2009/10 Annual Report - Cruising Yacht Club of Australia

CRUISING YACHT CLUB OF AUSTRALIAANNUAL REPORT Year end March 31 2010NOTES TO THE FINANCIAL STATEMENTS for the financial year ended 31 March 2010 (continued)(f) Fair ValueThe carrying amount of the financial assets and financial liabilities represents a reasonable approximation of fair value.(g) Credit RiskCredit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to thecompany. To the extent the company has a receivable from another party there is a credit risk in the event of nonperformanceby that counterparty. Financial instruments, which potentially subject the company to credit risk solely consist oftrade and other receivables. The company has adopted a policy of only dealing with creditworthy counterparties as a meansof mitigating the risk of financial loss from defaults.The carrying amount of the financial assets recorded in the financial statements, net of any allowances for losses, representsthe company’s maximum exposure to credit risk, without taking account of the value of any collateral obtained. The companydoes not have any significant credit risk exposure to any single counterparty or any group of counterparties having similarcharacteristics.2010 2009$ $18. CommitmentsNon cancellable operating lease expense commitmentsFuture operating lease commitments not provided for inthe financial statements and payable:Within one year 533,517 502,276One year or later and no longer than five years 2,667,585 2,009,104Later than five years 2,563,551 3,549,5115,764,653 6,060,891The company leases property and water space for the Clubhouse andmarina under operating leases expiring in 10 years and 13 years respectively(assuming exercise of options). Lease payments are adjusted periodicallyto market rates.Hire purchase commitmentsHire purchase payments are payable as follows:Within one year 306,339 365,868One year or later and no longer than five years - 321,392306,339 687,260Less: future hire purchase charges - (51,481)306,339 635,779Hire purchase liabilities provided for in the financial statements:Current (note 13) 306,339 329,444Non-current (note 13) - 306,33544