Annual report 2021/22

Note 12: Payables and deferred revenue

Accounting policy

Short-term payables are recorded at the amount payable.

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.

Actual
2021/22
$000
Actual
2020/21
$000
Current payables and deferred revenue under exchange transactions
Creditors and other payables 1,811 1,790
Income in advance 5,290 5,563
Accrued expenses 1,069 618
Total payables under exchange transactions 8,170 7,971
Current payables and deferred revenue under non-exchange transactions
GST payable 1,002 717
Total payables and deferred revenue under non-exchange transactions 1,002 717
Total current payables and deferred revenue 9,172 8,688
Non-current payables and deferred revenue under exchange transactions
Other payables 289 -
Total non-current payables and deferred revenue 289 -

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.