| 2013 | 2012 | ||
|---|---|---|---|
| $’m | $’m | ||
| Note 23A. Categories of Financial Instruments | |||
| Financial Assets | Notes | ||
| Loans and receivables: | |||
| Cash and cash equivalents | 18A | 79 | 63 |
| Total loans and receivables | 79 | 63 | |
| Available for sale: | |||
| Investments in Commonwealth entities | 18C | 1,230 | 1,226 |
| Total available for sale | 1,230 | 1,226 | |
| Carrying amount of financial assets | 1,309 | 1,289 | |
| Financial Liabilities | |||
| At amortised cost: | |||
| Health care payables | 36 | 28 | |
| Grants payables | 1 | 1 | |
| Other payables | 28 | 24 | |
| Total financial liabilities at amortised cost | 65 | 53 | |
| Carrying amount of financial liabilities | 65 | 53 |
Note 23B. Fair Value of Financial Instruments
| Carrying amount 2013 $’m |
Fair value 2013 $’m |
Carrying amount 2012 $’m |
Fair value 2012 $’m |
|
|---|---|---|---|---|
| Financial Assets | ||||
| Cash and cash equivalents | 79 | 79 | 63 | 63 |
| Investments | 1,230 | 1,230 | 1,226 | 1,226 |
| Total | 1,309 | 1,309 | 1,289 | 1,289 |
| Financial Liabilities | ||||
| Health Care payables | 36 | 36 | 28 | 28 |
| Grants payables | 1 | 1 | 1 | 1 |
| Other payables | 28 | 28 | 24 | 24 |
| Total | 65 | 65 | 53 | 53 |
Fair value measurements categorised by fair value hierarchy
The following table provides an analysis of financial instruments that are measured at fair value by valuation method. The different levels are defined below:
Level 1 - quoted prices (unadjusted) in active markets for identical assets and liabilities
Level 2 - Fair value derived from inputs other than quoted prices included within Level 1 that are observable for the instrument, either directly or indirectly.
Level 3 - Fair value derived from inputs that are not based on observable market data
| Level 1 | Level 3 | Total | ||||
|---|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
| $’m | $’m | $’m | $’m | $’m | $’m | |
| Financial assets at fair value | ||||||
| Cash and cash equivalents | 79 | 63 | - | - | 79 | 63 |
| Investments | - | - | 1,230 | 1,226 | 1,230 | 1,226 |
| Total | 79 | 63 | 1,230 | 1,226 | 1,309 | 1,289 |
| Fair value hierarchy for financial Liabilities | Level 1 | Level 3 | Total | |||
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
| $’m | $’m | $’m | $’m | $’m | $’m | |
| Financial liabilities at fair value | ||||||
| Health Care payables | 36 | 28 | - | - | 36 | 28 |
| Grants payables | 1 | 1 | - | - | 1 | 1 |
| Other payables | 28 | 24 | - | - | 28 | 24 |
| Total | 65 | 53 | - | - | 65 | 53 |
Notes to and forming part of the financial statements
| Reconciliation of Level 3 fair value hierarchy | Australian War Memorial |
|
|---|---|---|
| 2013 | 2012 | |
| $’m | $’m | |
| Financial assets at fair value | ||
| Opening balance | 1,226 | 1,148 |
| Net movement recognised in equity | 4 | 78 |
| Closing balance | 1,230 | 1,226 |
Note 23C. Credit Risk
The administered activities of DVA were not exposed to a high level of credit risk as the majority of financial assets are cash and investments in government controlled and funded entities. The maximum exposure to credit risk at reporting date in relation to each class of administered financial assets is the carrying amount of those assets as indicated on the Administered Schedule of Assets and Liabilities. As these financial assets consist of cash and investment in government controlled and funded entity, the risk of default is minimal if not nil. DVA manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, DVA has policies and procedures in place that guide employees in debt recovery techniques that are to be applied.
DVA assessed the risk of the default on payment and has not identified any amounts to be allocated as impaired.
DVA held no collateral to mitigate against credit risk.
| 2013 | 2012 | |||
|---|---|---|---|---|
| $’m | $’m | |||
| Financial assets | ||||
| Investments accounted for using the equity method | 1,230 | 1,226 | ||
| Total | 1,230 | 1,226 | ||
| Credit quality of financial instruments not past due or individually determined as impaired | ||||
| Not past due nor impaired | Not past due nor impaired | Past due or impaired | Past due or impaired | |
| 2013 | 2012 | 2013 | 2012 | |
| $’m | $’m | $’m | $’m | |
| Loans and receivables | ||||
| Cash and cash equivalents | 79 | 63 | - | - |
| Financial Assets | ||||
| Investments accounted for using the equity method | 1,230 | 1,226 | - | - |
| Total | 1,309 | 1,289 | - | - |
Notes to and forming part of the financial statements
Note 23D. Liquidity Risk
DVA’s financial liabilities are payables related to health care and other payables. The exposure to liquidity risk is based on the notion that DVA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely as DVA is appropriated funding from the Australian Government and DVA manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, DVA has policies in place to ensure timely payments are made when due and has no past experience of default.
| On demand | Within 1 year | 1 to 2 years | 2 to 5 years | > 5 years | Total | |
|---|---|---|---|---|---|---|
| $’m | $’m | $’m | $’m | $’m | $’m | |
| Health care payables | - | 36 | - | - | - | 36 |
| Grants payables | - | 1 | - | - | - | 1 |
| Other payables | - | 28 | - | - | - | 28 |
| Total | - | 65 | - | - | - | 65 |
| Maturities for non-derivative financial liabilities 2012 | ||||||
| On demand | Within 1 year | 1 to 2years | 2 to 5 years | >5 | Total | |
| $’m | $’m | $’m | $’m | $’m | $’m | |
| Health care payables | - | 28 | - | - | - | 28 |
| Grants payables | - | 1 | - | - | - | 1 |
| Other payables | - | 24 | - | - | - | 24 |
| Total | - | 53 | - | - | - | 53 |
DVA has no derivative financial liabilities in either 2013 or 2012.
Note 23E. Market Risk
DVA holds basic financial instruments that do not expose DVA to certain market risks, such as ’Currency risk’ and ’Other price risk’
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