FASSET ANNUAL REPORT

24. Risk management Liquidity risk

FASSET manages liquidity risk through proper management of working capital, capital expenditure and actual vs. forecasted cash flows and its cash management policy. Adequate reserves and liquid resources are maintained.

2021

Carrying amount

6 months or less

6-12 months

1-2 years

Payables from exchange transactions

(6 652) (35 882) (9 662) (52 196)

(6 652) (35 882) (9 662) (52 196)

- - - -

- - - -

Project accruals Project creditors

2020

Carrying amount

6 months or less

6-12 months

1-2 years

Payables from exchange transactions

(2 350) (46 222) (18 623) (67 195)

(2 350) (46 222) (18 623) (67 195)

- - - -

- - - -

Project accruals Project creditors

Credit risk

Financial assets which potentially subject FASSET to the risk of non-performance by counter parties and thereby subject to credit concentrations of credit risk, consist mainly of cash and cash equivalents, receivables from exchange transactions and receivable from non-exchange as per GRAP 104.

FASSET limits its treasury counter-party exposure by only dealing with well-established financial institutions approved by National Treasury. FASSET’s exposure is continuously monitored by the Accounting Authority.

Credit risk with respect to levy paying employers is limited due to the nature of the income received. FASSET does not have any material exposure to any individual or counter-party. FASSET’s concentration of credit risk is limited to the industry (Financial and Accounting Services) in which FASSET operates. No events occurred in the industry during the financial year that may have an impact on the accounts receivable that has not been adequately provided for. Accounts receivable are presented net of allowance for doubtful debt. FASSET is exposed to a concentration of credit risk, as significant amounts are owed by SARS and DHEST. This concentration of risk is limited as SARS and DHEST are government entities with sound reputation.

FASSET Annual Integrated Report 2020/21

123