Page 86 - Beeks Financial Cloud Group Annual Report 2021

84 Beeks Financial Cloud Group PLC For the year ended 30 June 2021

Notes to the Consolidated Financial Statements

14. CURRENT ASSETS - There have been no changes recognised assets or liabilities are
FINANCIAL INSTRUMENTS AND to valuation techniques or any denominated in a currency that is
RISK MANAGEMENT amounts recognised through ‘Other not the functional currency of the
Financial risk management Comprehensive Income’. operations. The Group has minimal
objectives and policies exposure to foreign exchange
The Group’s principal financial The main purpose of these financial risk as a result of natural hedges
instruments comprise cash instruments is to finance The arising between sales and cost
and cash equivalents, short Group’s operations. The Group has transactions. A 10% movement in
term deposits and bank and other financial instruments which the USD rate would have an impact
other borrowings. mainly comprise trade receivables on The Group’s profit and equity
and trade payables which arise by approximately £172,000. A 10%
The carrying amount of all financial directly from its operations. movement in the Euro rate would
assets presented in the statement have an impact on The Group’s
of financial position are measured Risk management is carried out profit and equity by approximately
at amortised cost. by the finance department under £49,000.
policies approved by the Board
The carrying amount of all of Directors. The Group finance The Group had potential
financial liabilities presented in department identifies, evaluates exchange rate exposure within USD
the statement of financial position and manages financial risks. The trade payable balances of £1,210,143
are measured at amortised costs Board provides guidance on overall as at 30 June 2021 (£77,617 at 30
with the exception of contingent risk management including foreign June 2020).
consideration with is measured at exchange risk, interest rate risk,
Fair Value through profit or loss. credit risk, and investment of Cash flow and interest rate risk
excess liquidity. The Group has limited exposure to
The Group’s financial liabilities interest rate risk in respect of cash
per the fair value hierarchy The impact of the risks required balances and long-term borrowings
classifications under IFRS 13 to be discussed under IFRS 7 are held with banks and other highly
‘Financial Instruments: Disclosures’ detailed below: rated counterparties. All loans and
are described below: leases are at fixed rates of interest
MARKET RISK therefore The Group does not have
As at 30 June 2021, contingent Foreign exchange risk exposure to interest rate risk.
FINANCE
consideration due on acquisitions is Foreign exchange risk arises when
£nil (2020: £2.445m) - refer to note 15. future commercial transactions or

Credit risk
The Group’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at the
reporting date, as summarised below:
2021 2020
£000 £000

Cash and cash equivalents 3,372 1,433
Trade receivables 1,032 791
Contract asset 191 223
Other receivables 43 28
4,638 2,475