SPIRENT COMMUNICATIONS PLC ANNUAL

Market Risk

28. Financial instruments and financial risk management The main purpose of the Group’s financial instruments, other than trade and receivables, trade and other payables, contractual provisions and lease liabilities, is to fund the Group’s liquidity requirements. The Group’s financial assets and liabilities are as follows: 2023 2022 Measurement category under IFRS 9 Notes $ million $ million Non-current trade and other receivables Financial assets at amortised cost 19 4.6 4.3 Cash and cash equivalents Financial assets at amortised cost 21 108.1 209.6 Current trade and other receivables Financial assets at amortised cost 19 120.8 147.8 Financial assets 233.5 361.7 Non-current other payables Financial liabilities at amortised cost 22 0.2 0.2 Current trade payables, other payables and accruals Financial liabilities at amortised cost 22 61.6 88.3 Current other financial liabilities Derivatives designated at FVTPL 22 – 0.1 Lease liabilities, current and non-current Financial liabilities at amortised cost 25 21.4 22.1 Contractual provisions Financial liabilities at amortised cost 27 3.5 3.4 Financial liabilities 86.7 114.1 1 2 Notes 1. Includes $3.6 million (2022 $3.4 million) in relation to corporate owned life insurance that is designated as financial assets at fair value through profit or loss. 2. Relates to forward foreign currency exchange contracts. The Group enters into derivative transactions, forward foreign currency exchange contracts, for the management of the Group’s foreign currency exposures when deemed appropriate. The key objective of the Group’s treasury department is to manage the financial risks of the business and to ensure that sufficient liquidity is available to the Group. All treasury activity operates within a formal control framework. The Board has approved treasury policies and guidelines and periodically reviews treasury activities. Additionally, it is the Group’s policy that speculative treasury transactions are expressly forbidden.