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AXIOM MINING LIMITED
ANNUAL REPORT 2015
49
Notes to the
financial statements
for the year ended 30 September 2015
GROUP FINANCIAL REPORT
2. Significant accounting policies
(continued)
During the vesting period, the number of share options
that is expected to vest is reviewed. Any adjustment
to the cumulative fair value recognised in prior years is
charged or credited to the profit or loss for the year of the
review, unless the original employee expenses qualify for
recognition as an asset, with a corresponding adjustment
to the reserve. On vesting date, the amount recognised
as an expense is adjusted to reflect the actual number
of options that vest (with a corresponding adjustment
to the reserve) except where forfeiture is only due to not
achieving vesting conditions that relate to the market
price of the Company’s shares.
p. Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the
amount of goods and services tax (GST), except where
the amount of GST incurred is not recoverable from the
taxation authority. In these circumstances, the GST is
recognised as part of the cost of acquisition of the asset
or as part of the expenses. Receivables and payables are
stated with the amount of GST included. The net amount
of GST recoverable from, or payable to, the taxation
authority is included as a current asset or liability in the
balance sheet.
Cash flows are included in the cash flow statement
on a gross basis. The GST components of cash flows
arising from investing and financing activities which are
recoverable from, or payable to, the taxation authority are
classified as operating cash flows.
q. Provisions and contingent liabilities
Provisions are recognised for liabilities of uncertain timing
or amount when the Group or the Company has a legal
or constructive obligation arising as a result of a past
event, it is probable that an outflow of economic benefits
will be required to settle the obligation and a reliable
estimate can be made. Where the time value of money is
material, provisions are stated at the present value of the
expenditure expected to settle the obligation.
Where it is not probable that an outflow of economic
benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a
contingent liability, unless the probability of outflow of
economic benefits is remote. Possible obligations, whose
existence will only be confirmed by the occurrence or
non-occurrence of one or more future events are also
disclosed as contingent liabilities unless the probability of
outflow of economic benefits is remote.
r. Revenue recognition
Provided that it is probable that the economic benefits
will flow to the Group and the revenue and costs,
if applicable, can be measured reliably, revenue is
recognised in profit or loss as follows:
–
Interest income is recognised as it accrues using the
effective interest method
–
Sundry income is recognised at the fair value of the
consideration received or receivable.
s. Translation of foreign currencies
Foreign currency transactions during the year are
translated at the foreign exchange rates ruling at the
transaction dates. Monetary assets and liabilities
denominated in foreign currencies are translated at
the foreign exchange rates ruling at the balance sheet
date. Exchange gains and losses are recognised in profit
or loss.
Non-monetary assets and liabilities that are measured in
terms of historical cost in a foreign currency are translated
using the foreign exchange rates ruling at the transaction
dates. Non-monetary assets and liabilities denominated
in foreign currencies that are stated at fair value are
translated using the foreign exchange rates ruling at the
dates the fair value was determined.
The results of foreign operations are translated into
Australian dollars at the exchange rates approximating
the foreign exchange rates ruling at the dates of the
transactions. Balance sheet items are translated
into Australian dollars at the foreign exchange rates
ruling at the balance sheet date. The resulting
exchange differences are recognised directly in other
comprehensive income and accumulated separately in
equity in the exchange reserve.
On disposal of a foreign operation, the cumulative amount
of the exchange differences relating to that foreign
operation is reclassified from equity to profit or loss when
the profit or loss on disposal is recognised.
t. Earnings per share
The Group presents basic and diluted earnings per share
(EPS) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to owners of the
Company by the weighted average number of ordinary
shares outstanding during the year. Diluted EPS is
determined by adjusting the profit or loss attributable to
owners and the weighted average number of ordinary
shares outstanding for the effects of all dilutive potential
ordinary shares, which comprise convertible notes and
share options granted to.
u. Segmental reporting
Operating segments, and the amounts of each segment
item reported in the financial statements, are identified
from the financial information provided regularly to the
Group’s most senior executive management for the
purposes of allocated resources to, and assessing the
performance of, the Group’s various lines of business and
geographical locations.
Individually material operating segments are not
aggregated for financial reporting purposes unless the
segments have similar economic characteristics and
are similar in respect of the nature of products and
services, the nature of production processes, the type or
class of customers, the methods used to distribute the
products or provide the services, and the nature of the
regulatory environment. Operating segments which are
not individually material may be aggregated if they share a
majority of these criteria.