Page 66

WE LTEC ANNUAL REPORT 2015

NOTES TO THE FINANCIAL STATEMENTS

GROUP

20

INCOME IN ADVANCE Student income in advance Other income in advance

21

NON CURRENT EMPLOYEE BENEFIT PROVISIONS Long Service leave Retirement leave

PARENT

2015 Actual $000

2014 Actual $000

2015 Actual $000

2014 Actual $000

7,512

5,067

7,512

5,067

782

826

300

348

8,294

5,893

7,812

5,415

2015 Actual $000 98

2014 Actual $000 103

2015 Actual $000 98

2014 Actual $000 103

73

72

73

72

171

175

171

175

Entitlements related to long service leave and retirement leave have been calculated at the present value of future cash flows determined on an actuarial basis and classified as non-current liabilities. Two key assumptions used in calculating this liability include the discount rate and the salary inflation factor. Any changes in these assumptions will impact on the carrying amount of the liability. Expected future payments are discounted using forward discount rates as provided by the Treasury. The salary inflation factor has been determined after considering historical salary inflation patterns and referencing the Treasury time series of Fiscal and Economic Indicators. If the salary inflation factor were to increase or decrease by 1% from that used, with all other factors held constant, the carrying amount of the retirement leave would be $3,000 higher/lower and the long service leave would be $5,000 higher/lower. If the discount rate used were to increase or decrease by 1% from that used, with all other factors held constant, the carrying amount of the retirement leave would be $3,000 higher/lower while the long service leave would be $5,000 higher/lower.

22

CROWN EQUITY

2015 Actual $000

2014 Actual $000

2015 Actual $000

2014 Actual $000

Opening balance

39,332

39,332

39,332

39,332

-

-

-

-

39,332

39,332

39,332

39,332

Equity Injection Closing balance

Crown Equity represents the total investment the Crown has in WelTec. It is comprised of two components, Notional Equity - the carrying value of Crown-owned land and buildings at the date the Crown vested all the normal risks and rewards of ownership to WelTec, and Received Equity - actual cash payments received. Capital Management WelTec and Group’s capital is its equity, which comprises its Crown equity noted above, retained earnings (note 23) and reserves (note 24). Equity is represented by net assets. WelTec is subject to the financial management and accountability provisions of the Education Act 1989, which includes restrictions in relation to: disposing of assets or interests in assets, ability to mortgage or otherwise charge assets or interests in assets, granting leases of land or buildings or parts of buildings, and borrowing. WelTec manages its revenues, expenses, assets, liabilities and general financial dealings prudently and in a manner that promotes the current and future interests of the community. WelTec’s equity is largely managed as a by-product of managing revenues, expenses, assets, liabilities and general financial dealings. The objective of managing WelTec’s equity is to ensure that it effectively and efficiently achieves the goals and objectives for which it has been established, while remaining a going concern.

64

2015 WelTec Annual Report  

2015 WelTec Annual Report

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