Impact Minerals Ltd Annual Report 2023 63 Notes to the Consolidated Financial Statements continued NOTE 25: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Fair value measurement of financial instruments Financial assets and financial liabilities measured at fair value in the Statement of Financial Position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows: – Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; – Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and – Level 3: unobservable inputs for the asset or liability. The following table shows the levels within the hierarchy of financial assets and liabilities measured at fair value on a recurring basis at 30 June 2023 and 30 June 2022: Level 1 $ Level 2 $ Level 3 $ Total $ 30 June 2023 Financial assets at FVOCI 126,250 – – 126,250 126,250 – – 126,250 30 June 2022 Financial assets at FVOCI 222,500 – – 222,500 222,500 – – 222,500 Capital risk management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The management of the Group’s capital is performed by the Board. The capital structure of the Group consists of net debt (trade payables and provisions detailed in Notes 14 and 15 offset by cash and bank balances) and equity of the Group (comprising contributed issued capital, reserves, offset by accumulated losses detailed in Notes 17, 18 and 19). The Group is not subject to any externally imposed capital requirements. None of the Group’s entities are subject to externally imposed capital requirements.
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