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NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 30 APRIL 2016
11. FINANCIAL INSTRUMENTS
2016
2015
£
£
FINANCIAL ASSETS AT FAIR VALUE
Measured at undiscounted amount receivable
Trade and other debtors
5
830,862
1,526,934
Cash and cash equivalents
1,621,157
2,402,063
2,452,019
3,928,997
FINANCIAL LIABILITIES AT FAIR VALUE
Measured at undiscounted amount payable
Trade and other creditors
6
19,744,825
22,006,635
19,744,825
22,006,635
The carrying values of the Branch’s financial assets and liabilities carried at fair value are summarised by
category below:
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.
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