ABN 61 058 454 569
ICON ENERGY LIMITED
2015 Annual Report
73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
73
FOR THE YEAR ENDED 30 JUNE 2015
b.
Credit risk
c.
Liquidity risk
Carrying
Amount
Contractual
Cashflows
<1Year
1-5 Years
30 June 2015
NOTES
$
$
$
$
Trade and other payables
9
776,665
776,665
776,665
-
776,665
776,665
776,665
-
30 June 2014
Trade and other payables
9
1,471,170
1,471,170
1,471,170
-
1,471,170
1,471,170
1,471,170
-
Fair value estimation
•
•
•
There were no other related party transactions during the year ended 30 June 2015 or 30 June 2014.
No financial assets and financial liabilities are traded in active markets.
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.
Interests in subsidiaries are disclosed in note 18.
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 20 - FINANCIAL RISK MANAGEMENT (CONTINUED)
At 30 June 2015, 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 $64,420
higher/$64,149 lower (30 June 2014: $111,312 higher/$112,113 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 2015 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.
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 2015, are a reasonable
approximation of their fair values due to the short-term nature of the instruments.
NOTE 21 - RELATED PARTY TRANSACTIONS
Transactions with Directors and Director Related Entities are disclosed in note 3.
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 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
Credit quality of financial assets neither past due or impaired.
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.
73
FOR THE YEAR ENDED 30 JUNE 2015
b.
Credit risk
c.
Liquidity risk
Carrying
Amou t
Contractual
ashflows
<1Year
1-5 Years
30 June 2015
NOTES
$
$
$
$
Trade and other payables
9
776,665
776,665
776,665
-
776,665
776,665
776,665
-
30 June 2014
Trade and other payables
9
1,471,170
1,471,170
1,471,170
-
1,471,170
1,471,170
1,471,170
-
Fair value estimation
•
here were no other r lated party t ansactions uri g the year ended 30 Jun 2015 or 30 June 2014.
No financial assets and financial liabilities are traded in active markets.
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 epay their financial l bilities a and when they fall ue.
Interests in subsidiaries are disclosed in note 18.
The consolidated entity manages liquidity risk by monitoring forecast and actual cash flows, matching the maturity
profiles of the financial assets and liabil ies and enter ng i to contracts in cordance with an pproved Authority
for Expenditure.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 20 - FINANCIAL RISK MANAGEMENT (CONTINUED)
At 30 June 2015, if the interest rates had increased / decreased by 0.5% from the period-end rates with all other
variables held cons ant, post-tax profit for the year for the consolidated entity would have been $64,420
higher/$64,149 l wer (30 June 2014: $111,312 highe /$112,113 low r), mainly as a result of the consolidated
entity’s exposure to interest rates on its variable rat cash and cash quiv lents.
The consolidated entity’s liquidity risk relating to financial liabilities at 30 June 2015 is limited to the repayment of
the trade pay bles. Trade payables are short- erm in nature. Th consolidat d entity does no financ explora i n
activities through debt.
The carrying values less provision for impairment of financial assets and financial liabilities of the consolidated entity, as
stated in the Stat ment of Financial Position and accompanying xpl atory otes t 30 June 2015, are a reaso able
approx mation of their fair values due t the short-term nature of the instrume ts.
NOTE 21 - RELATED PARTY TRANSACTIONS
Transaction with Di cto s and Dir ctor Related Entities are disclosed in note 3.
Ultimate responsibility for liquidity risk rests with the board of directors, who have an appropriate liquidity risk
manag m nt framework for the manag ment of
c nsolidated entity’s short, medium and long-term funding
and liquidity requir ments.
The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses,
represents the c nsolidated entity’ maximum xposure to credit risk without taking ccount of th value of any
collateral obtained.
redit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to
th con olidat d en ity. The cons lidated entity ent rs int legally binding contr cts and management monitor
progress of th se contra ts in accor ance with contract values, as a means of mitigating th risk from
Credit quality of financial assets neither past due or impaired.
The consolidated entity does not have any significant credit risk exposure to any single counterparty of any group
of counterparti s hav ng similar c racteristics. The credit risk on liquid funds is limited because the
counterparties are ba ks with hig credit-ra ings assigned by international credit-rat ng agencies.
