INOVIQ Ltd Annual Report 2022

63 Annual Report 2022 27 FINANCIAL RISKMANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) A reasonably possible change in interest rates would not have a material impact on the financial position or performance of the Group. (c) Fair values The fair values of financial assets and financial liabilities are equal to their carrying value in the Statement of Financial Position. The fair values have been determined based on the following methodologies: - Cash and cash equivalents, trade and other receivables, and trade and other payables are short term instruments in nature whose carrying value is equivalent to fair value. (d) Credit Risk The Group’s maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is the carrying amount, net of any allowance for expected credit loss, of those assets as indicated in the Statement of Financial Position. Exposure arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group. Credit risk is managed through maintaining procedures ensuring, to the extent possible, that members and counterparties to transactions are of sound credit worthiness. Credit risk exposures Cash reserves form the majority of the Group’s financial assets. At 30 June 2022, cash was deposited with four financial institutions, including one large Australian bank, a U.S. bank account maintained with a Canadian bank, a Swiss Franc bank account held with a large international bank, and one foreign exchange market specialist. At 30 June 2022, the Group did not have a material credit risk exposure to a single trade debtor. (e) Liquidity Risk Liquidity risk arises from the financial liabilities of the Group and the subsequent ability to meet the obligations to repay the financial liabilities as and when they fall due. The Group’s objective is to maintain consistency of funding via the raising of equity or short term loans as and when required. The contractual maturity analysis of trade payables is set out in Note 12. All liabilities are contractually due and payable in the next six months. (f) Foreign currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The functional currency of the parent entity is Australian dollars. The Group contains two foreign subsidiaries, BARD1AG S.A. which is domiciled in Switzerland, and Sienna Cancer Diagnostics INC, which is domiciled in the U.S. This exposes the Group to foreign exchange risk arising from fluctuations of the Australian dollar against the Swiss Franc and United States Dollar. The exposure to risks is measured using sensitivity analysis and cash flow forecasting. The Group has not formalised a foreign currency risk management policy, however, it monitors its foreign currency expenditure in light of exchange rate movements. The Group does not have any further material foreign currency dealings other than the noted currencies. The Group’s exposure to foreign currency risk at the reporting date, expressed in Australian Dollars as follows: As at 30 June 2022 $ As at 30 June 2021 $ Financial assets Cash and cash equivalents 66,908 73,128 Trade and other receivables 59,379 153,674 Total financial assets 126,287 226,802 Financial liabilities Trade and other payables 321,436 293,229 Total financial liabilities 321,436 293,229

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