The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk);  credit risk and liquidity risk. The Group’s overall financial risk management program focuses on the unpredictability of financial  markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses different  methods to measure the different types of financial risk to which it is exposed. These methods include sensitivity analysis in the  case of foreign exchange and interest rates. Note 3. Financial Risk Management The overall financial risk management strategy of the Group is governed by the Board of Directors and is primarily focused on  ensuring that the Group is able to finance its business plans, while minimising potential adverse effects on financial performance.  The Board of Directors provides written principles for overall financial risk management, as well as written policies covering  specific areas, such as mitigating foreign exchange, interest rate and credit risks, use of derivative financial instruments and  investment of excess cash. Financial risk management is carried out by the Company’s finance function under policies approved  by the Board of Directors. The finance function identifies, evaluates and if necessary hedges financial risks in close cooperation  with the Executive Chairman. Risk management policies and systems are reviewed regularly to reflect changes in market  conditions and Group activities. Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement  and the basis on which income and expenses are recognised in respect of each class of financial asset and financial liability are  disclosed in Note 1. The Group’s financial instruments consist of cash and cash equivalents, receivables, security deposits, trade and other  payables. The Group had no off-statement of financial position financial assets or financial liabilities at either 30 June 2011 or 30 June 2010. The totals for each category of financial instruments in the consolidated statement of financial position are as follows: 49 Karoon Gas Australia Ltd  Annual Report 2011 Consolidated 2011 2010 Note  $ $ Financial assets Cash and cash equivalents  10  266,839,144 87,122,836 Receivables  11  4,003,566 4,873,578 Security deposits  13  67,360,580 16,639,562 Total financial assets  338,203,290 108,635,976 Financial liabilities Trade and other payables (refer note (a) below)  3,809,100 13,672,624 Total financial liabilities  3,809,100 13,672,624 Note: (a) Trade and other payables above exclude amounts relating to leave liabilities, which are not considered a financial instrument. The reconciliation to the amount in the consolidated statement of financial position is as follows: Trade and other payables  18  4,306,586 13,912,243 Less: Leave liabilities  (497,486) (239,619) 3,809,100 13,672,624