Annual Report 2011 - ACEM

15. Financial Risk Management (Continued)
2011
Financial Assets
Weighted
Average
Effective
Interest
Rate
%
Floating
Interest
Rate
$
Fixed Interest Rate
Maturing
Within 1
year
$
1 to 5
years
$
Non-
Interest
Bearing
$
Total
Carrying
Amounts
$
Net Fair
Values
$
Cash and cash equivalents 4.5 8,815,523 100,000 - 20,551 8,936,074 8,936,074
Trade and other receivables - - - - 1,323,960 1,323,960 1,323,960
Investments 6.0 40,817 3,754,960 - 3,739,643 7,535,420 7,535,420
Financial Liabilities
8,856,340 3,854,960 - 5,084,154 17,795,454 17,795,454
Trade and other payables - - - - 8,511,590 8,511,590 8,511,590
2010
Financial Assets
Weighted
Average
Effective
Interest
Rate
%
Floating
Interest
Rate
$
- - - 8,511,590 8,511,590 8,511,590
Fixed Interest Rate
Maturing
Within 1
year
$
1 to 5
years
$
Non-
Interest
Bearing
$
Total
Carrying
Amounts
$
Net Fair
Values
$
Cash and cash equivalents 3.5 2,979,754 100,000 - 30,965 3,110,719 3,110,719
Trade and other receivables - - - - 1,152,821 1,152,821 1,152,821
Investments 5.9 42,386 2,254,959 - 3,177,609 5,474,954 5,474,954
Financial Liabilities
3,022,140 2,354,959 - 4,361,395 9,738,494 9,738,494
Trade and other payables - - - - 2,287,025 2,287,025 2,287,025
3. Sensitivity Analysis
The following illustrates sensitivities to the College’s
exposures to changes in interest rate and prices.
The amounts indicate the impact on how surplus and
accumulated funds reported at the end of the reporting
period would have been affected by changes to the relevant
risk variable that management considers to be reasonably
possible. These sensitivities assume that the movement in a
particular variable is independent of other variables.
Year ended 30 June 2011
Surplus
$
Accumulated
Funds $
♦ +/- 2% in interest rates +/- 126,357 +/- 126,357
♦ +/- 10% in listed
investments
Year ended 30 June 2010
+/- 11,363 +/- 373,964
♦ +/- 2% in interest rates +/- 60,442 +/- 60,442
♦ +/- 10% in listed
investments
+/- 13,393 +/- 317,760
- - - 2,287,025 2,287,025 2,287,025
4. Net Fair Values
The fair values of fi nancial assets and fi nancial liabilities are
presented in the above interest rate risk tables and can be
compared to their carrying values as presented therein as
per the statement of fi nancial position. Fair values are those
amounts for which an asset could be exchanged, or a liability
settled, between knowledgeable, willing parties in an arm’s
length transaction.
The net fair values of listed investments have been valued
at the quoted market bid price at balance date and adjusted
for transaction costs expected to be incurred. For other
assets and other liabilities, the net fair value approximates
their carrying value. No fi nancial assets and fi nancial liabilities
are readily traded on organised markets in standardised
form other than listed investments. Financial assets where
the carrying amount exceeds net fair values have not been
written down as the College intends to hold these assets
to maturity.
ACEM Annual Report 2011
55