Annual Report 2012 - The Australian Property Institute

The Australian Property Institute Annual Report | 2012Notes To and Forming Part Of theFinancial Statements for the YearEnded 31 December 2012 (Cont’d)NOTE 16. Financial Risk ManagementThe Institute’s financial instruments consist mainly of deposits with bank, short terminvestments, and investments in listed shares, receivables and payables.The totals for each category of financial instruments, measured in accordance with AASB 139as detailed in the accounting policies to these financial statements, are as follows:ECONOMIC ENTITY$ $Financial assetsCash and cash equivalents 4 3,105,050 2,899,234Accounts receivable and other debtors 5 229,801 80,125Available-for-sale financial assets- Shares in listed companies 397,261 287,4013,732,112 3,266,760Financial assetsFinancial liabilities at amortised cost- Accounts payable and other payables102,414,492 1,640,292Financial risk management policiesThe Institute’s Treasurer is responsible for, among other issues, monitoring and managing financial riskexposures of the Institute. The Treasurer monitors the Institute’s transactions and reviews the effectivenessof controls relating to credit risk, financial risk and interest rate risk. Discussions on monitoring and managingfinancial risk exposures are held bi-monthly and minuted by the committee of management.The Treasurer’s overall risk management strategy seeks to ensure that the Institute meets itsfinancial targets, whilst minimising potential adverse effects of cash flow shortfalls.79