Note 13: Employee entitlements

Annual Report 2010/11.
Actual 2010
$000
  Actual 2011
$000
Current employee entitlements comprise:  
1,468 Salary and other accruals 1,493
2,011 Annual leave 2,114
95 Long service leave 102
98 Time off in lieu of overtime worked 94
39 Retiring/resigning leave 91
80 Sick leave 77
3,791 Total current portion 3,971
Non-current employee entitlements comprise:  
31 Long service leave 19
533 Retiring/resigning leave 567
564 Total non-current portion 586
4,355 Total employee entitlements 4,557

The measurement of the retirement and long service leave obligations depend on a number of factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions used in calculating this liability include the discount rate and the salary inflation factor. Any changes in these assumptions will affect the carrying amount of the liability.

The discount rate is based on NZ Government bond data at 30 June 2011. The salary inflation factor has been determined after considering historical salary inflation patterns and after obtaining advice from an independent actuary.

If the discount rate were to differ by 1% from the Office's estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $40,000 higher/lower.

If the salary inflation factor were to differ by 1% from the Office's estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $57,000 higher/lower.