Annual report 2012
10 Provisions
a Employee Entitlements
Group Group Parent Parent
2012 2011 2012 2011
$’000 $’000 $’000 $’000
Accrued salaries
390
2,057
222
1,773
Annual leave
5,132
3,959
4,594
3,605
Sick leave
208
204
193
175
5,730
6,220
5,009
5,553
Annual leave and sick leave entitlements expected to be settled within 12 months of the balance sheet date are
measured at the current rates of pay and classified as current liabilities.
b Provision
Group Group Parent Parent
2012 2011 2012 2011
$’000 $’000 $’000 $’000
Lease make-good
195
-
117
-
195
-
117
-
Group
Movements for each class of provision are as follows:
Lease make-good
Total
$’000 $’000
Balance at 1 January 2012
-
-
Additional provisions
195
195
Amounts used
-
-
Unused amounts reversed
-
-
Discount unwind
-
-
Balance at 31 December 2012
195
195
Parent
Movements for each class of provision are as follows:
Lease make-good
Total
$’000 $’000
Balance at 1 January 2012
-
-
Additional provisions
117
117
Amounts used
-
-
Unused amounts reversed
-
-
Discount unwind
-
-
Balance at 31 December 2012
117
117
In respect of a number of its leased premises, Te Wānanga o Aotearoa is required at the expiry of the lease term to
make-good any damage caused to the premises. In many cases, Te Wānanga o Aotearoa has the option to renew
these leases, which impacts on the timing of expected cash outflows to make-good the premises.
The cash flows associated with the non-current portion of the lease make-good provision are expected to occur
in December 2014, December 2015 and August 2018. Information about Te Wānanga o Aotearoa’s leasing
arrangements is disclosed in note 17.
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