Note 6. Managing uncertainties 2017–18
This section analyses how the APSC manages financial risks within its operating environment.
Note 6.1: Financial instruments
|
Notes |
2018 |
2017 |
|
|
Financial Assets |
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|
Loans and receivables |
|||
|
Cash and cash equivalents |
571 |
894 |
|
|
Goods and services receivables (net) |
1,576 |
1,148 |
|
|
Total loans and receivables |
2,147 |
2,042 |
|
|
Total financial assets |
2,147 |
2,042 |
|
|
Financial Liabilities |
|||
|
Financial liabilities measured at amortised cost |
|||
|
Trade creditors and accruals |
3,101 |
2,441 |
|
|
Other payables |
73 |
80 |
|
|
Total financial liabilities measured at amortised cost |
3,174 |
2,521 |
|
|
Total financial liabilities |
3,174 |
2,521 |
|
Accounting Policy
The accounting policy for financial assets is contained in note 3.1 Financial assets and for financial liabilities in note 3.3 Payables.
Note 6.2: Fair value measurement
|
Fair value |
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|
2018 |
2017 |
|
|
Non-financial assets |
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|
Leasehold improvements |
5,758 |
823 |
|
Plant and equipment |
1,526 |
465 |
Accounting Policy
All property, plant and equipment is measured at fair value, in accordance with the accounting policy.
The APSC’s assets are held for operational purposes and not held for the purposes of deriving a profit.
Fair value is estimated using replacement cost, which is depreciated based upon the expended and remaining useful life of each asset.
Note 6.3: Contingent assets and liabilities
Departmental
|
Restoration obligations |
||
|
2018 |
2017 $'000 |
|
|
Contingent liabilities |
||
|
Balance from previous period |
- |
- |
|
New contingent liabilities recognised |
561 |
- |
|
Total contingent liabilities |
561 |
- |
The above table contains $561,000 of contingent liabilities in respect of obligations to restore office premises to their original condition at the conclusion of the lease (2017: nil). The amount represents an estimate of the APSC’s liability based on the estimated per square metre restoration cost for the office. In accordance with the terms of the lease agreement, the restoration obligation only arises if requested by the landlord.
The APSC had no quantifiable or unquantifiable contingent assets as at 30 June 2018 (2017: nil).
The APSC had no unquantifiable contingent liabilities as at 30 June 2018 (2017: nil).
Administered
The APSC had no quantifiable or unquantifiable administered contingent assets or liabilities as at 30 June 2018 (2017: nil).
Accounting Policy
Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.