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Leases
Operating leases
Leases where the lessor effectively retains substantially all the risks and
benefits of ownership of the leased items are classified as operating
leases. Operating lease expenses are recognised on a straight line basis
over the period of the lease in the statement of financial performance.
Cash and cash equivalents
Cash and cash equivalents means cash balances on hand, cash held in
bank accounts, term deposits with original maturities of three months
or less and other highly liquid investments, in which the Commission
invests as part of its day-to-day cash management.
Debtors and other receivables
Accounts receivable are stated at their estimated realisable value after
providing for doubtful and uncollectable debts. When the receivable is
uncollectible, it is written off against the provision for doubtful debts.
Investments
Investments in bank deposits are initially measured at fair value and
subsequently at fair value less any provision for impairment. Impairment
is established when there is objective evidence that the Law Commission
will not be able to collect any amounts due according to the original
terms of the deposit.
Property, plant and equipment
Property, plant and equipment asset classes consist of library collection,
furniture and fittings, computer hardware and office equipment.
All classes are initially recorded at cost. Library collections are stated at
fair value. Fair value is determined using market based evidence by an
independent valuer. Library collections are valued every three to four
years. Additions between revaluations are recorded at cost.
The carrying values of revalued items are reviewed at each balance date
to ensure that those values are not materially different to f
Accounting for revaluations
The Commission accounts for revaluations of property, plant and
equipment on a class of assets basis.
The results of revaluing are credited or debited to an asset revaluation
reserve for that class of asset. Where this results in a debit balance in
the asset revaluation reserve, this balance is expensed in the statement