Airways Corporation of New Zealand Limited Annual Report 2018 2019
NOTES TO THE FINANCIAL STATEMENTS
SECTION A How the numbers are calculated CONTINUED
with staff. The principal assumptions used in determining Airways’ liability for non-vested long service and retiring leave entitlements are set out in the table below. Possible changes in these assumptions are not expected to materially impact Airways’ financial position or performance.
CHAIR AND CEO’S REVIEW
KEY JUDGEMENT: Significant judgement was exercised in FY18 to move from generic decrement rates to calculating Airways specific decrement rates to better reflect expected future obligations. The same approach in determining decrement rates has been applied in FY19. Airways receives advice on these assumptions from external actuaries, and the impact of the change in decrement rates are shown in the table below.
INVESTING IN THE FUTURE
INTEGRATING DRONES INTO OUR AIRSPACE
Assumption
2019
2018
AIRWAYS INTERNATIONAL
Employee decrement assumptions
Airways specific
Airways specific
Long run wage increase
2.5%
3.0%
Discount rates * Crown entity rates *Discount rates adopted are those specified by Treasury for reporting purposes for Crown entities and can be found at: http://www.treasury.govt.nz/publications/guidance/reporting/accounting/discountrates. The table below sets out the impact of these non-vested entitlements on the financial statements 2019 ($000’s) 2018 ($000’s) Movement in employee decrement assumptions – (2,020) Changes in discount rate 734 – Additional entitlements recognised and paid during the year 353 Staff demographic and other movements 1,714 513 Total movement in non-vested long service and retiring leave recognised in profit or loss 2,801 (1,507) Balance sheet obligations as at 30 June, within non-current employee entitlements: Long service leave 1,167 996 Retiring leave 8,274 6,522 9,441 7,518 A4 INCOME TAX AND RELATED BALANCES This note provides an analysis of the Group’s income tax expense, shows which amounts are recognised directly in equity and in other comprehensive income, and how the tax expense is affected by non-assessable and non-deductible items. Income tax expense The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is measured on the basis of laws enacted, or substantially enacted at the reporting year end. Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax is based on the expected manner of realisation of the carrying amount of assets and liabilities, using tax rates enacted, or substantially enacted at the reporting year end. Crown entity rates
SUSTAINABILITY
AIRWAYS BOARD OF DIRECTORS
FINANCIALS
FINANCIAL PERFORMANCE
PERFORMANCE AND PROGRESS AGAINST SCI METRICS
FINANCIAL STATEMENTS
RISK GROUP STRUCTURE UNRECOGNISED ITEMS OTHER INFORMATION NOTE STRUCTURE HOW THE NUMBERS ARE CALCULATED
AUDIT REPORT
EVA KEY PERFORMANCE INDICATORS
ADDITIONAL FINANCIAL INFORMATION
GOVERNANCE AT AIRWAYS
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