Parks Victoria - Annual Report 2009-10

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 201033 Financial Instruments (Continued)(d) Credit RiskCredit risk arises from the financial assets of the entity, which comprise cash and cash equivalents,trade and other receivables, available-for-sale financial assets and derivative instruments. Parks Victoria’sexposure to credit risk arises from the potential default of counter party on their contractual obligationsresulting in financial loss to the agency. Credit risk is measured at fair value and is monitored ona regular basis.Credit risk associated with the agency’s financial assets is minimal because the main debtor is theVictorian Government. For debtors other than government, it is the agency’s policy to only deal withentities with high credit ratings and to obtain sufficient collateral or credit enhancements whereappropriate.In addition, the agency does not engage in hedging for its financial assets and mainly obtains financialassets that are on fixed interest.Provision of impairment for financial assets is calculated based on past experience, and current andexpected changes in client credit ratings.Financial assets that are either past due or impairedCurrently Parks Victoria does not hold any collateral as security nor credit enhancements relating to anyof its financial assets.As at the reporting date, there is no event to indicate that any of the financial assets were impaired.There are no financial assets that have had their terms renegotiated so as to prevent them from beingpast due or impaired, and they are stated at the carrying amounts as indicated. The following tablediscloses the ageing only of financial assets that are past due but not impaired.Table 33.2: Ageing analysis of financial assets (a)CarryingamountNot pastdueand notimpaired$'000Less than1 MonthPast due but not impaired1–3months3 months– 1 year 1–5 yearsImpairedfinancialassets2010Other receivables(inc Operating Leases) 2,923 2,147 340 291 – 145 (436)2,923 2,147 340 291 – 145 (436)2009Other receivables(inc Operating Leases) 2,601 1,962 503 102 – 34 (137)2,601 1,962 503 102 – 34 (137)Note:(a) Ageing analysis of financial assets excludes statutory receivables (e.g. Amounts owing from VictorianGovernment and GST input tax credit recoverable).92 Parks Victoria - Annual Report 2009-10