Creditors and other payables due within 12 months are recognised at their nominal value, unless the effect of discounting is material. Creditors and other payables due beyond 12 months are subsequently measured at amortised cost using the effective interest rate method, where applicable.
Unaudited budget 2021
|Creditors and other payables - exchange transactions|
|$34,520||Accrued expenses - other||$21,881||$29,600|
|$35,075||Total creditors and other payables - exchange transactions||$22,274||$31,055|
|Creditors and other payables - non-exchange transactions|
|$13,530||Total creditors and other payables - non-exchange transactions||$7,764||$9,000|
|$48,605||Total creditors and other payables||$30,038||$40,055|
Creditors and other payables are normally settled on 30-day terms. Therefore the carrying value of creditors and other payables approximates their fair value.
Explanation of major variances against budget
Creditors and other payables were $10.017 million below budget due to early settlement of payables as an outcome of the Government’s request to pay 95% of domestic suppliers within 10 business days, and invoices received and processed on time resulting in less accruals at the end of the year.