Axiom 2014 Annual Report - page 50

for the year ended 30 September 2014
Axiom Mining Limited
Notes to the Financial Statements
1. Company information
Axiom Mining Limited (the “Company”) is a Company
incorporated in Hong Kong.
Registered office: 2303-7 Dominion Centre, 43-59 Queen’s
Road East, Hong Kong.
Principal place of business: Unit 6, 76 Doggett Street
Newstead QLD 4006, Australia.
The Company’s shares are listed on the Australian
Securities Exchange.
The Company and its subsidiaries (the “Group”) are
principally engaged in mineral exploration in Australia,
Solomon Islands and Vietnam.
2. Significant accounting policies
a. Statement of compliance
The consolidated financial statements and notes
represent those of Axiom Mining Limited and the
Controlled Entities (the “Consolidated Group” or “Group”).
The separate financial statements of the parent entity,
Axiom Mining Limited, have not been prepared within
this financial report as permitted by the
Act 2001
The financial statements were authorised for issue
on 29 December 2014.
These general purpose financial statements have been
prepared in accordance with the
Corporations Act 2001
Australian Accounting Standards and Interpretations
of the Australian Accounting Standards Board (“AASB”)
and International Financial Reporting Standards as
issued by the International Accounting Standards Board.
The Group is a for-profit entity for financial reporting
purposes under Australian Accounting Standards.
Material accounting policies adopted in the preparation
of these financial statements are presented below and
have been consistently applied unless stated otherwise.
Except for cash flow information, the financial
statements have been prepared on an accrual basis and
are based on historical costs, modified, where applicable,
by the measurement at fair value of selected non-current
assets, financial assets and financial liabilities.
The AASB has issued certain new and revised AASB
Standards (“AASBs”) that are first effective or available
for early adoption for the current accounting period
of the Group and of the Company. Note 2(x) provides
information on any changes in accounting policies
resulting from initial application of these developments
to the extent that they are relevant to the Group for the
current and prior accounting periods reflected in these
financial statements.
b. Basis of preparation of the financial statements
The financial statements have been prepared under
the historical cost basis except that property, plant and
equipment are stated at their revalued amount, being
the fair value at the date of revaluation as explained in
the accounting policy set out in Note 2(e). The financial
statements are presented in Australian dollars (“AUD”)
which is also the functional currency of the Company.
The preparation of financial statements in conformity
with AASBs requires management to make judgements,
estimates and assumptions that affect the application
of policies and reported amounts of assets, liabilities,
income and expenses. The estimates and associated
assumptions are based on historical experience and
various other factors that are believed to be reasonable
under the circumstances, the results of which form the
basis of making the judgements about carrying values
of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from
these estimates.
Significant accounting estimates and assumptions
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the
period of the revision and future periods if the revision
affects both current and future periods.
Judgements made by management in the application
of AASBs that have significant effect on the financial
statements and estimates with a significant risk of
material adjustment in the next year are disclosed
in Note 24.
Going concern
The Group has recorded a net loss of $15,880K
(2013: $13,650K), had net cash outflows from operations
of $12,397K (2013: $8,336K) for the year and has no
ongoing source of income. At 30 September 2014, the
Group had net assets of $2,984K (2013: $2,982K).
The financial report has been prepared on a going
concern basis that assumes the realisation of assets
and extinguishment of liabilities in the normal course
of business and at the amounts stated in the financial
The Directors believe the going concern basis is
appropriate for the following reasons:
at 30 September 2014, the Group had cash and cash
equivalents of $2,304K;
the ability to raise additional share capital by share
placements, options, convertible notes, or rights
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