40 They are measured at the amounts e xpected to be paid when the liabilities are settled Liabilities for nonaccumulating sick leave are recognised when the leave is tak en and are measured at the rates paid or payable L ong service leave The liability for long service leave is recognised in the provision for employee benefts and measured as the present value of e xpect ed future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method Consideration is given to e xpected future wage and salary levels e xperience of employee departures and periods of service L eases The determination of whether an arrangement is or contains a lease is based in the substance of the arrangement and requires an assess ment of whether the fulflment of the arrangement is dependent on the use of a specifc asset or assets and the arrangement conveys a right to use the asset New standards and Interpretations adopted in 2018 The Association has not adopted any of the following A ustralian Accounting S tandards in the current reporting period Below is a list of issued Accounting S tandards that may impact the Association in the future Where applicable the Association intends to apply these A ustralian Accounting S tandards from their noted application date New S tandards and Interpretations yet to be adopted S tandards applicable for the frst time from 1 January 2018 have had no material efect on the association AA SB 16 L eases This standard removes the lease classifcation test for lessees and requires all the leases including operating leases to be brought onto the balance sheet The defnition of a lease is also amended and is now the new onof balance sheet test for lessees AA SB 16 is efective for annual reporting periods from 1 January 2019 with early adoption permitted where AA SB 15 R evenue from Contracts with Customers is adopted at the same time The Association has not yet determined the application or the potential impact of the standard OPERA TIONAL AND FINANCIAL REPOR T NO TES T O AND FORMING P AR T OF THE A CCOUNT S