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Note 6. Managing uncertainties 2017–18

This section analyses how the APSC manages financial risks within its operating environment.

Note 6.1: Financial instruments

Note 6.1a: Categories of financial instruments

 

Notes

2018
$’000

2017
$’000

Financial Assets

     

Loans and receivables

     

Cash and cash equivalents

 

571

894

Goods and services receivables (net)

3.1a

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

3.3a

3,101

2,441

Other payables

3.3c

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

Note 6.2a: Fair value measurement

 

Fair value

 

2018
$'000

2017
$'000

Non-financial assets

   

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
$'000

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.

 

Last reviewed: 
18 October 2018