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Notes - Managing Uncertainties

Wreck Bay Aboriginal Community Council

ABN: 62 564 797 956

Notes to and forming part of the financial statements

for the period ended 30 June 2020

MANAGING UNCERTAINTIES

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

4.1: Contingent Assets and Liabilities

Claims for damages or costs

Total

2020 $

2019 $

2020 $

2019 $

Contingent liabilities

Balance from previous period

50,000

50,000

50,000

50,000

New contingent liabilities recognised

-

50,000

-

50,000

Liabilities realised

(50,000)

(50,000)

(50,000)

(50,000)

Total contingent liabilities

-

50,000

-

50,000

Net contingent liabilities

-

50,000

Quantifiable Contingencies

There is currently nil contingencies that council is aware of.

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.

4.2: Financial Instruments

2020

2019

$

$

4.2A: Categories of Financial Instruments

Financial assets

Financial assets at amortised cost

Term deposits

1,080,723

1,060,913

Cash and cash equivalents

4,321,916

1,365,551

Trade and other receivables

785,478

562,087

Total financial assets at amortised cost

6,188,117

2,988,551

Total financial assets

6,188,117

2,988,551

Financial liabilities

Financial liabilities measured at amortised cost

Trade creditors & accrued expenses

301,453

236,736

Rent received in advance (Park)

78,438

77,356

Grants in advance

3,510,421

72,585

Total financial liabilities measured at amortised cost

3,890,312

386,677

Total financial liabilities

3,890,312

386,677