✨ Financial Statements Notes
NEW ZEALAND GAZETTE, No. 101
13 AUGUST 2010
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2010
The Trust has processes in place to review the credit exposure and credit quality of funds prior to the funds being deposited with financial institutions.
The Trust’s maximum credit exposure for each class of financial instrument is represented by the total carrying amount of cash equivalents (note 8), other financial assets at fair value through profit or loss (note 10), trade and other receivables (note 9), the Sport Waikato loan (note 12), and the database loan (note 22).
Liquidity Risk Management
Liquidity risk is the risk that the Trust will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Trust aims to maintain flexibility in funding by keeping committed credit lines available.
In meeting its liquidity requirements, the Trust maintains a target level of investments that must mature within specified timeframes.
The following table summarises the sensitivity of the Trust’s financial assets and liabilities to interest rate risk, foreign exchange risk and other price risk.
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NZ Gazette 2010, No 101
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Financial Statements of the Waikato Community Trust
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🏢 State Enterprises & InsuranceFinancial Statements, Credit Risk, Liquidity Risk, Cash Equivalents, Investments