TOURISM VICTORIA ANNUAL REPORT

More documents

Recommendations

Info

notes to the financial statements 30 june 2008 (continued) Note 14. Financial instruments a) Financial risk management objectives Tourism Victoria’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, and interest rates. Tourism Victoria does not enter into derivative financial instruments to manage its exposure to interest rate and foreign currency risk. Tourism Victoria does not enter into trade financial instruments, including derivative financial instruments, for speculative purposes. The policies for managing these risks are discussed in more detail below. b) Significant accounting policies Details of significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 1 of the financial statements. c) Interest rate risk Tourism Victoria’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out below. The following table details Tourism Victoria’s exposure to interest rate risk as at 30 June 2008. Maturity Dates Weighted average effective interest rate Variable interest rate Less than 1 year 1-5 years More than 5 years Noninterest bearing Total 2008 Notes % $ $ $ $ $ $ Financial Assets Cash and cash equivalents 15 6.93 7,611,824 8,800,000 – – – 16,411,824 Trade and other receivables 4 – – – – 2,495,615 2,495,615 Shares in other entities 5 – – – – 65,010 65,010 7,611,824 8,800,000 – – 2,560,625 18,972,449 Financial Liabilities Payables 7 – – – – 4,461,498 4,461,498 Finance lease liabilities 8,11 7.06 – 144,032 64,635 – – 208,667 – 144,032 64,635 – 4,461,498 4,670,165 Net Financial Assets (Liabilities) 7,611,824 8,655,968 (64,635) – (1,900,873) 14,302,284 The following table details Tourism Victoria’s exposure to interest rate risk as at 30 June 2007. Maturity Dates Weighted average effective interest rate Variable interest rate Less than 1 year 1-5 years More than 5 years Noninterest bearing Total 2007 Notes % $ $ $ $ $ $ Financial Assets Cash and cash equivalents 15 6.17 4,422,871 10,000,000 – – – 14,422,871 Trade and other receivables 4 – – – – 1,024,324 1,024,324 Shares in other entities 5 – – – – 65,010 65,010 4,422,871 10,000,000 – – 1,089,334 15,512,205 Financial Liabilities Payables 7 – – – – 3,413,316 3,413,316 Finance lease liabilities 8,11 6.90 – 81,735 71,640 – – 153,374 – 81,735 71,640 – 3,413,316 3,566,690 Net Financial Assets (Liabilities) 4,422,871 9,918,265 (71,640) – (2,323,982) 11,945,515 90 FINANCIAL <strong>REPORT</strong> 2007–2008
notes to the financial statements 30 june 2008 (continued) Note 14. Financial instruments (CONTINUED) Sensitivity disclosure analysis Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the financial markets, Tourism Victoria believes the following movements are ’reasonably possible’ over the next 12 months (Base rates are sourced from Reserve Bank of Australia): • A parallel shift of +0.5% and -0.5% in market interest rate (AUD) from year end rates of 7.45%. (2007:6.13%) • Proportional exchange rate movement of -10 % (depreciation of AUD) and +10% (appreciation of AUD) against foreign currencies, from the year end rates. At year end there were foreign currency balances (AUD 216,207) which would expose Tourism Victoria to exchange rate risk ( 2007-AUD 960,796); and • A parallel shift of +1% and -1% in inflation rate from year end rates of 4.2 % (2007: .2.1%) – Tourism Victoria has no financial instruments exposed to inflation risk (2007–no exposure) The following table discloses the impact on net operating result and equity for each category of financial instrument held by Tourism Victoria at year end as presented to key management personnel, if the above movements were to occur: Financial Assets Carrying Amount 2008 Foreign Exchange Risk 2008 Interest rate