2002 - 2003 Annual Report - Tourism Australia

Notes to and forming part of the Financial Statements
For the year ended 30 June 2003 Australian Tourist Commission
15 Financial Instruments
15a Terms, conditions and accounting policies
Financial Instrument Notes Accounting Policies and Methods Nature of underlying instrument
(including recognition criteria and
(including significant terms & conditions
measurement basis)
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 Investments 6a Cash and investments are recognised at Temporarily surplus funds, mainly from
4e their nominal amounts. Interest is credited monthly drawdowns of appropriation,
to revenue as it accrues.
are placed on deposit at call with the
Commission’s banker. Interest is earned
on the daily balance at the prevailing
daily rate. Interest on deposits at call is
paid at month end, interest on term
deposits are paid on maturity and
interest on cash is paid at month end.
Receivables for 6b These receivables are recognised at the Credit terms are up to net 30 days
goods & services nominal amounts due less any provision for (2001/02: 30 days).
bad and doubtful debts. Provisions are made
when collection of the debt is judged to be less
rather than more likely.
Appropriations receivable These receivables are recognised at the Balance of departmental appropriations
nominal amounts due.
made by the Parliament to the
Commission has not been drawn
down by the Commission at the
reporting date.
Other 6c Prepaid expenses and accrued income are Expenses relating to future period but
recognised at the nominal amounts.
paid during the current period are
deferred to the future period.
Income relating to the current period
but received in the future period is
recognised in the current period.
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 8c Creditors and accruals are recognised at their Settlement is usually made up to net
nominal amounts, being the amounts at which 30 days (2001/02: 30 days).
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).
Other Payables 8d Revenues received in advance are recognised Revenue relating to a future period,
at the nominal amounts.
but received during the current period
is deferred to the future period.
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