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AXIOM MINING LIMITED
ANNUAL REPORT 2015
Notes to the
financial statements
for the year ended 30 September 2015
COMPANY FINANCIAL REPORT
3.1. Changes in accounting policies and disclosures
The Company has adopted the following new and revised standards and interpretation for the first time for the current
year’s financial statements:
Amendments to HKFRSs
Annual Improvements to HKFRSs 2010-2012 Cycle
Amendments to HKFRSs
Annual Improvements to HKFRSs 2011-2013 Cycle
Amendments to HKFRS 10,
HKFRS 12 and HKAS 27 (2011)
Investment Entities
Amendments to HKAS 19
Defined Benefit Plans: Employee Contributions
Amendments to HKAS 32
Offsetting Financial Assets and Financial Liabilities
Amendments to HKAS 36
Recoverable Amount Disclosures for Non-Financial Assets
Amendments to HKAS 39
Novation of Derivatives and Continuation of Hedge Accounting
HK(IFRIC) - Int 21
Levies
The adoption of the new and revised HKFRSs in the
current year has had no material effect on the Company’s
financial performance and positions for the current year.
In addition, the requirements of Part 9, “Accounts and
Audit” of the Hong Kong Companies Ordinance (Cap.
622) came into effect for the first time, during the current
financial year. The main impact to the financial statements
is on the presentation and disclosure of certain
information in the financial statements.
3.2. Issued but not yet effective HKFRSs
The Company has not early applied any of the new and
revised HKFRSs that have been issued but are not yet
effective for the accounting year ended 30 September
2015, in these financial statements.
The Company is in the process of making an assessment
of the impact of these new and revised HKFRSs upon
initial application. So far, the Company considers these
new and revised HKFRSs are unlikely to have a significant
impact on the Company’s results of operations and
financial position.
4. Summary of significant accounting
policies
Subsidiaries
A subsidiary is an entity (including a structured entity),
directly or indirectly, controlled by the Company. Control
is achieved when the Company is exposed, or has rights,
to variable returns from its involvement with the investee
and has the ability to affect those returns through its
power over the investee (i.e. existing rights that give the
Company the current ability to direct the relevant activities
of the investee).
When the Company has, directly or indirectly, less than
a majority of the voting or similar rights of an investee, the
Company considers all relevant facts and circumstances
in assessing whether it has power over an investee,
including:
a. the contractual arrangement with the other vote
holders of the investee;
b. rights arising from other contractual arrangements;
and
c. the Company’s voting rights and potential voting
rights.
The results of subsidiaries are included in the Company’s
statement of profit or loss to the extent of dividends
received and receivable. The Company’s investments
in subsidiaries that are not classified as held for sale in
accordance with HKFRS 5 are stated at cost less any
impairment losses.
Fair value measurement
The Company measures its certain financial liability at fair
value at the end of each reporting period. Fair value is
the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between
market participants at the measurement date.
All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:
Level 1 – based on quoted prices (unadjusted) in active
markets for identical assets or liabilities
Level 2 – based on valuation techniques for which the
lowest level input that is significant to the fair value
measurement is observable, either directly or indirectly
Level 3 – based on valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable