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Note 15: Financial instruments

Note 15a: Categories of financial instruments
  2012 $’000 2011 $’000
Financial Assets
Loans and receivables:
Cash and cash equivalents 706 1,291
Trade and other receivables 4,034 3,589
Incentive receivable 25 25
Total 4,765 4,905
Carrying amount of financial assets 4,765 4,905
Financial Liabilities
At amortised cost:
Trade creditors 5,783 4,277
Other payables 44 11
Total 5,827 4,288
Carrying amount of financial liabilities 5,827 4,288
Note 15b: Net income and expense from financial assets
  2012 $’000 2011 $’000
Loans and receivables
Impairment on goods and services receivable (9) 1
Net gain/(loss) loans and receivables (9) 1
Net gain/(loss) from financial assets (9) 1

Note 15c: Net income and expense from financial liabilities

The total interest expense from financial liabilities not at fair value from profit and loss is nil

(2010-11: nil).

Note 15d: 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 15e: Credit risk

The APSC is exposed to minimal credit risk as loans and receivables are 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 15a). 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 has policies and procedures that guide debt recovery techniques that are 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

2012 $’000
Not past due Nor impaired

2011 $’000
Past due or impaired

2012 $’000
Past due or impaired

2011 $’000
Cash
Goods and services receivable 3,662 3,123 541 673
Incentive receivable 25 25 - -
Total 3,687 3,148 541 673
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: 2012 430 49 8 48 535
2011 423 84 52 106 665
The following list of assets have been individually assessed as impaired
Financial assets 2012

$’000
2011

$’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 (6) (8)
Total (6) (8)

Note 15f: Liquidity risk

The APSC’s financial liabilities are payables and other interest bearing liabilities. The exposure to liquidity risk is based on the notion that the APSC will encounter difficulty in meeting its obligations associated with financial liabilities. This is 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 payment are made when due and has no past experience of default.

Maturities for non-derivative financial liabilities 2012
  On demand

$’000
Within 1 year

$’000
1 to 2 years

$’000
2 to 5 years

$’000
> 5 years

$’000
Total

$’000
The APSC had no derivative financial instruments in 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
Maturities for non-derivative financial liabilities 2011
  On demand

$’000
Within 1 year

$’000
1 to 2 years

$’000
2 to 5 years

$’000
> 5 years

$’000
Total

$’000
The APSC had no derivative financial instruments in 2011.
Financial liabilities
Liabilities at amortised cost
Trade creditors - 4,277 - - - 4,277
Other payables - 11 - - - 11
Total liabilities at amortised cost - 4,288 - - - 4,288
Total - 4,288 - - - 4,288

Note 15g: 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’. The APSC is not exposed to 'Currency risk' or 'Other price risk'.

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