Annual Report 2011 - Watercare

Watercare Services Limited
2011 ANNUAL REPORT
Notes to the financial statements (continued)
for the year ended 30 June 2011
18. Accrued Expenses
group and Company
Company
2011 2010
$000 $000
Current
Capital work in progress accruals 21,146 20,880
Interest payable 11,013 4,865
Income received in advance 4,896 -
Operating costs accruals 30,872 7,272
Total current accrued expenses 67,927 33,017
Non-current
Income received in advance 9,100 -
Total non-current accrued expenses 9,100 -
Total accrued expenses 77,027 33,017
Income received in advance includes $9.4 million relating to the amount received in accordance with the franchise fee agreement between the
network operator United Water International Pty Limited (United Water) and Papakura District Council (integrated into the company on
1 November 2010). The franchise agreement grants the operator, the right to use the fixed utility systems owned by the group for the provision
of water and wastewater services within the Papakura district. Under the franchise agreement United Water is responsible for upgrading and
maintaining the network so that at the end of the contract period, the network shall be in a better overall condition than the condition at the time
the contract was commenced. The $13,000,000 fee received at the commencement of the agreement covers the right to use the assets for a
50-year period and is recognised as revenue evenly over the term of the agreement.
19. Provisions
group and Company
2011 2010
$000 $000
Current
Employee entitlements 3,790 2,498
Decommissioning costs 847 3,276
Other provisions 159 490
Total current provisions 4,796 6,264
Non-current
Employee entitlements 1,392 1,053
Total non-current provisions 1,392 1,053
Total provisions 6,188 7,317
Company
employee Decommissioning Other
entitlements costs provisions Total
$000 $000 $000 $000
Balance at 1 July 2010 3,551 3,276 490 7,317
Additions during the year 5,300 847 159 6,306
Reductions resulting from payments (3,669) (3,276) (490) (7,435)
Balance at 30 June 2011 5,182 847 159 6,188
2011 Financial Report
PAGE 94
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