Building for a brighter future - GHA Central

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
Note 15: Financial Instruments
(a) Interest Rate Risk Exposure
The Hospital’s exposure to interest rate risk and effective weighted average interest rate by maturity periods is set out
in the following timetable. For interest rates applicable to each class of asset or liability refer to individual notes to the
financial statements. Exposure arises predominantly from assets and liabilities bearing variable interest rates.
Fixed Interest Rate Maturity
Weighted
Floating 1 year 1 to 5 Over 5 Non Interest Total Average
Interest Rate or less years years Bearing Interest
($’000) ($’000) ($’000) ($’000) ($’000) ($’000) Rates (%)
Interest Rate Exposure
as at 30 June 2006
FINANCIAL ASSETS
Cash at Bank 6,931 6,931 5.84
Trade Debtors 1,423 1,423 0.00
Other Receivables 1,636 1,636 0.00
Other Financial Assets 3,609 3,609 5.14
TOTAL FINANCIAL ASSETS 10,540 3,059 13,599 4.34
FINANCIAL LIABILITIES
Trade Creditors (2,066) (2,066) 0.00
Accomodation Bonds (1,329) (1,329) 0.00
Other Liabilities (2,126) (2,126) 0.00
TOTAL FINANCIAL LIABILITIES(5,522) (5,522) 0.00
NET FINANCIAL
ASSETS/LIABILITIES 10,540 (2,463) 8,077
Fixed Interest Rate Maturity
Weighted
Floating 1 year 1 to 5 Over 5 Non Interest Total Average
Interest Rate or less years years Bearing Interest
($’000) ($’000) ($’000) ($’000) ($’000) ($’000) Rates (%)
Interest Rate Exposure
as at 30 June 2005
FINANCIAL ASSETS
Cash at Bank 8,155 8,155 5.81
Trade Debtors 1,314 1,314 0.00
Other Receivables 2,491 2,491 0.00
Other Financial Assets 4,080 4,080 5.10
TOTAL FINANCIAL ASSETS 12,236 3,805 16,041 4.25
FINANCIAL LIABILITIES
Trade Creditors (2,958) (2,958) 0.00
Accomodation Bonds (1,044) (1,044) 0.00
Other Liabilities (3,037) (3,037) 0.00
TOTAL FINANCIAL LIABILITIES(7,038) (7,038) 0.00
NET FINANCIAL
ASSETS/LIABILITIES 12,236 (3,233) 9,003
(b) Credit Risk Exposure
Credit risk represents the loss that would be recognised if counterparties failed to meet their obligations under their
respective contracts at maturity. The credit risk on financial assets of the entity has been recognised in the Balance
Sheet, as the carrying amount, net any provisions for doubtful debts. It is noted that there is no material exposure to
any one individual debtor.
(c) Net Fair Value of Financial Assets and Liabilities
The carrying amount of financial assets and liabilities contained within these financial statements is representative
of the fair value of each financial asset or liability.
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