Section 2 - Sugar Research and Development Corporation

Note 15E Liquidity Risk
Sugar Research and Development Corporation
NOTES OF THE FINANCIAL STATEMENTS
The Corporation’s fi nancial liabilities are payables for goods and services. The exposure to liquidity risk is
based on the notion that the Corporation will encounter diffi culty in meeting its obligations associated
with fi nancial liabilities. This is highly unlikely due to appropriation funding and mechanisms available
to the Corporation and internal policies and procedures put in place to ensure there are appropriate
resources to meet its fi nancial obligations.
The Corporation is appropriated funding from the Australian Government. The Corporation manages
its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition,
the Corporation has policies in place to ensure timely payments are made when due and has no past
experience of default.
Maturities for non-derivative fi nancial liabilities 2011
On
demand
Within
1 year
1 to 2
years
2 to 5
years
$’000 $’000 $’000 $’000
Trade creditors – (63) – –
Grants payable (46) – –
Total – (109) – –
Maturities for non-derivative fi nancial liabilities 2010
Trade creditors – (36) – –
Grants payable (18) – –
Total – (54) – –
The entity has no derivative fi nancial liabilities in either the current and prior year.
Note 15F Market Risk
The Corporation holds basic fi nancial instruments that do not expose the Corporation to certain market
risks. The Corporation is not exposed to ‘currency risk’ or ‘other price risks’.
The Corporation only exposure to interest rate risk is through credit cards. This risk is minimised by
ensuring that the balance owing is paid monthly by the due date.
SRDC Annual Report 2010–2011 105