Department of Transport Annual Report 2010 - 2011

(ii) Provisions – other
Employment on-costs
Employment on-costs, including workers’ compensation insurance, are not
employee benefits and are recognised separately as liabilities and expenses
when the employment to which they relate has occurred. Employment on-costs
are included as part of ‘Other expenses’ and are not included as part of the
Department’s ‘Employee benefits expense’. The related liability is included in
‘Employment on-costs provision’.
See note 9 Other Expenses and note 28 Provisions.
(t) Superannuation expense
The superannuation expense in the Statement of Comprehensive Income comprises
of employer contributions paid to GSS (concurrent contributions), the West State
Superannuation Scheme (WSS), and the GESB Super Scheme (GESBS). The
employer contribution paid to the GESB in respect of the GSS is paid back into the
Consolidated Fund by the GESB.
The GSS Scheme is a defined benefit scheme for the purposes of employees
and whole-of-government reporting. However, it is a defined contribution plan for
agency purposes because the concurrent contributions (defined contributions)
made by the agency to GESB extinguishes the agency’s obligation to the related
superannuation liability.
(u) Resources received free of charge or for nominal cost
Resources received free of charge or for nominal cost that can be reliably measured
are recognised as income and as assets or expenses as appropriate, at fair value.
Where the resource received represents a service that the Department would
otherwise pay for, a correspondng expense is recognised.
Where assets or services are received from another State Government agency, these
are separately disclosed under Income from State Government in the Statement of
Comprehensive Income.
(v) Jointly controlled assets
Interests in jointly controlled assets have been reported in the financial statements.
The Department’s interest in jointly controlled assets is disclosed in note 40 Jointly
controlled assets.
(w) Comparative figures
Comparative figures are, where appropriate, reclassified to be comparable with the
figures presented in the current financial year.
3. Disclosure of changes in accounting policy and estimates
Initial application of an Australian Accounting Standard
The Department has applied the following Australian Accounting Standards effective
for annual reporting periods beginning on or after 1 July 2009 that impacted on the
Department:
2009-5 Further Amendments to Australian Accounting Standards arising from
the Annual Improvements Project [AASB 5, 8, 101, 107, 117, 118, 136 &
139] Under amendments to AASB 117, the classification of land elements
of all existing leases has been reassessed to determine whether they
are in the nature of operating or finance leases. As leases of land &
buildings recognised in the financial statements have not been found to
significantly expose the department to the risks/rewards attributable to
control of land, no changes to accounting estimates have been included
in the Financial Statements and Notes to the Financial Statements.
Under amendments to AASB 107, only expenditures that result in a
recognised asset are eligible for classification as investing activities in
the Statement of Cash Flows. All investing cashflows reported in the
Department’s Statement of Cash Flows relate to increases in recognised
assets.
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