Annual Report - COMPLETE - Australian Crime Commission

Note 18: Financial Instruments
Nature of Underlying Instrument (including significant
terms & conditions affecting the amount, timing and
certainty of cash flows)
Note 18A: Terms, Conditions and Accounting Policies
Financial Instrument Notes Accounting Policies and Methods (including recognition
criteria and measurement basis)
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 7A Cash is recognised at its nominal amount. The department invests funds with a commercial bank at
call. Monies in the ACC’s bank accounts are swept into the
Official Public Account nightly and interest is earned on the
daily balance at rates based on money market call rates.
Interest is retained by the Department of Finance and
Administration.
Receivables for goods and 7B Receivables are recognised at the nominal amounts due less any All receivables are with entities external to the
services
provision for bad and doubtful debts. Collectability of debts is Commonwealth. Credit terms are net 30 days.
reviewed at balance date. Provisions are made when collection of
the debt is judged to be less rather than more likely.
Appropriations receivable 7B Receivables are recognised at their nominal amounts. Amounts appropriated by Parliament in the current period
which are available to be drawndown by the Agency.
124 I ACC ANNUAL REPORT 2003–04
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.
Finance lease liabilities 9A Liabilities are recognised at the present value of the minimum lease
payments at the beginning of the lease. The discount rates used
At reporting date, the Department had finance leases with
terms of three years. The interest rate implicit in the leases
averaged 3.5%. The lease assets secure the liabilities.
The final amount payable for the period will be equal to the
funding received for the Capital Use Charge for the year
(part of the Departmental appropriation) previously
expensed in the accounts of the National Crime Authority,
are estimates of the interest rates implicit in the leases.
10A This payable is recognised as the amount outstanding on the
estimated amount to be paid in accordance with the calculations
outlined by the Department of Finance and Administration.
Capital Use Charge
payable
less any amount settled before 30 June.
Creditors include entities that are both part of the
Commonwealth legal entity and external suppliers.
Settlement is usually made net 30 days.
Trade creditors 11A 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).