Market risk Market risk is the risk that changes in market prices such as interest rates will affect the Group’s income or the value of its holdings of financial instruments. The Group is not exposed to foreign currency risk or other price risks. The Group’s exposure to market risk for changes in interest rates relates primarily to the long-term debt obligations that are at a floating rate of interest determined with reference to BBSY. The Group uses derivative financial instruments (interest rate swaps) to reduce the exposure to market risks arising from changes in interest rates. The Group does not enter into derivative contracts for the purposes of trading. Hedging decisions are made based on the Group’s interest rate risk position. Hedging for the purpose of this policy means a transaction which reduces the calculated interest rate risk on the overall portfolio of interestbearing assets and liabilities using one or more of the interest rate risk measures of value at risk, sensitivity or accrued simulation. The risk has been managed through the use of an interest rate swap, which covers the entire principal of the loan for its duration. The Group has therefore an immaterial current exposure to interest rate risk in the income statement. 24. Remuneration of Key Management Personnel 2022 $ 2021 $ Base remuneration and superannuation 1,025,340 986,177 Annual leave and long service leave accruals 39,663 38,048 Other benefits 20,612 - The total remuneration of key management personnel 1,085,615 1,024,225 25. Remuneration of auditor Auditors of the Group – BDO Audit (WA) Pty Ltd and its related entities 2021 $ 2020 $ Audit and review of financial statements 62,059 52,676 Other assurance service (variable outgoings audit) 26,217 15,800 Other non-audit services Restructure advisory 772 783 Taxation compliance 39,045 36,293 Total Other non-audit services 39,817 37,076 Total remuneration of auditor 128,093 105,552 The company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the company and/or the group are important. The board of directors, in accordance with advice provided by the Audit Finance & Risk Committee (AFRC), is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the provision of non-audit services by the auditor did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons: APES110(290) 46
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