Cellmid 2018 Annual Report
NOTES TO THE
24. FINANCIAL RISK MANAGEMENT
Financial instruments are recognised when the entity becomes a party to the contractual provisions to the instrument and are
initially measured at fair value plus transaction costs, except where the instrument is classiﬁed “at fair value through proﬁt or
loss”, in which case transaction costs are recognised immediately as expenses in proﬁt or loss.
Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost.
(a) Transactions with related parties
For details of disclosures relating to related parties, refer to Note 23(a). The Group’s activities expose it to a number of ﬁnancial
risks as described below. The Group’s overall risk management program seeks to minimise potential adverse effects on the
ﬁnancial performance of the Group. To date, the Group has not had the need to utilise derivative ﬁnancial instruments such as
foreign exchange contracts or interest rate swaps to manage any risk exposures identiﬁed.
The totals for each category of ﬁnancial instruments, measured in accordance with AASB 139 as detailed in the accounting
policies to these ﬁnancial statements, are as follows:
The fair value of ﬁnancial assets and liabilities equate to the carrying value.
Cash and cash equivalents 9 1,607,783 3,994,641
Trade and other receivables 10 1,031,346 378,284
Total ﬁnancial assets 2,639,129 4,372,925
Financial liabilities at amortised cost
- trade and other payables 15 1,539,742 1,613,668
- loans and borrowings 16 3,173,874 2,155,105
Total ﬁnancial liabilities 4,713,616 3,768,773