Challenger TAFE | Annual Report 2006 - Parliament of Western ...
Challenger TAFE | Annual Report 2006 - Parliament of Western ...
Challenger TAFE | Annual Report 2006 - Parliament of Western ...
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<strong>Challenger</strong> <strong>TAFE</strong><br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE YEAR ENDED 31 DECEMBER <strong>2006</strong><br />
30 Provisions<br />
<strong>Challenger</strong> <strong>TAFE</strong> | <strong>Annual</strong> <strong>Report</strong> <strong>2006</strong> 105<br />
<strong>2006</strong> 2005<br />
$ $<br />
Current<br />
Employee benefi ts provision<br />
<strong>Annual</strong> leave (a) 3,616,629 3,557,306<br />
Long service leave (b) 2,118,408 3,362,989<br />
Salary deferment 173,408 171,785<br />
5,908,445 7,092,080<br />
Other provisions<br />
Employment on-costs (c) 336,347 410,085<br />
336,347 410,085<br />
Total current 6,244,792 7,502,165<br />
Non-current<br />
Employee benefi ts provision<br />
Long service leave (b) 2,129,489 907,878<br />
Salary deferment 117,979 145,843<br />
2,247,468 1,053,721<br />
Other provisions<br />
Employment on-costs (c) 132,552 55,243<br />
132,552 55,243<br />
Total non current 2,380,020 1,108,964<br />
(a) <strong>Annual</strong> leave liabilities have been classifi ed as current as there is no unconditional right to<br />
defer settlement for at least 12 months after balance sheet date. Assessments indicate that actual<br />
settlement <strong>of</strong> the liabilities will occur as follow:<br />
Within 12 months <strong>of</strong> balance sheet date 2,769,106 2,646,026<br />
More than 12 months after balance sheet date 847,523 911,480<br />
3,616,629 3,557,506<br />
(b) Long service leave liabilities have been classifi ed as current where there is no unconditional<br />
right to defer settlement for at least 12 months after balance sheet date. Assessments indicate that<br />
actual settlement <strong>of</strong> the liabilities will occur as follows:<br />
With in 12 months <strong>of</strong> balance sheet date 1,715,632 696,302<br />
More than 12 months <strong>of</strong> balance sheet date 2,776,913 3,574,564<br />
4,492,545 4,270,866<br />
(c) The settlement <strong>of</strong> annual and long service leave liabilities gives rise to the payment <strong>of</strong><br />
employment on-costs including payroll tax and workers compensation insurance. The provision<br />
is the present value <strong>of</strong> expected future payments. The associated expense, apart from the unwinding<br />
<strong>of</strong> the discount (fi nance cost), is disclosed in note 12 ‘Other expenses’.<br />
Movements in Other Provisions<br />
Movements in each class <strong>of</strong> provisions during the fi nancial year, other than employee benefi ts, are set out below.<br />
Employment on-cost provision<br />
Carrying amount at start <strong>of</strong> year 465,328 464,865<br />
Payments/other sacrifi ces <strong>of</strong> economic benefi ts 3,572 463<br />
Carrying amount at end <strong>of</strong> year 468,900 465,328
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