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.
| Creditors and other payables | Actual 2023 ($000) | Actual 2024 ($000) | Unaudited budget 2024 ($000) |
|---|---|---|---|
| Creditors and other payables–exchange transactions | |||
| Accounts payable | $8,989 | $9,888 | $2,000 |
| Accrued expenses–other | $19,853 | $17,431 | $18,000 |
| Lease incentive | $158 | $521 | $156 |
| Total creditors and other payables–exchange transactions | $29,000 | $27,840 | $20,156 |
| Creditors and other payables–non-exchange transactions | |||
| GST payable | $11,078 | $8,265 | $8,000 |
| Total creditors and other payables–non-exchange transactions | $11,078 | $8,265 | $8,000 |
| Total creditors and other payables | $40,078 | $36,105 | $28,156 |
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. The government’s objective is to pay 95% of invoices to domestic suppliers within 10 business days. IR achieved 96.3% of domestic suppliers paid within 10 business days in 2023–24.
Explanation of major variances against budget
Creditors and other payables were $7.949 million above budget due to the timing of some large suppliers' invoices being received and recognised in June 2024 and paid in July 2024.