Notes to the financial statements (continued) Section 3: Operational assets and liabilities (continued) 13. Trade and other payables A. Accounting policy Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost. Trade and other payables are classified as current liabilities unless payment is not due for at least 12 months after the reporting date. B. Amounts recognised in statement of financial position Trade and other payables represent liabilities for goods and services provided to Western Power prior to the end of the reporting year which are unpaid – including for employee wages and salaries. They are usually settled within 20 days of recognition. See table 26 below. C. Fair value of trade and other payables The fair value of trade and other payables is considered to be the same as the carrying amount. This is due to their short-term nature.
present value reflects the market assessments of the time value of money and the risks specific to the liability. Any movement in the provision due to the unwinding of the discount rate – being for the passage of time, is recognised as a finance cost. i. Employee benefits Provisions for the below employee benefit liabilities are recognised as a result of services rendered up Liabilities arising in respect of employee benefits that are expected to be settled wholly within 12 months of the reporting date are classified as current, and measured at their nominal amount based on remuneration rates that are expected to be paid when the liabilities are settled. The liabilities for wages and salaries are recognised in ‘Trade and other payables’. The liabilities for all other short-term employee benefits are recognised in ‘Provisions’. Annual and long service leave Liabilities arising in respect of annual and long service leave are recognised in ‘Provisions’. They are classified as current where there is no unconditional right to defer settlement for at least 12 months after the reporting date. This is regardless of when actual settlement is expected to occur. All other annual and long service leave liabilities are classified as non-current. to the reporting date. Wages and salaries The liabilities for annual and long service leave are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to factors including the expected future wages and salaries levels (including related on-costs), experience of employee departures and periods of service. Expected future payments are discounted using the Commonwealth bond rates whose terms most closely match the terms of the related liabilities. Independent actuarial valuations are carried out at each reporting date. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
14. Provisions
A. Accounting policy Provisions are recognised when: • Western Power has either a present legal or constructive obligation as a result of past events • it is probable an outflow of resources will be required to settle the obligation • a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the obligation as at the reporting date. The discount rate used to determine the
Table 26: Amounts recognised in statement of financial position
2024/25 $M
2023/24 $M
Trade payables and accruals Other payables
182 31 213
128 36 164
Western Power Annual Report 2025
107
Made with FlippingBook. PDF to flipbook with ease