ANNUAL REPORT - Northern Health

Note 20: Financial Instruments
Notes To and Forming Part of the Financial Statements
Northern Health Annual Report 2009/2010
(a) Financial Risk Management Objectives and Policies
Northern Health's principal financial instruments comprise of:
- Cash Assets
- Receivables (excluding statutory receivables)
- Investment in Equities and Managed Investment Schemes
- Payables (excluding statutory payables)
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, with
respect to each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.
The main purpose in holding financial instruments is to prudentially manage Northern Health's financial risks within the government policy parameters.
Categorisation of financial instruments
Note Carrying Amount Carrying Amount
2010 2009
$'000 $'000
Financial Assets
Cash and cash equivalents 6 1,382 4,361
Recievables 7 5,320 5,926
Other Financial Assets 8 - 1,440
Total Financial Assets (i) 6,702 11,727
Financial Liabilities
Payables 14 19,347 24,810
Interest Bearing Liabilities 15 855 891
Other Liabilities 17 5 8
Total Financial Liabilities (ii) 20,207 25,709
(i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. GST input tax credit recoverable)
(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. Taxes payables)
Net holding gain/(loss) on financial instruments by category
Financial Assets
Carrying Amount Carrying Amount
2010 2009
$'000 $'000
Cash and cash equivalents (i) 516 690
Available for sale (i) - (1,417)
Total Financial Assets 516 (727)
(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the interest revenue, plus or minus foreign exchange gains or
losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result;
(ii) For financial liabilities measure at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from the revaluation of
financial liabilities measured at amortised cost.
Northern Health Financial Report Appendix to the 2009 - 2010 Annual Report
Page 39 of 52