Annual Report 2016-17

105 Our finances (b) Credit Risk Credit risk arises when there is the possibility of the entity’s debtors defaulting on their contractual obligations, resulting in a financial loss to the entity. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for impairment). Credit risk arises from the financial assets of the entity, including cash and receivables. No collateral is held by the entity. The entity has not granted any financial guarantees. Credit risk associated with the entity’s financial assets, other than receivables, is managed through the selection of counterparts and establishment of minimum credit rating standards. Cash and cash equivalents Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. No interest was earned on daily bank balances due to Treasury’s cash management reforms which were introduced in 2015–16. Receivables — trade debtors All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Procedures established in the Treasurer’s Directions are followed to recover outstanding amounts, including letters of demand. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the entity will not be able to collect all amounts due. This evidence includes past experience, and current and expected changes in economic conditions and debtor credit ratings. No interest is earned on trade debtors. Sales are made on 30 days terms. The entity is not materially exposed to concentrations of credit risk to a single trade debtor or group of debtors. Judicial Commission of New South Wales Notes to the financial statements for the year ended 30 June 2017 2017 $’000 2016 $’000 As at 30 June, the aging analysis of trade debtors is as follows: Neither past due nor impaired Past due but not impaired < 3 months overdue – – 3 months – 6 months overdue – – > 6 months overdue – – – – Impaired < 3 months overdue – – 3 months – 6 months overdue – – > 6 months overdue – – Total receivables-gross of allowance for impairment – –