2011 Annual Report - National Transport Commission

National transport Commission
Notes to and forming part
of the financial statements
for the period ended 30 June 2011
15C: Fair value of financial instruments
FINANCIAl ASSETS
Carrying
amount
2011
$
Fair
value
2011
$
Carrying
amount
2010
$
Cash and cash equivalents 2,750,615 2,750,615 5,450,179 5,450,179
Receivables for goods and services 71,191 71,191 148,529 148,529
Total
FINANCIAl lIABIlITIES
2,821,806 2,821,806 5,598,708 5,598,708
Suppliers payable 534,754 534,754 390,856 390,856
Total 534,754 534,754 390,856 390,856
15D: Credit risk
Credit risk is the risk of financial loss as a result of failure by a client or counterpart to meet its contractual obligations. The
finance department is responsible for the analysis and monitoring of its credit risk exposure. All credit exposures are monitored
regularly against allowed limits. To mitigate credit risk, letters of credit and terms of trade are introduced where appropriate. The
Commission’s total exposure to credit risks is limited to its trade receivables.
The average credit period for trade receivables is 30 days. The Commission holds no collateral to mitigate against credit risk.
Credit quality of financial instruments not past due or individually determined as impaired.
Not past due
nor impaired
2011
$
Not past due
nor impaired
2010
$
Past due or
impaired
2011
$
Fair
value
2010
$
Past due or
impaired
2010
$
Receivables for goods and services 71,191 148,529 - -
Total 71,191 148,529 - -
15E: liquidity risk
Liquidity risk is the risk that the Commission is unable to meet its financial obligations as they fall due, which could arise due to
mismatches in cash flows. Funding and liquidity management is performed by the finance department on a weekly basis and
regular reports are provided to management and Commissioners. Payments take place once a week, which ensures all suppliers
are paid within the established terms of trade. The average credit period for supplier payments is 30-60 days.
Maturities for non-derivative financial liabilities 2011
On demand
2011
$
within 1
year 2011
$
1 to 2 years
2011
$
2 to 5 years
2011
$
> 5 years
2011
$
Suppliers payable 534,754 - - - - 534,754
Total 534,754 - - - - 534,754
Maturities for non-derivative financial liabilities 2010
On demand
2010
$
within 1
year 2010
$
1 to 2 years
2010
$
2 to 5 years
2010
$
> 5 years
2010
$
Suppliers payable 390,856 - - - - 390,856
Total 390,856 - - - - 390,856
The Commission holds no derivative financial liabilities in the current or prior year.
Total
2011
$
Total
2010
$
NTC Annual Report 2010–11 73