12 Employee Benefits
In this section...
- Annual Report 2007/08 homepage
- Chief Executive's overview
- Strategic direction 2007/2008
- LINZ's performance 2007/2008
- LINZ information
| Actual 30/6/07 $000 |
Actual 30/6/08 $000 |
|
|---|---|---|
| Current employee entitlements are represented by: | ||
| 167 | Vested long-service leave | 152 |
| 2,594 | Vested annual leave | 2,835 |
| 172 | Accrued sick leave | 126 |
| 1,714 | Accrued salaries and wages | 1,691 |
| 4,647 | Total current employee benefits | 4,804 |
| Non-current employee entitlements are represented by: | ||
| 3,074 | Vested retirement leave | 3,240 |
| 1,594 | Unvested long-service and retirement leave | 1,468 |
| 4,668 | Total non-current employee benefits | 4,708 |
| 9,315 | Total employee entitlements | 9,512 |
The present value of the retirement and long-service leave obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions used in calculating this liablity include the discount rate (7.5%) and the salary inflation factor (3%). Any changes in these assumptions will impact on the carrying amount of the liability.
In determining the appropriate discount rate, LINZ considered the interest rates on New Zealand government bonds which have terms to maturity that match, as closely to possible, the estimated future cash outflows. The salary inflation factor has been determined after considering historical salary inflation patterns and after obtaining advice from an independent actuary.
