Note 22: Administered - Financial Instruments
2012 |
2011 |
|
|---|---|---|
$’000 |
$’000 |
|
Note 22A: Categories of Financial Instruments |
||
Financial Assets |
||
Loans and receivables: |
||
Cash |
191 |
2,528 |
Goods and services receivables |
413 |
330 |
Dividend - Export Finance and Investment Commission |
30,194 |
- |
Traveller Emergency Loans |
902 |
851 |
Other - passport and consular fees |
1,784 |
1,228 |
Total loans and receivables |
33,484 |
4,937 |
Available for sale: |
||
Investment - Export Finance and Insurance Corporation |
418,063 |
408,082 |
Total available for sale |
418,063 |
408,082 |
Carrying amount of financial assets |
451,547 |
413,019 |
Financial Liabilities |
||
At amortised cost: |
||
Suppliers |
1,242 |
332 |
NIA |
10,689 |
21,061 |
Total financial liabilities at amortised cost |
11,931 |
21,393 |
Carrying amount of financial liabilities |
11,931 |
21,393 |
Note 22B: Net Income and Expense from Financial Assets |
||
Loans and receivables |
||
Interest revenue |
118 |
97 |
Impairment Decrease/(Increase) |
7 |
12 |
Write-off |
(4) |
(48) |
Net gain/(loss) from loans and receivables |
121 |
61 |
Available for sale |
||
Dividend revenue |
30,194 |
28,708 |
Revaluation gain/(loss) recognised in equity |
9,981 |
476 |
Net gain/(loss) from available for sale |
40,175 |
29,184 |
Net gain/(loss) from financial assets |
40,296 |
29,245 |
2012 |
2011 |
|
|---|---|---|
$’000 |
$’000 |
|
Note 22C: Net Income and Expense from Financial Liabilities |
||
Financial liabilities - at amortised cost |
||
NIA |
||
Interest revenue |
4,560 |
5,154 |
Other revenue |
26,137 |
19,234 |
Exchange gains/(loss) |
(305) |
2,483 |
Interest expense |
(1,809) |
(4,954) |
Administration costs |
(1,463) |
(1,567) |
Net gain/(loss) financial liabilities - at amortised cost |
27,120 |
20,350 |
Net gain/(loss) from financial liabilities |
27,120 |
20,350 |
Note 22D: Fair Value of Financial Instruments |
||||
Carrying amount |
Fair value |
Carrying amount |
Fair value |
|
2012 |
2012 |
2011 |
2011 |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Financial Assets |
||||
Cash |
191 |
191 |
2,528 |
2,528 |
Receivables for goods and services (net) |
1,315 |
1,315 |
1,181 |
1,181 |
Dividend |
30,194 |
30,194 |
||
Accrued Revenue |
1,784 |
1,784 |
1,228 |
1,228 |
Investments |
418,063 |
418,063 |
408,082 |
408,082 |
Total |
451,547 |
451,547 |
413,019 |
413,019 |
Financial Liabilities |
||||
Trade creditors |
1,242 |
1,242 |
332 |
332 |
Other payables |
10,689 |
10,689 |
21,061 |
21,061 |
Total |
11,931 |
11,931 |
21,393 |
21,393 |
Valuation Method used for determining the Fair Value of Financial Instruments The following table identifies for those assets and liabilities (those at fair value through profit and loss or available for sale) carried at fair value (above) whether fair value was obtained by reference to market prices or by a valuation technique that employs observable market transactions, or one that uses non-observable market inputs to determine a fair value. |
||||
Fair value measurements categorised by fair value hierarchy |
||||
The following table provides an analysis of financial instruments that are measured at fair value, by valuation method. |
||||
The different levels are defined below: |
||||
Level 1: Fair value obtained from unadjusted quoted prices in active markets for identical instruments |
||||
Level 2: Fair value derived from inputs other than quoted prices included within Level 1 that are observable for the instrument, either directly or indirectly. |
||||
Level 3: Fair value derived from inputs that are not based on observable market data. |
||||
Fair value hierarchy for financial assets |
