Note 16: Provisions
Te Motu Regional Economic Development Trust: Model financial statements 2008/09.
Note 15: Employee entitlements
Provisions17
| NZ IAS 37.84 | Actual | Actual | |
|---|---|---|---|
| Leasehold restoration provision | 2009 | 2008 | |
| Balance at 1 July | 34,266 | 28,728 | |
| Additional provisions made during the year | 0 | 3,006 | |
| Amounts used during the year | (1,769) | 0 | |
| Unused amounts reversed during the year | 0 | 0 | |
| Discount unwinding (note 5) | 2,741 | 2,532 | |
| Balance at 30 June | 35,238 | 34,266 | |
| NZ IAS 37.85 NZ IAS 1.116 |
The Trust is required to make good the premises it leases at expiry of the lease term, which is April 2013. However, the Trust can vacate the premises at the lease renewal date of April 2010. The Trust anticipates it will require further floor capacity in the future for increased personnel numbers, therefore new premises are likely to be required or additional floor space secured. In reporting the restoration liability, the Trust has assumed it will vacate and make good the premises at the lease renewal date of April 2010, as it is highly unlikely it will be able to secure additional floor space within the existing building. This assessment has been made after discussions with the lessor. The Trust will be discussing its options further with the existing lessor and it is expected the final course of action will be decided by December 2009. |
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17: Disclosure of comparative figures for provisions is good practice and is not required under NZ IAS 37.84.
