CQUniversity Annual Report - Central Queensland University

18Central Queensland Universityand Controlled EntitiesNotes to the Financial Statementsfor the year ended 31 December 2012Internally generated softwareExpenditure on research activities relating to internally generated intangible assets is recognised as an expense in theperiod in which it is incurred. Costs associated with the development of computer software have been capitalised and areamortised on a straight-line basis over the period of expected benefit to the university, namely 3 to 5 years.GoodwillGoodwill is initially recorded at the amount by which the purchase price for a business combination exceeds the fair valueattributed 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 subsidiaryare accounted for as equity transactions and do not affect the carrying amount of goodwill. Goodwill is tested annually forimpairment and carried at cost less accumulated impairment losses. Gains and losses on disposal of an entity include thecarrying amount of goodwill relating to the entity sold.(p)Trade and other payablesThese amounts represent liabilities for goods and services provided to the Group prior to the end of the financial yearwhich are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.(q)Employee benefits(i) Wages, salaries and annual leaveWages, salaries and annual leave due but unpaid at reporting date are recognised in the Statement of Financial Position atthe 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 undiscountedvalues. For those benefits not expected to be paid within twelve (12) months, the liabilities are recognised at their presentvalue, calculated using market yields at the reporting date on national government bonds with maturities matching the termto settlement. Regardless of the expected timing of settlements, provisions made in respect of employee benefits areclassified as a current liability, unless there is an unconditional right to defer the settlement of the liability for at least 12months after the reporting date, in which case it would be classified as a non-current liability.(ii) Sick leaveNo provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future yearsby employees is estimated to be less than the annual entitlement of sick leave.(iii) Long service leaveThe liability for long service leave is recognised in the provision for employee benefits and measured as the present valueof 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 ofservice. Expected future payments are discounted using market yields at the reporting date on national government bondswith terms to maturity that match, as closely as possible, the estimated future cash outflows.(iv) Time off in lieuTime off in lieu accrued is not recorded as a liability as it is considered immaterial and any payment of time in lieu isrecognised as an expense.(v) Superannuation plansCentral Queensland University contributes to UniSuper and QSuper under arrangements where employees are entitled todefined benefits and accumulated plan benefits on resignation, retirement, disability or death. Continuing employees maycontribute to the relevant plan an amount of between 0% and 7% of their wages and salaries. The University contributes tothe plan at the applicable rate for each fund – ranging from 3% to a maximum of 17%. A minimum of 9% is paid on behalfof 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 financialstatements.The UniSuper Defined Benefit Division (DBD) which is the predominant plan within the University, is a defined benefit planunder superannuation law, however, as a result of amendments to Clause 34 of the UniSuper Trust Deed, it is deemed adefined contribution plan under Accounting Statdard AASB 119 Employee Benefits. The DBD receives fixed contributionsfrom 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 ofcertain employees, however the University’s obligation is considered immaterial.