2013 AnnuAl RepoRt - Australian Grand Prix

Notes to and Forming Part of the Financial Statementsfor the Financial Year Ended 30 June 2013Off – Balance Sheet financial instrumentsThe maximum credit risk exposure on foreign currency contracts is the full amount of the foreigncurrency the Corporation pays when settlement occurs should the counterparty fail to pay theamount which it is committed to pay to the Corporation.As the Corporation transacts all foreign currency contracts with the Treasury Corporation ofVictoria the credit risk is minimal.Credit quality of contractual financial assets that are neither past nor impaired2013 GovernmentAgenciesTriple-Acredit rating$’000’sFinancialinstitutionsDouble-Acredit rating$’000’sOtherMin Triple-BCredit rating$’000’sTotal$’000’sCash and deposits 16,135 3,146 - 19,281Receivables - - 803 803Total contractual financialassets 16,135 3,146 803 20,0842012 GovernmentAgenciesTriple-Acredit rating$’000’sFinancialinstitutionsDouble-Acredit rating$’000’sOtherMin Triple-BCredit rating$’000’sTotal$’000’sCash and deposits 16,662 494 - 17,156Receivables - - 1,666 1,666Total contractual financialassets 16,662 494 1,666 18,822(d) Liquidity RiskLiquidity risk arises when the Corporation is unable to meet its financial obligations as they fall due.The Corporation operates under the Government fair payments policy of settling financialobligations within 30 days and in the event of a dispute, make payments within 30 days from thedate of resolution.The Corporation manages its liquidity risk by:• maintaining an adequate level of uncommitted funds that can be drawn at short noticeto meet its short-term obligations; and• careful maturity planning of financial obligations based on forecasts of future cash flows.The Corporation’s exposure to liquidity risk is deemed insignificant based on prior periods’ dataand current assessment of risk. Adequate controls and processes are in place to ensure sufficientcash is available when debts fall due.5656Australian Grand Prix Corporation Annual Report 2013