Note 2.1 Financial Assets

FINANCIAL POSITION

This section analyses Comcare's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

Note 2.1: FINANCIAL ASSETS

    2016
$'000
2015
$'000
2.1A Cash and Cash Equivalents
Cash at bank and on hand 2,339 3,619
Deposits at call 13,000 9,000
Term deposits 805,000 665,000
Total cash and cash equivalents 820,339 677,619

 

Accounting Policy

Cash is recognised at its nominal amount. Cash and cash equivalents include cash on hand and demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

 

 

2.1B

Trade and Other Receivables

2016
$'000

2015
$'000

Goods and services receivable
Goods and services 229 13,039
Total receivables for goods and services 229 13,039
Appropriations receivable
For existing programs1 2,802,684 2,787,681
Total appropriations receivable 2,802,684 2,787,681
Other receivables
Third party claims recoveries receivable 9,600 8,700
Third party claims recoveries receivable - common law asbestos related claims 141,680 135,380
Claims recoveries 6,187 6,314
GST receivable from the Australian Taxation Office 882 704
Other receivables (34) 1
Total other receivables
158,315 151,099
Total trade and other receivables (gross) 2,961,228 2,951,819
Less impairment allowance account
Goods and services (1) (98)
Claims recoveries (1,019) (959)
Total impairment allowance account (1,020) (1,057)
Total trade and other receivables (net) 2,960,208 2,950,762
Trade and other receivables (net) expected to be recovered
   No more than 12 months 69,027 85,267
   More than 12 months 2,891,181 2,865,495
Total trade and other receivables (net) 2,960,208 2,950,762
Trade and other receivables (gross) aged as follows
Not overdue 2,955,790 2,947,147
Overdue by:
   0 to 30 days 78 665
   31 to 60 days 124 355
   61 to 90 days 112 73
   More than 90 days 5,124 3,579
Total trade and other receivables (gross) 2,961,228 2,951,819
    2016 2015
    $'000 $'000
 
Impairment allowance aged as follows
Not overdue - -
Overdue by:
   0 to 30 days - -
   31 to 60 days - -
   61 to 90 days - -
   More than 90 days (1,020) (1,057)
Total impairment allowance (1,020) (1,057)

 

Credit terms for goods and services were within 30 days (2015: 30 days)

Note:
1. The value disclosed is the combined value of the pre-premium special appropriation receivable, asbestos related disease special appropriation receivable and net premiums held in the Commonwealth Consolidated Revenue Fund as identified in
the Overview.

 

Accounting Policy

Revenue from the sale of goods is recognised when:

  • the risks and rewards of ownership have been transferred to the buyer;
  • Comcare retains no managerial involvement nor effective control over the goods;
  • the revenue and transaction costs incurred can be reliably measured; and
  • it is probable that the economic benefits associated with the transaction will flow to Comcare.

Revenue from the rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

  • the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
  • the probable economic benefits associated with the transaction will follow to Comcare.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed as at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loan and receivables’. Receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

 

Reconciliation of the Impairment Allowance

Movements in relation to 2016
  Goods and services
$'000
Other receivables
$'000
Total
$'000
As at 1 July 2015 98 959 1,057
Amounts written off (97) (2,692) (2,789)
Increase/ (decrease) recognised in net surplus - 2,752 2,752
Total as at 30 June 2016 1 1,019 1,020
Movements in relation to 2015
  Goods and services
$'000
Other receivables
$'000
Total
$'000
As at 1 July 2015 18 772 790
Amounts written off  -    (3,973) (3,973)
Increase/ (decrease) recognised in net surplus 80 4,160 4,240
Total as at 30 June 2015 98 959 1,057

 

Accounting Policy

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

Financial assets held at amortised cost. If there is objective evidence that an impairment loss has been incurred for receivables held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

 

 

2.1C

Other financial assets

2016
$'000

2015
$'000

Interest accrued 12,440 12,784
Other 2 24
Total other financial assets 12,442 12,808
Other financial assets are expected to be recovered    
   No more than 12 months 12,442 10,570
   More than 12 months 0 2,238
Total other financial assets 12,442 12,808