ANNUAL REPORT 2005 - MVCB - Murray Valley Citrus Board

MURRAY VALLEY CITRUS BOARD
NOTES TO AND FORMING PART OF THE ACCOUNTS
FOR THE YEAR ENDED 30 JUNE 2005
24. FINANCE LEASE COMMITMENTS
There are no finance lease commitments as at 30 June, 2005. (2004:nil)
25. FINANCIAL INSTRUMENTS
(a) Terms, Conditions and Accounting Policies
The Board’s accounting policies including the terms and conditions of each class of
financial asset and financial liability instrument are as follows:
Recognised Financial
Instruments
(a) Financial Assets
Statement of
financial position
notes
Cash and Deposits at Call 11
Receivables 12
Fixed Term Deposits 11
(b) Financial Liabilities
Payables 15
Accounting Policies Terms and Conditions
Cash Deposits deemed to
be in excess of short term
needs are placed in bank
term deposits.
Debtors are carried at the
nominal amounts less any
provision for doubtful
debts. A doubtful debt
provision is made for any
amounts which are
considered unlikely to be
collectable.
Term Deposits are stated
at the nominal amounts.
Interest Revenue is
recognised in the Profit
and Loss Statement when
earned.
Creditors and accruals are
recognised for future
amounts to be paid in
respect of goods and
services received, whether
or not billed to the Board
Cash in the Bank account
has interest paid on a
sliding scale, with an
average rate of 0.22% for
the year.
Normal terms for Levies
outstanding are 28 days
after the end of the month
outstanding. For trading
debtors, terms are 30 days
from after month end.
The fixed term is 60 days
maturity and effective
interest rate of 5.20%.
Terms for the payment of
creditors are 30 days from
the end of the month of
invoice.
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