Annual report [1997-98] - Family Court of Australia

The Family Court of Australia – annual report 1997-98
2.12 Inventories
FAMILYCOURTOF AUSTRALIA
NOTES TO AND FORMING PART OFTHE FINANCIALSTATEMENTS
for the year ended 30 June 1998
Inventories mainly represent the stock of Court forms on hand at balance date.
Costs have been assigned to inventory quantities using the first in first out basis.
These stock items are carried at the lower of cost and net realisable value.
2.13 Commitments
Commitments reflect agreements between the Family Court of Australia and third
parties in which neither party has fulfilled any contractual obligations and
agreements in which both parties have performed to an equal extent some of their
obligations while other obligations have yet to be honoured.
Commitments for future property operating payments that are not recognised as
liabilities in the Statement of Assets and Liabilities have been disclosed in the
Schedule of Commitments. These commitments are mainly for rental of buildings
which are occupied by the Family Court’s registries and offices. Alarge proportion
of the payments are for special purpose court buildings owned by the
Commonwealth of Australia and there are no formal lease agreements executed
which detail future payments.
However, the projected rentals to be paid for the special purpose court buildings for
the next six years have been reliably measured by the providers of property
management service, KFPW Pty Ltd. These amounts have been disclosed as they
are expected to be payable under the arrangement with the Commonwealth of
Australia. Although it is expected that the special purpose buildings will be
continuously utilised by the Court, the rental beyond six years cannot be reliably
measured. The amounts to be paid for non-special purpose buildings have been
disclosed according to the details specified in existing lease agreements.
2.14 Taxation
The Family Court of Australia is exempt from all forms of taxation except Fringe
Benefits Tax.
2.15 Insurance
The Family Court of Australia pays an annual insurance premium to Comcare to
cover its liability in respect of payments under the Safety Rehabilitation and
Compensation Act 1988. In accordance with Commonwealth Government policy,
other insurable risks and assets are not insured and any losses that may arise are
expensed as they are incurred.
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