Page 39 - Bahamas Waste inside pages

NOTES TO FINANCIAL STATEMENTS
(Expressed in Bahamian Dollars)
December 31, 2018
17. FINANCIAL RISk MANAgEMENT (CONTINuED)
The movement in the allowance for impairment losses in respect to trade receivables during 2018 was as follows. Comparative amounts for 2017 represent the allowance under IAS 39.
Balance as of January 1 under IAS 39 Adjustment on initial application of IFRS 9 Balance as of January 1 under IFRS 9 Impairment losses
Recoveries
Net impairment loss recognized in profit or loss
Balance as of December 31
Liquidity Risk
Liquidity risk is the risk that the Company will be unable to meet its net funding requirements. This risk is mitigated due to management’s ability to temporarily borrow funds from its bankers and the monitoring of cash flow needs by management on a daily basis.
Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect the value of the financial instruments. The Company’s exposure to interest rate risk relates primarily to the overdraft facility and loan receivable.
Interest rate risk on the Company’s overdraft facilities and loan receivable is not material.
Net Fair value of Financial Instruments and Market Risk
Financial instruments utilized by the Company include recorded assets and liabilities. The Company’s financial instru- ments are either short-term in nature or have interest rates that automatically reset to market on a periodic basis. Where financial assets and liabilities have fixed rates, those rates approximate market interest rates in its operating environment. Accordingly, the estimated fair value is not significantly different from the carrying value for each major category of the Company’s recorded assets and liabilities, except for the loan receivable, the fair value of which is estimated to be $139,484 (2017 – $134,531). This fair value is estimated using the discounting the estimated future cash flows expected to be received using market interest rates. The Company considers these fair values to be in level 3 in the fair value measurement hierarchy.
2018
$ 681,600 44,426
2017
$ 558,500 –
726,026 198,268
(56,949 )
558,500 155,233
(32,133 )
141,319 123,100 $ 867,345 $ 681,600
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BAHAMAS WASTE LIMITED ANNUAL REPORT 2018