Financial Instruments
12. Financial Instruments
| Financial Instrument | Notes | Accounting Policies and Methods (including recognition criteria and measurement basis) | Nature of underlying instrument (including significant terms & conditions affecting the amount, timing and certainty of cash flows) |
| Financial Assets | Financial assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured. | ||
| Cash | 11 | Cash includes cash deposits which are readily convertible to cash on hand plus cash available in Treasury’s Special Deposit and Trust Fund. Deposits are recognised at their nominal amounts. Interest is credited to revenue as it accrues. Cash is measured at nominal amounts and is also the net fair value. | The interest rate applicable at 30 June 2004 ranged from 0% to 5.53%. Exposure to interest rate and credit risks is considered to be minimal. |
| Receivables for user charges | 8.1 | These receivables are recognised at the nominal amounts due, less any provision for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when collection of the debt is judged to be less rather than more likely. The net fair value of receivables is the nominal amount. | Debtors terms are 30 days net. |
| Financial Liabilities | Liabilities are recognised when it is probable that the future sacrifice of economic benefits will be required and the amount of the liability can be measured reliably. | ||
| Creditors | 9.2 | Creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having being invoiced). The net fair value of payables is the nominal amount. | Settlement is usually made within 30 days. |
