2003 - 04 Annual Report - Sbs

93(k)Superannuation(i)Employees of the Corporation contribute directly to either (a) the Commonwealth Superannuation Scheme (CSS), or (b) thePublic Sector Superannuation Scheme (PSS), by way of fortnightly salary deductions.(ii) Employees of the Corporation are employed under Section 54 of the Special Broadcasting Service Act 1991, and theCorporation is required to contribute the employer component of the Superannuation Schemes. Employer contribution rateswere 25.3% of salary (CSS) and 11.4% of salary (PSS) in 2003. These will decrease to 24.2% (CSS) and 10.7% (PSS) from 1July 2004.(iii) The Corporation also contributes superannuation in respect of contract staff engaged under Section 44 of the SpecialBroadcasting Service Act 1991, in accordance with the superannuation guarantee legislation. The contributions are includedin the cost of contract - see note 6(d).(l)LeasesA distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks andbenefits incidental to ownership of leased assets, and operating leases under which the lessor effectively retains all such risks andbenefits.Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the present value of the minimumlease payments at the inception of the lease, and a liability for lease payments recognised at the same amount. Lease paymentsare allocated between the principal component and the interest expense.Finance lease assets are amortised on a straight line basis over their estimated useful lives to the Corporation.Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expensein the periods in which they are incurred.(m)Cash flowsFor the purpose of the Statement of Cash Flows, cash includes cash on hand and deposits held at call with banks.(n)Financial instrumentsAccounting policies in relation to financial instruments are disclosed in note 15.(o)Acquisition of assetsAssets acquired are recorded at the cost on acquisition, being the purchase consideration determined as at the date ofacquisition.(p)Property, plant and equipmentAsset recognition thresholdItems are classified as non-current assets when:(i) the cost of acquisition is in excess of $2000;(ii) they are non-consumable in nature; and(iii) the estimated useful life is in excess of 12 months.RevaluationsThe Corporation implements revaluations of all property, plant and equipment (except for computer software - see note 9 xiii), oversuccessive five year periods, at fair value in accordance with AASB 1041 Revaluation of Non-Current Assets. All non-current assetswere revalued at 30 June 2004 except for computer software and leasehold improvements at Federation Square, Melbourne(leased from March 2003).The revaluations to 30 June 2004 have been implemented as follows:– Freehold land was revalued as at 30 June 2004;– Buildings on freehold land were revalued as at 30 June 2004;– Plant and equipment, whether at cost or under finance lease, were revalued at 30 June 2004; and– Intangible assets were revalued as at 30 June 2001 (see note 9 xiii).