by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Whitehaven Coal Limited : Annual Report 2010
Whitehaven Coal Limited -- Annual Report 2010 71 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 5.F INANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Risk exposures and responses (continued) Credit risk Credit risk arises from the financial assets of the consolidated entity, which comprise cash and cash equivalents, trade and other receivables, available for sale financial assets, derivative financial instruments and the granting of financial guarantees. The consolidated entity's exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount of the financial assets, as outlined below. Exposure to credit risk The consolidated entity's maximum exposure to credit risk at the reporting date was: Carrying Amount Carrying Amount In thousands of AUD Note 30 June 2010 30 June 2009 Cash and cash equivalents 14 141,049 131,159 Trade and other receivables 15 326,365 271,893 Derivative financial instruments 17 23,127 34,255 Available-for-sale financial assets 18 1,210 37 491,751 437,344 The consolidated entity's maximum exposure to credit risk for trade receivables at the reporting date by geographic region was: Carrying Amount Carrying Amount In thousands of AUD 30 June 2010 30 June 2009 Asia 32,801 30,151 Europe 10,030 -- Australia 3,499 1,113 46,330 31,264 Trade and other receivables The consolidated entity's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the consolidated entity's customer base, including the default risk of the industry and country in which customers operate, has less of an influence on credit risk. Approximately 49% of the consolidated entity's revenue is attributable to sales transactions with three customers (2009: 39% with two customers). More than 90 percent of the consolidated entity's customers have been transacting with the consolidated entity for over five years, and losses have occurred infrequently. Of the consolidated entity's trade and other receivables, 76% relate to receivables resulting from the sell down of the Narrabri Joint Venture (refer to note 7). The remaining trade and other receivables relate mainly to coal customers. The consolidated entity does not require collateral in respect of trade and other receivables. The consolidated entity trades only with recognised, creditworthy third parties. Receivable balances are monitored on an ongoing basis with the result that the consolidated entity's exposure to bad debts is not significant. The consolidated entity has not recognised any impairment loss for trade and other receivables during the year ended 30 June 2010 (2009: Nil).
Annual Report 2009
Annual Report 2011