ANNUAL REPORT - Northern Health
ANNUAL REPORT - Northern Health
ANNUAL REPORT - Northern Health
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Note 20: Financial Instruments (continued)<br />
Notes To and Forming Part of the Financial Statements<br />
<strong>Northern</strong> <strong>Health</strong> Annual Report 2009/2010<br />
(e) Market Risk (cont)<br />
Sensitivity Disclosure Analysis<br />
Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, <strong>Northern</strong> <strong>Health</strong> believes the following<br />
movements are 'reasonably possible' over the next 12 months (Base rates are sourced from the Reserve Bank of Australia)<br />
- A shift of +1% and -1% in market interest rates (AUD) from year-end rates of 4.1%;<br />
- A parallel shift of +1% and 1% in inflation rate from year-end rates of 2%<br />
The following table discloses the impact on net operating result and equity for each category of financial instrument held by <strong>Northern</strong> <strong>Health</strong> at year end as presented to key management personnel, if<br />
changes in the relevant risk occur.<br />
Carrying<br />
Amount<br />
-1%<br />
Interest Rate Risk Other Price Risk<br />
+1% -5% +10%<br />
Profit Equity Profit Equity Profit Equity Profit Equity<br />
2010 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000<br />
Financial Assets<br />
Cash and Cash Equivalents (i) 1,382 (14) (14) 14 14 - - - -<br />
Receivables<br />
- Trade debtors 2,104 - - - - - - - -<br />
- Other receivables 3,216 - - - - - - - -<br />
Other financial assets<br />
- Available for sale - - - - - - - - -<br />
Financial Liabilities<br />
Payables 19,347 - - - - - - - -<br />
Interest Bearing Liabilities 855 9 9 (9) (9) - - - -<br />
Other Financial Liabilities 5 - - - - - - - -<br />
(5) (5) 5 5 - - - -<br />
2009<br />
Financial Assets<br />
Cash and Cash Equivalents (i) 4,361 (44) (44) 44 44 - - - -<br />
Receivables<br />
- Trade debtors 3,434 - - - - - - - -<br />
- Other receivables 2,492 - - - - - - - -<br />
Other financial assets<br />
- Available for sale 1,440 (14) (14) 14 14 (72) (72) 144 144<br />
Financial Liabilities<br />
Payables 24,810 - - - - - - - -<br />
Interest Bearing Liabilities 891 9 9 (9) (9) - - - -<br />
Other Financial Liabilities 8 - - - -<br />
(49) (49) 49 49 (72) (72) 144 144<br />
(i) eg. Sensitivity of cash and cash equivalents to a +1% movement in interest rates: [$1,349k*0.051]-[$1,349k*0.041] = $14k. Similar for a -1% movement in interest rate, impact = $(14k)<br />
The carrying amount excludes statutory financial assets and liabilities (i.e. GST input tax credit and GST payable)<br />
<strong>Northern</strong> <strong>Health</strong> Financial Report Appendix to the 2009 - 2010 Annual Report <br />
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