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  1. About the report
  2. About AMSA
  3. Plan on a Page
  4. Transmittal letter
  5. Reporting requirements and responsible minister
  6. Annual performance statements
  7. Chairman's review
  8. Organisational profile
  9. Financial summary
  10. Our governance
    1. Planning
    2. Risk management
    3. Performance reporting
    4. Related entity transactions
    5. Public interest disclosure
    6. Disability report
    7. Statement of significant non-compliance issues
    8. Advertising and market research
    9. Judicial decisions and reviews by outside bodies
    10. Workers' compensation premium
  11. Vessel and seafarer safety
    1. Seafarer certification
    2. Compliance and enforcement
    3. International shipping
    4. Domestic commercial vessels
  12. Search and rescue
    1. Search and rescue aircraft replacement
    2. National Search and Rescue Council
    3. Medium-altitude Earth Orbit Search and Rescue system
    4. Beacon registration system upgrade
    5. Torres Strait Marine Safety Program
  13. Marine environment
    1. The National Plan for Maritime Environmental Emergencies
    2. Cape Upstart marine pollution incident
    3. Working with other regulators
  14. Navigation safety
    1. Shipping management
    2. Aids to navigation management
  15. Working with our community
    1. Domestic engagement
    2. International engagement
    3. Regional engagement
  16. Appendix 1: Financial statements
    1. Statement of comprehensive income
    2. Statement of financial position
    3. Statement of changes in equity
    4. Cash flow statement
    5. Overview
    6. Note 1: Expenses
    7. Note 2: Own-source income
    8. Note 3: Fair value measurement
    9. Note 4: Financial assets
    10. Note 5: Non-financial assets
    11. Note 6: Payables
    12. Note 7: Interest bearing liabilities
    13. Note 8: Provisions
    14. Note 9: Cash flow reconciliation
    15. Note 10: Contingent liabilities and assets
    16. Note 11: Senior management personnel remuneration
    17. Note 12: Related party disclosures
    18. Note 13: Remuneration of auditors
    19. Note 14: Financial instruments
    20. Note 15: Financial assets reconciliation
    21. Note 16: Reporting of outcomes
    22. Note 17: Regulatory charging summary
    23. Note 18: Budgetary reports and explanations of major variances
  17. Appendix 2: Non-financial performance
    1. SC1: Ship and vessel safety
    2. SC1: Environment protection
    3. SC1: Regulatory
    4. SC1: Search and rescue
    5. SC1: Projects
    6. SC2: Preparing for the future
    7. SC3: Ensuring a competent and fairly treated maritime workforce
    8. SC4: Influencing international arrangements
    9. SC5: Engaging with the community
    10. SC6: Ensuring a progressive and vibrant organisation
  18. Appendix 3: AMSA Board members
  19. References
  20. Compliance Index
  1. About the report
  2. About AMSA
  3. Plan on a Page
  4. Transmittal letter
  5. Reporting requirements and responsible minister
  6. Annual performance statements
  7. Chairman's review
  8. Organisational profile
  9. Financial summary
  10. Our governance
    1. Planning
    2. Risk management
    3. Performance reporting
    4. Related entity transactions
    5. Public interest disclosure
    6. Disability report
    7. Statement of significant non-compliance issues
    8. Advertising and market research
    9. Judicial decisions and reviews by outside bodies
    10. Workers' compensation premium
  11. Vessel and seafarer safety
    1. Seafarer certification
    2. Compliance and enforcement
    3. International shipping
    4. Domestic commercial vessels
  12. Search and rescue
    1. Search and rescue aircraft replacement
    2. National Search and Rescue Council
    3. Medium-altitude Earth Orbit Search and Rescue system
    4. Beacon registration system upgrade
    5. Torres Strait Marine Safety Program
  13. Marine environment
    1. The National Plan for Maritime Environmental Emergencies
    2. Cape Upstart marine pollution incident
    3. Working with other regulators
  14. Navigation safety
    1. Shipping management
    2. Aids to navigation management
  15. Working with our community
    1. Domestic engagement
    2. International engagement
    3. Regional engagement
  16. Appendix 1: Financial statements
    1. Statement of comprehensive income
    2. Statement of financial position
    3. Statement of changes in equity
    4. Cash flow statement
    5. Overview
    6. Note 1: Expenses
    7. Note 2: Own-source income
    8. Note 3: Fair value measurement
    9. Note 4: Financial assets
    10. Note 5: Non-financial assets
    11. Note 6: Payables
    12. Note 7: Interest bearing liabilities
    13. Note 8: Provisions
    14. Note 9: Cash flow reconciliation
    15. Note 10: Contingent liabilities and assets
    16. Note 11: Senior management personnel remuneration
    17. Note 12: Related party disclosures
    18. Note 13: Remuneration of auditors
    19. Note 14: Financial instruments
    20. Note 15: Financial assets reconciliation
    21. Note 16: Reporting of outcomes
    22. Note 17: Regulatory charging summary
    23. Note 18: Budgetary reports and explanations of major variances
  17. Appendix 2: Non-financial performance
    1. SC1: Ship and vessel safety
    2. SC1: Environment protection
    3. SC1: Regulatory
    4. SC1: Search and rescue
    5. SC1: Projects
    6. SC2: Preparing for the future
    7. SC3: Ensuring a competent and fairly treated maritime workforce
    8. SC4: Influencing international arrangements
    9. SC5: Engaging with the community
    10. SC6: Ensuring a progressive and vibrant organisation
  18. Appendix 3: AMSA Board members
  19. References
  20. Compliance Index

