2015_LCC Annual Report

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 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. 777.034

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

286,528 116,958 190,450 183,098

355,920 315,985 209,613 242,311

33,481

-

777.034

1,157.310

With respect 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. to trade and other receivables,