AECON GROUP INC 61 Concentration of credit risk associated with accounts receivable holdbacks receivable and unbilled revenue is limited by the Companys diversifed customer base and its dispersion across different business and geographic areas The credit quality of the Companys signifcant customers is monitored on an ongoing basis and allowances are provided for potential losses that have been incurred at the consolidated balance sheet dates Receivables that are neither past due nor impaired are considered by management to have no signifcant collection risk The liquidity of customers and their ability to pay receivables are considered in assessing the impairment of such assets No collateral is held in respect of impaired assets or assets that are past due but not impaired The Company provides an allowance for credit losses in the year in which there is objective evidence of impairment Balances are considered for impairment on a case by case basis when they are over 60 days past due or if there is an indication a customer will not be satisfying their payment obligation As at December 31 2012 the Company had 112094 in trade receivables that were past due Of this amount 48503 was over 60 days past due against which the Company has recorded an allowance for doubtful accounts of 1969 Liquidity risk Liquidity risk is the risk that the Company will encounter diffculty in meeting obligations associated with fnancial liabilities that are settled in cash or another fnancial asset The Companys approach is to ensure it will have suffcient liquidity to meet operational tax capital and regulatory requirements and obligations under both normal and stressed circumstances Cash fow projections are prepared and reviewed quarterly by the Board of Directors to ensure a suffcient continuity of funding Longterm debt maturities are spread over a range of dates thereby ensuring the Company is not exposed to excessive refnancing risk in any one year The Companys cash and cash equivalents shortterm deposits and restricted cash are invested in highly liquid interest bearing investments Contractual maturities for fnancial liabilities at December 31 2012 are as follows Due between Due Total Due one and after u n d i s c o u n t e d withing fve fve cash Effect of Carrying one year years years fows interest value Bank indebtedness 10368 10368 10368 Trade and other payables 626945 5661 632606 752 631854 Finance leases 30899 73951 362 105212 8735 96477 Equipment and other loans 39800 81851 1023 122674 11204 111470 70699 155802 1385 227886 19939 207947 Nonrecourse project debt 22983 109909 93928 226820 58853 167967 Convertible debentures 264500 264500 11311 253189 Longterm fnancial liabilities 93682 530211 95313 719206 90103 629103 Interest rate risk The Company is exposed to interest rate risk on its shortterm deposits and its longterm debt to the extent that its investments or credit facilities are based on foating rates of interest At December 31 2012 the interest rate profle of the Companys longterm debt was as follows Fixed rate instruments held by joint ventures 29652 Variable rate instruments held by joint ventures 119131 Fixed rate instruments 227131 Total longterm debt 375914 Fixed rate convertible debentures 253189 Longterm debt held by joint ventures relates primarily to project fnancing for the Quito Airport Project see Note 18 and because interest is capitalized until the new airport is available for use changes in interest rates would not have had an impact on net earnings or comprehensive income in the current period Changes in interest rates related to fxed longterm debt instruments and convertible debentures would not have had an impact on net earnings or comprehensive income in the current period Cash and cash equivalents restricted cash and shortterm deposits have limited interest rate risk due to their shortterm nature