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Northern Territory Treasury Corporation Annual report 2013-2014

Details:

Title

Northern Territory Treasury Corporation Annual report 2013-2014

Collection

Department of Treasury and Finance reports; Reports; PublicationNT

Date

2014

Description

Made available via the Publications (Legal Deposit) Act 2004 (NT).

Language

English

Subject

Northern Territory Treasury Corporation -- Periodicals; Finance, Public -- Northern Territory -- Periodicals

Publisher name

Dept. of Treasury and Finance

Place of publication

Darwin

ISSN

1324-9789

Copyright owner

Check within Publication or with content Publisher.

Parent handle

https://hdl.handle.net/10070/256369

Citation address

https://hdl.handle.net/10070/521143

Related items

https://hdl.handle.net/10070/521145

Page content

50 Northern Territory Treasury Corporation Notes to the Financial Statements For the financial year ended 30June2014 Note 2 continued The significant policies adopted in the preparation of these financial statements are: (a) Cash and Cash Equivalents Cash and cash equivalents include cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash, which are subject to insignificant risk of changes in value and have a maturity of three months or less at date of acquisition. They are measured at face value or the gross value of the outstanding balance. (b) Employee Benefits Provision is made for benefits accruing to employees in respect to wages and salaries, and annual leave, when it is probable that settlement will be required and they are capable of being measured reliably. Provisions made in respect to employee benefits that are expected to be settled within 12months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Provisions made in respect to employee benefits that are not expected to be settled within 12months are measured at the present value of the estimated future cash outflows to be made by NTTC in respect to services provided by employees up to the reporting date. NTTCs long service leave liabilities are recorded by the Central Holding Authority (CHA). This is in accordance with the Territory Governments current policy where all government agencies long service leave liabilities are assumed by CHA. (c) Expense Recognition Expense is recognised to the extent that it is probable that an outflow of economic sacrifice will flow from the entity and the expense can be reliably measured. Specific expenses are recognised as follows: (i) Interest expense: Interest expense includes accrued interest, loss on extinguishment and amortisation of discount and premiums. Interest expense is recognised on an effective yield basis. (ii) Other expense: Other expense includes administration charges. Expenses for charges are recognised in the period in which the service is provided on an accrual basis. (d) Financial Instruments (i) Financial assets: Financial assets include cash and cash equivalents, trade and other receivables (mainly interest) and loans receivables. Loans and receivables are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, such financial assets are measured at amortised cost using the effective interest method (less impairment) with any difference between the initial recognised amount and the amortised cost (less impairment) amount being recognised in the Statement of Comprehensive Income over the period of the financial asset. (ii) Financial liabilities: Financial liabilities include deposits held, trade and other payables and borrowings. Financial liabilities are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, financial liabilities are measured at amortised cost with any difference between the initial recognised amount and the redemption amount being recognised in the Statement of Comprehensive Income over the period of the financial liability using the effective interest method.