123 123 AUSTRALIAN SPORTS COMMISSION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2017 2017 2016 $’000 $’000 Note 4: Financial assets (continued) Note 4B: Loans Cycling Australia 1,399 1,544 Australian Paralympic Committee 2,250 2,250 Total loans (gross) 3,649 3,794 Less impairment allowance: Cycling Australia (789) (789) Total loans (net) 2,860 3,005 Reconciliation of the impairment allowance account: Opening balance (789) - Increase in impairments recognised in net surplus - (789) Closing balance (789) (789) Australian Paralympics Committee Ltd Loan In June 2015, the Commission provided a $2,250,000 loan to the Australian Paralympics Committee Ltd (APC) as part of an assistance package for restructuring and other financial assistance. The loan was repayable over a 6 year loan term and attracts a floating interest charge. On 28 July 2017, APC formally notified the ASC on their intention to voluntarily repay the loan in full by 30 September 2017. The ASC has accepted those terms. Cycling Australia Ltd Loan In September 2014, the Commission provided two loans of $500,000 and $1,000,000 to Cycling Australia Ltd (CA) as part of an assistance package for restructuring and other financial assistance. On 30 June 2017, the terms were modified with the loans now scheduled to be repaid by 31 July 2022 and 31 January 2029, respectively. Both loans continue to attract a floating interest charge consistent with the original loan terms. During 2016, the Commission recognised an impairment allowance in connection with the loans to CA. The ASC has determined that the impairment allowance remains appropriate as at 30 June 2017 and continues to work closely with CA to address the financial situation. The fair value of the loans as at 30 June 2017, after considering any concessionality, is $2.760m (2016: $2.682m).