8. CASH AND CASH EQUIVALENTS 2022 $’000 2021 $’000 Cash 2,304 6,912 Demand and short-term deposits 37,876 29,871 40,180 36,783 9. TRADE AND OTHER RECEIVABLES 2022 $’000 2021 $’000 Trade receivables – 7 Other receivables 17 21 Interest receivables 207 3 Prepayments 1,977 1,837 Australian R&D tax incentive 865 1,393 3,066 3,261 The Group applies the simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component. In measuring the expected credit losses, the trade receivables have been assessed on an individual basis due to the limited number of receivables. The expected loss rates are based on the payment profile of the individual receivable including historical experience, external indicators and forward-looking information to calculate the expected credit losses. Trade receivables are written off (i.e. de-recognised) when there is no reasonable expectation of recovery. Failure to make payments within 180 days from the invoice date and failure to engage with the Group on alternative payment arrangements amongst others are considered indicators of no reasonable expectation of recovery. No credit losses have been determined for the current year (2021: nil). 10. TRADE AND OTHER PAYABLES 2022 $’000 2021 $’000 Trade payables 258 245 Accruals 267 209 Employee benefits 453 349 978 803 Trade payables and accruals relate to operating expenses, primarily research and development expenses. Trade payables comprise amounts invoiced prior to the reporting date and accruals comprise the value of goods or services received but not invoiced at each reporting date. 11. DERIVATIVES 2022 $’000 2021 $’000 Current derivative liabilities Forward exchange contracts 700 – NOTES TO THE CONSOL I DATED F I NANC I A L STATEMENTS CON T I NU E D Neuren Pharmaceuticals Limited Annual Repor t 2022 38
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