Impact Minerals Ltd Annual Report 2023 61 Notes to the Consolidated Financial Statements continued NOTE 25: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Interest rate risk (continued) Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and profit or loss by the amounts shown below: Carrying value at period end $ Profit or loss Equity 100 bp increase $ 100 bp decrease $ 100 bp increase $ 100 bp decrease $ Consolidated – 2023 Financial assets Cash and cash equivalents 4,688,824 25,919 (25,919) 25,919 (25,919) Cash flow sensitivity (net) 25,919 (25,919) 25,919 (25,919) Consolidated – 2022 Financial assets Cash and cash equivalents 3,816,089 22,239 (22,239) 22,239 (22,239) Cash flow sensitivity (net) 22,239 (22,239) 22,239 (22,239) Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers and investment securities. The Group trades only with recognised, creditworthy third parties. It is the Group policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. The maximum exposure to credit risk is the carrying value of the receivable, net of any provision for doubtful debts. With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, the Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. This risk is minimised by reviewing term deposit accounts from time to time with approved banks of a sufficient credit rating which is AA and above. Exposure to credit risk The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum exposure to credit risk at the reporting date was: Consolidated 2023 $ 2022 $ Cash and cash equivalents 4,688,824 3,816,089 Trade and other receivables 41,915 107,172 4,730,739 3,923,261
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