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Notes to the

financial statements

for the year ended 30 September 2015


2. Significant accounting policies


Accordingly, the Directors are confident in the ability

of the Group and the Company to successfully secure

sufficient cash inflows to enable it to continue as a going

concern and that it is appropriate to adopt the going

concern basis of accounting in the preparation of the

financial statements.

c. Principles of consolidation

The consolidated financial statements incorporate all

of the assets, liabilities and results of the parent (Axiom

Mining Limited) and all of the subsidiaries (including any

structured entities). Subsidiaries are entities that the

parent controls. The parent controls an entity when it

is exposed to, or has rights to, variable returns from its

involvement with the entity and has the ability to affect

those returns through its power over the entity. A list of

the subsidiaries is provided in Note 9.

The assets, liabilities and results of all subsidiaries are

fully consolidated into the financial statements of the

Group from the date on which control is obtained by the

Group. The consolidation of a subsidiary is discontinued

from the date that control ceases. Intercompany

transactions, balances and unrealised gains or losses on

transactions between Group entities are fully eliminated

on consolidation. Accounting policies of subsidiaries have

been changed and adjustments made where necessary

to ensure uniformity of the accounting policies adopted

by the Group.

Equity interests in a subsidiary not attributable, directly or

indirectly, to the Group are presented as “non-controlling

interests”. The Group initially recognises non-controlling

interests that are present ownership interests in

subsidiaries and are entitled to a proportionate share of

the subsidiary’s net assets on liquidation at either fair

value or at the non-controlling interests’ proportionate

share of the subsidiary’s net assets. Subsequent to

initial recognition, non-controlling interests are attributed

their share of profit or loss and each component of

other comprehensive income. Non-controlling interests

are shown separately within the equity section of

the statement of financial position and statement of

comprehensive income.

d. Business combinations

A business combination is accounted for by applying the

acquisition method, unless it is a combination involving

entities or businesses under common control. The

business combination will be accounted for from the

date that control is attained, whereby the fair value of

the identifiable assets acquired and liabilities (including

contingent liabilities) assumed is recognised (subject to

certain limited exemptions).

When measuring the consideration transferred in the

business combination, any asset or liability resulting

from a contingent consideration arrangement is also

included. Subsequent to initial recognition, contingent

consideration classified as equity is not re-measured and

its subsequent settlement is accounted for within equity.

Contingent consideration classified as an asset or liability

is re-measured in each reporting period to fair value,

recognising any change to fair value in profit or loss,

unless the change in value can be identified as existing at

acquisition date.

All transaction costs incurred in relation to business

combinations, other than those associated with the issue

of a financial instrument, are recognised as expenses in

profit or loss when incurred.

The acquisition of a business may result in the recognition

of goodwill or a gain from a bargain purchase.

e. Fair value of assets and liabilities

The Group measures some of its assets and liabilities

at fair value on either a recurring or non-recurring

basis, depending on the requirements of the applicable

Accounting Standard.

Fair value is the price the Group would receive to sell

an asset or would have to pay to transfer a liability in an

orderly (i.e. unforced) transaction between independent,

knowledgeable and willing market participants at the

measurement date.

As fair value is a market-based measure, the closest

equivalent observable market pricing information is used

to determine fair value. Adjustments to market values

may be made having regard to the characteristics of

the specific asset or liability. The fair values of assets

and liabilities that are not traded in an active market are

determined using one or more valuation techniques.

These valuation techniques maximise, to the extent

possible, the use of observable market data.

To the extent possible, market information is extracted

from either the principal market for the asset or liability

(i.e. the market with the greatest volume and level of

activity for the asset or liability) or, in the absence of

such a market, the most advantageous market available

to the entity at the end of the reporting period (i.e. the

market that maximises the receipts from the sale of the

asset or minimises the payments made to transfer the

liability, after taking into account transaction costs and

transport costs).

For non-financial assets, the fair value measurement also

takes into account a market participant’s ability to use the

asset in its highest and best use or to sell it to another

market participant that would use the asset in its highest

and best use.