Note 14: Financial instruments

 

 

2016

2015

 

Notes

$'000

$'000

Note 14A: Categories of Financial Instruments

Financial assets

Receivables

Cash and cash equivalents

4A

71,032

54,909

Receivables for goods and services

4B

1,324

549

Other receivables

4B

5,656

1,394

Other investments

4C

-

15,000

Total receivables

 

78,012

71,852

Total financial assets

 

78,012

71,852

Financial liabilities

Financial liabilities measured at amortised cost

Finance leases

7

841

81

Trade creditors

6A

23,000

24,795

Total financial liabilities measured at amortised cost

 

23,841

24,876

Total financial liabilities

 

23,841

24,876

Note 14B: Net Gains or Losses on Financial Assets

Receivables

Exchange gains

2G

1

2

Interest revenue

2C

2,089

2,092

Net gain on receivables

 

2,090

2,094

Net gain on financial assets

 

2,090

2,094

The net income from financial assets not at fair value through profit and loss was $2,089,920 (2015: $2,094,221).

Note 14C: Net Gains or Losses on Financial Liabilities

Financial liabilities measured at amortised cost

Interest expense

1D

57

16

Net loss on financial liabilities measured at amortised cost

 

57

16

Net loss on financial liabilities

 

57

16

The total interest expense from financial liabilities not at fair value through profit and loss was $57,306 (2015: $16,083).

Note 14D: Fair Value of Financial Instruments

 

Carrying amount

Fair value

Carrying amount

Fair value

 

2016

2016

2015

2015

 

$'000

$'000

$'000

$'000

Financial assets

Cash and cash equivalents

71,032

71,032

54,909

54,909

Receivables for goods and services

1,324

1,324

549

549

Other receivables

5,656

5,656

1,394

1,394

Other investments

-

-

15,000

15,000

Total

78,012

78,012

71,852

71,852

Financial liabilities

Finance leases

841

841

81

81

Trade creditors

23,000

23,000

24,795

24,795

Total

23,841

23,841

24,876

24,876

Accounting Policy
Financial Assets
AMSA classifies its financial assets in the following categories:

  • held-to-maturity investments
  • loans and receivables

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Effective Interest Method
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis.

Held-to-Maturity Investments
Non-deriviative financial assets with fixed or determinable payments and fixed maturity dates that AMSA has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Loans and Receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets
Financial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost - If there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

Financial Liabilities
Financial liabilities are classified as either financial liabilities 'at fair value through profit or loss' or 'other financial liabilities'. Financial liabilities are recognised and derecognised upon 'trade date'.

