Annual Report 2004-2005 - Forensicare

2004-2005 Financial Statements for the year ended 30 June 2005
(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.
(c)
Net Fair Value of Financial Assets and Liabilities
The carrying amount of financial assets and liabilities contained within these financial statements is representative
of the net fair value of each financial asset or liability.
Note 15
Financial Instruments
Net Fair Value
2005 2004
Book Value Fair Value Book Value Fair Value
$’000 $’000 $’000 $’000
Financial Assets
Cash at Bank 3,889 3,889 3,337 3,337
Trade debtors 918 918 885 885
Other receivables 1,314 1,314 1,105 1,105
Total Financial Assets 6,121 6,121 5,327 5,327
Financial Liabilities
Trade creditors and accruals 2,650 2,650 2,227 2,227
Total Financial Liabilities 2,650 2,650 2,227 2,227
Net fair values are capital amounts
Net fair values of financial instruments are determined on the following bases –
I. Cash, deposit investments, cash equivalents and non-interest bearing financial assets and liabilities (trade
debtors, other receivables, trade creditors and advances) are valued at cost which approximates to net fair value
II. Interest bearing liability amounts are based on the present value of expected future cash flows, discounted at
current market interest rates, quoted for trade (Treasury Corporation of Victoria.)
Note 2005 2004
$’000 $’000
Note 16
Commitments
(i) Operating Leases
Commitments for lease payments are as follows -
Less than one year 12 36
Greater than 1 year but less than five years - 12
12 48
(ii) Other Commitments
At 30 June 2005, future contractual commitments for supply
of goods and services entered into and not provided for in the
Statement of Financial Position amount to $11,944,000
(2003-2004 $3,014,000)
Contracted Services Agreements (Commitments)
Security 4,339 985
Provision of Meals and Labour 3,454 730
Recreational Services 154 100
Cleaning Services 1,889 291
Waste Removal 28 21
Facility Maintenance 268 410
Pharmacy Services 1,277 400
Pathology Services 273 64
Audit Services 212 -
Other 50 13
11,944 3,014
70
These expenditures are payable -
Not later than one year 4,253 2,508
Later than one year but not later than five years 7,691 506
11,944 3,014