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For assets not carried at a revalued amount the reversal of an impairment
loss is recognised in the statement of financial performance.
Financial instruments
The Law Commission is a party to financial instruments as part of its
normal operations. These financial instruments include bank accounts,
short-term deposits, debtors and creditors. All financial instruments are
recognised in the Statement of Financial Position and all revenue and
expenses in relation to financial instruments are recognised in the
Statement of Financial Performance. All financial instruments are
shown at their estimated fair value.
Creditors and other payable
Creditors and other payables are measured at fair value.
Employee entitlements
Short term employee entitlements
Employee entitlements that the Commission expects to be settled within
12 months of balance date are measured at undiscounted nominal values
based on accrued entitlements at current rates of pay. These include
salaries and wages accrued up to balance date, annual leave earned but
not yet taken at balance date and sick leave.
The Commission recognises a liability for sick leave to the extent that
compensated absences in the coming year are expected to be greater that
the sick leave entitlements earned in the same year. The amount is
calculated based on the unused sick leave entitlement that can be carried
forward at balance date to the extent that the Commission anticipated
it will be used by staff to cover those future absences.
Superannuation schemes
Obligations for contributions to KiwiSaver and the State Sector
Retirement Savings Scheme are accounted for as defined contribution
superannuation schemes and are recognised as an expense in the
statement of financial performance as incurred.
Goods and Services Tax (GST)
All items in the financial statements are presented exclusive of GST,
with the exception of receivables and payables, which are presented on
a GST inclusive basis. Where GST is not recoverable as an input tax
then it is recognised as part of the related asset or expense.
The net amount of GST recoverable from or payable to Inland Revenue
Department (IRD) is included as part of receivables or payables in the
statement of financial position.