Managing uncertainties This section analyses how the Australian Human Rights Commission manages financial risks within its operating environment. 4.1A: Contingent assets and liabilities Quantifiable Contingencies At the time signing these financial statements, the Commission had no quantifiable contingent liabilities. Unquantifiable Contingencies At 30 June 2024 the Commission was a respondent to five judicial review applications and one administrative review application. In each of the judicial review proceedings, the Commission has or intends to file a submitting notice and there are other parties on the record acting as a contradictor. It is not usual for any costs order to be made against the Commission in the kinds of proceedings described in this paragraph and we do not expect there to be any financial impact on the Commission (2023: nil). Accounting Policy Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote. 4.2 Financial Instruments 2024 $’000 2023 $’000 28,549 26,407 798 1,083 29,347 27,490 Trade creditors and accruals 1,360 1,555 Total financial liabilities measured at amortised cost 1,360 1,555 4.2A: Categories of financial instruments Financial assets at amortised cost Cash on hand at bank Trade and other receivables Total financial assets at amortised cost Financial Liabilities Financial liabilities measured at amortised cost Accounting Policy Financial assets In accordance with AASB 9 Financial Instruments, the Commission classifies its financial assets in the following categories: • financial assets at fair value through profit or loss; • financial assets at fair value through other comprehensive income; and • financial assets measured at amortised cost. The classification depends on both the Commission’s business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the Commission becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date. 78