ABN 61 058 454 569
ICON ENERGY LIMITED
2015 Annual Report
71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
71
FOR THE YEAR ENDED 30 JUNE 2015
30 June 2015 30 June 2014
Financial instruments comprise of the following:
NOTE
$
$
Financial Assets
Cash and cash equivalents
4
8,748,520 7,605,461
Loans and receivables:
- Trade and other receivables
5
111,360
9,080,045
Held to maturity financial assets:
- Term deposit
6
5,000,000 12,000,000
Financial Liabilities
Held at amortised cost
- Trade and other payables
9
(776,665)
(1,471,170)
Significant Accounting Policies
Capital Risk Management
Financial Risk Management
a
Market Risk
Interest rate risk
NOTE 20 - FINANCIAL INSTRUMENTS
The main purpose of non-derivative financial instruments is to raise finance for the consolidated entity operations.
The consolidated entity's overall strategy remains unchanged from 2014.
The board of directors review the capital structure on a regular basis. As a part of the review the board considers the cost of
capital and the risks associated with each class of capital.
The carrying values of loans and receivables, held to maturity financial assets and held at amortised cost financial liabilities
approximate their fair value.
The consolidated entity’s risk management program focuses on the unpredictability of the financial markets and
seeks to minimise the potential adverse effects of the financial performance of the consolidated entity, by way of
various measures detailed below.
Risk management is carried out by the board of directors, the audit and risk management committee, and key management
personnel.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The consolidated entity manages its capital to ensure that it will be able to continue as a going concern and provide optimal
return to shareholders through the optimisation of the debt and equity balance.
The consolidated entity’s financial instruments consist mainly of deposits with banks, short-term investments, accounts
receivable and payable. No financial assets are pledged as collateral for liabilities.
The consolidated entity does not have any derivative instruments at 30 June 2015 (30 June 2014: Nil).
The main risks the consolidated entity is exposed through its financial assets and liabilities are credit risk and liquidity risk.
CONSOLIDATED ENTITY
The consolidated entity's interest rate risk arises mainly from the term deposits and cash and cash
equivalents.The entity does not have any borrowing facilities. Therefore, it is not exposed to the interest rate risk.
The capital structure of the consolidated entity consists of cash and cash equivalents and equity comprising issued capital,
net of reserves and accumulated losses as disclosed in notes 4 and 11 respectively.
Details of significant accounting policies and methods adopted, including the criteria for recognition, the basis for
measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset,
financial liability and equity instrument are disclosed in Note 1 to the financial statements.
