How to analysis the financial instrument in the company annual report? what kind of law used in AASB and the Corporate Act 2001?

16. Financial Instruments Financial Risk Management The Group's activities expose it to a variety of financial risks including foreign exchange risk, interest rate risk, credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of the financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group does not use derivative financial instruments; however the Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and other price risks and ageing analysis for credit risk. Risk management is carried out by the Board of Directors with assistance from suitably qualified external and internal advisors. The Board provides written principles for overall risk management and further policies will evolve commensurate with the evolution and growth of the Group (a) Foreign exchange risk The Group is exposed to minimal currency risks that are denominated in currency other than the respective functional currency of the Group entities. Transactions are pre-dominantly denominated in AUD, USD and MZN The Group's exposure to foreign currency risk at the end of the reporting period was as follows 2016 2015 USD$ 4,179 154,570 2,623 USD$ 12,251 MZN 1,007,485 7,412,041 13,153,506 MZN Cash & equivalents 3,041,179 Trade & other receivables Trade & other payables2,247 18,958,859 50,517,515 Sensitivity Based on the financial instruments held at 31 December 2016, had the Australian dollar weakened/strengthened by 10% against the MZN with all other variables held constant, the Group's post-tax loss for the year would have been $56,290 higher/$56,290 lower (2015 - $10,708 higher/$13,088 lower), the effect on equity would have been $56,290 lower/$56,290 higher (2015 $10,708/$13,088 higher). This is mainly as a result of foreign exchange gains/losses on translation of Mozambique New Meticals (MZN) denominated financial instruments as detailed in the above table. The loss is more sensitive to movements in the AUD/MZN exchange rates in 2016 than 2015 because of the increased amount of MZN denominated financial assets. The Group's exposure to other foreign exchange movements is not material