Territory Stories

Annual Report 2016-2017 Department of the Legislative Assembly

Details:

Title

Annual Report 2016-2017 Department of the Legislative Assembly

Other title

Tabled paper 405

Collection

Tabled Papers for 13th Assembly 2016 - 2020; Tabled Papers; ParliamentNT

Date

2017-10-10

Description

Deemed

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Details/C2019C00042

Parent handle

https://hdl.handle.net/10070/272314

Citation address

https://hdl.handle.net/10070/428605

Page content

DEPARTMENT OF THE LEGISLATIVE ASSEMBLY NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2017 DLA Annual Report 2016-17 Page 50 21. FINANCIAL INSTRUMENTS A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments held by the Department of the Legislative Assembly include cash and deposits, receivables, payables and finance leases. The Department of the Legislative Assembly has limited exposure to financial risks as discussed below. k) Financial Instruments A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and liabilities are recognised on the Balance Sheet when the agency becomes a party to the contractual provisions of the financial instrument. The agencys financial instruments include cash and deposits; receivables; advances; investments loan and placements; payables; advances received; borrowings and derivatives. Due to the nature of operating activities, certain financial assets and financial liabilities arise under statutory obligations rather than a contract. Such financial assets and liabilities do not meet the definition of financial instruments as per AASB 132 Financial Instruments Presentation. These include statutory receivables arising from taxes including GST and penalties. Exposure to interest rate risk, foreign exchange risk, credit risk, price risk and liquidity risk arise in the normal course of activities. The agencys investments, loans and placements, and borrowings are predominantly managed through the NTTC adopting strategies to minimise the risk. Derivative financial arrangements are also utilised to manage financial risks inherent in the management of these financial instruments. These arrangements include swaps, forward interest rate agreements and other hedging instruments to manage fluctuations in interest or exchange rates. a) Categorisation of Financial Instruments The carrying amounts of the agencys financial assets and liabilities by category are disclosed in the table below.