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  • Financial Instruments

    Note 9A: Categories of Financial Instruments
      2018$'000 2017$'000
    Financial Assets  
    Loans and receivables
    Cash 28,944 23,115
    Receivables for services1 33,415 39,120
    Total loans and receivables 62,359 62,235
    Total financial assets 62,359 62,235
    Financial Liabilities  
    Financial liabilities measured at amortised cost  
    Supplier payables 384,402 280,755
    Finance leases 10,859 15,892
    Total financial liabilities measured at amortised cost 395,261
    296,647
    Total financial liabilities 395,261 296,647

    The ATO has no financial assets or financial liabilities measured at fair value through profit and loss.

    1 Prior year adjustments have been made to these numbers. Refer to Overview.

    Accounting Policy

    Financial Assets

    The ATO classifies its departmental financial assets depending on their nature and purpose. The departmental financial assets are recognised and derecognised upon ‘trade date’.

    All departmental financial assets are classified as ‘loans and receivables’ as they have fixed or determinable payments that are not quoted in an active market.

    Departmental receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

    Future cash flows for departmental receivables, which are almost all short term in nature, are recognised at their nominal amounts.

    Impairment of Financial Assets

    Financial assets are assessed for impairment at the end of each reporting period.

    Financial Liabilities

    Departmental financial liabilities are classified as ‘other financial liabilities’. Financial liabilities are recognised and derecognised upon ‘trade date’.

    ‘Other financial liabilities’ are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

    Suppliers and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (irrespective of having been invoiced).

    Note 9B: Net Income and Expense from Financial Assets
      2018$'000   2017$'000  
    Impairment (loss)/reversals on loans and receivables (931) (53)
    Note 9C: Net Income and Expense from Financial Liabilities
      2018$'000   2017$'000  
    Interest expense on financial liabilities measured at amortised cost 706  943

    Total loans and receivables

      Last modified: 26 Oct 2018QC 57168