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Annual Financial Statements for year ended 30 June 2012
57
32. Presentation and Disclosure of Financial Instruments
The following tables detail the Council’s contractual maturity for its non-derivative financial assets and
financial liabilities. The tables have been drawn up based on the undiscounted cash flows based on the
earliest date on which the items may be negotiated. The table includes both interest and principal cash flows.
Fixed Interest Rates
Average
Interest
Rate
%
Variable
Interest
Rate
$
Less
Than 1
Year
$
1 to 5
Years
$
More
Than 5
Years
$
Non-
Interest
Bearing
$
Total
$
30 June 2011
Financial Assets:
Loans & Receivables
- Cash & Equivalents
5.32 10,941,032 19,405,076
30,346,108
- Receivables
2.75
2,091,013
1,419,075 3,510,088
Available for Sale
- Cash & Equivalents
4.32 1,742,301
15,410 1,757,711
Financial Liabilities:
Borrowings
6.75
228,140 2,944,495 26,651,866
29,824,501
Trade Creditors
4,066,618 4,066,618
Fixed Interest Rates
Average
Interest
Rate
%
Variable
Interest
Rate
$
Less
Than 1
Year
$
1 to 5
Years
$
More
Than 5
Years
$
Non-
Interest
Bearing
$
Total
$
30 June 2012
Financial Assets:
Loans & Receivables
- Cash & Equivalents
3.93 34,833,965
100,000
34,933,965
- Receivables
2.77
2,508,213
1,493,467 4,001,680
Available for Sale
- Cash & Equivalents
3.37 4,271,231
15,410 4,286,641
Financial Liabilities:
Borrowings
6.74
5,223 4,376,728 22,656,883
27,038,835
Trade Creditors
(a) Interest Rate Risk
Interest rate risk is the risk that future cash flows will fluctuate due to changes in market interest rates. The
interest rate risk for all interest bearing financial instruments of the Council at June 30, 2012 is detailed in
the following table. Exposures arise predominantly from assets and liabilities at variable interest rates as the
Council intends to hold fixed rate assets and liabilities to maturity. All the other financial assets and liabilities
are non-interest bearing.
(b) Liquidity Risk
Liquidity risk is the risk that Council will encounter difficulty in meeting obligations with financial liabilities.
Council’s long term liabilities have a large range of maturity dates based on cash inflows. Council has access
to a bank overdraft facility to meet short term requirements.
(c) Net Fair Value of Financial Assets and Liabilities
The fair values of Council’s financial assets and liabilities with standard terms and conditions which are
traded on active liquid markets, are reflective of quoted market prices and carrying values.
Notes to the Financial Statements