Note 20. Financial instruments (continued) The Consolidated Entity’s exposure to unhedged financial assets and liabilities at balance date is as follows: 30-June-23 $ 30-June-22 $ USD Financial assets Cash on hand at bank 6,610,978 6,430,067 USD Financial liabilities Payables - 55,512 EUR Financial assets Cash on hand at bank 9,841,314 4,617,185 EUR Financial liabilities Payables 1,383,479 6,103,635 CAD Financial liabilities Payables 1,431,031 3,222,218 The Consolidated Entity had net assets denominated in foreign currencies as at 30 June 2023 of $22,212,898 (2022: $3,382,096). Based on this exposure, had the Australian dollar strengthened by 10% / weakened by 10% (2022: strengthened by 10% and weakened by 10%) against these foreign currencies with all other variables held constant, the Consolidated Entity’s loss before tax for the year would have been $2,019,355 higher and $2,468,099 lower (2022: $307,463 higher / $375,788 lower) and equity would have been $2,019,355 lower / $2,468,099, higher 2022: ($307,463 lower / $375,788 higher). The percentage change is the expected overall volatility of the significant currencies, which is based on management’s assessment of reasonable possible fluctuations taking into consideration movements over the last 12 months and the spot rate at each reporting date. An analysis of the exchange rate sensitivity by foreign currency is as follows: AUD strengthened AUD weakened Change Effect on profit before tax Effect on equity Change Effect on profit before tax Effect on equity 30-Jun-23 USD net financial assets/liabilities 10% (906,483) 906,483 10% 1,107,923 (1,107,923) EUR net financial assets/liabilities 10% (1,261,204) 1,261,204 10% 1,541,471 (1,541,471) CAD net financial assets/liabilities 10% 148,332 (148,332) 10% (181,295) 181,295 Cash on hand at bank (2,019,355) 2,019,355 2,468,099 (2,468,099) AUD strengthened AUD weakened Change Effect on profit before tax Effect on equity Change Effect on profit before tax Effect on equity 30-Jun-22 USD net financial assets/liabilities 10% (840,503) 840,503 10% 1,027,282 (1,027,282) EUR net financial assets/liabilities 10% 203,843 (203,843) 10% (249,141) 249,141 CAD net financial assets/liabilities 10% 329,197 (329,197) 10% (402,352) 402,352 Cash on hand at bank (307,463) 307,463 375,789 (375,789) 55 Melbana Energy Limited Annual Report 2023
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