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Note 14: Financial instruments

Note 14a: Categories of financial instruments
  2013 $’000 2012 $’000
Financial Assets
Loans and receivables:
Cash and cash equivalents 575 706
Trade and other receivables 5,361 4,034
Incentive receivable 25 25
Total 5,961 4,765
Carrying amount of financial assets 5,961 4,765
Financial Liabilities
At amortised cost:
Trade creditors 4,254 5,783
Other payables 29 44
Total 4,283 5,827
Carrying amount of financial liabilities 4,283 5,827
Note 14b: Net income and expense from financial assets
  2013 $’000 2012 $’000
Loans and receivables
Impairment on goods and services receivable 3 (9)
Net gain/(loss) loans and receivables 3 (9)
Net gain/(loss) from financial assets 3 (9)

Note 14c: Net income and expense from financial liabilities

The total interest expense from financial liabilities not at fair value from profit and loss is nil
(2012: nil).

Note 14d: Fair value of financial instruments

The carrying amount of all financial assets and liabilities is a reasonable approximation of their fair value. The net fair values of finance lease liabilities are based on discounted cash flows using the interest rate implicit in the lease.

Note 14e: Credit risk

The APSC was exposed to minimal credit risk as loans and receivables were goods and services receivable and incentive receivable. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. This amount was equal to the total amount of goods and services and incentive receivable (see note 14a). The APSC has assessed the risk of the default on payment and has allocated an allowance for impairment on goods and services receivable.

The APSC’s goods and services receivable are principally recoverable from other Australian Government agencies. The incentive receivable is recoverable from a building lessor, with the amount recoverable specified in the lease agreement. In addition, the APSC had policies and procedures that guide debt recovery techniques that were to be applied.

The APSC 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
2013
$’000
Not Past Due Nor Impaired
2012
$’000
Past due or impaired
2013
$’000
Past due or impaired
2012
$’000
Cash - - - -
Goods and services receivable 4,771 3,499 592 541
Incentive receivable 25 25 - -
Total 4,796 3,524 592 541
Ageing of financial assets that are past due but not impaired
  Year 0 to 30 days
$’000
31 to 60 days
$’000
61 to 90 days
$’000
90+ days
$’000
Total
$’000
Goods and services receivable: 2013 250 247 79 14 590
2012 430 49 8 48 535
The following list of assets have been individually assessed as impaired
Financial Assets 2013
$’000
2012
$’000
These items are assessed as impaired as they are past due by 90 + days and it will be uneconomic to pursue them.
Loans and receivables
Goods and services receivable (2) (6)
Total (2) (6)

Note 14f: Liquidity risk

The APSC’s financial liabilities were payables. The exposure to liquidity risk was based on the notion that the APSC will encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely as the APSC is appropriated funding from the Australian Government and the APSC manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the APSC has policies in place to ensure timely payments are made when due and has no past experience of default.

  On demand
$’000
Within 1 year
$’000
1 to 2 years
$’000
2 to 5 years
$’000
> 5 years
$’000
Total
$’000
Maturities for non-derivative financial liabilities 2013
Financial Liabilities
Liabilities at amortised cost            
Trade creditors - 4,254 - - - 4,254
Other payables - 29 - - - 29
Total liabilities at amortised cost - 4,283 - - - 4,283
Total - 4,283 - - - 4,283
Maturities for non-derivative financial liabilities 2012
Financial Liabilities
Liabilities at amortised cost            
Trade creditors - 5,783 - - - 5,783
Other payables - 44 - - - 44
Total liabilities at amortised cost - 5,827 - - - 5,827
Total - 5,827 - - - 5,827

The APSC had no derivative financial instruments in either 2013 or 2012.

Note 14g: Market risk

The APSC held basic financial instruments that did not expose the APSC to certain market risks such as ‘Currency risk’ and ‘Other price risk’.

There are no interest-bearing items on the balance sheet.

Last reviewed: 
11 May 2018