Section 2 - Sugar Research and Development Corporation

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Sugar Research and Development Corporation
NOTES OF THE FINANCIAL STATEMENTS
Superannuation
The Corporation’s staff are members of the Commonwealth Superannuation Scheme (CSS), the
Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or other retail
superannuation funds.
The CSS and PSS are defi ned benefi t schemes for the Australian Government. The PSSap is a defi ned
contribution scheme.
The liability for defi ned benefi ts is recognised in the fi nancial statements of the Australian
Government and is settled by the Australian Government in due course. This liability is reported by
the Department of Finance and Deregulation as an administered item.
The Corporation makes employer contributions to the employees’ superannuation scheme at
rates determined by an actuary to be suffi cient to meet the current cost to the Government of the
superannuation entitlements of the Corporation’s employees. The Corporation accounts for the
contributions as if they were contributions to defi ned contribution plans.
The liability for superannuation recognised as at 30 June represents outstanding contributions
for the fi nal fortnight of the year.
1.9 Leases
A distinction is made between fi nance leases and operating leases. Finance leases effectively transfer
from the lessor to the lessee substantially all the risks and rewards incidental to ownership of
leased assets. An operating lease is a lease that is not a fi nance lease. In operating leases, the lessor
effectively retains substantially all such risks and benefi ts.
Operating lease payments are expensed on a straight-line basis which is representative of the
pattern of benefi ts derived from the leased assets.
The Corporation has no fi nance leases.
1.10 Grants
Most grant agreements require the grantee to perform services, provide facilities or meet eligibility
criteria. In these cases, the Corporation recognises grant liabilities only to the extent that the
services required have been performed or the eligible criteria have been satisfi ed by the grantee.
In cases where grant agreements are made without conditions to be monitored, liabilities are
recognised on signing the agreement.
Grants expenses are recognised when a milestone is approved.
1.11 Cash
Cash and cash equivalents includes cash on hand and any deposits in bank accounts with an
original maturity of 3 months or less that are readily convertible to known amounts of cash subject
to insignifi cant risk of change in value. Cash is recognised at its nominal amount.
SRDC Annual Report 2010–2011