Interfront Annual Report 2022

PART E: FINANCIAL INFORMATION 90 International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2022 1.4 Financial Instruments (continued) instrument (or group of financial instruments). Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction. 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. Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. 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 (classes 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