2009/2010 IFA Annual Report - Institute of Foresters of Australia

15. Financial Risk Management (continued)
Total
$
Post – employment
Benefit
$
Short –term
Benefit
$
Key management personnel compensation
13.
(c) Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance
date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those
assets, as disclosed in the balance sheet and notes to the financial statements.
The company does not have any material credit risk exposure to any single receivable or group of receivables
under financial instruments entered into.
2010
Total compensation 115,463 10,600 126,063
2009
Total compensation 90,568 8,152 98,720
Credit risk is managed by the entity and reviewed regularly by the board. It arises from exposures to customers
as well as through deposits with financial institutions.
Financial Instruments Composition and Maturity Analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments of a fixed
period of maturity, as well as management’s expectations of the settlement period for all other financial
instruments. As such, the amounts may not reconcile to the balance sheet.
Assets and Liabilities of Trust for which the Company
is a Trustee
The Institute of Foresters is the trustee of the Forestry Scholarship Fund ‘the Fund’. The Fund was established
for the purpose of providing scholarships for the study of forestry. Details of the underlying assets and liabilities
are as follows:
14.
2009
$
2010
$
20 IFA Company Annual Report 2009/10
Current Assets
Cash 10,000 -
Financial Instruments Composition and Maturity Analysis
The table below reflects the undiscounted contractual settlement terms for financial
instruments of a fixed period of maturity, as well as management’s expectations
of the settlement period for all other financial instruments. As such,
the amounts may not reconcile to the balance sheet.
TOTAL ASSETS 10,000 -
Current Liabilities - -
Floating Inter- Fixed Interest Non-interest Bearing Total
est Rate Rate Maturing
2010 2009 2010 2009 2010 2009 2010 2009
$ $ $ $ $ $ $ $
Financial assets
Cash at bank 157,8 146,1 - 404,391 - - 157,825 550,550
25 59
Cash on hand - - - - 19,930 19,764 19,930 19,764
Receivables - - - - 171,533 164,322 171,533 164,322
Investments - - 395,179 - - - 395,179 -
Total 157,8 146,1 395,179 404,391 191,463 184,086 744,467 734,636
25 59
Financial liabilities
Trade and sundry payables - - - - 35,814 39,230 35,814 39,230
Total - - - - 35,814 39,230 35,814 39,230
The floating interest rates are 0.8% in 2010 (0.8% in 2009). The fixed interest rates were 4.2% in 2010 (3.6% in 2009)
TOTAL LIABILITIES - -
NET ASSETS 10,000 -
15. Financial Risk Management
The company’s financial instruments consist mainly of deposits with banks, accounts receivable and payable.
Specific Financial Risk Exposure and Management
The main risks the entity is exposed to through its financial instruments are interest rate risk, liquidity risk and credit
risk.
2010 2009
$ $
(a) Interest rate risk
Interest rate risk is managed with a mixture of fixed and floating cash investments.
Trade and sundry payables are expected to be paid as follows:
Account payables
Less than 12 months 35,814 39,230
35,814 39,230
(b) Liquidity risk
The entity manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash reserves are
maintained.