Note 11: Financial Risk Management continued 10 F loating interest rates represent the most recently determined rate applicable to the instrument at balance sheet date. All interest rates on floating rate financial assets and liabilities are subject to reset within the next six months. 11 O ther financial assets includes $381.1m in Vifor shares measured at fair value through OCI (Note 2 and Note 12). c. Credit Risk The Group only invests its cash and cash equivalent financial assets with financial institutions having a credit rating of at least ‘BBB+’ or better, as assessed by independent rating agencies. Floating Rate10 Non-Interest Bearing Total Average Closing Interest Rate US$m US$m US$m % 2022 2021 2022 2021 2022 2021 2022 2021 Financial assets and contract assets Cash and cash equivalents 10,436.4 1,808.8 – – 10,436.4 1,808.8 0.86% 0.02% Receivables and contract assets (excluding prepayments) – – 1,496.0 1,570.3 1,496.0 1,570.3 – – Other financial assets11 – – 407.1 26.3 407.1 26.3 – – 10,436.4 1,808.8 1,903.1 1,596.6 12,339.5 3,405.4 Credit quality of financial assets (30 June 2022 in US$m) Financial Institutions* $10,462.4m Governments $224.2m Hospitals $150.8m Buying Groups $398.8m Publicly traded securities $381.1m Other $722.2m * $10,436.4m of the assets held with financial institutions are held as cash or cash equivalents and $26.0m of other financial assets. Financial assets held with non-financial institutions include $1,496.0m of trade and other receivables. Credit quality of financial assets (30 June 2021 in US$m) Financial Institutions* $1,835.1m Governments $240.1m Hospitals $207.1m Buying Groups $457.9m Publicly traded securities $0m Other $665.2m * $1,808.8m of the assets held with financial institutions are held as cash or cash equivalents and $26.3m of other financial assets. Financial assets held with non-financial institutions include $1,570.3m of trade and other receivables. The Group has not renegotiated any material collection/repayment terms of any financial assets in the current financial year. Government or government-backed entities (such as hospitals) often account for a significant proportion of trade receivables. As a result, the Group carries receivables from a number of Southern European governments. The credit risk associated with trading in these countries is considered on a country-by-country basis and the Group’s trading strategy is adjusted accordingly. The factors taken into account in determining the credit risk of a particular country include recent trading experience, current economic and political conditions and the likelihood of continuing support from agencies such as the European Central Bank. The following table analyses trade receivables that are past due and, where required, the associated provision for expected credit losses (refer to Note 15). All other financial assets are less than 30 days overdue. Gross Provision Net Trade receivables and contract assets 2022 US$m 2021 US$m 2022 US$m 2021 US$m 2022 US$m 2021 US$m current 1,083.0 1,140.3 (8.7) (9.6) 1,074.3 1,130.7 less than 30 days overdue 20.5 33.1 – – 20.5 33.1 between 30 and 90 days overdue 40.2 16.5 – – 40.2 16.5 more than 90 days overdue 24.1 41.6 (8.2) (13.9) 15.9 27.7 1,167.8 1,231.5 (16.9) (23.5) 1,150.9 1,208.0 CSL Limited Annual Report 2021/22 121
RkJQdWJsaXNoZXIy MjE2NDg3