20. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (a) Categories of financial instruments At amortised cost At fair value through profit or loss Interest Bearing $’000 Non-Interest Bearing $’000 Non-Interest Bearing $’000 Total $’000 2024 Financial assets Cash and cash equivalents 10 3,153 – – 3,153 Short term investments 11 219,089 – – 219,089 Trade and other receivables 12 – 156,321 – 156,321 Derivative financial instruments - forward exchange contracts 15 – – 1,362 1,362 Total financial assets 222,242 156,321 1,362 379,925 Financial liabilities Trade and other payables 14 – 2,392 – 2,392 2023 Financial assets Cash and cash equivalents 10 17,094 – – 17,094 Short term investments 11 211,445 – – 211,445 Trade and other receivables 12 – 14,332 – 14,332 Total financial assets 228,539 14,332 – 242,871 Financial liabilities Trade and other payables 14 – 2,849 – 2,849 Derivative financial instruments - forward exchange contracts 15 – – 2,226 2,226 Total financial liabilities – 2,849 2,226 5,075 At 31 December 2024, the carrying value of all financial instruments approximated their fair value. (b) Risk management The Group is subject to a number of financial risks which arise as a result of its activities. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Foreign currency risk During the normal course of business the Group enters into contracts with overseas customers or suppliers or consultants that are denominated in foreign currency. As a result of these transactions there is exposure to fluctuations in foreign exchange rates. The Company also has a net investment in a foreign operation, whose net assets are exposed to foreign currency translation risk. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED Neuren Pharmaceuticals Limited Annual Report 2024 44
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