Experiencias, percepciones y sentido de los espacios no institucionales 

Expenses are recognised as they are incurred and reported in the financial year to which they relate.

Employee expenses

See Note 1(l) regarding employee benefits.

These expenses include all forms of considerations (other than superannuation which is accounted for separately) given by the Department in exchange for service rendered by employees or for the termination of employment. This includes wages and salaries, fringe benefits tax, leave entitlements, termination payments and WorkCover premiums.

Superannuation

The amount recognised in the comprehensive operating statement is the employer contributions for members of both defined benefit and defined contribution

superannuation plans that are paid or payable during the reporting period.

The Department of Treasury and Finance, in its Administered note disclosure, discloses on behalf of the State as the sponsoring employer, the net defined benefit cost related to the members of these plans as an administered liability. See the Department of Treasury and Finance’s Annual Financial Statements for more detailed disclosures in relation to these plans.

Depreciation and amortisation

All buildings, heritage buildings, plant and equipment and other non-financial physical assets (excluding items under operating leases and assets held-for-sale or distribution) that have a finite useful life are depreciated. Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight- line method.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments are made where appropriate.

The following are estimated useful lives for the different asset classes for both current and prior years.

Asset Class Useful life Years Buildings 10–60 Heritage buildings 40–60 Leasehold buildings 60 Leasehold improvements 3–10

Plant and equipment (including vehicles leased assets) 3–10

Software 3–10

Land is considered to have an indefinite life and is not depreciated. Depreciation is not recognised in respect of land assets as their service potential has not, in any material sense, been consumed during the reporting period.

Where items of buildings have separately identifiable components that have materially different useful lives and subject to regular replacement, those components are assigned useful lives distinct from the item of buildings to which they relate. For the Department, identifiable components include different building materials and structures such as an annex or a wing and landscaping for each site. These components are then depreciated separately in accordance with useful life of assets. The useful lives for these items are between 10 and 60 years.

Intangible produced assets with finite useful lives, i.e. capitalised software development costs (software), are amortised as an expense from transactions on a systematic (straight-line) basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period.

Interest expense

Interest expense represents costs incurred in connection with borrowings. It includes interest on loans, interest components of finance lease repayments and amortisation of discounts or premiums in relation to borrowings.

Interest expenses are recognised as expenses in the period in which they are incurred.

Grants and other expense transfers

Grants and other expense transfers to third parties (other than contributions to owners) are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as grants and other transfer payments made to State- owned agencies, local government, non-government schools, and community groups.

Capital asset charge

The capital asset charge represents the opportunity cost of capital invested in the non- current physical assets used in the provision of outputs. The charge is calculated on the budgeted carrying amount of applicable non-current physical assets.

Supplies and services

Supplies and services generally represent cost of goods sold and the day-to-day running costs, including school requisites and maintenance costs, incurred in the normal operations of the Department. These items are recognised as an expense in the reporting period in which they are incurred.

Other operating expenses

Other operating expenses generally represent the day-to-day running costs incurred in normal operations, and include:

Bad and doubtful debts

Bad and doubtful debts are assessed on a regular basis. Those bad debts written off by mutual consent are classified as a transaction expense. Those written off unilaterally (not by mutual agreement between debtor and creditor) are classified as other economic flows.

Fair value of assets and services provided free of charge or for nominal consideration Contributions of assets and services provided free of charge or for nominal

consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another government department or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such a transfer will be recognised at its carrying value.

Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.