Issue link: http://itf.uberflip.com/i/1547012
38. Financial instruments (continued) (c) Liquidity risk (continued) 2025 2024 Carrying amount $000 Contractual cash flows $000 1 year or less $000 Between 1&2 years $000 Carrying amount $000 Contractual cash flows $000 1 year or less $000 Between 1&2 years $000 Non-derivative financial liabilities Trade and other payables (19,632) (19,632) (19,632) - (8,267) (8,267) (8,267) - Accruals (8,387) (8,387) (8,387) - (15,827) (15,827) (15,827) - Lease liabilities (254) (254) (254) - - - - - Derivative financial liabilities Forward exchange contracts used for hedging: Outflow (45,926) (45,926) (39,177) (6,749) (43,062) (43,062) (33,862) (9,200) Inflow 46,652 46,652 39,848 6,804 42,144 42,144 33,282 8,862 ( 27,547) (27,547) (27,602) 55 ( 25,012) ( 25,012) ( 24,674) (338) 2025 2024 Carrying amount $000 Contractual cash flows $000 1 year or less $000 Between 1&2 years $000 Carrying amount $000 Contractual cash flows $000 1 year or less $000 Between 1&2 years $000 Assets 727 727 671 56 - - - - Liabilities - - - - 918 918 581 337 727 727 671 52 918 918 581 337 NOTES (Forming part of the Financial Statements) (d) Cash flow hedges The following table indicates the periods in which the cash flows associated with cash flow hedging instruments are expected to occur: The forward exchange contracts are being used to hedge the foreign currency risk of the firm commitments. The hedge ratio is 1:1 (2024: 1:1). The change in value of the outstanding hedging instruments since 1 January 2025 is similar to the change in value of the hedged items used to determine hedge effectiveness. The foreign currency forwards are denominated in the same currency as the highly probably future expenditure (GBP), therefore the hedge ratio is 1:1. In hedges of future cash flows, ineffectiveness may arise if the timing of the forecast transaction changes from what was originally estimated, or if there are changes in the credit risk of the derivative counterparty or country in which they or the group are based. There was no ineffectiveness during 2025 or 2024 in relation to foreign exchange hedges. ITF Trust Annual Report and Consolidated Financial Statements 40