(a) Terms, conditions and accounting policies

Financial Instrument

Notes

Accounting Policies and Methods (including recognition criteria and measurement basis)

Nature of underlying instrument (including significant terms & conditions affecting the amount, timing and certainty of cash flow)

Financial Assets

Financial assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured.

Cash

6A

Deposits are recognised at their nominal amounts.

Surplus cash held by NICNAS above the agreed upon daily working cash balance is transferred to the Official Public Account (OPA).

Receivables for goods and services

6B

These receivables are recognised at the nominal amounts due less any provision for bad or doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when the collection of the debt is judged to be less rather than more likely.

Credit terms are net 28 days.

Receivable from OPA

6B

These receivables are recognised at their nominal amounts.

Cash in excess of allocated working levels are transferred to the OPA.

Financial Liabilities

Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured.

Trade Creditors

9A

Creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent the goods and services have been received (and irrespective of having being invoiced).

Settlement is usually made net 30 days

Other Payables

9B

Where a service has been invoiced in advance or a service payment has been received in advance, the relevant amount is disclosed as unearned income.

The provision of service is only recognised as revenue when the service has been provided.

(b) Interest Rate Risk

Financial Instrument

Notes

Floating Interest Rate

Fixed Interest Rate

Non Interest Bearing

Total

Weighted Average Effective Interest Rate

 

 

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

 

 

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

%

%

Financial Assets

 

 

 

Cash at bank

6A

-

-

-

-

78

1,462

78

1,462

n/a

n/a

Cash on hand

6A

-

-

-

-

-

-

-

-

n/a

n/a

Receivables for goods and services (gross)

6B

-

-

-

-

371

236

371

236

n/a

n/a

Receivable from OPA

6B

-

-

-

-

5,000

3,000

5,000

3,000

n/a

n/a

Other debtors

6B

-

-

-

-

135

30

135

30

 

Total Financial Assets (Recognised)

 

-

-

-

-

5,585

4,728

5,585

4,728

 

Total Assets

 

 

6,126

4,920

 

Financial Liabilities

 

 

 

-

 

Trade creditors

9

-

-

-

-

586

246

586

246

n/a

n/a

Other payables

9

-

-

-

-

1,874

1,613

1,874

1,613

n/a

n/a

 

 

 

 

 

 

 

 

-

 

Total Financial Liabilities (Recognised)

 

-

-

-

-

2,460

1,859

2,460

1,859

 

Total Liabilities

 

 

 

 

3,576

2,740

 

(c) Net fair value of Financial Assets and Liabilities

 

2006

 

2006

 

2005

 

2005

 

$'000

 

$'000

 

$'000

 

$'000

Notes

Total carrying amount

 

Aggregate net fair value

 

Total carrying amount

 

Aggregate netfair value

Financial Assets

 

 

 

 

 

 

 

 

Cash at bank

6A

78

 

78

 

1,462

1,462

Cash on hand

6A

-

 

-

 

-

-

Receivables for goods and services (net)

6B

371

 

371

 

236

236

Other debtors

6B

135

 

135

 

30

30

Receivable from OPA

6B

5,000

 

5,000

 

3,000

3,000

Total Financial Assets

 

5,585

 

5,585

 

4,728

4,728

 

 

 

 

 

Financial Liabilities (Recognised)

Trade creditors

9

586

 

586

 

246

246

Other payables

9

1,874

 

1,874

 

1,613

1,613

(Recognised)

 

2,460

 

2,460

 

1,859

1,859

Financial Assets

The net fair value of cash, deposits on call and non-interest bearing monetary financial assets approximate their carrying amounts.

Financial Liabilities

The net fair value for trade creditors is short term in nature and is the approximated carrying amounts.

None of the classes of financial liabilities is readily traded on organised markets in standardised form.

(d) Credit Risk Exposures

NICNAS's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet.

NICNAS has no significant exposures to any concentration of credit risk.

All figures for credit risk referred to do not take into account the value of any collateral or other security.