03 Financial Statements NOTE 5: FINANCIAL ASSETS

Note 5: Financial Assets

Credit terms for goods and services were within 30 days (2014: 30 days)
Interest receivable is due monthly, quarterly or upon maturity, depending on the terms of the investment.

Concentration of risk

The largest single exposure in the loan portfolio at 30 June 2015 was for an amount of $67.7 million (2014: $69.3 million). The following table shows the diversification of investments in the loan portfolio at 30 June 2015:

The following table shows the diversification of investments within the loan portfolio at 30 June 2015 by credit quality. Since the loans made by the Corporation are (in the main) to entities that will not have a formal credit rating, the Corporation has developed a Shadow Credit Ratings (‘SCR’) system. These are internal risk indicators used by the Corporation to assess the default risks of its debt instruments. The SCR assesses the probability of seeing the counterparty default under its obligations. The SCR is determined by a risk matrix based on internal risk assessments of the counterparty involved, the business risk it faces and the financial risk it has as a result of the debt it carries (including all new debt proposed in the investment opportunity).

Impairment allowance

Concentration of risk and impairment – AFS financial assets

Equity investments are amounts held by way of shares in publicly listed entities or units in unincorporated unit trust structures. During the 2015 financial year, a permanent diminution in the value of certain AFS financial assets was recognised in the amount of $39,000 (2014: $414,000).

Maturity analysis of other financial assets

Restricted deposit accounts with financial institutions are expected to mature within 12 months, however, the funds are not expected to be returned to the Corporation as they are contractually restricted to funding committed credit facilities and committed investments at call. Accordingly, the maturity analysis shown below, is the anticipated maturity date at which the funds are expected to be repaid to the Corporation.

Restricted deposit accounts with financial institutions are amounts that have been funded into accounts held with financial institutions where they are contractually limited to being applied against specific loans and receivables or investments that the Corporation has entered into. The funds are held until such time as they are either drawn down by the counter-party or the availability period expires under the facilities. The amounts are held with Australian banks each of which have a credit rating of no less than A+. No single bank holds more than 50% of the total.

The following table shows the diversification of anticipated projects/loans that the investments are expected to be applied against at 30 June 2015 by credit quality using the Corporation’s SCR methodology:

Provision for impairment – Other financial assets

An impairment will be recognised if it is likely that other financial assets will not be recovered in full. In this instance a specific provision will be created for impairment. There was no impairment in 2015 (2014: $Nil).