As at 30 June 2015 there was an allowance of impairment in trade and other receivables of the
Group of $0.024m (2014: $0.064m). The individually impaired items relate to rental on property
where the lessees have fallen significantly behind on lease payments. Other receivables past due but
not considered impaired are nil (2014: nil).
Movements in the provision for impairment of trade receivables that are assessed for impairment
individually are as follows:
NOTE 10
FINANCIAL RISK MANAGEMENT
(CONTINUED)
Consolidated
2015
$’000
2014
$’000
At 1 July
(64)
(32)
Provision for impairment charged to other expenses during the
financial year
(12)
(77)
Receivables written off during the year as uncollectable
52
45
At 30 June
(24)
(64)
The creation and release of the provision for impaired receivables has been included in ‘other
expenses’ in the income statement. Amounts charged to the allowance account are generally written
off when there is no expectation of recovering additional cash.
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents, the
availability of committed credit facilities to support funding requirements and the ability to close out
market positions. The Group manages liquidity risk by continuously monitoring forecast and actual
cash flows and maintaining adequate liquidity reserves to support forecast net business expenditure
requirements for a minimum of twelve months on a rolling monthly basis.
As at 30 June 2015 $260m of the $500m syndicated debt facility has been utilised (2014: $165m).
The Group has a $1,500m Australian Dollar Domestic Note programme of which $750m is issued.
Note that $300m matured and two bonds totaling $300m were issued in the current financial year
(note 4(d)). The Group also has access to business card facilities of $2m (2014: $2m).
As at the reporting date of 30 June 2015, as the bond issuer, ARTC complied with clause 4.3
Earnings and Asset Covenant of the Information Memorandum.
91