||||
Level 3 |
Total |
|||
2012 |
2011 |
2012 |
2011 |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Financial Assets |
||||
Financial assets at fair value |
||||
EFIC - Valuation by net assets |
418,063 |
408,082 |
418,063 |
408,082 |
Total |
418,063 |
408,082 |
418,063 |
408,082 |
As the Department only administered basic financial instruments (outlined above), the carrying amounts are a reasonable approximation of fair value. The department holds no financial instruments measured at fair value by valuation method Level 1 or Level 2 (2010-11: Nil). |
||||
Reconciliation of Level 3 fair value hierarchy for financial assets |
||||
Financial assets at fair value |
Total |
|||
Investments |
||||
2012 |
2011 |
2012 |
2011 |
|
$'000 |
$'000 |
$'000 |
$'000 |
|
Opening balance |
408,082 |
407,606 |
408,082 |
407,606 |
Total gains or losses recognised in other comprehensive income * |
9,981 |
476 |
9,981 |
476 |
Closing balance |
418,063 |
408,082 |
418,063 |
408,082 |
* This revaluation gain/loss is presented in the schedule of administered items and is related to the movements in the carrying amount of investments. |
||||
Note 22E: Credit Risk |
||
Recognised in the DFAT Administered Accounts Maximum exposure |
||
The Department's Senior Executive has endorsed policies and procedures for debt management (including the provision of credit terms) to reduce the incidence of credit risk. The majority of services provided by the Department on behalf of the Australian Government are delivered to another government entity and therefore represent minimal credit risk. Collateral is not required on any loan. |
||
The Department’s maximum exposure to credit risk at reporting date in relation to each class of recognised administered financial asset is the carrying amount of those assets as indicated in the Schedule of Administered Items, unless otherwise detailed in the table below: |
||
The following table illustrates the entity's gross exposure to credit risk, excluding any collateral or credit enhancements. |
||
2012 |
2011 |
|
$'000 |
$'000 |
|
Financial assets |
||
as per balance sheet |
451,901 |
413,176 |
Total |
451,901 |
413,176 |
Credit Quality |
||
The Department's Administered Traveller Emergency Loans receivable includes debtors with a carrying amount of approximately $0.523 million (2011: $0.476 million) that are past due at the reporting date and for which the Department has not provided. Based on experience, the Department believes that the amounts are still considered receivable. The Department does not hold any collateral over these balances. However, it requires settlement of the outstanding debt before the debtor's passport is renewed. |
||
Ageing of financial assets that were past due but not impaired for 2012 |
||||||
Not past due nor impaired |
0 to 30 days |
31 to 60 days |
61 to 90 days |
90+ days |
Total |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Not Impaired |
- |
|||||
Cash and Cash Equivalents |
191 |
- |
- |
- |
- |
191 |
Goods and Services Receivables, Other and Passport fees |
2,193 |
3 |
1 |
- |
- |
2,197 |
Dividend |
30,194 |
- |
- |
- |
- |
30,194 |
Traveller Emergency Loans |
378 |
7 |
8 |
2 |
507 |
902 |
Investments - Export Finance and Investment Corporation |
418,063 |
- |
- |
- |
- |
418,063 |
Total |
451,019 |
10 |
9 |
2 |
507 |
451,547 |
The following list of assets have been individually impaired: |
||||||
Travellers Emergency Loans* |
- |
- |
- |
1 |
545 |
546 |
Total |
451,019 |
10 |
9 |
3 |
1,052 |
452,093 |
Ageing of financial assets that were past due but not impaired for 2011 |
||||||
Not past due nor impaired |
0 to 30 days |
31 to 60 days |
61 to 90 days |
