Annual Report 2010 - Christchurch City Council

Financial instrument
risks (continued)
Financial statements
Annual Report
Christchurch Otautahi
2010
p229.
Notes to financial statements
39. Financial instrument risks (continued)
Liquidity risk
Liquidity risk is the risk that the group will encounter difficulty
raising liquid funds to meet commitments as they fall due. Prudent
liquidity risk management implies maintaining sufficient cash, the
availability of funding through an adequate amount of committed
credit facilities and the ability to close out market positions.
In meeting its liquidity requirements, the group manages its
investments and borrowings in accordance with its written
investment policies. In general the group generates sufficient cash
flows from its operating activities to meet its obligations arising
from its financial liabilities and has funding arrangements in place
to cover potential shortfalls.
The following tables analyse the parent company’s and group’s
contractual cash flows for its financial assets and liabilities into
relevant maturity groupings based on the remaining period at year
end to the contractual maturity date. The amounts disclosed in the
tables are the contractual undiscounted cash flows:
Parent
Balance
sheet
Contractual
cash flows
Less than
1 year
1-2 years 2-5 years 5 years +
$000s $000s $000s $000s $000s $000s
Jun 10
Financial liabilities:
Creditors and other payables 75,626 75,626 75,626 - - -
Net settled derivative liabilities 9,963 7,261 512 4,834 1,534 381
Commercial paper 5,000 5,000 5,000 - - -
Bonds and other fixed rate borrowing 81,566 97,132 5,481 4,713 86,936 2
Floating rate notes 100,000 123,598 5,837 7,378 110,383 -
Loans from external parties 79,623 100,546 41,430 6,038 17,952 35,126
Loans from group entities 41,194 52,804 5,190 2,644 29,484 15,486
392,972 461,967 139,076 25,607 246,289 50,995
Financial assets:
Cash and cash equivalents 80,892 80,892 80,892 - - -
Bank deposits with maturity > 1 year 8,000 8,000 - 8,000 - -
CCC - short term deposits 98,243 100,090 100,090 - - -
Debtors and other receivables 43,954 44,454 44,454 - - -
Related party receivables 2,132 2,132 2,132 - - -
Local authority stock 33,000 38,884 15,867 1,257 16,422 5,338
Stocks and bonds 26,106 34,290 4,813 9,977 8,395 11,105
Loans and advances 876 3,959 48 53 2,787 1,071
Related party loans 188,110 350,861 21,037 17,542 65,283 246,999
Net settled derivative assets 1,609 (1,100) 986 (595) (1,491) -
Financial guarantee - 200 200 - - -
482,922 662,662 270,519 36,234 91,396 264,513