Te pŪrongo 2012
Notes to the financial statements (continued)
15 Financial instruments (continued)
(c)
Liquidity risk
Management of liquidity risk
Liquidity risk is the risk that Te Wānanga o Aotearoa 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.
Te Wānanga o Aotearoa aims to maintain flexibility in funding by keeping committed credit lines available.
Te Wānanga o Aotearoa has an overdraft facility of $1 million in place. ($1 million 2011).
There are no restrictions on the use of this facility.
Te Wānanga o Aotearoa manages liquidity risk by continuously monitoring forecast and actual cash
flow requirements.
Contractual maturity analysis of financial liabilities
The table below shows an analysis of Te Wānanga o Aotearoa financial liabilities grouped according to maturity,
based on the remaining period at the balance date to the contractual maturity date. The amounts disclosed are the
contractual undiscounted cash flows.
Carrying Contractual Less than 1-2 years 2-5 years More than
amount cash flows
1 year
5 years
$’000
$’000 $’000 $’000
$’000 $’000
Group 2012
C
reditors and other payables
10,562
10,562
10,562
-
-
-
Accrued pay
390
390
390
-
-
-
Total
10,952
10,952
10,952
-
-
-
Parent 2012
Creditors and other payables
16,387
16,387
16,387
-
-
-
Accrued pay
222
222
222
-
-
-
Total
16,609
16,609
16,609
-
-
-
Group 2011
Creditors and other payables
10,932
10,932
10,932
-
-
-
Accrued pay
2,057
2,057
2,057
-
-
-
Total
12,989
12,989
12,989
-
-
-
Parent 2011
Creditors and other payables
18,230
18,230
18,230
-
-
-
Accrued pay
1,773
1,773
1,773
-
-
-
Total
20,003
20,003
20,003
-
-
-
104
