99 / 136
97
Impact to post-tax profit
Impact on reserves
2016
2015
2016
2015
$’000
$’000
$’000
$’000
Trading equities
(773)
(648)
–
–
Long term equity investments
–
–
(20,503)
(21,578)
Total
(773)
(648)
(20,503)
(21,578)
iii. Fair value interest rate risk
Refer to 20e below.
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 Group.
Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks
and financial institutions, as well as credit exposure to export and domestic customers, including outstanding
receivables and committed transactions. The Group has no significant concentrations of credit risk.
The Group’s derivative counterparties and term deposits are limited to financial institutions with a rating of at least
BBB. The Group has policies that limit the maximum amount of credit exposure to any one financial institution.
Credit risk further arises in relation to financial guarantees given to certain parties (refer note 23c). Such guaran-
tees are only provided in exceptional circumstances and are subject to specific Board approval.
The credit quality of financial assets that are neither past due nor impaired, can be assessed by reference to historical
information about counterparty defaults. To mitigate credit risk, management within each of the Group entities apply
policies to assess and monitor the credit worthiness of customers and set appropriate credit limits for each customer,
taking into account their financial positions, past experience and other factors pertaining to each industry segment.
The maximum exposure to credit risk at the reporting date is the carrying amount of assets as stated in the
statement of financial position. The following table summarises these assets:
2016
2015
$’000
$’000
Cash and cash equivalents
126,709
59,424
Term deposits
47,660
1,217,011
Loans and receivables
146,962
79,647
Derivative financial instruments
2,313
–
323,644
1,356,082
The loans and receivables balances as stated above reflect the recoverable value and are net of any impairments
or provisions. Refer note 28 for further description on the impairment of receivables.
c) Liquidity risk
Liquidity risk is the risk that an entity is unable to meet its financial obligations as they fall due.
Prudent liquidity risk management is adopted by the Group through maintaining sufficient cash and marketable
securities, the ability to borrow funds from credit providers and to close-out market positions.
The Group entities manage liquidity risk by continually monitoring forecast and actual cashflows and matching
maturity profiles of financial assets and liabilities. Surplus funds are only invested in conservative financial
instruments such as term deposits with major banks.
Financing arrangements
Details of financial facilities available are set out in note 23.
d) Maturity of financial liabilities
The Group’s trade and other payables are all payable within one year. The Group’s maturity analysis for derivative
financial instrument’s is set out in note 22.