GPW_AR_2013_Final_v10.pdf

125 year anniversary

ACCOUNTING POLICIES Annual Financial Statements for the year ended 31 March 2013

8IVQMREXMSR FIRI½XW Termination bene ½ ts are recognised and expensed only when payment is made and the actual costs are re ¾ ected. These bene ½ ts are pro rata leave and pro rata service bonus when an employee resigns or when an employee retires. 1.8 Provisions Provisions are recognised when: the entity has a present obligation as a result of a past event; it is probable that an out ¾ ow of resources embodying economic bene ½ ts will be required to settle the obligation; and a reliable estimate can be made of the obligation.

The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.

Provisions shall not be recognised for future operating losses. If an entity has a contract that is onerous, the present obligation under the contract shall be recognised and measured as a provision.

1.9 Conditional grants and receipts Government grants are recognised when there is reasonable assurance that: the entity will comply with the conditions attached to them; and the grants will be received.

The deferred income relating to grants is recognised on the following basis:

Capital contributions on plant and equipment:The deferred income will be credited to the statement of comprehensive income over the useful life of the asset starting when the asset is brought to use.

1.10 Revenue recognition Revenue from the sale of goods is recognised when all the following conditions have been satis ½ ed: the entity has transferred to the buyer the signi ½ cant risks and rewards of ownership of the goods; the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably;

it is probable that the economic bene ½ ts associated with the transaction will ¾ ow to the entity; and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Contract revenue comprises: the initial amount of revenue agreed in the contract; variations in contract work, claims and incentive payments; to the extent that it is probable that they will result in revenue; and they are capable of being reliably measured.

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