Note 3. Change in Accounting Policy and Accounting Estimates, and Correction of a Prior Period Error
Change in Accounting Policy
The Directorate had no changes in Accounting Policy during the reporting period.
Change in Accounting Estimates
Revision of the Estimation of Employee Benefit Liability
As disclosed in Note 2 (y): Employee benefits, annual leave and long service leave, including applicable on-costs, which do not fall due in the next 12 months, are measured at the present value of estimated payments to be made in respect of services provided by employees up to the reporting date. The present value of future payments is estimated using the Government bond rate.
Last financial year the present value rate was 106.6%, however, due to a change in the Government bond rate that rate is now 101.3%. As such the estimate of the long service leave liability has changed. This change has resulted in a decrease to the estimate of the long service leave liability and expense in the current reporting period of $4,597,538.
Revision of Depreciation Charge
As a result of the Health Infrastructure Program, some Directorate buildings are being partially demolished and reconstructed and some are planned to undergo significant refurbishment work. As no future economic benefits will be derived from the part of the asset from the date of demolition or start of refurbishment, this would constitute a
de-recognition of that component of the asset. Therefore, depreciation was accelerated for those asset components. For further details see Note 15: Depreciation and Amortisation.
Correction of a Prior Period Error
The Directorate had no correction of material prior period errors during the reporting period.