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5.2 Financial Instruments

5.2A: Categories of financial instruments

2020

2019

$'000

$'000

Financial assets at amortised cost

Cash on hand and at bank

13,389

12,785

Trade and other receivables

615

2,877

Total financial assets

14,004

15,662

Financial liabilities

Financial liabilities measured at amortised cost:

Trade creditors and accruals

1,843

1,445

Total financial liabilities

1,843

1,445

5.2B: Net gains or losses on financial instruments

2020

2019

$'000

$'000

Financial assets at amortised cost

Interest revenue

185

261

Net gain from financial assets at amortised cost

185

261

The Commission holds only cash and receivables as financial assets and trade creditors and accruals as financial liabilities.

Accounting Policy

With the implementation of AASB 9 Financial Instruments for the first time in 2019, the Commission classifies all financial instruments at amortised cost.

Financial Assets at Amortised Cost

Financial assets included in this category need to meet two criteria:

1. the financial asset is held in order to collect the contractual cash flows; and

2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Amortised cost is determined using the effective interest method.

Effective Interest Method

Income is recognised on an effective interest rate basis for financial assets recognised at amortised cost.

Financial Liabilities at Amortised Cost

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