Final Annual Report - Health Workforce Australia

Note 15: Financial Instruments

Notes to and forming part of the financial statements for the period 1 July 2014 to 7 October 2014.

Page last updated: 18 May 2015

Note 15A: Categories of Financial Instruments
2015
$'000
2014
$'000
Financial Assets
Cash at Bank
5,603
117,979
Receivables
2,263
8,944
Carrying amount of financial assets
7,866
126,923
Financial Liabilities
Supplier Payables
212
1,072
Grants
-
1,306
Carrying amount of financial liabilities
212
2,378



Note 15B: Net Income and Expense from Financial Assets
  2015
$'000
2014
$'000
Interest revenue 329 4,868
Net gain from financial assets 329 4,868



Note 15C: Fair Value of Financial Instruments
 
Carrying
amount
2015
$'000
Fair
value
2015
$'000
Carrying
amount
2014
$'000
Fair
value
2014
$'000
Financial Assets
Cash at Bank
5,603
5,603
117,979
117,979
Trade and other receivables
2,263
2,263
8,944
8,944
Total
7,866
7,866
126,923
126,923
Financial Liabilities
Supplier Payables
212
212
1,072
1,072
Grants
-
-
1,306
1,306
Total
212
212
2,378
2,378



Note 15D: Credit Risk
HWA is exposed to minimal credit risk as the majority of other receivables is the net GST receivable from the Australian Taxation Office for September 2014.

The following table illustrates the entity's gross exposure to credit risk, excluding any collateral or credit enhancements.

2015
$'000
2014
$'000
Financial assets
Trade and other receivables
2,263
8,944
Total
2,263
8,944


Credit quality of financial instruments not past due or individually determined as impaired
Note 15D: Credit Risk
 
Not past due nor impaired
2015
$'000
Not past due nor impaired
2014
$'000
Past due or impaired
2015
$'000
Past due or impaired
2014
$'000
Trade and other receivables
1,994
8,944
269
Total
1,994
8,944
269


Liquidity risk is the risk that HWA will encounter difficulty in meeting obligations associated with financial liabilities. HWA was dependent upon revenue from Government under a multi schedule funding agreement between Department of Health and HWA. The Department of Health terminated this agreement on 5 August 2014.

Maturities for non-derivative financial liabilities 7 October 2014
Note 15E: Liquidity Risk
  within 1
year
1 to 2
years
2 to 5
years
5 >
years
Total
$'000 $'000 $'000 $'000 $'000
Supplier Payables
212 - - - 212
Grants
 - - - -  -
Total
212  -  -  - 212
Maturities for non-derivative financial liabilities 2014
Supplier Payables
1,072 - - - 1,072
Grants
1,306 - - - 1,306
Total
2,378  -  -  - 2,378


HWA is subject to an interest rate risk on bank account interest.
HWA is not subject to any other price risks on financial instruments.

Sensitivity analysis of the risk that the entity is exposed to for the period ended 7 October 2014
Note 15F: Market Risk
 
Change in risk variable 
Effect on
%
Profit and loss
$'000
Equity
$'000
Interest rate risk
0.6
349
349
Interest rate risk
(0.6)
(349)
(349)
Sensitivity analysis of the risk that the entity is exposed to for 2014
Interest rate risk
0.6
759
759
Interest rate risk
(0.6)
(759)
(759)