Note 6. Provisions
2020 | 2019 | |
|---|---|---|
Employee | ||
Annual leave | 639,794 | 414,453 |
Long service leave | 485,248 | 369,850 |
Total employee provisions | 1,125,042 | 784,303 |
Employee provisions expected to be settled in: | ||
No more than 12 months | 998,947 | 630,194 |
More than 12 months | 126,095 | 154,109 |
Total employee provisions | 1,125,042 | 784,303 |
Other | ||
Provision for make good | 361,892 | 367,760 |
Total other provisions | 361,892 | 367,760 |
AITSL currently has an agreement for the leasing of premises at 440 Collins Street, Melbourne. The lease has a clause requiring AITSL to restore the premises to its original condition at the conclusion of the lease. A provision has been made to reflect the present value of this obligation which is expected to be settled in more than 12 months.
Make good | ||
|---|---|---|
2020 | 2019 | |
Movements in the other provisions | ||
Opening balance | 367,760 | 344,346 |
Borrowing cost adjustment | 12,948 | 12,478 |
Present value adjustment | (18,816) | 10,936 |
Amortisation of provision | - | - |
Balance at 30 June | 361,892 | 367,760 |
Accounting Policy
Provisions
A provision is recognised if, as a result of a past event, AITSL has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost.
Employee provisions and benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date. Provision for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for personal or carer leave as all personal and carer leave is non-vesting and the average personal and carer leave taken in future years by employees of the entity is estimated to be less than the annual entitlement.
Long service leave liabilities that are not expected to be settled within 12 months are recognised in the provision for employee benefits as non-current liabilities and are measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.
Superannuation
Contributions are made by AITSL to employee superannuation funds and are charged as expenses when incurred. AITSL makes contributions to the funds in accordance with the superannuation guarantee legislation.
Visit
https://www.transparency.gov.au/annual-reports/australian-institute-teaching-and-school-leadership-limited/reporting-year/2019-20-19