(vi) Provisions - Short term employee benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed
as the related service is provided. A liability is recognised for the amount expected to be paid under
short term cash bonus if the Group has a present legal or constructive obligation to pay this amount
as a result of past service provided by the employee and the obligations can be measured reliably.
See note 1(v)(i) & 6(f).
(vii) Provisions - Long service leave
The Group’s net obligation in respect of long term employee benefits is the amount of future
benefit that employees have earned in return for their service in the current and prior periods.
For long service leave the future benefit is altered to take into account the probability of reaching
entitlement and inflationary increases. These benefits are discounted to determine its present value.
The discount for long service leave is the yield proximate to the reporting date on the Australian
Corporate Bond market. See note 1(v)(ii) & 6(f).
The emergence of a deep high quality corporate bond market as reported by the Milliman report
commissioned by the G100 group of companies has required ARTC to move from using the
Australian Government Bond rate to the new Australian Corporate Bond rate in line with the relevant
accounting standard (AASB 119). As a result of the change in accounting estimate from Australian
Government Bond rate to the Australian Corporate Bond rate the balance of the provision was
decreased by $0.181m.
NOTE 02
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
(CONTINUED)
65
