Notes to and forming part of the accounts

continued...

14. Financial instruments

1. a. Credit risk exposures The credit risk on financial assets of the Association which have been recognised on the statement of financial position, other than investments in shares, is generally the carrying amount, net of any provisions for doubtful debts.
   
   
2. b. Interest rate risk exposures The Association's exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out in the following table. Exposures arise predominantly from assets and liabilities bearing variable interest rates as the Association intends to hold fixed-rate assets and liabilities to maturity.
   

   	notes	floating interest rate	fixed interest rate maturities			non-interest bearing	total
   			[1 year or less]	[1-5 years]	[over 5 years]
   		$	$	$	$	$	$
   2004
   Financial assets
   Cash	5	491838	-	-	-	-	491838
   Short-term deposits	5	-	2925795	-	-	-	2925795
   Receivables	6,7	-	-	-	-	358057	358057
   		491838	2925795	-	-	358057	3775690
   Weighted average interest rate		5.09%	5.56%
   Financial liabilities
   Trade and other creditors	9	-	-	-	-	652153	652153
   Redeemable vouchers		-	-	-	-	1842493	1842493
   		-	-	-	-	2494646	2494646
   Net financial assets/(liabilities)		491838	2925795	-	-	(2136589)	1281044
   2003
   Financial assets
   Cash	5	458074	-	-	-	-	458074
   Short-term deposits	5	-	3050513	-	-	-	3050513
   Receivables	6,7	-	-	-	-	136331	136331
   		458074	3050513	-	-	136331	3644918
   Weighted average interest rate		5.10%	5.56%
   Financial liabilities
   Trade aand other creditors	9	-	-	-	-	594859	594859
   Redeemable vouchers		-	-	-	-	1980443	1980443
   		-	-	-	-	2575302	2575302
   Net financial assets/(liabilities)		458074	3050513	-	-	(2438971)	1069616

   
   
3. Net fair value of financial assets and liabilities i. On-balance sheet The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the Association approximates their carrying amounts. The net fair value of other monetary financial assets and financial liabilities is based upon market prices where a market exists or by discounting the expected future cash flows by the current interest rates for assets and liabilities with similar risk profiles.

15. Employee benefits

16. Related parties

Directors The names of persons who were directors of Australian Library and Information Association Limited at any time during the financial year are as follows: Dr Angela Bridgland (retired 20 May 2004), Ms Deanne Barrett (retired 20 May 2004), Mr Kevin Dudeney, Ms Imogen Garner, Ms Christine Mackenzie (retired 20 May 2004), Ms Vicki McDonald (retired 20 May 2004), Ms Ann Ritchie, Dr Gillian Hallam (appointed 21 May 2004), Ms Meredith Martinelli (appointed 21 May 2004), Ms Roxanne Missingham (appointed 21 May 2004), Ms Carol Newton-Smith (appointed 21 May 2004).

Remuneration, retirement benefits and services agreements Directors receive no remuneration or retirement benefits for their services from the Association. The only transactions that the directors had with the Association were the normal transactions of members or customers of the Association, made on terms and conditions applicable to members and customers.

17. Reconciliation of (deficit)/surplus from ordinary activities after income tax to net cash inflow from operating activities