Appendix 1 - Financial Statements
Note 13: Financial Instruments
| 2008 $ | 2007 $ | |
|---|---|---|
| Financial Assets | ||
| Loans and receivables | ||
| Cash and cash equivalents | 1,569,531 | 1,559,769 |
| Trade and other receivables | 346,479 | 292,297 |
| Carrying amount of financial assets | 1,916,010 | 1,852,066 |
| Financial Liabilities | ||
| Liabilities Measured at Amortised Cost | ||
| Suppliers | 208,832 | 162,780 |
| Carrying amount of financial liabilities | 208,832 | 162,780 |
13B Net income and expense from financial instruments
There was no income or expense from financial instruments through profit and loss for the period ending 30 June 2008 (2006-07: nil).
13C Fair value of financial instruments
The carrying amount of all financial assets and liabilities are a reasonable approximation of their fair value.
13D Credit risk
PSR’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial asset is the carrying amount of those assets as indicated in the Balance Sheet. This risk is mainly related to the recovery of debts owed by persons under review.
PSR is exposed to minimal credit risk in relation to as loans and receivables are cash and trade receiveables. The maximum exposure to credit risk is the risk that arises from potiential default of debt. This amount is equal to the total amount of trade receivables. PSR provides for this risk through the recognition of doubtful debts where necessary.
PSR’s credit risk profile has not changed from the previous financial year.
| Not Past Due Nor Impaired 2008 $ |
Not Past Due Nor Impaired 2007 $ |
Past due or impaired 2008 $ |
Past due or impaired 2007 $ | |
|---|---|---|---|---|
| Loans and receivables | ||||
| Cash and cash equivalents1 | 1,569,531 | 1,559,769 | - | - |
| Trade and other receivables2 | 346,479 | - | - | - |
| Total | 1,916,010 | 1,559,769 | - | - |
- 1 Cash and cash equivalents are subject to minimal credit risk as cash holdings are held with the Reserve Bank of Australia.
- 2 Trade and other receivables are subject to minimal credit risk, the majority of which will be recovered on a timely basis. The credit risk in relation to debts which have become past due and impaired is such that recovery processes, as specified above, may result in such debts being subsequently recovered.
13F Liquidity risk
PSR has no significant exposures to any concentrations of liquidity risk.
PSR analyses measures of liquidity, such as the relationship between current assets and current liabilities. Such processes, together with the application of full cost recovery, ensures that at any point in time, PSR has appropriate resources available to meet its financial obligations as and when they fall due.
PSR manages liquidity risk by ensuring all financial liabilities are paid in accordance with terms and conditions on demand.
PSR’s liquidity risk profile has not changed from the previous financial year.
The following tables illustrates the maturities for financial liabilities
| On Demand 2008 $ |
Within 1 year 2008 $ | 1 to 5 years 2008 $ | > 5 years 2008 $ | Total 2008 $ |
|
|---|---|---|---|---|---|
| Liabilities measured at amortised cost | |||||
| Suppliers | 208,833 | - | - | - | 208,833 |
| Total | 208,833 | - | - | - | 208,833 |
| On Demand 2008 $ |
Within 1 year 2008 $ | 1 to 5 years 2008 $ | > 5 years 2008 $ | Total 2008 $ |
|
|---|---|---|---|---|---|
| Liabilities measured at amortised cost | |||||
| Suppliers | 162,780 | - | - | - | 162,780 |
| Total | 162,780 | - | - | - | 162,780 |
13G Market risk
PSR holds basic financial instruments that do not expose PSR to certain market risks. PSR’s market risk profile has not changed from the previous financial year.
PSR is not exposed to ‘Currency risk’, ‘Other price risk’ or ‘Interest rate risk’.