GPW_AR_2013_Final_v10.pdf

125 year anniversary

ACCOUNTING POLICIES Annual Financial Statements for the year ended 31 March 2013

8VEHI ERH SXLIV VIGIMZEFPIW Trade receivables are recognised initially at fair value. Appropriate allowances for estimated irrecoverable amounts are recognised in surplus or de ½ cit when management believes that the asset is impaired. Signi ½ cant ½ nancial dif ½ culties of the debtor, probability that the debtor will enter bankruptcy or ½ nancial reorganisation, and default or delinquency in payments (more than 90 days overdue) are considered indicators that the trade receivable is impaired. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the statement of ½ nancial performance within operating expenses. The amount of the allowance is calculated in accordance with the doubtful debt policy of the GPW. When a trade receivable is irrecoverable, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited in the statement of comprehensive income.

Trade and other receivables are classi ½ ed as loans and receivables.

8VEHI ERH SXLIV TE]EFPIW Trade payables are initially and subsequently measured at fair value.

'EWL ERH GEWL IUYMZEPIRXW Cash and cash equivalents comprise cash on hand and deposits held and owed by Paymaster General.These are initially and subsequently recorded at fair value.

1.4 Operating leases Leases of assets under which all the risks and bene ½ ts of ownership are effectively retained by the lessor are classi ½ ed as operating leases. Payments made under operating leases are charged to the statement of comprehensive income on a straight-line basis over the period of the lease, except where it is immaterial in relation to the total lease payments, and where variable escalation forms part of the payments.

Operating leases are those leases that do fall within the scope of the above de ½ nition. Operating lease rentals are expensed as they become due.

1.5 Inventories Inventories are measured at the lower of cost and net realisable value, determined on standard cost.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for speci ½ c projects is assigned using speci ½ c identi ½ cation of the individual costs.

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