Berry Street Web Docs Financial Report 2009 | Page 21

BERRY STREET VICTORIA INC.
ABN 24 719 196 762

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009

NOTE 16: FINANCIAL RISK MANAGEMENT (Continued)
(b) Credit Risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of
contract obligations that could lead to a financial loss to the association.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets is the carrying amount, net of any provisions for impairment of receivables, as disclosed in
the balance sheet and notes to the financial statements.
The association does not have any material credit risk exposure to any single receivable or group of receivables under
financial instruments entered into by the association.
(c)

Price Risk

Price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
the changes in market prices largely due to demand and supply factors for commodities.
The association’s exposure to price risk, which is the risk that an instrument’s value will fluctuate as a result of
changes in a security’s price on classes of financial assets, is as follows:
2009
$

2008
$

Held-for-trading financial assets

3,323,385

7,994,488

Available-for-sale financial assets

6,219,931

4,685,812

Net Exposure

9,543,316

12,680,300

Financial Assets

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