Issue link: http://itf.uberflip.com/i/1477103
ITF Trust Annual Report and Financial Statements 2021 38 Sterling $000 Euro $000 US Dollar $000 Other $000 Total $000 31 December 2021 Cash at bank and in hand 1,777 349 10,488 2,337 14,951 Trade receivables 285 991 7,451 515 9,242 Investments - - 65,365 - 65,365 Trade payables (1,509) (243) (4,493) (30) (6,275) Forward exchange contracts - - (163) - (163) Net exposure 553 1,097 78,648 2,822 83,120 31 December 2020 Cash at bank and in hand 693 780 11,083 1,669 14,225 Trade receivables 120 256 4,945 193 5,514 Investments - - 49,658 - 49,658 Trade payables (1,067) (122) (1,398) - (2,587) Forward exchange contracts - - 2,068 - 2,068 Net exposure (254) 914 66,356 1,862 68,878 36. Financial instruments (con nued) (e) Market risk Financial risk management Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will affect the group's income or the value of its holdings of financial instruments. The group's financial risk management objec ve is to control the exposure to foreign exchange fluctua ons especially in Sterling and to a lesser extent the Euro and Australian Dollar, against the US Dollar. Sterling: The group has entered into forward currency contracts to buy £23,840,000 (2020: £29,400,000) at an average exchange rate of US$1.3727/£1 for hedges expiring in 2022 and US$1.3537/£1 for hedges expiring in 2023 (2020: US$1.2901/£1 expiring in 2021 and US$1.3207/£1 expiring in 2022). These contracts mature at various dates throughout 2022 and 2023 to match budgeted Sterling expenditure. The fair value of these hedges, based on the mark to market valua ons of the contracts at the balance sheet date, using prices on that date to purchase the same forward contracts, was a liability of $163,000 (2020: asset of $2,068,000) with a corresponding entry in reserves. Euro: The group did not enter into forward currency contracts to sell Euros in 2021 (2020: nil) due to all significant income contracts being denominated in US Dollars. A movement of $0.01 in the mark to market valua on would result in a change in the fair value of $298,000 on the Sterling hedges contracts. The group's exposure to foreign currency risk is as follows. This is based on the carrying amount for monetary financial instruments except deriva ves when it is based on no onal amounts: Notes (continued, forming part of the financial statements)