Icon Energy Limited Annual Report 2016

ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2016 (b) Credit risk (c) Liquidity risk Carrying Amount Contractual Cashflows <1Year 1-5 Years 30 June 2016 NOTE $ $ $ $ Trade and other payables 10 113,508 113,508 113,508 - 113,508 113,508 113,508 - 30 June 2015 Trade and other payables 10 776,665 776,665 776,665 - 776,665 776,665 776,665 - Fair value estimation • • • There were no other related party transactions during the year ended 30 June 2016 or 30 June 2015. The carrying values less provision for impairment of financial assets and financial liabilities of the consolidated entity, as stated in the Statement of Financial Position and accompanying explanatory notes at 30 June 2016, are a reasonable approximation of their fair values due to the short-term nature of the instruments. NOTE 22 - RELATED PARTY TRANSACTIONS Transactions with Directors and Director Related Entities are disclosed in note 4. Ultimate responsibility for liquidity risk rests with the board of directors, who have an appropriate liquidity risk management framework for the management of the consolidated entity’s short, medium and long-term funding and liquidity requirements. Credit quality of financial assets neither past due or impaired. Interests in subsidiaries are disclosed in note 19. The consolidated entity manages liquidity risk by monitoring forecast and actual cash flows, matching the maturity profiles of the financial assets and liabilities and entering into contracts in accordance with an approved Authority for Expenditure. Liquidity risk arises from the financial liabilities of the consolidated entity and its subsequent ability to meet its obligations to repay their financial liabilities as and when they fall due. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the consolidated entity’s maximum exposure to credit risk without taking account of the value of any collateral obtained. Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the consolidated entity. The consolidated entity enters into legally binding contracts and management monitors the progress of these contracts in accordance with contract values, as a means of mitigating the risk from The consolidated entity does not have any significant credit risk exposure to any single counterparty of any group of counterparties having similar characteristics. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 21 - FINANCIAL RISK MANAGEMENT (CONTINUED) At 30 June 2016, if the interest rates had increased / decreased by 0.5% from the period-end rates with all other variables held constant, post-tax profit for the year for the consolidated entity would have been $52,967 higher/$52,870 lower (30 June 2015: $64,420 higher/$64,149 lower), mainly as a result of the consolidated entity’s exposure to interest rates on its variable rate cash and cash equivalents. The consolidated entity’s liquidity risk relating to financial liabilities at 30 June 2016 is limited to the repayment of the trade payables. Trade payables are short-term in nature. The consolidated entity does not finance exploration activities through debt. No financial assets and financial liabilities are traded in active markets. The following are contractual maturities of financial liabilities: NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2016 FINANCIAL REPORT 57 ICON ENERGY ANNUAL REPORT 2016