NOTE 15 : FINANCIAL RISK MANAGEMENT
BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
The association ’ s financial instruments consist mainly of deposits with banks , local money market instruments , short term investment , accounts receivable and payable and leases .
The total for each category of financial instruments , measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements , are as follows :
Financial Assets
Cash and cash equivalents |
4 |
3,030,456 |
1,003,001 |
Loans and receivables |
5 |
1,429,191 |
2,345,150 |
Financial assets at fair value through profit or loss - Held for trading |
6 |
10,031,725 |
10,160,593 |
Held to Maturity investments - Managed investment funds |
6 |
8,635,607 |
6,219,931 |
|
Available-for-sale financial assets : - At fair value
- Shares in listed corporations
|
6 |
6,268,000 |
3,323,385 |
Financial Liabilities
29,394,979 23,052,060
Financial liabilities at amortised cost |
|
|
|
- Trade and other payables |
10a |
1,655,037 |
2,024,890 |
- Borrowings |
11 |
5,361,435 |
4,791,364 |
7,016,472 6,816,254
Financial Risk Management Policies
The association ’ s financial instruments consist mainly of deposits with banks , local money market instruments , equity investments , accounts receivable and payable , bills and leases .
The main purpose of non-derivative financial instruments is to raise finance for the association ’ s operations .
The association does not have any derivative instruments at 30 June 2010 .
The association ’ s overall risk management strategy seeks to assist the association in meeting its financial targets , whilst minimising potential adverse effects on financial performance . The committee of management meets on a regular basis to review its strategy for investments and related risks .
Special Financial Risk Exposures and Management
The main risks the association is exposed to through its financial instruments are credit risk , liquidity risk and market risk relating to interest rate risk and equity price risk .
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