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Movements in the provision for impairment of trade receivables that are assessed for impairment
individually are as follows:
Consolidated
2016
$’000
2015
$’000
At 1 July
(24)
(64)
Provision for impairment charged to other expenses
during the financial year
(13)
(12)
Receivables written off during the year as impaired
trade receivables
6
52
At 30 June
(31)
(24)
The creation and release of the provision for impaired receivables has been included in ‘other
expenses’ in the income statement. Amounts charged to the allowance account are generally
written off when there is no expectation of recovering additional cash.
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents, the
availability of committed credit facilities to support funding requirements and the ability to close out
market positions. The Group manages liquidity risk by continuously monitoring forecast and actual
cash flows and maintaining adequate liquidity reserves to support forecast net business expenditure
requirements for a minimum of twelve months on a rolling monthly basis.
As at 30 June 2016 $145m of the $500m syndicated debt facility has been utilised (2015: $260m).
The Group has a $1,500m Australian Dollar Domestic Note programme of which $500m is issued.
Note that $250m matured in the current financial year (note 6(d)). The Group also has access to
business card facilities of $2m (2015: $2m).
As at the reporting date of 30 June 2016, as the bond issuer, ARTC complied with clause
4.3 Earnings and Asset Covenant of the Information Memorandum.
NOTE 12 (CONTINUED)
FINANCIAL RISK MANAGEMENT
(b) Credit risk (continued)
86