Year 2001 - University of Canberra

UNIVERSITY OF CANBERRA ANNUAL REPORT 2001
80
Notes to and forming part of the Financial Statements
for the year ended 31 December 2001 (continued)
NOTE 25: FINANCIAL INSTRUMENTS
25.1 Terms Conditions & Accounting Policies
ACCOUNTING TOTAL
FINANCIAL POLICIES TERMS AND CARRYING FAIR
INSTRUMENT AND METHODS CONDITIONS AMOUNT VALUE
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 Cash represents deposits which are
recognised at their nominal amounts.
Interest on bank account is credited to
revenue as it accrues. (Average interest
is calculated on a monthly basis).
Receivables 3 Receivables represent trade debtors,
student loans and accrued income
less provision for doubtful debts.
Collectability of debts has been
reviewed at balance date.
Investments 4 Investments represent Bills of Exchange,
Negotiable Certificates of Deposit and
Equities. (Average interest is based on
the average annual investment balance).
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.
Creditors and
Accrued Expenses
8
Creditors have been recognised at their
nominal amounts, being at the amount
due for settlement. Accrued expenses are
recognised at the time of delivery and to
the extent the debt has been incurred.
Borrowings 9
Borrowings are an unsecured loan of
$4.5 million, payable on demand. The
loan is repayable by 30 June 2007 and
was acquired to facilitate the construction
of student teaching and administration
facilities.
An average rate of
3.77% was earned
on the University’s
bank account.
(1.4% for 2000)
All debts are incurred in
Australian currency and
are due within 30 days
other than student loans
which are due within the
current semester. No
interest is charged on
overdue debts.
An average rate of
4.61% was earned on
investments (7.01%
in 2000). Bills of
Exchange and Negotiable
Certificates of Deposit
are negotiated up to
90 days. Equities refer
to educations institutions
who deal with the
University.
Creditors are paid
on a 30 day cycle.
Repayable $1,350,000
each year until the
year 2007
$’000 $’000
815 815
7,286 7,286
20,032 20,032
3,500 3,500
4,500 4,500