(a)Interest rate risk The Consolidated Entity’s exposure to risks of changes in market interest rates relate primarily to the  Consolidated Entity’s long term debt obligations and cash balances. The level of debt is disclosed in notes 25 and  28. The Consolidated Entity’s policy is to manage its interest cost using fixed rate debt. Therefore the Consolidated  Entity does not have any variable interest rate risk on its debt. The Consolidated Entity constantly analyses its  interest rate exposure. Within this analysis consideration is given to potential renewals of existing positions,  alternative financing positions and the mix of fixed and variable interest rates. The following sensitivity analysis  is based on the interest rate risk exposures in existence at the reporting date. The sensitivity analysis is based on  the variable position. At 30 June 2011, if interest rates had moved by a reasonably possible 1%, as illustrated in the table below, with all  other variables held constant, post tax losses and equity would have been affected as follows: A sensitivity of +%1 or -1% has been selected as this is considered reasonable given the current level of short-term  and long-term Australian dollar interest rates. The movements in profit are due to possible higher or lower interest  income from variable rate cash balances. The sensitivity is lower in 2011 than 2010 because of cash backed  performance bond funds being converted from floating interest rates to fixed interest term deposits in 2011. At the reporting date the Consolidated Entity’s exposure to interest rate risk and the effective weighted average  interest rate for classes of financial assets and financial liabilities is set out below. 76  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 Post tax profit Other Comprehensive Income higher/(lower) higher/(lower) 2011 2010 2011 2010 Judgements of reasonably possible movements: + 1.0% (100 basis points) 65,823 70,261 - - - 1.0% (100 basis points)  (65,823) (70,261) - - 2011 Floating interest  rate Fixed interest Non-Interest  bearing Total carrying  amount Financial Assets Cash and cash equivalents 9,403,323  66,580,011  - 75,983,334  Trade and other receivables - - 12,470,596  12,470,596  Other financial assets - 2,570,730  750,000  3,320,730  9,403,323  69,150,741  13,220,596  91,774,660  Financial Liabilities Trade and other payables - - (5,679,553) (5,679,553) Interest bearing liabilities - (1,158,829) - (1,158,829) - (1,158,829) (5,679,553) (6,838,382) Net financial assets/(liabilities) 84,936,278 