Icon Energy Annual Report 2019

Notes to the Consolidated Financial Statements for the year ended 30 June 2019 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2019 (b) Credit risk (c) Liquidity risk Carrying Amount Contractual Cashflows <1Year 1-5 Years $ $ $ $ 30 June 2019 Trade and other payables 140,791 140,791 140,791 - 140,791 140,791 140,791 - 30 June 2018 Trade and other payables 151,510 151,510 151,510 - 151,510 151,510 151,510 - Fair value estimation • • • There were no other related party transactions during the year ended 30 June 2019 or 30 June 2018. NOTE 19 - FINANCIAL INSTRUMENTS (CONTINUED) 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. The Consolidated Entity’s liquidity risk relating to financial liabilities at 30 June 2019 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. At 30 June 2019, 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 $34,095 higher/$34,456 lower (30 June 2018:$29,196 higher/$32,849 lower), mainly as a result of the Consolidated Entity’s exposure to interest rates on its variable rate cash and cash equivalents. Credit risk refers to the risk that a 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 17. 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. NOTE 20 - 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. The carrying values less provision for impairment of financial assets and financial liabilities of the Consolidated Entity, as stated in the Consolidated Statement of Financial Position and accompanying explanatory notes at 30 June 2019, 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. Transactions with Directors and Director Related Entities are disclosed in note 4. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 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 following are contractual maturities of financial liabilities: 59 55 Icon Energy Annual Report 2019