Notes To The Financial Statements (Continued)
For The Year Ended 30 June 2014
15 LONG TERM PAYABLES
2014
2013
$ $
Interest Rate
Secured loans at amortized cost
Bank loans
16% 373 690
396 835
Amount due for settlement within 12 months 19 559
15 528
Amount due for settlement after 12 months
373 690 396 835
393 249 412 363
The principal features of the organisation’s borrowings are as follows:
(a) A mortgage loan of US $432,418. The loan was taken out on 01 August 2011
and is repayable in equal monthly installments over 10 years. The loan
carries an effective interest rate at 16.0 % per annum.
The mortgage was used for the purchase of 16 Oxford Road property.
Title deeds for Amalungelo Building, 94 Fort Street, Bulawayo valued
at $105 000.00 were ceded as part collateral for the mortgage.
16 TRADE AND OTHER PAYABLES
Unutilised Project Funds - Danida Special Projects
Other
3 369 618 175 629
195 016 218 887
3 564 634 394 516
Trade and other payables are non-interest bearing and are normally settled on 30 – 60 day terms.
17 COMMITMENTS AND CONTIGENCIES
Operating lease commitments - Board as Lessee
The organisation has entered into a commercial lease on building from which its Legal Publications Unit is located.
The life of the lease is 3years in which a renewal option is included. There are no restrictions placed upon the organisation.
Future minimum rentals payable under non-cancelled operating as at 30 June are as follows
Within one year
146 472 160 567
Interest bearing loans
The organisation obtained a mortgage facility as disclosed in note 15
18 PRIOR PERIOD ADJUSTMENTS
Interest bearing borrowings of $425,609 were incorrectly included in accounts payable
at 30 June 2012 at $387,790. The financial statements of 2013 have been restated
to correct this error. The effect of the restatement on those financial statements is
summarised below. There is no effect in 2013.
Impact on Statement of Financial Position
2013
$
Decrease in accounts payables
(396 835)
Increase in long term liabialities
396 835
Impact on Statement of Profit or Loss and Other Comprehensive income
Increase in deficit
103 456
Impact on Statement of Cash Flows
Increase in financing activities
Decrease in operating activities
Impact on Statement of Cash Flows
Prior year interest adjustment
396 835
5 000
53
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