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.