Notes to the Consolidated Financial Statements continued ANNUAL Report June 2022 Notes to the Consolidated Financial Statements 45 The main risks arising from the Company’s financial instruments are cash flow interest rate risk and equity price risk. Other minor risks are summarised below. The Board reviews and agrees policies for managing each of these risks. (a) Price Risk The Group is not exposed to equity securities price risk. (b) Liquidity Risk The Company manages liquidity risk by maintaining sufficient cash reserves and marketable securities and through the continuous monitoring of budgeted and actual cash flows. Contracted Maturities for Payables <6 Months 6 - 12 Months 1 - 5 Years Total 2022 Trade and other payables 5,026,531 - - 5,026,531 Lease liabilities 277,397 388,357 1,335,829 2,001,583 Convertible note interest payable 280,000 - - 280,000 Total 5,583,928 388,357 1,335,829 7,308,114 2021 Trade and other payables 3,647,525 - - 3,647,525 Lease liabilities 111,736 156,430 681,140 949,307 Total 3,759,261 156,430 681,140 4,596,832 (c) Fair Value of Financial Instruments The following tables detail the consolidated entity’s fair values of financial instruments categorised by the following levels: 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 (as prices) or indirectly (derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). Consolidated – 2022 Assets Level 1 Level 2 Level 3 Total Ordinary shares 5,543 - - 5,543 Total assets 5,543 - - 5,543 Total liabilities - - - - Consolidated – 2021 Assets Level 1 Level 2 Level 3 Total Ordinary shares 3,610 - - 3,610 Total assets 3,610 - - 3,610 Total liabilities - - - - There were no transfers between levels during the financial year. Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their short-term nature. 76 EQ Resources Limited Annual Report 2022
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