NOTES TO THE FINANCIAL STATEMENTS
SECTION A How the numbers are calculated CONTINUED
A3.2 INDIVIDUALLY SIGNIFICANT ITEMS WITHIN OPERATING COSTS
2019 ($000’s)
2018 ($000’s)
For the year ended 30 June
Bad debts written off or provided for/(reversed)
(257)
100
Material and equipment costs
11,380
6,174
Travel
4,251
4,207
Communications
3,300
3,218
Maintenance
10,361
9,292
Utilities
1,639
1,662
Professional fees
3,308
3,654
Insurance
1,896
1,497
Provision for expected losses on onerous contract 1,980 Equipment costs are up on prior year as a result of costs incurred in delivering commercial business projects. This is offset by an increase in the commercial revenue. KEY JUDGEMENT: Significant judgement was exercised in determining the quantum of a provision for the expected loss on a contract to install airfield lighting. Judgement has been applied in assessing the likely cost of exiting the contract, determining the likely costs to fulfil the contractual obligations, and estimating the likelihood of being able to minimise losses. This project is expected to be completed in the first half of FY20 with the original provision recognised in FY18 sufficient to capture the onerous portion. –
A3.3 EMPLOYEE REMUNERATION
2019 ($000’s)
2018 ($000’s)
For the year ended 30 June
Wages and salaries
99,141
97,470
Less: labour costs capitalised
(10,106)
(10,176)
Kiwisaver/superannuation contributions
8,808
8,653
Leave entitlement expense
17,421 13,311 115,264 109,258
A3.4 EMPLOYEE ENTITLEMENTS Superannuation Airways contributes to various defined contribution schemes that are funded through fixed contributions into trustee administered funds. Airways has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The contributions are recognised as an employee benefit expense in profit or loss when they are due for payment to the funds. Leave benefits Liabilities for annual leave, long service leave and retiring leave are accrued and recognised in the balance sheet. These liabilities equal the present value of the estimated future outflows as a result of employee services provided at balance date. Long service leave that has vested with employees is recognised as a current liability within employee entitlements. Actuarial estimates of future demographic trends and employee remuneration are used to calculate the long service leave and retiring leave liabilities that have not yet vested
40
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