Icon Energy Limited Annual Report 2017

ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2017 (b) Credit risk (c) Liquidity risk Carrying Amount Contractual Cashflows <1Year 1-5 Years 30 June 2017 NOTE $ $ $ $ Trade and other payables 9 314,074 314,074 314,074 - 314,074 314,074 314,074 - 30 June 2016 Trade and other payables 9 113,508 113,508 113,508 - 113,508 113,508 113,508 - Fair value estimation • • • There were no other related party transactions during the year ended 30 June 2017 or 30 June 2016. The consolidated entity’s liquidity risk relating to financial liabilities at 30 June 2017 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. Transactions with Directors and Director Related Entities are disclosed in note 3. 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. 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 2017, are a reasonable approximation of their fair values due to the short-term nature of the instruments. No financial assets and financial liabilities are traded in active markets. 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 financial loss. Interests in subsidiaries are disclosed in note 18. The following are contractual maturities of financial liabilities: 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 quality of financial assets neither past due or impaired. NOTE 21 - RELATED PARTY TRANSACTIONS 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. At 30 June 2017, 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 $48,301 higher/$48,361 lower (30 June 2016: $52,967 higher/$52,870 lower), mainly as a result of the consolidated entity’s exposure to interest rates on its variable rate cash and cash equivalents. NOTE 20 - FINANCIAL RISK MANAGEMENT (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2017 FINANCIAL REPORT 57 ICON ENERGY ANNUAL REPORT 2017