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PRINCE EDWARD ISLAND
LIQUOR CONTROL COMMISSION
Notes to Financial Statements
March 31, 2015
11.
Financial Risk Management (continued...)
Credit Risk
Credit risk is the risk the Commission will incur a loss because a customer fails to meet an
obligation. The Commission is exposed to this risk for financial
instruments classified as
loans and receivables by granting credit
to customers. The Commission’s maximum
exposure to credit risk is limited to the carrying amount of loans and receivables recognized
at the reporting date as summarized below:
2015
$
2014
$
Loans and receivables
777.034
1.157.310
The Commission has mitigated its exposure to this risk through the limited extension of credit
and its contractual relationships with its business partners. The Commission’s management
considers all of the above loans and receivables to be unimpaired for each of the reporting
dates and are of good credit quality.
Some of the unimpaired trade receivables are past due as at the reporting date. Trade
receivables past due but unimpaired are as follows:
2015
$
2014
$
Current
Less than 30 days
30
-
60 days
60 days
-
1 year
More than 1 year
355,920
315,985
209,613
242,311
-
33,481
777.034
1,157.310
With respect
to trade and other receivables,
the Commission is not exposed to any
significant credit risk exposure to any single supplier or country of origin. Trade receivables
consist of a large number of customers in various industries and geographical areas. Based
on historical
information about customer default rates management considers the credit
quality of trade receivables to be good.
286,528
116,958
190,450
183,098