Financial Risks Disclosures Financial Instrument Categories Financial assets and financial liabilities are recognised in the statement of financial position when the Public Trustee becomes party to the contractual provisions of the financial instrument. The Public Trustee has the following categories of financial assets and financial liabilities: 2017 2016 Note $’000 $’000 Financial Assets Cash and cash equivalents 8 184,937 176,551 Receivables 9 14,369 15,836 Other financial assets 10 710,701 702,338 Total Financial Assets 910,007 894,725 Financial Liabilities 12 728,872 718,603 Deposits held in trust 7,198 2,719 Payables Total Financial Liabilities 736,070 721,322 No financial assets and liabilities have been offset and presented net in the statement of financial position. b) Financial Risks Management (i) Risk Exposure The Public Trustee’s activities expose it to a variety of financial risks as set out in the following table: Risk Definition Exposure Exposure Credit risk exposure refers to the situation where the Public Trustee may incur financial The Public Trustee is exposed to credit Credit loss as a result of another party to a financial risk in respect of its receivables and Risk instrument failing to discharge their financial assets. obligation. Liquidity risk refers to the situation where the Public Trustee may encounter difficulty in The Public Trustee is exposed to liquidity Liquidity meeting obligations associated with financial risk in respect of its payables, other Risk liabilities that are settled by delivering cash financial assets and deposits held in trust. or another financial asset. The risk that the fair value or future cash The Public Trustee does not trade in flows of a financial instrument will fluctuate foreign currency and is not materially because of changes in market prices. Market exposed to commodity price changes or risk comprises three types of risk: currency other market prices. Market risk, interest rate risk and other price risk. Risk The organisation is exposed to interest Interest rate risk is the risk that the fair value rate risk through its cash deposited in or future cash flows of a financial instrument interest bearing accounts, holding of will fluctuate due to changes in market financial assets and interest payable on deposits held in trust. interest FS24
Financial Risks Disclosures Financial Instrument Categories Financial assets and financial liabilities are recognised in the statement of financial position when the Public Trustee becomes party to the contractual provisions of the financial instrument. The Public Trustee has the following categories of financial assets and financial liabilities: Note 2017 $’000 2016 $’000 Financial Assets Cash and cash equivalents 8 184,937 176,551 Receivables 9 14,369 15,836 Other financial assets 10 710,701 702,338 Total Financial Assets 910,007 894,725 Financial Liabilities Deposits held in trust Payables 12 728,872 7,198 718,603 2,719 Total Financial Liabilities 736,070 721,322 No financial assets and liabilities have been offset and presented net in the statement of financial position. b) Financial Risks Management (i) Risk Exposure The Public Trustee’s activities expose it to a variety of financial risks as set out in the following table: Risk Exposure Definition Exposure Credit Risk Credit risk exposure refers to the situation where the Public Trustee may incur financial loss as a result of another party to a financial instrument failing to discharge their obligation. The Public Trustee is exposed to credit risk in respect of its receivables and financial assets. Liquidity Risk Liquidity risk refers to the situation where the Public Trustee may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Public Trustee is exposed to liquidity risk in respect of its payables, other financial assets and deposits held in trust. Market Risk The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest The Public Trustee does not trade in foreign currency and is not materially exposed to commodity price changes or other market prices. The organisation is exposed to interest rate risk through its cash deposited in interest bearing accounts, holding of financial assets and interest payable on deposits held in trust. FS24
the-public-trustee-of-queensland-annual-report-2016-17.docx