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FINANCIAL STATEMENTS
Queensland Art Gallery Board of Trustees Annual Report 2013–14
PART B
31
31
Queensland Ar t Gallery Board of Trustees
Notes to and forming par t of the Financial Statements 2013–14
28. Financial Instruments – Economic Entity (cont.)
(b) Financial Risk Management (cont.)
Risk Exposure
Measurement method
Credit risk
Ageing analysis, earnings risk
Liquidity risk
Sensitivity analysis
Market risk
Interest rate sensitivity analysis
(c) Credit Risk Exposure
Credit risk exposure refers to the situation where the Gallery may incur financial loss as a
result of another party to a financial instrument failing to discharge their obligation.
The maximum exposure to credit risk at balance date in relation to each class of financial
assets is the gross carrying amount of those assets which is equal to the amounts listed
in Note 28 (a).
No collateral is held as security and no credit enhancements relate to financial assets
held by the Gallery.
The Gallery manages credit risk by ensuring that the Gallery invests in secure assets and
by monitoring funds owed on an ongoing basis. All investments are consistent with the
Gallery’s Investment Policy which is overseen by the Queensland Art Gallery Board of
Trustees.
No financial assets and financial liabilities have been offset and presented net in the
Statement of Financial Position.
Cash and cash equivalent investments are held with financial institutions approved under
the
Statutory Bodies Financial Arrangements Act 1982
.
No financial assets have had their terms renegotiated so as to prevent them from being
past due or impaired.
Ageing of past due but not impaired receivables are disclosed in the following tables:
2014 Financial Assets Past Due But Not Impaired
Overdue
Less than
30 Days
30–60
Days
61–90
Days
More than
90 Days
Total
$'000
$'000
$'000
$'000
$'000
Trade debtors
628
26
19
12
685
2013 Financial Assets Past Due But Not Impaired
Overdue
Less than
30 Days
30-60
Days
61-90
Days
More than
90 Days
Total
$'000
$'000
$'000
$'000
$'000
Trade debtors
346
22
13
44
425
(d) Liquidity Risk
Liquidity risk refers to the situation where the Gallery may encounter difficulty in meeting
obligations associated with financial liabilities.
The Gallery is only exposed to liquidity risk in respect of its payables.
The Gallery manages exposure to liquidity risk by ensuring that sufficient funds are held to
meet supplier obligations as they fall due. This is achieved by ensuring that minimum
levels of cash are held within the various bank accounts so as to meet the expected
supplier liabilities as they fall due, and by investment in financial instruments, which under
normal market conditions are readily convertible to cash.