2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013(b) Net holding gain/(loss) on financial instruments by category2013 Net holdinggain/lossTotal interestincome$’000’sTotal$’000’s$’000’sContractual financial assetsFinancial assets – loans and receivables - 2,030 2,030Total contractual financial assets - 2,030 2,0302012 Net holding Total interest Totalgain/loss income$’000’s $’000’s $’000’sContractual financial assetsFinancial assets – loans and receivables - 1,598 1,598Total contractual financial assets - 1,598 1,598The net holding gains and losses disclosed above are determined as follows:• for cash and cash equivalents, loans or receivables the net gain or loss is calculated bytaking the movement in the fair value of the asset, the interest income, plus or minusforeign exchange gains or losses arising from revaluation of financial assets, and minus anyimpairment recognised in the net result.• for financial liabilities measured at amortised cost, the net gain or loss is calculated bytaking the interest expense, plus or minus foreign exchange gains or losses arising from therevaluation of financial liabilities measured at amortised cost.(c) Credit riskCredit risk arises from contractual financial assets of the Corporation, which comprise cash anddeposits, non-statutory receivables, and derivative instruments. Credit risk represents the loss thatwould be recognised if counterparties failed to perform as contracted. Credit risk is measured atfair value and is monitored on a regular basis.On-Balance Sheet financial instrumentsThe credit risk on the Corporation’s financial assets is the carrying amount of receivables, net ofthe provision for doubtful debts. Credit risk is measured at fair value and is monitored on a regularbasis.Credit risk associated with the Corporation’s contractual financial assets is minimal because themain debtor is the Victorian Government. For debtors other than government, it is theCorporation’s policy to only deal with creditworthy counterparties. Credit risk is controlledthrough the Corporation’s risk management policies which deal with credit exposure limits andcounterparty limits (refer Note 6).Provision of impairment for contractual financial assets is recognised when there is objectiveevidence that the Corporation will not be able to collect a receivable. Objective evidenceincludes financial difficulties of the debtor, default payments, debts which are more than 60 daysoverdue, and changes in debtor credit ratings.Australian Grand Prix Corporation Annual Report 2013 5555