Australian Human Rights Commission Annual Report 2021–22 5.2 Financial Instruments 5.2A: Categories of financial instruments Financial assets at amortised cost Cash on hand and at bank Trade and other receivables Total financial assets at amortised cost 2022 $’000 2021 $’000 15,958 698 16,656 3,356 1,498 4,854 865 1,767 865 1,767 Financial Liabilities Financial liabilities measured at amortised cost Trade creditors and accruals Total financial liabilities measured at amortised cost Accounting Policy Financial assets In accordance with AASB 9 Financial Instruments, the entity classifies its financial assets in the following categories: (a) financial assets at fair value through profit or loss; (b) financial assets at fair value through other comprehensive income; and (c) financial assets measured at amortised cost. The classification depends on both the entity'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 entity 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. Comparatives have not been restated on initial application. Financial Assets at Amortised Cost Financial assets included in this category need to meet two criteria: 1. the financial asset is held in order to collect the contractual cash flows; and 2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount. Amortised cost is determined using the effective interest method. 108