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.
| Actual 2021 ($000) | Creditors and other payables | Actual 2022 ($000) | Unaudited budget 2022 ($000) |
|---|---|---|---|
| Creditors and other payables - exchange transactions | |||
| $49 | Accounts payable | $6,951 | $3,000 |
| $21,881 | Accrued expenses - other | $17,405 | $26,000 |
| $344 | Lease incentive | $233 | $455 |
| $22,274 | Total creditors and other payables - exchange transactions | $24,589 | $29,455 |
| Creditors and other payables - non-exchange transactions | |||
| $7,764 | GST payable | $9,340 | $9,000 |
| $7,764 | Total creditors and other payables - non-exchange transactions | $9,340 | $9,000 |
| $30,038 | Total creditors and other payables | $33,929 | $38,455 |
Creditors and other payables are normally settled on 30-day terms. Therefore, the carrying value of creditors and other payables approximates to their fair value.
Explanation of major variances against budget
Creditors and other payables were $4.526 million below budget, due to early settlement of payables as an outcome of the Government's objective 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. Inland Revenue achieved 96.3% of domestic suppliers paid within 10 working days in 2021–22.