Page 129 - Annual Report 2016 EN

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Liquidity risk
Liquidity risk is the risk that the QFC Regulatory Authority is unable
to meet its payment obligations associated with its financial lia-
bilities that are settled by delivering cash or other financial assets
when they fall due. The QFC Regulatory Authority limits its liquidity
risk by securing appropriations from the Government to finance its
operating and capital expenditure. The QFC Regulatory Authority’s
terms of services require amounts to be paid within 30 days of the
date of service.

The table below summarizes the maturity profile of the QFC Reg-
ulatory Authority’s financial liabilities at 31 December based on
contractual undiscounted payments.

31 December 2016 Carrying amount Contractual undis- Less than 6 months
USD ‘000 counted cash flows USD ‘000
USD ‘000
Trade payables 154 154 154

Accrued expenses 3,698 3,698 3,698
Total 3,852 3,852 3,852

31 December 2015 Carrying amount Contractual undis- Less than 6 months
USD ‘000 counted cash flows USD ‘000
USD ‘000
Trade payables 420 420 420

Accrued expenses 4,115 4,115 4,115
Amounts due to a related party 191 191 191

Total 4,726 4,726 4,726

[14] FAIR VALUES OF FINANCIAL
INSTRUMENTS

Financial instruments include financial assets and liabilities. The QFC
Regulatory Authority does not have any financial assets or finan-
cial liabilities which are measured at fair value. The fair values of
financial instruments are not materially different from their carrying
values.