Other Financial Liabilities
Other financial liabilities are initially measured at fair value, net of transaction costs.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

Note 14E: Credit Risk

AMSA is exposed to minimal credit risk as the majority of receivables are for appropriations or amounts owed by the Australian Tax Office in the form of a Goods and Services Tax refund.

The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of  trade, other receivables and interest 2016: $6,980,000 (2015: $1,960,000). AMSA has assessed the risk of the default on payment and has allocated $0 in 2016 (2015: $16,727) to an impairment allowance account.

In addition, AMSA had policies and procedures that guided employees on debt recovery techniques that were to be applied. AMSA held no collateral to mitigate against credit risk.

The following table illustrates AMSA's gross exposure to credit risk, excluding any collateral or credit enhancements.

 

2016

2015

 

$'000

$'000

Financial assets

Cash and cash equivalents

71,032

54,909

Receivables for goods and services

1,324

549

Other receivables

5,656

1,394

Other investments

-

15,000

Total

78,012

71,852

Financial liabilities

Finance leases

841

81

Trade creditors

23,000

24,795

Total

23,841

24,876

 

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

 

2016

2015

2016

2015

 

$'000

$'000

$'000

$'000

Financial assets

Cash and cash equivalents

71,032

54,909

-

-

Receivables for goods and services

828

(99)

496

648

Other receivables

5,656

1,394

-

-

Other investments

-

15,000

-

-

Total

77,516

71,204

496

648

 

Ageing of financial assets that were past due but not impaired for 2016

 

0 to 30 days

31 to 60 days

61 to 90 days

90+ days

Total

 

$'000

$'000

$'000

$'000

$'000

Receivables for goods and services

119

226

38

113

496

Total

119

226

38

113

496

 

Ageing of financial assets that were past due but not impaired for 2015

 

0 to 30 days

31 to 60 days

61 to 90 days

90+ days

Total

 

$'000

$'000

$'000

$'000

$'000

Receivables for goods and services

367

243

18

3

631

Total

367

243

18

3

631

 

Note 14F: Liquidity Risk

AMSA's financial liabilities are trade creditors and finance leases. The exposure to liquidity risk is based on the notion that AMSA will encounter difficulty in meeting its obligations associated with financial liabilities.  This is highly unlikely due to appropriation funding and mechanisms available to the entity and internal policies and procedures put in place to ensure that there are appropriate resources to meet its financial obligations.

Maturities for non-derivative financial liabilities 2016

 

On demand

Within 1 year

1 to 5 years

> 5 years

Total

 

$'000

$'000

$'000

$'000

$'000

Finance lease liabilities

-

357

484

-

841

Trade creditors

-

23,000

-

-

23,000

Total

-

23,357

484

-

23,841

 

Maturities for non-derivative financial liabilities 2015

 

On demand

Within 1 year

1 to 5 years

> 5 years

Total

 

$'000

$'000

$'000

$'000

$'000

Finance lease liabilities

-

81

-

-

81

Trade creditors

-

24,795

-

-

24,795

Total

-

24,876

-

-

24,876

AMSA has no derivative financial liabilities in either the current and prior years.

 

Note 14G: Market Risk

Foreign currency risk
Foreign currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. AMSA is exposed to foreign exchange currency risk primarily through undertaking certain transactions denominated in foreign currency.

AMSA is exposed to foreign currency denominated in Papua New Guinea (PNG) $3,112 Kina (2015: $3,112 Kina), Western Samoa Tala $0 WST (2015: $6,000 WST) and United States Dollar $0 USD (2015: $5,700 USD).

The effect on profit and equity as at the reporting date from a 10.5% (2015: 10.9%) favourable / unfavourable change in Australian dollars against foreign currency holdings with all other variables held constant is $138.92 (2015: $1,252.12).

The method used to arrive at the possible currency risk of 10.5% was based on both statistical and non-statistical analysis. The statistical analysis has been based on main currencies’ movement for the last five years. This information is then revised and adjusted for reasonableness under the current economic circumstances.

Interest rate risk
To ensure sufficient liquidity to meet AMSA’s working capital requirements, AMSA’s short term investments are set with certain parameters, namely Standard & Poors rating of A-1+ and/or Moody’s P-1 for authorised deposit-taking institutions (ADIs).