NOTES TO THE FINANCIAL STATEMENTS
Note 18: Related Party Transactions
2021 $
2020 $
Key Management Personnel Compensation:
The totals of remuneration paid to key management personnel (KMP) of the Group during the year are as follows: Director fees
203,032
156,605
Group CEO & senior executives Short-term employee benefits
564,514
573,742
Post-employment benefits
53,365
40,622
Total Compensation
820,911
770,968
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to directors, the Group CEO and senior executives. Transactions with related parties Member directors of the parent entity are Members of the Group and have accounts with the company. The terms and conditions of the accounts operated by the directors are the same as accounts provided to other Members. Note 19: Financial Risk Management The Consolidated Entity’s financial instruments consist mainly of deposits with banks and accounts receivable and payable. Credit Risk Credit risk is the risk that the other party to a financial instrument will fail to discharge their obligation resulting in the Consolidated Entity incurring a financial loss. This usually occurs when debtors fail to settle their obligations owing to the Consolidated Entity. It arises from exposure to customers as well as through deposits with financial institutions. The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements. All stores are assessed for credit risk before being approved to join the group. All corporate entities are requested to provide personal guarantees. Ongoing credit risk per customer is monitored monthly and credit limits are set as appropriate.
I GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 62
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