www.bordersandsouthern.com  37  Borders & Southern Petroleum plc Annual Report & Accounts 2014 DIRECTORS’  REPORT STRATEGIC  REPORT F INANCIAL  S T ATEMENTS If there was a 10% change in the year end exchange rate there would be a movement in the US$ equivalent of financial liabilities  held in the UK£ of $25,000 (2013 – $130,689) for the Group and Company.  If there was a 10% change in the year end exchange rate there would be a movement in the US$ equivalent of financial assets  held in UK£ of $1,632,900 (2013: $2,288,796) for the Group and Company. The foreign currency profile of financial assets and liabilities of the Group and the Company are as follows: The operational currency of the oil and gas exploration and evaluation activities of the Group is US$ and the Group’s functional  and presentational currency is US$. Foreign exchange risk arises because the Group’s services and treasury function is UK£,  which results in gains or losses on retranslation into US$. To minimise this foreign currency risk cash balances are held  in both UK£ and US$. At 31 December 2014 the Group held cash at bank and in deposits under its control of $16,078,547 (2013 – $23,289,453) which  forms the majority of the Group’s working capital. Of the cash at bank and in deposit, $539,971 (2013 – $1,851,458) relates to  deposits placed with banking institutions that are available on demand which carry interest at prevailing United Kingdom deposit  floating rates. The balance represents restricted deposits of $15,538,576 (2013 – $21,468,731) with a weighted average fixed  interest rate of 0.2% (2013 – 0.2%) for three months. If there was 1% change in interest rates the impact on the statement of  comprehensive income would be $160,785 (2013 – $232,895). The Group’s financial assets and liabilities accrue interest at prevailing floating rates in the United Kingdom or at pre-arranged  fixed rates, as described further below. The Group does not currently use derivative instruments to manage its interest rate risk. The Group is exposed to cash flow interest rate risk from monies held at bank and on deposit at variable rates. The  considerations below and the figures quoted are the same for both Group and Company. B) FOREIGN CURRENCY TRANSLATION RISK A) CASH FLOW INTEREST RATE RISK 20 FINANCIAL INSTRUMENTS  CONTINUED Group Company Current financial assets Other receivables  measured at  amortised cost  2014  $000 Otherreceivables  measuredat  amortised cost  2013  $000 Other receivables  measured at  amortised cost  2014  $000 Other receivables  measuredat  amortised cost  2013  $000 Held in UK£: Other receivables 329 992 329 992 Cash and cash equivalents 16,030 22,888 16,030 22,888 Total current financial assets held in UK£ 16,359 23,880 16,359 23,880 Held in US$: Trade and other receivables – 25 290,143 287,151 Cash and cash equivalents 49 401 49 401 Total financial assets 16,408 24,306 306,551 311,432 Group Company Financial liabilities  measured at  amortised cost  2014  $000 Financialliabilities  measuredat  amortised cost  2013  $000 Financial liabilities  measured at  amortised cost  2014  $000 Financialliabilities  measuredat  amortised cost  2013  $000 Held in UK£: Trade and other payables 250 1,307 250 1,307 Total financial liabilities  250 1,307 250 1,307