National Library of Australia
Annual Report 2001-2002
 Note 17: Trust Money
Note 19: Appropriations
Contents
Director General's Review
Corporate Overview
Report on Operations
Financial Statements
Appendices
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Financial Statements

Note 18: Financial Instruments

 

 

 

 

Note 18A. - Terms, Conditions and Accounting Policies

Financial Instrument

Notes

Accounting Policies and Methods

(including recognition criteria and measurement basis)

Nature of underlying instrument

(including significant terms and conditions affecting the amount, timing and certainty of cash flows)

Financial assets

 

Financial assets are recognised when control over future economic benefits are established and the amount of the benefit can be reliably measured.

.

Deposits at call

5A

Deposits are recognised at their nominal amounts.  Interest is credited to revenue as it accrues.

Temporary surplus funds, mainly from revenue and monthly drawdowns of appropriations, are placed on deposit at call with the Library’s bankers.  Interest is earned on the daily balance at the prevailing daily rate for money on call and is paid at month end.

Receivables for goods and services

5B

These receivables are recognised at the nominal amounts due less any provision for bad and doubtful debts.  Provisions are made when collection of debt is judged to be less rather than more likely.

Credit terms are net 30 days (2001: 30 days).

Other debtors

5B

As for receivables for goods and services.

As for receivables for goods and services.

Term Deposit

5A

Term deposits are recognised at cost.  Interest is credited as it accrues.

Term deposits are with the Library’s bank and interest in paid annually. The effective rate of interest is 4.15%.

Financial Liabilities

.

Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured.

.

Trade creditors

8A

Creditors and accruals are recognised at their nominal amounts, being the amounts at which 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 of 30 days.

Grant Liabilities

8C

Grant liabilities are recognised at their nominal amounts, being the amounts at which the liabilities will be settled.  Most grant agreements require the grantee to undertake specific tasks or utilise the funding in a specific way.  In these cases, liabilities are recognised only to the extent that the grantee has complied with the grant agreement, and where grant moneys are paid in advance, a prepayment is recognised.  In cases where grant agreements are made without conditions to be monitored, liabilities are recognised on signing of the agreement.

Settlement is made in accordance with the grant agreement.


Note 18B - Interest Rate Risk

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Note 18C - Net Fair Value of Financial Assets and Liabilities

2001-02

2000-01

Total carrying amount

Aggregate net fair value

Total carrying amount

Aggregate net fair value

Note

$’000

$’000

$’000

$’000

           

Financial Assets

         
           

Cash at Bank

5A

2,555

2,555

6,394

6,394

Cash on Hand

5A

3

3

6

6

Deposits at call

5A

6,463

6,463

2,282

2,282

Receivables for Goods and Services

5B

2,233

2,233

1,960

1,960

Other debtors

5B

6

6

9

9

Term deposit

5A

85

85

80

80

           

Total Financial Assets

 

11,345

11,345

10,731

10,731

           

Financial Liabilities (Recognised)

         
           

Trade creditors

8A

1,645

1,645

3,275

3,275

Grants Payable

8C

17

17

14

14

           

Total Financial Liabilities (Recognised)

 

1,662

1,662

3,289

3,289

Financial assets

The net fair values of cash, deposits on call and non-interest-bearing monetary financial assets approximate their carrying amounts.  None of the classes of financial assets are readily traded on organised markets in standardised form.

Financial liabilities

The net fair values for trade creditors and grant liabilities, which are short term in nature, are approximated by their carrying amounts.  None of the classes of financial liabilities are readily traded on organised markets in standardised form.

Note 18D - Credit Risk Exposures

The Library’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 Statements of Assets and Liabilities.  The Library has no significant exposures to any concentrations of credit risk.  The Library does not hold collateral or other security and therefore the figures for credit risk represent the maximum credit risk exposure.

 

 Note 17: Trust Money
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Note 19: Appropriations


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