20. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED) Interest rate risk The Group is exposed to changes in market interest rates as entities in the Group hold cash and cash equivalents and shortterm investments. The effective interest rates on financial assets are as follows: Financial Assets 2024 $’000 2023 $’000 Cash and cash equivalents Australian dollar cash deposits 102,014 59,858 Australian dollar interest rate 4.67% 4.79% US dollar cash deposits 120,174 168,688 US dollar interest rate 4.27% 4.67% The Company and Group do not have any interest-bearing financial liabilities. Trade and other receivables and payables do not bear interest and are not interest rate sensitive. A 5% change in average market interest rates would have changed reported profit after tax by approximately $494,963 (2023: $537,400). A 5% increase/decrease in the average market interest rates would have no impact on other components of equity. Credit risk The Group incurs credit risk from transactions with financial institutions. The total credit risk on cash and cash equivalents and short-term investments, which have been recognised in the statement of financial position, is the carrying amount. The Company and its subsidiaries do not retain any collateral or security to support transactions with financial institutions. Cash and cash equivalents and short-term deposits are held and transacted with National Australia Bank, Commonwealth Bank, Westpac, ANZ, Western Union and Primis bank. Liquidity risk The Group’s financial liabilities, comprising trade and other payables and derivatives, are generally repayable within 1 – 3 months. The maturity and availability of financial assets, comprising cash and cash equivalents, short-term investments and trade and other receivables, are monitored and managed to ensure financial liabilities can be repaid when due. Capital management The Group monitors capital including share capital, retained earnings and reserves and the cash and cash equivalents and short-term investments presented in the consolidated statement of financial position. The Group has no debt. The key objective of the Group when managing its capital is to safeguard its ability to continue as a going concern, so that the Group can sustain the future development of the research and development activities being performed by the Group. 21. KEY MANAGEMENT PERSONNEL DISCLOSURES The Key Management Personnel of the Group (KMP) include the directors of the Company and employees who reporting directly to the Managing Director. Compensation for KMP was as follows: Year ended Dec 2024 $’000 Year ended Dec 2023 $’000 Short-term employee benefits 1,864 3,266 Post-employment benefits 158 169 Long-term benefits 37 74 Share-based payments 98 1,446 2,157 4,955 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED Neuren Pharmaceuticals Limited Annual Report 2024 46
RkJQdWJsaXNoZXIy MjE2NDg3