Page 86 - Statement of Intent 2015/16

the value of residual claims, and from that point the liability for ongoing claims passes to ACC.
The liability for the ACC Partnership Programme is measured using actuarial techniques at the present value of expected future payments to be made in respect of employee injuries and claims up to balance date. Consideration is given to anticipated future employee remuneration levels and history of employee claims and injuries. Expected future payments are discounted using market yields on government bonds at balance date with terms to maturity that match the estimated future cash outflows.
Income tax
Waikato DHB is exempt from income tax under section CB3 of the Income Tax Act 2007.
Goods and services tax
All amounts are shown exclusive of Goods and Services Tax (GST), except for receivables and payables that are stated inclusive of GST. Where GST is irrecoverable as an input tax, it is recognised as part of the related asset or expense.
Revenue
Crown funding
The majority of revenue is via a Crown Funding Agreement between Ministry of Health (MoH) and Waikato DHB. Revenue is recognised monthly in accordance with the Crown Funding Agreement payment schedule, which allocates the revenue equally throughout the year.
Revenue and expenses relating to service contracts
Waikato DHB is required to expend all monies appropriated within certain contracts during the year in which it is appropriated. Should this not be done, the contract may require repayment of the money or Waikato DHB, with the agreement of Ministry of Health, may be required to expend it on specific services in subsequent years.
Goods sold and services rendered
Revenue from goods sold is recognised when the significant risks and rewards of ownership of the goods has been transferred and where there is either no continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. Revenue from services is recognised, to the proportion that a transaction is complete, when it is probable that the payment associated with the transaction will flow and
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