Ulster Rugby Annual Report 2015 - 2016

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 APRIL 2016

11. FINANCIAL INSTRUMENTS

The carrying values of the Branch’s financial assets and liabilities carried at fair value are summarised by category below:

2016

2015

£

£

FINANCIAL ASSETS AT FAIR VALUE Measured at undiscounted amount receivable Trade and other debtors

43 43

5

830,862 1,621,157 2,452,019

1,526,934 2,402,063 3,928,997

Cash and cash equivalents

FINANCIAL LIABILITIES AT FAIR VALUE Measured at undiscounted amount payable Trade and other creditors

6

19,744,825 19,744,825

22,006,635 22,006,635

CREDIT RISK The Branch’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The Branch’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence ofa reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instmments is limited because the counterpmiies are banks with high credit-ratings assigned by international credit-rating agencies. The Branch has no significant concentration of credit risk, with exposure spread over a large number of counterparties. LIQUIDITY RISK In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Branch uses a mixture oflong-term and short-term debt finance as required. Further details regarding liquidity risk and going concern can be found in the Statement of accounting policies in the financial statements.