Note 12B: Fair Value of Financial Instruments
The carrying value is a reasonable approximation of fair value of the financial assets and liabilities.

Note 12C: Credit Risk
The Army and Air Force Canteen Service was exposed to minimal credit risk as loans and
receivables were cash or trade receivables. The maximum exposure to credit risk was the risk
that arises from potential default of a debtor. This amount was equal to the total amount of
trade receivables in 2019: $740,443 (2018: $331,565).

Note 12D: Liquidity Risk
The Army and Air Force Canteen Service’s financial liabilities were payables. The exposure to
liquidity risk was based on the notion that the Army and Air Force Canteen Service will encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely due to mechanisms available to the Army and Air Force Canteen Service (e.g. the Defence Agreement) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

The Army and Air Force Canteen Service had only trade creditors as a financial liability. All trade creditors mature within 1 year (2019: $1,537,287 and 2018: $1,461,109).
The Army and Air Force Canteen Service had no derivative financial liabilities in 2019 (2018: Nil).

Note 12E: Market Risk
The Army and Air Force Canteen Service held basic financial instruments that did not expose the Army and Air Force Canteen Service to certain market risks, such as ‘Currency risk’ and ‘Other price risk’.

The only interest-bearing items on the statement of financial position were the ‘Cash deposits’.
All bear interest at a floating interest rate and will fluctuate due to changes in the market
interest rate.