13. Employee Benefits
In this section...
- Annual Report 2008/09 homepage
- Chief Executive's overview
- Strategic context 2008/2009
- LINZ's performance 2008/2009
- Financial statements
- LINZ information
- Appendix
| Actual 2008 $000 |
Actual 2009 $000 |
|
|---|---|---|
| Current employee entitlements are represented by | ||
| 152 | Vested long-service leave | 105 |
| 2,835 | Vested annual leave | 2,817 |
| 126 | Accrued sick leave | 180 |
| 1,691 | Accrued salaries and wages | 1,819 |
| 4,804 | Total current employee benefits | 4,921 |
| Non-current employee entitlements are represented by | ||
| 3,240 | Vested retirement leave | 3,190 |
| 1,468 | Unvested long-service and retirement leave | 1,283 |
| 4,708 | Total non-current employee benefits | 4,473 |
| 9,512 | Total employee entitlements | 9,394 |
The present value of the retirement and long-service leave obligations depend on a number of factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions used in calculating this liability include the discount rate (5.96% for 3+ years) and the salary inflation factor (3.5% long term). 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 with terms to maturity that match, as closely to possible, the estimated future cash outflows. The salary inflation factor has been based on the rate supplied by the Treasury.
