66 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 June 2023 As of 30 June 2023, the consolidated entity did not hold derivative financial instruments in managing its foreign currency, however, the consolidated entity may from time to time enter into hedging arrangements where circumstances are deemed appropriate. The consolidated entity used natural hedging to reduce the foreign currency risk, which involved processing USD payments from cash held in USD. Foreign subsidiaries with a functional currency of Australian Dollars (‘AUD’) have exposure to the local currency of these subsidiaries and any other currency these subsidiaries trade in. The carrying amount of the consolidated entity’s foreign currency denominated financial assets and financial liabilities at the reporting date was as follows: Assets Liabilities 2023 2022 restated 2023 2022 Consolidated $ $ $ $ US dollars 2,326,256 7,275,701 1,135,162 3,071,170 Euros - - 2,710,133 204,886 Singapore dollars - - 846 - 2,326,256 7,275,701 3,846,141 3,276,056 The consolidated entity had net assets denominated in foreign currencies of $2,232,754 as at 30 June 2023 (2022: net assets $3,999,645). If all currencies had strengthened and weakened against the USD by 10% (2022: 10%) then this would have the following impact: AUD strengthened AUD weakened Consolidated - 2023 % change Effect on profit before tax Effect on equity % change Effect on profit before tax Effect on equity US dollars 10% (494,373) (494,373) (10%) 494,373 494,373 Euros 10% 271,013 271,013 (10%) (271,013) (271,013) Singapore dollars 10% - - (10%) - - (223,360) (223,360) 223,360 223,360 AUD strengthened AUD weakened Consolidated - 2022 restated % change Effect on profit before tax Effect on equity % change Effect on profit before tax Effect on equity US dollars 10% (420,453) (420,453) (10%) 420,453 420,453 Euros 10% 20,489 20,489 (10%) (20,489) (20,489) (399,964) (399,964) 399,964 399,964 Price risk The consolidated entity is not exposed to any significant price risk. Note 23. Financial instruments continued
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