2.3A: Suppliers

Trade creditors and accruals

Operating lease rentals

Total suppliers

2.3B: Other Payables

Salaries and wages

Superannuation

Unearned income

Other payables - Other

Total other payables

All other payables are expected to be settled within 12 months.

Accounting Policy

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

Financial Liabilities at Fair Value through Profit or Loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Financial Liabilities at Amortised Cost

Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective interest basis.

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).

Trade and other payables

These amounts represent liabilities for goods and services provided to the Mint prior to the end of the financial year and which are unpaid, and customer deposits lodged in advance of allocation to future purchases. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Salary and Wages, Superannuation

Salary and wages, and superannuation payable represents the value accrued for the period between the final payday for the financial year, and the last working day of the financial year. Accounting policies for employee related expenses can be found in Note 4.1 Employee Provisions.

2.4 Interest Bearing Liabilities

2.4: Leases

Finance leases

Total leases

Finance Leases expected to be settled

Within 1 year:

Between 1 to 5 years:

More than 5 years:

Total leases

Finance leases exist for:

a) Data storage equipment. This equipment lease was non-cancellable, with a fixed term of 60 months, no residual value. This lease concluded in March 2019.

b) Precious metal blanking (foundry) equipment. The lease is cancellable, with all losses borne by the Mint. It is for a fixed term of 10 years with two 10 year options and nil residual value. The 10 year government bond yield of 2.38 percent was used for discounting future lease liabilities.

There are no contingent rentals.

Accounting Policy

Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and rewards.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease asset or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is either the interest rate implicit in the lease or the Government bond rate of equivalent term as disclosed in the above rate. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.