Portland District Health Annual Report 2007 - South West Alliance of ...

Portland District Health
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
NOTE 6: FINANCIAL INSTRUMENTS
(a) Interest Rate Risk Exposure
The Hospital’s exposure to interest rate risk and effective weighted average interest rate by maturity periods is set out in the following timetable.
For interest rates applicable to each class of asset or liability refer to individual notes to the financial statements. Exposure arises predominantly
from assets and liabilities bearing variable interest rates.
Weighted Fixed Interest Rate Non
Interest Rate Exposure as at 30/6/2007 Average Interest Floating 1 Year Over Over Over Over Over Interest
Rates Interest or Less 1 to 2 2 to 3 3 to 4 4 to 5 5 Bearing 2006-07
Rate years years years years years
% $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Financial Assets
Cash Assets 2.5% 2,597 - - - - - - 2,597
Receivables - - - - - - - 951 951
Other Assets 2.4% 203 - - - - - - 203
Total Financial Assets 2,800 - - - - - - 951 3,751
Financial Liabilities
Payables - - - - - - - 2,724 2,724
Borrowings:
- Treasury Corporation Victoria 3.8% - 171 171 171 171 171 752 1,607
Total Financial Liabilities - 171 171 171 171 171 752 2,724 4,331
Net Financial Assets and Liabilities 2,800 (171) (171) (171) (171) (171) (752) (1,773) (580)
Weighted Fixed Interest Rate Non
Interest Rate Exposure as at 30/6/2006 Average Interest Floating 1 Year Over Over Over Over Over Interest
Rates Interest or Less 1 to 2 2 to 3 3 to 4 4 to 5 5 Bearing 2005-06
Rate years years years years years
% $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Financial Assets
Cash Assets 2.5% 933 - - - - - - - 933
Receivables - - - - - - - 1,375 1,375
Other Assets 2.4% 217 - - - - - - - 217
Total Financial Assets 1,150 - - - - - - 1,375 2,525
Financial Liabilities
Payables - - - - - - - 1,363 1,363
Borrowings:
- Treasury Corporation Victoria 3.8% - 171 171 171 171 171 935 1,790
Total Financial Liabilities - 171 171 171 171 171 935 1,363 3,153
Net Financial Assets and Liabilities 1,150 (171) (171) (171) (171) (171) (935) 12 (628)
(b) Credit Risk Exposure
Credit risk represents the loss that would be recognised if counterparties fail to meet their obligations under the respective contracts at maturity. The credit risk on financial
assets of the entity have been recognised on the statement of financial position, as the carrying amount, net any provisions for doubtful debts.
60 PORTLAND DISTRICT HEALTH • ANNUAL REPORT 06/07