Recognised financial Balance Accounting policies Terms and conditions instruments sheet notes (ii) Financial liabilities Case-related 11 Liabilities are recognised for Liability is normally settled on professional creditors amounts to be paid in the 30-day terms. future for goods and services received, whether or not billed to the organisation. Monies held in trust 11 Monies held in trust is not Monies held in trust does not recognised in the incur penalty interest rates. comprehensive operating statement, but is offset by related expenditure when incurred. Trade creditors 11 Liabilities are recognised for Liability is normally settled on amounts to be paid in the 30-day terms. future for goods and services received, whether or not billed to the organisation. Interest rate risk exposures Exposures to interest rate risk are limited to assets and liabilities bearing variable interest rates. The majority of financial assets are term deposits with fixed interest rates and terms. These are held to maturity. The carrying amounts of financial assets and liabilities held by Victoria Legal Aid that are exposed to interest rates are detailed in the following table. Note 18. Financial instruments (continued) Fixed Weighted Floating interest average interest maturing in interest rate rate 1 year or less bearing Total 2016 Notes % $’000 $’000 $’000 $’000 Financial assets Cash at bank and on hand 6 2.25% 9,282 - - 9,282 Monies held in trust 6 1.25% 1,821 - - 1,821 Accrued income 0% - - 706 706 Term deposits 6 2.95% - 39,421 - 39,421 Receivables (i) 8 0% - - 17,465 17,465 11,103 39,421 18,171 68,695 Financial liabilities Case-related professional creditors 11 0% - - 14,877 14,877 Monies held in trust 11 0% - - 1,821 1,821
Recognised financial instruments Balance sheet notes Accounting policies Terms and conditions (ii) Financial liabilities Case-related professional creditors 11 Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the organisation. Liability is normally settled on 30-day terms. Monies held in trust 11 Monies held in trust is not recognised in the comprehensive operating statement, but is offset by related expenditure when incurred. Monies held in trust does not incur penalty interest rates. Trade creditors 11 Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the organisation. Liability is normally settled on 30-day terms. Interest rate risk exposures Exposures to interest rate risk are limited to assets and liabilities bearing variable interest rates. The majority of financial assets are term deposits with fixed interest rates and terms. These are held to maturity. The carrying amounts of financial assets and liabilities held by Victoria Legal Aid that are exposed to interest rates are detailed in the following table. Note 18. Financial instruments (continued) 2016 Notes Weighted average interest rate % Floating interest rate $’000 Fixed interest maturing in 1 year or less $’000 bearing $’000 Total $’000 Financial assets Cash at bank and on hand 6 2.25% 9,282 - - 9,282 Monies held in trust 6 1.25% 1,821 - - 1,821 Accrued income 0% - - 706 706 Term deposits 6 2.95% - 39,421 - 39,421 Receivables (i) 8 0% - - 17,465 17,465 11,103 39,421 18,171 68,695 Financial liabilities Case-related professional creditors 11 0% - - 14,877 14,877 Monies held in trust 11 0% - - 1,821 1,821
vla-annual-report-2015-16-accessible-version.docx