90+ days |
Total |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Not Impaired |
||||||
Cash and Cash Equivalents |
2,528 |
- |
- |
- |
- |
2,528 |
Goods and Services Receivables, Other and Passport fees |
1,552 |
- |
5 |
- |
1 |
1,558 |
Traveller Emergency Loans |
375 |
2 |
42 |
30 |
402 |
851 |
Investments - Export Finance and Investment Corporation |
408,082 |
- |
- |
- |
- |
408,082 |
Total |
412,537 |
2 |
47 |
30 |
403 |
413,019 |
The following list of assets have been individually impaired: |
||||||
Travellers Emergency Loans* |
- |
- |
- |
- |
553 |
553 |
Total |
412,537 |
2 |
47 |
30 |
956 |
413,572 |
* DFAT impaired some traveller emergency loans immediately on issuance as the loan recipient, while requiring consular assistance and legally able to enter into a loan contract, was assessed as not likely to be in a position to repay the loan based on observable evidence and factors. |
||||||
| Note 22F: Liquidity Risk | ||||||
| The Department receives an annual Administered Appropriation to fund payments due on the financial liabilities listed and therefore does not carry any liquidity risk. | ||||||
| The following tables illustrates the maturities for financial liabilities. | ||||||
| Maturities for non-derivative financial liabilities 2012 | ||||||
| On demand | within 1 year | 1 to 2 years | 2 to 5 years | > 5 years | Total | |
| $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | |
| Trade creditors | - | 1,242 | - | - | - | 1,242 |
| NIA | - | 2,597 | 6,075 | 1,626 | 391 | 10,689 |
| Total | - | 3,839 | 6,075 | 1,626 | 391 | 11,931 |
| Maturities for non-derivative financial liabilities 2011 | ||||||
| On | within 1 | 1 to 2 | 2 to 5 | > 5 | ||
| demand | year | years | years | years | Total | |
| $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | |
| Trade creditors | - | 332 | - | - | - | 332 |
| NIA | - | 5,578 | 7,473 | 2,762 | 5,248 | 21,061 |
| Total | - | 5,910 | 7,473 | 2,762 | 5,248 | 21,393 |
| The entity had no derivative financial liabilities in both the current and prior financial year. | ||||||
Note 22G: Market Risk |
|||||||
The following table illustrates the effect on the Department's Administered net income less expenses and equity as at 30 June 2012 from a 15 % (2011: 15%) increase or decrease against the AUD in the currencies in which financial instruments were administered by the Department, with all other variables held constant. |
|||||||
2012 |
2012 |
2011 |
2011 |
||||
$'000 |
USD $'000 |
$'000 |
USD $'000 |
||||
Other Payables - NIA |
6,288 |
6,408 |
(3,127) |
(3,358) |
|||
Supplier Payable - Grants and Contributions |
(184) |
(188) |
24 |
25 |
|||
Total Exposure USD |
6,220 |
(3,333) |
|||||
2012 |
2012 |
2011 |
2011 |
||||
$'000 |
EUR $'000 |
$'000 |
EUR $'000 |
||||
Other Payables - NIA |
193 |
156 |
227 |
168 |
|||
Total Exposure EUR |
156 |
168 |
|||||
Sensitivity analysis of the risk that the entity is exposed to for 2012 |
|||||||
Change in risk variable |
Effect on |
||||||
Risk variable |
Profit and loss |
Equity |
|||||
% |
$'000 |
$'000 |
|||||
Currency risk - All currencies |
- |
15% |
(821) |
(821) |
|||
Currency risk - All currencies |
- |
-15% |
1,111 |
1,111 |
|||
Sensitivity analysis of the risk that the entity is exposed to for 2011 |
|||||||
Change in risk variable |
Effect on |
||||||
Risk variable |
Profit and loss |
Equity |
|||||
% |
$'000 |
$'000 |
|||||
Currency risk - All currencies |
- |
15% |
375 |
375 |
|||
Currency risk - All currencies |
- |
-15% |
(508) |
(508) |
|||
All other items are denominated in AUD and are not subject to market risk due to exchange rate fluctuations. |
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