Annual Report

Ausgrid – Annual Report 2014/15 39
u. Superannuation
(i) Defined contribution plan
A defined contribution plan is a
post‐employment benefit under which
an entity pays fixed contributions
into a separate entity and will have
no legal or constructive obligation to
pay further amounts. Obligations for
contributions to defined contribution
plans are recognised as an employee
benefit expense in profit or loss in
the periods during which services are
rendered by employees.
(ii) Defined benefit plans
A defined benefit plan is a
post‐employment benefit plan other
than a defined contribution plan. The net
obligation in respect of defined benefit
plans is calculated separately for each
plan by estimating the amount of future
benefit that employees have earned in
return for their service in the current and
prior periods; that benefit is discounted
to determine its present value, and the
fair value of any plan assets is deducted.
The discount rate is the market yields
on national government bonds as
at 30 June 2015 that have maturity
dates approximately to the terms
of the Corporation’s obligations.
The calculation is performed by a
qualified actuary using the projected
unit credit method.
All remeasurements arising from defined
benefit plans are recognised in other
comprehensive income in the year in
which they occur.
Where the calculation results in a benefit
to Ausgrid, the recognised asset is limited
to the net total of any unrecognised
actuarial losses and past service costs
and the present value of any future
refunds from the plan or reductions in
future contributions to the plan.
Past service cost is the increase in the
present value of the defined benefit
obligation for employee services in
prior periods, resulting in the current
period from the introduction of, or
changes to, post‐employment benefits
or other long‐term employee benefits.
Past service costs may either be positive
(where benefits are introduced or
improved) or negative (where existing
benefits are reduced). Net interest is
calculated by applying the discount rate
to the net defined benefit liability or
asset. Past service costs and net interest
expense or income are recognised in
profit and loss.
Ausgrid has one employee who
is a member of the defined benefit
schemes of State Authorities
Superannuation Scheme (SASS),
State Authorities Non‐contributory
Superannuation Scheme (SANCS)
and State Superannuation Scheme
(SSS). Ausgrid has determined that
detailed disclosure will not materially
influence the users of the financial
statements and therefore has not been
disclosed in detail.
Ausgrid has classified the defined
benefits schemes wholly as a
non‐current liability to reflect the
appropriate timing of the obligation.
v. Termination benefits
Termination benefits are payable when
employment is terminated before the
normal retirement date, or when an
employee accepts voluntary redundancy in
exchange for these benefits. The Corporation
recognises termination benefits at the
earlier of the following dates: (a) when the
Corporation can no longer withdraw the
offer of those benefits; and (b) when the
entity recognises costs for a restructuring
that is within the scope of AASB 137 and
involves the payment of terminations
benefits. In the case of an offer made to
encourage voluntary redundancy, the
termination benefits are measured based on
the number of employees expected to accept
the offer. Benefits falling due more than
12 months after the end of the reporting
period are discounted to present value.
w. Provisions
A provision is recognised in the Statement
of Financial Position when Ausgrid has a
present legal or constructive obligation as
a result of a past event, and it is probable
that an outflow of economic benefits will
be required to settle the obligation. If the
effect is material, provisions are determined
by discounting the expected future cash
flows at a pre‐tax rate that reflects current
market assessments of the time value of
money and, where appropriate, the risks
specific to the liability.
x. Other liabilities
Deferred revenue
Deferred revenue is recognised for customer
prepayments for external, recoverable
and contestable works carried out by
Ausgrid at reporting date. The revenue
is deferred pending completion of the
works and services.
Deposits
Deposits represent liabilities for contractors’
deposits which can be refunded at any
time after the end of the financial year and
unclaimed monies which are held up to
6 years before being transferred to the Office
of State Revenue. The amount which can be
refunded in the succeeding financial year
and at any time is shown as current and the
remainder of the liability as non‐current.
y. Share capital
Ausgrid is incorporated under the State
Owned Corporations Act 1989 with issued
capital of two fully paid $1 ordinary shares.
Current shareholders are the Treasurer
and the Minister for Finance, Services and
Property on behalf of the NSW Government.
The holders of ordinary shares are entitled
to receive dividends as declared from time to
time and are entitled to one vote per share
at meetings of the Corporation. The $2 share
capital is included in Contributed Equity in
the Statement of Financial Position.
z. Special Dividends
A special dividend was made to shareholders
of $118.3m. The special dividend was in
respect to the sales proceeds relating
to the sale of the head office building at
570 George Street, Sydney which was sold
on 12 June 2014. The sale proceeds were
net of $2.2m selling costs and $24.8m
relocation costs.