AFRICAN DAWN ANNUAL REPORT 2019 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2019 82 Prescribed offers 2019 R’000 Group 33. Risk Management Risk Management definitions For the purposes of risk management, the following definitions are applicable: * Credit risk - the risk that the Group may not recover amounts it is owed (debit balances - receivables, bank, debit loans). * Liquidity risk - the risk that the Group may not be able to pay an amount as it becomes due. * Interest rate risk - Cash flow interest rate risk – the risk that the cash flows will change because the interest rate has changed. Concentrations of risk - There are no concentrations of risk. Exposure The Group is exposed to credit risk, interest rate risk and liquidity risk as follows: Financial instrument Credit Risk Liquidity risk Cashflow interest rate risk Loans to Group companies Yes No No Trade receivables Yes No Yes Other receivables Yes No No Cash and cash equivalents Yes No Yes Borrowings No Yes Yes Loans from Group companies No Yes No Loans from directors No Yes No Trade payables No Yes No Salary Total DD Breedt 857 857 2018 R’000 Group Salary Total DD Breedt 857 857 Management of risk Cashflow is monitored very closely on a continuous basis. Credit risk is very closely managed in accordance with the basis as disclosed in the accounting policy. Analysis of the statement of financial position During 2019 IFRS 9 was adopted by the group and company and was not retrospectively adopted. The 2018 financial statements were therefore not restated and are disclosed in terms of IAS 39 below. The financial assets classified as Loans and receivables under IAS 39 are classified to financial asset at amortised cost under IFRS 9. The basis of measurement, at amortised cost, is still the same for these financial instruments. For the impact as a result of the change in the impairment approach refer to note 1.2. Liabilities are measured at amortised cost under IAS 39 and IFRS 9 and no change in the classification has been identified.
AFDAWN AR FINAL 2019
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