Interfront 2025 Annual Report

International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2025 142 INTERFRONT ANNUAL REPORT 2025 1.5 Financial instruments (continued) A financial asset is: • cash; • a residual interest of another entity; or • a contractual right to: | receive cash or another financial asset from another entity; or | exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity. A financial liability is any liability that is a contractual obligation to: • deliver cash or another financial asset to another entity; or • exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Liquidity risk is the risk encountered by an entity in the event of difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. 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. A financial asset is past due when a counterparty has failed to make a payment when contractually due. Classification The entity has the following types of financial assets (class and category) as reflected on the face of the statement of financial position or in the notes thereto: CLASS CATEGORY Receivables from exchange transactions Financial asset measured at amortised cost Cash and cash equivalents Financial asset measured at fair value The entity has the following types of financial liabilities (class and category) as reflected on the face of the statement of financial position or in the notes thereto: CLASS CATEGORY Payables from exchange transactions Financial liability measured at amortised cost