Recognised financial instruments Victoria Legal Aid's accounting policies, including the terms and conditions of each class of financial asset, financial liability and equity instrument, both recognised and unrecognised at balance date, are as follows: Note 18. Financial instruments (continued) Recognised Balance Accounting policies Terms and conditions financial sheet instruments notes (i) Financial assets Cash at bank and on 6 Cash at bank and on hand are Cash at bank is held at normal hand stated at their principal commercial interest rates. amount. Interest is recognised in the comprehensive operating statement when earned. Monies held in trust 6 Monies held in trust is not Monies held in trust is held at recognised in the normal commercial interest comprehensive operating rates. statement, but is offset by related expenditure when incurred. Accrued income 7 Accrued income is recognised Accrued income is dependant in the comprehensive on the agreements in place operating statement when with the third parties for work earnt, but yet to be received. carried out. Client contributions 8 Client contributions are The organisation can request a receivable actuarially adjusted to their client to contribute toward the net present value. cost of providing assistance. Clients pay contributions in such a manner and within such a time as the organisation directs. The organisation may take security against costs incurred on their behalf. Term deposits 6 Term deposits are stated at Term deposits are invested as their principal amount. Interest funds permit at normal is recognised in the commercial rates available at comprehensive operating the time of investment. statement when earned. Note 18. Financial instruments (continued)
Recognised financial instruments Victoria Legal Aid's accounting policies, including the terms and conditions of each class of financial asset, financial liability and equity instrument, both recognised and unrecognised at balance date, are as follows: Note 18. Financial instruments (continued) Recognised financial instruments Balance sheet notes Accounting policies Terms and conditions (i) Financial assets Cash at bank and on hand 6 Cash at bank and on hand are stated at their principal amount. Interest is recognised in the comprehensive operating statement when earned. Cash at bank is held at normal commercial interest rates. Monies held in trust 6 Monies held in trust is not recognised in the comprehensive operating statement, but is offset by related expenditure when incurred. Monies held in trust is held at normal commercial interest rates. Accrued income 7 Accrued income is recognised in the comprehensive operating statement when earnt, but yet to be received. Accrued income is dependant on the agreements in place with the third parties for work carried out. Client contributions receivable 8 Client contributions are actuarially adjusted to their net present value. The organisation can request a client to contribute toward the cost of providing assistance. Clients pay contributions in such a manner and within such a time as the organisation directs. The organisation may take security against costs incurred on their behalf. Term deposits 6 Term deposits are stated at their principal amount. Interest is recognised in the comprehensive operating statement when earned. Term deposits are invested as funds permit at normal commercial rates available at the time of investment. Note 18. Financial instruments (continued)