Cue Energy Resources Limited Notes to the financial statements 30 June 2024 Note 14. Financial instruments (continued) 49 Risk Exposures and Responses (a) Fair value risk The financial assets and liabilities of the Consolidated Entity are recognised in the statement of financial position at their fair value in accordance with the accounting policies set out in these notes to the financial statements. The Consolidated Entity has trade receivables, other financial assets, trade payables and borrowings, which are a reasonable approximation of their fair values due to their short-term nature. Given the nature of the financial assets and liabilities noted and the relatively shortterm nature and the use of the appropriate interest rates in determining the loan's fair value, there is no material fair value risk. (b) Interest rate risk The Consolidated Entity’s exposure to market interest rates is related primarily to its cash deposits and borrowings. The Consolidated Entity constantly analyses its interest rate opportunity and exposure. Within this analysis consideration is given to existing positions and alternative arrangement on fixed or variable deposits. The impact of interest rate movement is not material to the Consolidated Entity. (c) Foreign exchange risk The Consolidated Entity is subject to foreign exchange risk on its international exploration and appraisal activities where costs are incurred in foreign currencies. The Consolidated Entity generates revenue denominated in foreign currencies, and does hold significant foreign currency cash balances. The Consolidated Entity’s foreign exchange risk exposures are mitigated through natural hedging, where appropriate. The Consolidated Entity’s exposure to foreign exchange risk at the reporting date was as follows (holdings are shown in AUD equivalent): Consolidated 30 June 2024 USD NZD IDR $'000 $'000 $'000 Financial assets Cash and cash equivalents 6,851 317 80 Trade and other receivables 7,070 101 3 Financial liabilities Trade and other payables (747) (1,026) (4) AUD strengthened AUD weakened Consolidated - 30 June 2024 % change effect on profit before tax Effect on equity % change effect on profit before tax Effect on equity Cash and cash equivalents 10% (659) - 10% 805 - Trade and other receivables 10% (652) - 10% 798 - Trade and other payables 10% 161 - 10% (197) - (1,150) - 1,406 - 63 Cue Energy Resources Limited Annual Report 2024
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