BUILDING LANDMARKS, CHARTING GROWTH
241
Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
26 FINANCIAL INSTRUMENTS
(continued)
Credit risk
(continued)
Impairment
(continued)
Movement in the allowance for impairment of trade and other receivables is as follows:
Group
31/12/2015
30/6/2014
$’000
$’000
Individual impairments
At beginning of the period/year
209
–
Distribution to owners of the Company
(209)
–
Impairment loss recognised
676
218
Amounts written-off
(37)
(9)
At end of the period/year
639
209
Cash and cash equivalents
The Group and Company held cash and cash equivalents of $162.0 million and $26.5 million respectively at
31 December 2015 (2014: $2.7 million and $1.2 million respectively), which represents its maximum credit exposure on
these assets. The cash and cash equivalents are held with banks with high credit ratings.
Liquidity risk
Risk management policy
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to
maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities. The Group’s
exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.
The Group has contractual commitments to incur capital expenditure with regard to its investment properties under
development and properties under development (note 32).
