power people - TransGrid

noteS to the fInancIal StatementS
For The year ended 30Th June 2009
(o) funding arrangements for employer contributions
(i) Net Surplus/(Liability)
The following is a summary of the financial position of the scheme at reporting date calculated in accordance with aas 25 Financial
Reporting by Superannuation Plans.
2009 2008
$’000 $’000
net Market Value of scheme assets 307,166 385,164
accrued Benefits (368,099) (379,148)
Net Surplus/(Liability) (60,933) 6,016
(ii) Funding Method
The method used to determine the employer contribution recommendations was the Aggregate Funding method. The method adopted
affects the timing of the cost to the employer.
under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit
payments to existing members, taking into account the current value of assets and future contributions.
(iii) Economic Assumptions
The economic assumptions adopted for the 2006 actuarial review of the scheme were:
Weighted Average Assumptions
expected rate of return on scheme assets 7.0% p.a.
expected salary increase rate 6.0% p.a. until June 2009; 4.0% p.a. thereafter
expected rate of Cpi increase 2.5% p.a.
(iv) Nature of Asset/Liability
as a liability is recognised in the Balance sheet as at 30 June 2009, TransGrid is responsible for the difference between the organisation’s
share of scheme assets and the defined benefit obligation.
(p) other
The superannuation expense recognised in the income statement is included in the line item “expenses excluding Finance Costs”.
superannuation actuarial losses in respect of eiss, sss, sass and sanCs of $133.3m (2008: $39.5m) are separately identified in the
statement of recognised income and expense.
The cumulative amount of actuarial losses in respect of eiss, sss, sass and sanCs recognised in the statement of recognised income
and expense since 1 July 2004 is $116.6m.
6. Income tax
(a) Income tax expense
Major components of income tax expense for the years ended 30 June 2009 and 2008 are:
(i) Income Statement
86 noteS to the fInancIal StatementS > TransGrid annual reporT 2009
2009 2008
$’000 $’000
Current Income Tax
Current income tax charge 37,487 36,681
adjustments in respect of current income tax of previous years (750) (317)
Deferred Income Tax
relating to origination and reversal of temporary differences 30,393 21,801
Income tax expense 67,130 58,165
(ii) Statement of Recognised Income and Expense
2009 2008
$’000 $’000
Deferred Income Tax
net tax (gain)/loss on revaluation of property, plant and equipment 124,076 23,763
net tax (gain)/loss on available-for-sale financial assets – (128)
net tax (gain)/loss on superannuation reserve – actuarial losses (39,986) (11,850)
net tax (gain)/loss on cash flow hedges 4,319 (869)
Income tax on items taken directly to equity during the year 88,409 10,916