Table A: Accounting policies (continued) Financial instrument Accounting policies and methods Nature of underlying instrument Unrecognised financial liabilities: Commitments Commitments are recognised where there are obligations or Commitments recorded include the following classes of undertakings to make future payments to other entities that exist transactions: at the end of the reporting period and have not been recognised - committed future year grant payments; as liabilities in the Statement of Financial Position. - non-cancellable operating obligations; - capital commitments for the acquisition or improvement of property, plant and equipment; and - commitments in respect of contractual obligations for goods and services that have not been provided at balance date. Guarantees/Indemnities The amounts guaranteed or indemnified by the Commonwealth The guarantees or indemnities have been given in have been disclosed in the Schedule of Contingencies. At the relation to various schemes/activities operated/supported time of completion of the financial statements, there was no by the Commonwealth and in relation to borrowing reason to believe that the guarantees would be called upon, and obligations. recognition of the liabilities was therefore not required. Other contingencies Other contingencies relate to litigation action pending against the Legal action pending against and contested by the Commonwealth and other liabilities the future materialisation of Commonwealth, and other contingent liabilities. which is uncertain, and are disclosed in the Schedule of Contingencies. Derivatives Refer to 38(b) Derivatives for a detailed coverage of — accounting treatment and the underlying nature of the relevant financial instruments. Table B: Interest rate risks financial assets — Table B: Interest rate risks financial liabilities —
Table A: Accounting policies (continued) Financial instrument Accounting policies and methods Nature of underlying instrument Unrecognised financial liabilities: Commitments Commitments are recognised where there are obligations or undertakings to make future payments to other entities that exist at the end of the reporting period and have not been recognised as liabilities in the Statement of Financial Position. Commitments recorded include the following classes of transactions: - committed future year grant payments; - non-cancellable operating obligations; - capital commitments for the acquisition or improvement of property, plant and equipment; and - commitments in respect of contractual obligations for goods and services that have not been provided at balance date. Guarantees/Indemnities The amounts guaranteed or indemnified by the Commonwealth have been disclosed in the Schedule of Contingencies. At the time of completion of the financial statements, there was no reason to believe that the guarantees would be called upon, and recognition of the liabilities was therefore not required. The guarantees or indemnities have been given in relation to various schemes/activities operated/supported by the Commonwealth and in relation to borrowing obligations. Other contingencies Other contingencies relate to litigation action pending against the Commonwealth and other liabilities the future materialisation of which is uncertain, and are disclosed in the Schedule of Contingencies. Legal action pending against and contested by the Commonwealth, and other contingent liabilities. Derivatives Refer to 38(b) — Derivatives for a detailed coverage of accounting treatment and the underlying nature of the relevant financial instruments. Table B: Interest rate risks — financial assets Table B: Interest rate risks — financial liabilities
CCFS_2001_Note_2_to_39.docx