Royal Botanic Gardens Victoria Annual Report 2018-19

6. HOW WE FINANCE OUR OPERATIONS
Interest expense
‘Interest expense’ includes costs incurred in connection with the borrowing of funds and includes the interest component of finance lease
repayments and the loan from TCV and is recognised in the period in which it is incurred.
6.2 Leases
6.2.1 Finance leases (Board as lessee)
Minimum future lease
payments (a)
2019 2018 2019
$ $ $
Not longer than 1 year 168,332 166,835 154,997
Present value of minimum
future lease payments
2018
$
153,867
Longer than 1 year and not longer than 5 years 357,926 313,033 341,182
Longer than 5 years - - -
Minimum future lease payments 526,258 479,868 496,179
Less: future finance charges (30,079) (30,705) -
Present value of minimum lease payments 496,179 449,163 496,179
295,296
-
449,163
-
449,163
Included in the financial statements as:
Current borrowings lease liabilities (Note 6.1) 154,997
Non-current borrowings lease liabilities (Note 6.1) 341,182
Total 496,179
153,867
295,296
449,163
Note (a): Minimum future finance lease payments include the aggregate of all base payments and any guaranteed residual.
At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value
of the leased property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The
leased asset is accounted for as a non-financial physical asset and depreciated over the shorter of the estimated useful life of the asset or
the term of the lease. Minimum finance lease payments are apportioned between the reduction of the outstanding lease liability and the
periodic finance expense, which is calculated using the interest rate implicit in the lease and charged directly to the comprehensive
operating statement.
6.3 Cash flow information and balances
Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid
investments with an original maturity of three months or less, which are held for the purpose of meeting short-term cash commitments
rather than for investment purposes, and which are readily convertible to known amounts of cash and subject to an insignificant risk of
changes in value.
6.3.1 Reconciliation of cash and deposits
2019
$
Cash at bank and on hand 17,399,293
Term deposits -
Balance as per cash flow statement 17,399,293
2018
$
2,970,250
7,530,411
10,500,661
ROYAL BOTANIC GARDENS BOARD VICTORIA — ANNUAL REPORT 2018–19 97
Royal Botanic Gardens Board Victoria 2018-19 Financial Report Page 20