Online version of the 2013-14 Department of Health Annual Report

Note 14: Financial Instruments

Notes to and Forming Part of the Financial Statements

Page last updated: 17 July 2019

Note 14A: Categories of Financial Instruments
Categories of Financial Instruments Financial assets Loans and receivables
 
2014
$'000
2013
$'000
Financial assets
Loans and receivables
Cash and cash equivalents
63,330
58,342
Goods and services receivable
4,521
6,921
Accrued revenue
173
373
Total loans and receivables
68,024
65,636
Carrying amount of financial assets
68,024
65,636
 
Financial liabilities
Financial liabilities measured at amortised cost
Trade creditors
(4,298)
(4,664)
Total
(4,298)
(4,664)
Carrying amount of financial liabilities
(4,298)
(4,664)

Carrying values are a reasonable approximation of fair values for all financial assets and liabilities.

Note 14B: Net Gains or Losses on Financial Assets
Net Gains or Losses on Financial Assets
 
2014
$'000
2013
$'000
Loans and receivables    
Impairment 
1,782
592
Net loss on loans and receivables
1,782
592
Net loss on financial assets
1,782
592
Note 14C: Credit Risk

The TGA is exposed to minimal credit risk as loans and receivables are cash and trade receivables. The TGA's maximum exposure to credit risk in each class of financial assets is the carrying amount of the assets. The total amount of trade receivables is $6.962 million (2013: $8.026 million). The TGA has assessed the risk of default on payment and allowed impairment of $2.441 million in 2014 (2013: $1.105 million).

The following table illustrates the TGA's gross exposure to credit risk, excluding any collateral or credit enhancements.

2014
$'000
2013
$'000
Financial assets
Goods and services receivable (gross)
6,962
8,026
Accrued revenue
173
373
Total
7,135
8,399

The TGA holds no collateral to mitigate against risk.

Credit quality of financial instruments not past due or individually determined as impaired
 
Not past due nor impaired
2014
$'000
Not past due nor impaired
2013
$'000
Past due or impaired
2014
$'000
Past due or impaired
2013
$'000
Loans and receivables
Goods and services receivable
3,628
5,746
3,334
2,280
Accrued revenue
173
373
-  
-  
Total 
3,801
6,119
3,334
2,280
Ageing of financial assets that were past due but not impaired for 2014
 
0 to 30 days
$'000
31 to 60 days
$'000
61 to 90 days
$'000
90+ days
$'000
Total 
$'000
Loans and receivables
         
Goods and services receivable
873
13
1
6
893
Total 
873
13
1
6
893
Ageing of financial assets that were past due but not impaired for 2013
 
0 to 30 days
$'000
31 to 60 days
$'000
61 to 90 days
$'000
90+ days
$'000
Total 
$'000
Loans and receivables
         
Goods and services receivable
533
332
-
310
1,175
Total 
533
332
-
310
1,175
Note 14D: Liquidity Risk

The TGA's financial liabilities are payables. The exposure to liquidity risk is based on the notion that the TGA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely as cost recovery and other internal policies and procedures ensure there are appropriate resources to meet financial obligations.

The TGA has not previously defaulted on any financial obligations.

Maturities for non-derivative financial liabilities 2014
 
within 1 year
$'000
Total
$'000
Other liabilities
   
Trade creditors
(4,298)
(4,298)
Total
(4,298)
(4,298)
Maturities for non-derivative financial liabilities 2013
 
within 1 year
$'000
Total
$'000
Other liabilities
   
Trade creditors
(4,664)
(4,664)
Total 
(4,664)
(4,664)

The TGA has no derivative financial liabilities in either 2014 or 2013.

Note 14E: Market Risk

The TGA's financial instruments have no material exposure to currency risk, interest rate risk or other price risk.

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