(a) Terms, conditions and accounting policies

Financial Instrument	Notes	Accounting Policies and Methods (including recognition criteria and measurement basis)	Nature of underlying instrument (including significant terms & conditions affecting the amount, timing and certainty of cash flow)
Financial Assets		Financial assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured.
Cash	6A	Deposits are recognised at their nominal amounts.	Surplus cash held by NICNAS above the agreed upon daily working cash balance is transferred to the Official Public Account (OPA).
Receivables for goods and services	6B	These receivables are recognised at the nominal amounts due less any provision for bad or doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when the collection of the debt is judged to be less rather than more likely.	Credit terms are net 28 days.
Receivable from OPA	6B	These receivables are recognised at their nominal amounts.	Cash in excess of allocated working levels are transferred to the OPA.
Financial Liabilities		Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured.
Trade Creditors	9A	Creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent the goods and services have been received (and irrespective of having being invoiced).	Settlement is usually made net 30 days
Other Payables	9B	Where a service has been invoiced in advance or a service payment has been received in advance, the relevant amount is disclosed as unearned income.	The provision of service is only recognised as revenue when the service has been provided.

(b) Interest Rate Risk

Financial Instrument	Notes	Floating Interest Rate	Fixed Interest Rate	Non Interest Bearing	Total	Weighted Average Effective Interest Rate
		2006	2005	2006	2005	2006	2005	2006	2005	2006	2005
		$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	%	%
Financial Assets
Cash at bank	6A	-	-	-	-	78	1,462	78	1,462	n/a	n/a
Cash on hand	6A	-	-	-	-	-	-	-	-	n/a	n/a
Receivables for goods and services (gross)	6B	-	-	-	-	371	236	371	236	n/a	n/a
Receivable from OPA	6B	-	-	-	-	5,000	3,000	5,000	3,000	n/a	n/a
Other debtors	6B	-	-	-	-	135	30	135	30
Total Financial Assets (Recognised)		-	-	-	-	5,585	4,728	5,585	4,728
Total Assets								6,126	4,920
Financial Liabilities									-
Trade creditors	9	-	-	-	-	586	246	586	246	n/a	n/a
Other payables	9	-	-	-	-	1,874	1,613	1,874	1,613	n/a	n/a
									-
Total Financial Liabilities (Recognised)		-	-	-	-	2,460	1,859	2,460	1,859
Total Liabilities								3,576	2,740

(c) Net fair value of Financial Assets and Liabilities
		2006	2006	2005	2005
		$'000	$'000	$'000	$'000
	Notes	Total carrying amount	Aggregate net fair value	Total carrying amount	Aggregate netfair value
Financial Assets
Cash at bank	6A	78	78	1,462	1,462
Cash on hand	6A	-	-	-	-
Receivables for goods and services (net)	6B	371	371	236	236
Other debtors	6B	135	135	30	30
Receivable from OPA	6B	5,000	5,000	3,000	3,000
*Total Financial Assets*		5,585	5,585	4,728	4,728

Financial Liabilities (Recognised)
Trade creditors	9	586	586	246	246
Other payables	9	1,874	1,874	1,613	1,613
*(Recognised)*		2,460	2,460	1,859	1,859

Financial Assets

The net fair value of cash, deposits on call and non-interest bearing monetary financial assets approximate their carrying amounts.

Financial Liabilities

The net fair value for trade creditors is short term in nature and is the approximated carrying amounts.

None of the classes of financial liabilities is readily traded on organised markets in standardised form.

(d) Credit Risk Exposures

NICNAS's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet.

NICNAS has no significant exposures to any concentration of credit risk.

All figures for credit risk referred to do not take into account the value of any collateral or other security.