Note 11: Financial Risk Management continued 15 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 are subject to reset within the next six months. 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 Rate15 Non-Interest Bearing Total Average Closing Interest Rate US$m US$m US$m % 2023 2022 2023 2022 2023 2022 2023 2022 Financial assets and contract assets Cash and cash equivalents 1,548 10,436 – – 1,548 10,436 2.24% 0.86% Receivables and contract assets (excluding prepayments) – – 2,001 1,496 2,001 1,496 – – Other financial assets – – 182 407 182 407 – – 1,548 10,436 2,183 1,903 3,731 12,339 Credit quality of financial assets 30 June 2023 (US$m) Financial Institutions* $1,572m Governments $291m Hospitals $306m Buying Groups $704m Publicly traded securities $30m Venture fund assets $94m Other $734m * $1,548m of the assets held with financial institutions are held as cash or cash equivalents and $24m of other financial assets. Financial assets held with non-financial institutions include $2,001m of trade and other receivables. Credit quality of financial assets 30 June 2022 (US$m) Financial Institutions* $10,462m Governments $224m Hospitals $151m Buying Groups $399m Publicly traded securities $381m Other $722m * $10,436m of the assets held with financial institutions are held as cash or cash equivalents and $26m of other financial assets. Financial assets held with non-financial institutions include $1,496m of trade and other receivables. Government or government-backed entities (such as hospitals) often account for a significant proportion of trade receivables. As a result, the Group carries receivables from a number of Southern European governments. The credit risk associated with trading in these countries is considered on a country-by-country basis and the Group’s trading strategy is adjusted accordingly. The factors taken into account in determining the credit risk of a particular country include recent trading experience, current economic and political conditions and the likelihood of continuing support from agencies such as the European Central Bank. The following table analyses trade receivables and contract assets that are past due and, where required, the associated provision for expected credit losses (Note 15). All other financial assets are less than 30 days overdue. Gross Provision Net Trade receivables and contract assets 2023 US$m 2022 US$m 2023 US$m 2022 US$m 2023 US$m 2022 US$m current 1,468 1,083 (5) (9) 1,463 1,074 less than 30 days overdue 55 21 – – 55 21 between 30 and 90 days overdue 38 40 – – 38 40 more than 90 days overdue 51 24 (7) (8) 44 16 1,612 1,168 (12) (17) 1,600 1,151 CSL Limited Annual Report 2022/23 141
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