12. Provisions
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 |
|
|---|---|---|
| 108 | Surplus leased accomodation | 50 |
| 454 | Reinstatement provision | 453 |
| 431 | Severance provision | 4,022 |
| 993 | Total provisions | 4,525 |
| Surplus leased accommodation $000 |
Reinstatement provision $000 |
Severance provision $000 |
Total $000 |
|
|---|---|---|---|---|
| 2008 | ||||
| Balance as at 1 July 2007 | 218 | 419 | – | 637 |
| Additional provisions made during the year | – | 35 | 431 | 466 |
| Charge against provision for the year | (110) | – | – | (110) |
| Balance as at 30 June 2008 | 108 | 454 | 431 | 993 |
| 2009 | ||||
| Balance as at 1 July 2008 | 108 | 454 | 431 | 993 |
| Additional provisions made during the year | – | – | 3,650 | 3,650 |
| Charge against provision for the year | (58) | (1) | (59) | (118) |
| Balance as at 30 June 2009 | 50 | 453 | 4,022 | 4,525 |
Surplus leased accommodation
The provision for surplus leased accommodation represents the Department's liability under lease agreements for surplus leased space. The provision is calculated on the net present value of the rental payable. The liability created is then amortised over the term of the lease, which will expire in 2010.
Reinstatement provision
The reinstatement provision represents the Department's estimated liability to reinstate leased accommodation to its original state at the expiry of the lease term. The provision is calculated on the net present value of the estimated liability at lease expiry.
Severance provision
The provision for severance payments represents the Department's requirement to pay redundancy packages to those employees affected by the closure of three Processing Centres and restructure within the National Office.
