Page 99 - Demo

Financial Statement21. Reserve policyThe reserves of the association provide financial stability and the means for the development of the association%u2019s activities. The association has a target reserve ratio of one (1) and will strive to work towards maintaining this ratio by engaging in approved activities that are accretive to its bottom line. The Management Committee reviews the level of reserves regularly for the association%u2019s continuing obligations.2024 2023$ $Total unrestricted funds 3,278,601 2,915,600Ratio of reserves to total operating expenditure 1.07 1.0322. Financial instruments: information on financial risks and other explanatory information22A. Categories of financial assets and financial liabilitiesThe following table categorises the carrying amount of financial assets and financial liabilities recorded at the end of the reporting year:2024 2023$ $Financial assets:At amortised cost 4,530,857 3,952,470Financial liabilities:At amortised cost 427,294 162,365Further quantitative disclosures are included throughout these financial statements.22B. Financial risk managementThe main purpose for holding or issuing financial instruments is to raise and manage the finances for the association%u2019s operating, investing and financing activities. There are exposure to the financial risks on the financial instruments such as credit risk and liquidity risk. Management has certain practices for the management of financial risks. However, these are not documented in formal written documents. The following guidelines are followed: All financial risk management activities are carried out and monitored by senior management staff. All financial risk management activities are carried out following acceptable market practices.There have been no changes to exposure to risk; objectives, policies and processes for managing the risk and the methods used to measure the risk.22C. Fair values of financial instrumentsThe carrying values of current financial instruments approximate their fair values due to the short-term maturity of these instruments and the disclosures of fair value are not made when the carrying amount of current financial instruments is a reasonable approximation of the fair value.99 25TH ANNUAL REPORT | 2023 - 2024