Note 12: Payables and deferred revenue

Accounting policy

Short-term payables are recorded at their face value.

Income in advance is recognised where amounts billed are in excess of the amounts recognised as revenue.

Critical accounting estimates and assumptions

The value of income in advance is affected by the assessment of the value of audit fee revenue for engagements open at balance date, which is a significant area where such judgements, estimations, and assumptions are made. This involves estimating the stage of completion of each engagement based on the value of work completed at balance date and the expected work to complete the engagement. A different assessment of the outcome on an engagement might result in a different value being determined for revenue and also a different carrying value for income in advance or work in progress.

Breakdown of payables and deferred revenue

  Actual
2017/18
$000
Actual
2016/17
$000
Current payables and deferred revenue under exchange transactions
Creditors and other payables 1,092 1,156
Income in advance 3,333 2,619
Accrued expenses 328 308
Total payables under exchange transactions 4,753 4,083
Current payables and deferred revenue under non-exchange transactions    
GST payable 942 702
Total payables and deferred revenue under non-exchange transactions 942 702
Total current payables and deferred revenue 5,695 4,785
      
Non-current payables and deferred revenue under exchange transactions    
Other payables 10 22
Total non-current payables and deferred revenue 10 22

Payables are non-interest-bearing, and are normally settled on 30-day terms. The carrying value of creditors and other payables therefore approximates their fair value.