Heide Museum of Modern Art 2010 Annual Report

14. Notes to the Financial Statements Note 18: Financial Risk Management
NOTE 18: FINANCIAL RISK MANAGEMENT
Heide Museum of Modern Art
2010 Annual Report
The company’s financial instruments consist mainly of deposits with banks, local money
market instruments, short-term investments and accounts receivable and payable.
The totals for each category of financial instruments, measured in accordance with AASB
139 as detailed in the accounting policies to these financial statements, are as follows:
Financial Assets
Note
2010
$
2009
$
Cash and cash equivalents 4 104,807 190,885
Trade and other receivables 5 857,886 696,482
Available-for-sale financial assets
Equity investments 6 1,162,683 1,235,400
Financial Liabilities
Financial liabilities at amortised cost
2,125,376 2,122,767
Trade and other payables 10 1,422,858 1,333,062
Borrowings 11 6,418 9,179
Financial Risk Management Policies
1,429,276 1,342,241
The Board’s overall risk management strategy seeks to assist the company in meeting its
financial targets, whilst minimising potential adverse effects on financial performance.
Risk management policies are reviewed by the board on a regular basis. These include
credit risk policies and future cash flow requirements.
Specific Financial Risk Exposures and Management
The main risks the company is exposed to through its financial instruments are interest
rate risk, liquidity risk, credit risk and equity price risk.
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