Annual Report - Northern Health

Note 1: Summary of Significant Accounting PoliciesNotes To and Forming Part of the Financial StatementsNorthern Health Annual Report 2011/2012Sale of investmentsThe gain/ loss on sale of investments is recognised when the investment is realised.Resources Provided and Received Free of Charge or for Nominal ConsiderationResources provided or received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions orconditions are imposed over the use of the contributions, unless received from another entity or agency as a consequence of a restructuring of administrative arrangements. In the latter case, suchtransfer will be recognised at 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 notdonated.(g) Expense RecognitionExpenses are recognised as they are incurred and reported in the financial year to which they relate.Cost of goods soldCosts of goods sold are recognised when the sale of an item occurs by transferring the cost or value of the item from inventories.Employee expensesEmployee expenses include:Wages and salaries;Annual leave;Sick leave;Long service leave; andSuperannuation expenses which are reported differently depending on whether employees are members of defined benefit or defined contribution plans.Defined contribution plansIn relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in respect of employees who aremembers of these plans during the reporting period. Contributions to defined contribution superannuation plans are expensed when incurred.Defined benefit plansThe amount charged to the comprehensive operating statement in respect of defined benefit superannuation plans represents the contributions made by the entity to the superannuation plans inrespect of the services of current entity staff during the reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan and are based upon actuarialadvice.Employees of Northern Health are entitled to receive superannuation benefits and Northern Health contributes to both the defined benefit and defined contribution plans. The defined benefit plan(s)provide benefits based on years of service and final average salary.The name and details of the major employee superannuation funds and contributions made by Northern Health are as follows:FundContributions Paid or Payable for the year2012 2011$’000 $’000Defined benefit plans:Health Super 553 566Defined contribution plans:Health Super 12,141 11,674HESTA 4,705 4,092Other 158 64Total 17,557 16,396Northern Health Financial Report Appendix to the 2011 - 2012 Annual Report Page 9 of 60