Financial Position
Financial Position | This section analyses the AMFRTF 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. | |||
2.1: Financial Assets | ||||
2021 | 2020 | |||
$ | $ | |||
2.1A: Cash and Cash Equivalents | ||||
Cash at bank and on hold | 227,113 | 316,400 | ||
Cash management call account | 623,573 | 865,756 | ||
Term deposits | 2,881,758 | 1,763,911 | ||
Total cash and cash equivalents | 3,732,444 | 2,946,067 | ||
Accounting Policy | ||||
Cash is recognised at its nominal amount. Cash and cash equivalents includes: a) cash on hand; b) term deposits in bank accounts with an original maturity of 12 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. | ||||
2.1B: Loans and Other Receivables | ||||
Loans outstanding | 2,558,279 | 3,190,760 | ||
Accrued interest | 9,294 | 8,606 | ||
Total loans and other receivables (gross) | 2,567,573 | 3,199,366 | ||
Less: Impairment allowance | (36,015) | (50,712) | ||
Total loans and other receivables (net) | 2,531,558 | 3,148,654 | ||
Loans for Army members are made under contract for a period up to two years. No security is required. Interest of 2% is charged as a maintenance contribution fee on general loans. | ||||
Accounting Policy | ||||
Loans and Receivables | ||||
Trade receivables, loans and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest are measured at amortised cost using the effective interest method adjusted for any loss allowance. Impairment of any debts is reviewed at end of the reporting period. | ||||
Reconciliation of the Impairment Allowance | ||||
Movements in relation to 2021 | ||||
Loans | Total | |||
$ | $ | |||
As at 1 July 2020 | (50,712) | (50,712) | ||
Bad debts written off | 9,861 | 9,861 | ||
Amounts recovered and reversed | 7,514 | 7,514 | ||
Increase recognised in net surplus | (2,678) | (2,678) | ||
Total as at 30 June 2021 | (36,015) | (36,015) | ||
Movements in relation to 2020 | ||||
Loans | Total | |||
$ | $ | |||
As at 1 July 2019 | (74,643) | (74,643) | ||
Bad debts written off | 13,130 | 13,130 | ||
Amounts recovered and reversed | 16,969 | 16,969 | ||
Increase recognised in net surplus | (6,168) | (6,168) | ||
Total as at 30 June 2020 | (50,712) | (50,712) | ||
Accounting policy | ||||
Financial assets are assessed for impairment at the end of each reporting period using an expected credit loss model. | ||||
2.2: Non-Financial Assets | ||||
2021 | 2020 | |||
$ | $ | |||
2.2A: Prepayments | ||||
Prepayments | 277 | 277 | ||
Total prepayments | 277 | 277 | ||
No indicators of impairment were found for other non-financial assets. | ||||
2.3: Payables | ||||
2021 | 2020 | |||
$ | $ | |||
2.3A: Suppliers | ||||
Trade creditors and accruals | 10,828 | 20,240 | ||
Total Suppliers | 10,828 | 20,240 | ||
Accounting Policy | ||||
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). | ||||
Visit
https://www.transparency.gov.au/annual-reports/australian-military-forces-relief-trust-fund/reporting-year/2020-21-4