetsAs Parks Victoria is a not-for-profit entity the recoverableamounts test in the Australian Accounting Standard AAS10“Accounting for the Revaluation of Non-Current Assets” hasnot been applied.3 CASH FLOWSFor the purpose of the statements of cash flows, cash includescash on hand and cash at bank.The range of employer contribution rates to these funds isbetween 8 percent and 18 percent. There are no loansbetween the Super Funds and Parks Victoria. At the reportingdate there were outstanding contributions owing of $11,161.Parks Victoria contributes as recommended by the Actuary ofeach Fund an agreed percentage of total salaries and wages tothe Funds.There are no unfunded liabilities in respect of Parks Victoriaemployees who are members of the superannuation schemes.The last actuarial assessment date was 30 June 2000.The Unfunded Superannuation Liability relating to ParksVictoria staff who are currently members of the State SuperBoard is assumed by the Department of Treasury and Finance.46