risk -10% (50 basis points) +10% (50 basis points) -0.5% (50 basis points) +0.5% (50 basis points) Profit $ Equity $ Cash & cash equivalents (1) 16,411,824 21,621 21,621 (21,621) (21,621) (82,059) (82,059) 82,059 82,059 Receivables (2) 2,495,615 – – – – – – – – Shares in other entities (3) 65,010 – – – – – – – – Financial Liabilities Payables (2) 4,461,498 – – – – – – – – Finance lease liabilities (4) 208,667 – – – – – – – – Total increase/(decrease) 21,621 21,621 (21,621) (21,621) (82,059) (82,059) 82,059 82,059 (1) $15,975,707 cash and cash equivalents are held in Australian Dollars. $7,175,707 is held on deposit at variable interest rates. $8,800,000 is invested in Australian Dollars in interest bearing accounts. The equivalent of AUD 216,207 is held in 7 overseas currencies. (2) The carrying amount is denominated in Australian Dollars and is non-interest bearing. This item is not subject to the identified risk sensitivities. (3) Shares in other entities are denominated in Australian Dollars and are non-interest bearing. This item is not subject to identified risk sensitivities (4) Interest bearing liabilities solely relate to finance lease liabilities associated with motor vehicles. Each contract has interest fixed at the inception of the lease. This item is not subject to identified risk sensitivities. Profit $ Equity $ Profit $ Equity $ Profit $ Equity $ FINANCIAL <strong>REPORT</strong> 2007–2008 91
Page 1 and 2:
0708 TOURISM VICTORIA ANNUAL REPORT
Page 3 and 4:
Photo: Robert Blackburn. contents c
Page 5 and 6:
OUR MISSION Tourism Victoria works
Page 7 and 8:
Photo: David Hannah. our commitment
Page 9 and 10:
9m International holiday visitor ni
Page 11 and 12:
More interstate travellers visited
Page 13 and 14:
11.4m Domestic overnight visitors t
Page 15 and 16:
Tourism Victoria’s Structure As a
Page 17 and 18:
chairman’s report The tourism ind
Page 19 and 20:
Visitor Figures INTERNATIONAL OVERN
Page 21 and 22:
DOMESTIC Visitor Figures Victoria r
Page 23 and 24:
Output targets & performance Perfor
Page 25 and 26:
domestic marketing Travel + Leisure
Page 27 and 28:
domestic marketing Real Entertainme
Page 29 and 30:
domestic marketing Domestic overnig
Page 31 and 32:
The Medieval Imagination, Illuminte
Page 33 and 34:
Tourism Victoria works with the cru
Page 35 and 36:
product marketing cooperative marke
Page 37 and 38:
During the year more than $10 milli
Page 39 and 40:
INTERNATIONAL MARKETING For every d
Page 41 and 42: international marketing Birrarung M
Page 43 and 44: 2008 Formula 1 ING Grand Prix, Melb
Page 45 and 46: Sports Business International named
Page 47 and 48: Corporate & destination communicati
Page 49 and 50: USAGE OF TOURISM VICTORIA INFORMATI
Page 51 and 52: Tourism Excellence Tourism Excellen
Page 53 and 54: Entries to the Victorian Tourism Aw
Page 55 and 56: investment attraction Facilitated $
Page 57 and 58: IN DETAIL APARTMENT HOTEL, Melbourn
Page 59 and 60: Melbourne airport recorded a 9% inc
Page 61 and 62: STRATEGY & POLICY Tourism Victoria
Page 63 and 64: strategy & Policy Tourism Victoria
Page 65 and 66: legislative requirements Portsea ba
Page 67 and 68: FREEDOM OF INFORMATION Freedom of I
Page 69 and 70: • Protected Disclosure Officer: p
Page 71 and 72: FIVE year comparison FINANCIAL COMP
Page 73 and 74: OPERATING statement FOR THE FINANCI
Page 75 and 76: STATEMENT OF CHANGES IN EQUITY FOR
Page 77 and 78: notes to the financial statements 3
Page 91: notes to the financial statements 3
Page 99 and 100: Level 32, 121 Exhibition Street Mel
Page 101 and 102: DISCLOSURE INDEX report of operatio
Page 103: Tourism Victoria’s offices Melbou
show all

TOURISM VICTORIA ANNUAL REPORT

Create successful ePaper yourself

Delete template?

Save as template?