Qantas 2009 Annual Report Download - page 148
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Please find page 148 of the 2009 Qantas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.146 Qantas Annual Report 2009
Notes to the Financial Statements
for the year ended 30 June 2009
34. Financial Risk Management continued
(C) CREDIT RISK
Creditriskisthepotentiallossfromatransactionintheeventofdefaultbythecounterpartyduringthetermofthetransactionoronsettlementofthe
transaction.Creditexposureismeasuredasthecosttoreplaceexistingtransactionsshouldacounterpartydefault.
TheQantasGroupconductstransactionswiththefollowingmajortypesofcounterparties:
i. tradedebtorcounterparties–thecreditriskistherecognisedamount,netofanyimpairmentlosses.Asat30June2009,thisamountedto$824million
(2008:$1,085million).TheQantasGrouphascreditriskassociatedwithtravelagents,industrysettlementorganisationsandcreditprovidedtodirect
customers.TheQantasGroupminimisesthiscreditriskthroughtheapplicationofstringentcreditpoliciesandaccreditationoftravelagentsthrough
industry programs;
ii. SomeothertradedebtorcounterpartiesarerequiredtopostcashcollateraltosupporttheirtransactionswiththeQantasGroupandQantas.Asat
30June2009$32millionwasheldascollateralbyQantasGroupand$45millionwasheldbyQantas;and
iii.othernancialassetcounterparties–theQantasGrouprestrictsitsdealingstocounterpartiesthathaveacceptablecreditratings.Shouldtheratingof
acounterpartyfallbelowcertainlevels,internalpolicydictatesthatapprovalbytheBoardisrequiredtomaintainthelevelofthecounterpartyexposure.
Thetablebelowsetoutthemaximumexposuretocreditriskasat30June2009:
Qantas Group Qantas
2009 2008 2009 2008
$M $M $M $M
On Balance Sheet
Cash and cash equivalents 3,617 2,599 3,404 2,461
Tradedebtors 824 1,085 548 841
Aircraft security deposits 42 37 22 27
Sundrydebtors 582 702 520 628
Other loans 128 143 3,464 1,994
Other financial assets 905 1,423 905 1,425
Off Balance Sheet
Operating leases as lessor 114 126 61 67
Total 6,212 6,115 8,924 7, 4 43
TheQantasGroupminimisestheconcentrationofcreditriskbyundertakingtransactionswithalargenumberofcustomersandcounterpartiesinvarious
countriesinaccordancewithBoardapprovedpolicy.Asat30June2009,thecreditriskoftheQantasGrouptocounterpartiesinrelationtoothernancial
assets,cashandcashequivalents,andothernancialliabilitieswherearightofoffsetexistsamountedto$4,364million(2008:$3,832million)andwas
spreadoveranumberofregions,includingAustralia,Asia,EuropeandtheUnitedStates.Excludingassociatedentities,QantasGroup’screditexposureis
withcounterpartieswhichhaveaminimumcreditratingofA-/A3,unlessindividuallyapprovedbytheBoard.