PDF - 1.62 MB - Sydney Harbour Federation Trust

Financial Statement 2006-07Notes to and forming partof the Financial Statements for the year ended 30 June 200736The liability for defined benefits is recognised in thefinancial statements of the Australian Government andis settled by the Australian Government in due course.The Trust makes employer contributions to theEmployer Superannuation Scheme at ratesdetermined by an actuary to be sufficient to meet thecost to the Government of the superannuationentitlements of the Trust’s employees.Employer superannuation contributions foremployees who are not members of the CSS or PSSare expensed in the financial statements . There is noresidual liability in respect of these contributions. TheTrust accounts for the contributions as if they werecontributions to defined contribution plans.The liability for superannuation recognised as at 30June represents outstanding contributions for thefinal fortnight of the year.1.7 LeasesA distinction is made between finance leases andoperating leases. Finance leases effectively transferfrom the lessor to the lessee substantially all therisks and rewards incidental to ownership of leasednon-current assets. An operating lease is a leasethat is not a finance lease. In operating leases, thelessor effectively retains substantially all such risksand benefits.The Trust has no finance leases, and operating leasepayments are expensed on a straight-line basiswhich is representative of the pattern of benefitsderived from the leased assets.1.8 CashCash means notes and coins held and any depositsheld at call with a bank or financial institution. Cash isrecognised at its nominal amount.1.9 Financial Risk ManagementThe Trust’s activities expose it to normal commercialfinancial risk. As a result of the nature of the Trust’sbusiness and internal and Australian Governmentpolicies, dealing with the management of financial risk,the Trust’s exposure to market, credit, liquidity andcash flow and interest rate risk is considered to be low.1.10 Impairment of Financial AssetsThe Trust’s financial assets consist of cash and cashequivalents, and receivables, and are held at their fairvalue. Financial assets are assessed for impairmentat each balance date. Provisions are made whereindications of impairment exist.Comparative YearThe above policies are consistent with thecomparative year. For receivables, amounts wererecognised and carried at original invoice amountless a provision for doubtful debts based on ananalysis of receivables at year end.1.11 Supplier and other payablesSupplier and other payables are recognised atamortised cost. Liabilities are recognised to theextent that the goods or services have been received(and irrespective of having been invoiced).1.12 Contingent Liabilities and Contingent AssetsContingent Liabilities and Contingent Assets are notrecognised in the Balance Sheet but are reported inthe relevant schedules and notes. They may arisefrom uncertainty as to the existence of a liability orasset, or represent an existing liability or asset inrespect of which settlement is not probable or theamount cannot be reliably measured. Remotecontingencies are part of this disclosure. Contingentassets are reported when settlement is probable, andcontingent liabilities are recognised when settlementis greater than remote.1.13 Acquisition of AssetsAssets are recorded at cost on acquisition except asstated below. Financial assets are initially measured attheir fair value plus transaction costs where appropriate.Trust land sites that vest in the Trust are contributionsby owners and are initially recognised at their fair valueat the date of vesting, except for sites in Schedule 2 tothe Sydney Harbour Federation Trust Act 2001, whichwere classed as inventory and recognised at the coststhey were carried at in the transferor entity’s accountsimmediately prior to vesting.