Notes To The Financial Statements (Continued) 30 June 2015 Cash and cash equivalents Cash and cash equivalents in the statement of financial position comprise of cash at bank and on hand. For the purpose of the consolidated and organisation statement of cash flows, cash and cash equivalents consist of cash at bank and on hand, net of outstanding bank overdrafts. Inventories Inventories are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Inventories are subsequently measured at a weighted average cost. Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Assets held under finance leases are recognised as assets of the organisation at their fair value or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Rentals payable under operating leases are charged to income on a straight-line basis over the term of the lease. Legal Resources Foundation Annual Report 2015 49