29 use of the asset by the Law Commission, and expected disposal proceeds from the future sale of the asset. The Law Commission has not made significant changes to past assumptions concerning useful lives and residual values. The carrying amounts of property, plant and equipment are disclosed in note Critical judgements in applying the Law Commission�fs accounting policies Management has exercised the following critical judgement in applying the Law Commission�fs accounting policies for the period ended 30 June 2008. Lease classification Determining whether a lease agreement is finance or an operating lease requires judgement as to whether the agreement transfers substantially all the risks and rewards of ownership to the Law Commission. Judgement is required on various aspects that include, but are not limited to, the fair value of the leased asset, the economic life of the leased asset, whether or not to include renewal options in the lease term and determining an appropriate discount rate to calculate the present value of the minimum lease payments, property, plant and equipment, whereas for an operating lease no such asset is recognised. 2  Revenue from the Crown The Law Commission has been provided with funding from the Crown for the specific purposes of the Law Commission as set out in its founding legislation and the scope of the relevant government appropriations. Apart from these general restrictions, there are no unfulfilled conditions or contingencies attached to government funding (2007 nil).