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22. FINANCIAL INSTRUMENTS
Terms, Conditions and Accounting Policies
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| Financial Assets | ||||||||||||||||
| Deposits at Call |
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Deposits are recognised at their nominal amounts. Interest is credited to revenue as it accrues. | Temporarily surplus funds. Interest is earned on the daily balance at the prevailing daily rate for money at call and is paid at month end. | |||||||||||||
| Bank Bills of Exchange |
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Bank Bills of Exchange are recognised at cost. Interest is accrued as it is earned. | Bank Bills of Exchange are bought for terms to maturity not exceeding 90 days with effective interest rates of between 4.94% to 5.20%. | |||||||||||||
| Receivables for Goods & Services |
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These receivables are recognised at the nominal amounts due. | Credit terms are net 30 days (1996/97 : 30 days). | |||||||||||||
| Other Debtors |
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As for receivables for goods & services. | As for receivables for goods & services. | |||||||||||||
| Financial Liabilities | ||||||||||||||||
| Trade Creditors and R&D Liabilities |
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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 been invoiced). | Settlement is usually made net 21 days. Included in creditors are payments made to R&D suppliers. Settlement for project payments is dependent on the achievement of contractual milestones. | |||||||||||||
b) Interest Rate Risk
Financial Instrument Note Floating Interest Rate Fixed Interest Rate Non-Interest Bearing Total Weighted Average Effective Interest Rate 1 year or less 1997/98 ($) 1997/98 ($) 1997/98 ($) 1997/98 ($) 1997/98 (%) Financial Assets (Recognised)
Cash at Bank 9 2.0 Deposits at Call 9 4.6 Bank Bills of Exchange 11 5.0 Receivables for Goods and Services 10 n/a Other Debtors 10 n/a Total Financial Assets
(Recognised)Total Assets
Financial Instrument Note Floating Interest Rate Fixed Interest Rate Non-Interest Bearing Total Weighted Average Effective Interest Rate 1 year or less 1997/98 ($) 1997/98 ($) 1997/98 ($) 1997/98 ($) 1997/98 (%) Financial Liabilities
(Recognised)Trade Creditors and R&D Liabilities 13 n/a Total Financial Liabilities (Recognised) Total Liabilities
c) Net Fair Values of Financial Assets and Liabilities Note Total Carrying Amount Aggregate Net Fair Value 1997/98 ($) 1997/98 ($) Financial Assets Cash at Bank 9 Deposits at Call 9 Bank Bills of Exchange 11 Receivables for Goods & Services 10 Other Debtors 10 Total Financial Assets Financial Liabilities Trade Creditors and R&D Liabilities 13 Total Financial Liabilities Financial Assets The net fair values of cash, deposits on call and non-interest-bearing monetary financial assets approximate their carrying amounts. Financial Liabilities The net fair values for trade creditors and R&D liabilities, all of which are short-term in nature, are approximated by their carrying amounts. d) Credit Risk Exposure The economic entity’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Statement of Assets and Liabilities. The economic entity has no significant exposures to any concentrations of credit risk.
All figures for credit risk referred to do not take into account the value of any collateral or other security.
Last updated: 20 October 1998 Copyright © RIRDC http://www.rirdc.gov.au/pub/anrep98/financials7.htm
