Notes to the Financial Statements (continued)

for the year ended 30 September 2022 in New Zealand Dollars

13. Financial instruments

Credit risk

The Society is party to the following financial instruments: Cash, Deposits, Debtors, Investments, Creditors and Accruals. The financial instruments which potentially subject the Society to credit risk principally consist of Cash, Deposits and Debtors. The maximum exposure to credit risk is:

Concentrations of credit risk

The Society is not exposed to any concentrations of credit risk, as the cash and deposits are made with a number of registered banks.

Credit facilities

The Society has a total bank overdraft facility of $100,000 (2021: $100,000). Of this, none has been utilised by the Society at balance date.

Interest rate risk

The Society is exposed to interest rate risk in that future interest rate movements will affect the returns earned and the cash flows on short-term bank deposits and the interest paid on bank debts.

Fair value of financial instruments

Assets and Liabilities recorded at fair value are valued according to the fair value hierarchy as follows:

Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).

Level 3 Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

There have been no transfers of assets between levels during the financial year.

Financial Instrument Classification

The carrying amounts of financial instruments by category are listed below. For those held at fair value the applicable level in the fair value hierarchy is shown.

The carrying amounts of financial instuments by category are:

* Cash & cash deposits include $15,689,384 which is held by Forsyth Barr for the purpose of investing.