Note 16

Provision²⁰

Model Financial Statements: Te Motu Regional Economic Development Trust 2010/11

		Actual 2011	Actual 2010
NZ IAS 37.84	Leasehold restoration provision
	Balance at 1 July	34,266	28,728
	Additional provisions made	0	3,006
	Amounts used	(1,769)	0
	Unused amounts reversed	0	0
	Discount unwind	2,741	2,532
	Balance at 30 June	35,238	34,266

NZ IAS 37.85 NZ IAS 1.125	The Trust is required to make good the premises it leases at expiry of the lease term, which is April 2015. However, the Trust can vacate the premises at the lease renewal date of April 2012. 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 2012, 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 lessor and it is expected the final course of action will be decided by December 2011.

20: Disclosure of comparative figures for provisions is good practice although not required (NZ IAS 37.84).

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