QUEENSLAND PERFORMING ARTS CENTRE ANNUAL REPORT ...

QUEENSLAND PERFORMING ARTS CENTRE
NOTES TO THE FINANCIAL REPORT
For the Year Ended 30 June 2012
Note 22 Financial Instruments
(a) General Objectives, Policies and Processes
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The Trust is exposed to risks that arise from its use of fi nancial instruments. This note describes the Trust’s
objectives, policies and processes for managing those risks and the methods used to measure them. Further
quantitative information in respect of these risks is presented throughout these fi nancial statements.
There have been no substantive changes in the Trust’s exposure to fi nancial instrument risks, its objectives,
policies and processes for managing those risks or the methods used to measure them from the previous
periods unless otherwise stated in this note.
“The Board of Trustees has overall responsibility for the determination of the Trust’s risk management objectives
and policies and, designing and operating processes that ensure the effective implementation of the objectives
and policies to the Trust. The Trust’s risk management policies and objectives are therefore designed to
minimise the potential impacts of these risks on the results of the Trust, where such impacts may be material.
The Risk Management Audit Committee (RMAC) receives quarterly reports from the Trust’s Director of Corporate
Services, through which it reviews the effectiveness of the processes put in place and the appropriateness of
the objectives and policies it sets. The Trust’s internal auditors also review the risk management policies and
processes and report their fi ndings to the RMAC, which in turn reports to the Board.
The overall objective of the Board is to set polices that seek to reduce risk as far as possible without unduly
affecting the Trust’s competitiveness and fl exibility. Further details regarding these policies are set out below:
(b) Interest Rate Risk
The exposure to interest rate risks and the effective interest rates of fi nancial assets and fi nancial liabilities,
both recognised and unrecognised at balance date are as follows:
Floating 1 Year Non Total Weighted
Interest or less Interest Average
Rate Bearing Rate
2012 2012 2012 2012 2012
$’000 $’000 $’000 $’000 %
Financial Assets
Cash on hand and at bank 109 – 91 200 0.78%
Short term securities – 11,959 – 11,959 5.40%
Receivables – – 2,609 2,609 0.00%
Financial Liabilities
Payables – – 3,639 3,639 0.00%
2011 2011 2011 2011 2011
$’000 $’000 $’000 $’000 %
Financial Assets
Cash on hand and at bank 408 – 91 499 1.45%
Short term securities – 8,575 – 8,575 5.55%
Receivables – – 2,700 2,700 0.00%
Financial Liabilities
Payables – – 2,452 2,452 0.00%