St Barbara Mines Limited Annual Report 2004 Notes to the Financial Statements  for the year ended 30 June 2004 (l) Employee Bene fi  ts (iii) Ownership-based remuneration schemes (ii) Long service leave (i) Wages and salaries, annual leave and sick leave Liabilities for wages and salaries and annual leave are recognised, and measured as the amount unpaid at the  reporting date at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating  sick leave are recognised when the leave is taken and measured at the rates paid or payable. The liability for long service leave expected to be settled within twelve months of the reporting date is recognised  in the provisions for employee entitlements and is measured in accordance with (i) above. The liability for long  service leave expected to be settled more than twelve months from the reporting date is recognised in the provisions  for employee entitlements and measured as the present value of expected future payments to be made in respect  of services provided by employees up to the reporting date. Consideration is given to the length of service and the  probability of achievement of long service leave anniversary dates. Ownership-based remuneration is provided to employees via the Employee Option Plan. Information relating  to this scheme is set out in Note 27(d). No accounting entries are made in relation to the Employee Option Plan until options are exercised, at which  time the amounts receivable from employees are recognised in the statement of fi  nancial position as share capital.  The amounts disclosed for remuneration of Directors and executives in Note 23 include the assessed fair values  of options at the date they were granted. Assets acquired under  fi  nance leases are included as property, plant and equipment in the statement of fi  nancial  position. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and bene fi  ts incidental  to ownership of the leased property. Where assets are acquired by means of fi  nance leases, the present value of the  minimum lease payments is recognised as an asset at the beginning of the lease term and amortised on a straight  line basis over the expected useful life of the leased asset. A corresponding liability is also established and each lease  payment is allocated between the liability and  fi  nance charge. Other leases under which all the risks and bene fi  ts of ownership are effectively retained by the lessor are classi fi  ed as  operating leases. Operating lease payments are charged to expense over the period of expected bene fi  t. A provision is raised for any doubtful debts based on a review of all outstanding amounts at year end. Bad debts are written off during the year in which they are identi fi  ed. Sales revenue represents revenue earned from the sale of gold and is recognised when title passes at the delivery point. Revenue on sale of investments and tenements is recognised at disposal. Interest revenue is recognised when it accrues taking into account interest rates applicable to  fi  nancial assets. (n) Receivables (o) Revenue (p) Cash  Flows For the purpose of the statements of cash  fl  ows, cash includes cash on hand, deposits held at call which are readily  convertible to cash on hand and which are used in the cash management function on a day-to-day basis, net of outstanding bank overdrafts. (m) Leased Assets