Section 2 - Sugar Research and Development Corporation

104
Sugar Research and Development Corporation
NOTES OF THE FINANCIAL STATEMENTS
Note 15C: Fair Value of Financial Instruments
SRDC Annual Report 2010–2011
Carrying
amount
2011
$’000
Fair
value
2011
$’000
Carrying
amount
2010
$’000
Fair
value
2010
$’000
Financial Assets
Cash 9,153 9,153 9,990 9,990
Interest receivable 127 127 82 82
Other receivables 7 7 48 48
Total 9,287 9,287 10,120 10,120
Financial Liabilities
Trade creditors (63) (63) (36) (36)
Grants payable (47) (47) (18) (18)
Total (110) (110) (54) (54)
Note 15D: Credit Risk
The Corporation is exposed to minimal credit risk as the majority of loans and receivables are cash
and appropriations made under law (which guarantees fi xed amounts of funding that the Corporation
can draw down on as required) or owed by the Australian Taxations Offi ce in the form of a Goods
and Services Tax Refund. The maximum exposure to credit risk is the risk that arises from the potential
default of a debtor. This amount is equal to the total amount of trade receivables (2011: $7,288 and
2010: $47,553). The Corporation has assessed that there is no risk of default and has not recognised
an impairment allowance account.
The Corporation manages its credit risk by undertaking background checks and general probity reviews
as part of its project analysis process prior to allowing a debtor relationship.
The Corporation holds no collateral to mitigate against credit risk.
Credit quality of fi nancial instruments not past due or individually determined as impaired
Not past due
nor impaired
2011
$’000
Not past due
nor impaired
2010
$’000
Past due or
impaired
2011
$’000
Past due or
impaired
2010
$’000
Cash at bank or on deposit 9,153 9,990 – –
Interest receivable 127 82 – –
Other receivables 7 48 – –
Total 9,287 10,120 – –
There are no fi nancial assets that are past due or impairment for 2010 or 2011.