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5. Managing Uncertainties

This section analyses how the DTA manages financial risks within its operating environment.

5.1 Contingent Asset and Liabilities

Note 5.1A: Contingent Assets and Liabilities

(The DTA is not aware of any material departmental quantifiable or unquantifiable contingent assets or liabilities as at the signing date that would require disclosure in the financial statements.)

Accounting Policy

(Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.)

5.2 Financial Instruments

2018

$’000

2017

$’000

Note 5.2A: Categories of Financial Instruments

Financial Assets

Held-to-maturity investments

Cash and cash equivalents

794

557

Total held-to-maturity investments

794

557

Loans and receivables

Goods and services receivables

121,518

3,838

Total loans and receivables

121,518

3,838

Total financial assets

122,312

4,395

Financial Liabilities

Financial liabilities measured at amortised cost

Trade creditors and accruals

43,727

4,896

Total financial liabilities measured at amortised cost

43,727

4,896

Total financial liabilities

43,727

4,896

Note 5.2B: Net Gains or Losses on Financial Assets and Liabilities

The DTA has no gains or losses on financial instruments.

Accounting Policy

(Financial assets)

The DTA classifies its financial assets in the following categories:

  1. held-to-maturity investments
  2. loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Financial Liabilities

Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’. 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).