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75
2012
$
2011
$
Note 8 : Reconciliation of Cash Flows from Operating Activities to Net Deficit Resulting from Operations
Net Surplus
80,402
62,759
Non-cash Items in Income Statement:
Depreciation, amortisation and impairment
0
0
Provision for landfill restoration
0
0
Add/(Less): Changes in Net Current Assets
Net Decrease/(Increase) in Receivables
0
0
Net Decrease/(Increase) in Net GST Claimable
0
0
Net Increase/(Decrease) in Trade and Other Payables
0
0
Net Increase/(Decrease) in Other Provisions
0
0
Net cash provided by (or used in) operations
80,402
62,759
Note 9: Financial Instruments
(a) Interest Risk Rate
The Authority’s exposure to interest rate risk, which is the risk that the value of a financial instrument will
fluctuate as a result of changes in market interest rates, and the effective weighted average interest rates on
those applicable financial assets and liabilities, is as follows:
Weighted Average
Interest Rate
Fair Value of
variable interest
rate instruments
Fair value of
fixed interest rate
instruments maturing
within one year
Fair value of non-
interest bearing
instruments
Financial Assets
Cash
0.50%
325,691
-
-
Receivables
0.00%
-
-
-
Investments
4.85%
2,070,382
-
-
Total Financial Assets
-
2,396,073
-
-
Financial Liabilities
-
-
-
-
Creditors and Provisions
0.00%
-
-
4,034,835
Total Financial Liabilities
-
-
-
4,034,835
(b) Credit Risk
Credit Risk represents the loss that would be recognised if other entities failed to perform as contracted.
The Authority’s exposure to credit risk is summarised as follows:
• Trade and other debtors – the Authority’s maximum exposure is disclosed in the financial statements net
of any provisions for doubtful debts.
• The LGFA investments included in Financial Assets above are capital guaranteed.
(c) Net Fair Value
The net fair value of a financial instrument is defined as its value net of all costs to settle the asset or liability.
The financial assets and liabilities as stated or referred to in notes (a) and (b) above, are stated at their face
value (less provision for doubtful debts if applicable).
Due to the nature of the financial instruments held by the Authority, the costs associated with their settlement
would not be material, and hence, have not been considered.
Western Region Waste Management Authority Annual Report 2011/2012
Member Councils: Charles Sturt; Holdfast Bay; Port Adelaide Enfield; West Torrens
For the Year Ended 30 June 2012