Axiom 2014 Annual Report - page 77

Notes to the Financial Statements
for the year ended 30 September 2014
75
2014 Annual Report
24. Significant accounting estimates and judgments (continued)
b. Useful lives of property, plant and equipment
The Directors determine the estimated useful lives and residual values for its property, plant and equipment.
The Directors revise the depreciation charge when useful lives are different from previous estimates. Obsolete
or non-strategic assets, which have been abandoned or sold, shall be written-off or written-down.
c. Income tax
The Group is subject to income tax in a number of jurisdictions. Significant judgement is required in determining the
provision for income tax for each entity in the Group. There are certain transactions and calculations for which the
ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for
potential tax exposures based on estimates of whether additional taxes will be due. Where the final tax outcome of these
matters is different from the amounts that were initially recorded, such differences will impact the income tax and
deferred tax provisions in the year in which such determination is made.
25. Parent entity financial information
The accounting policies of the parent entity that have been applied in determining the financial information shown below
are the same as those applied in the consolidated financial statements. Refer to Note 2 for a summary of the significant
accounting policies relating to the Group.
2014
$000
2013
$000
Financial position
Current assets
2,586
792
Total assets
2,736
990
Current liabilities
1,578
959
Total liabilities
1,578
959
Shareholders’ equity
Issued capital
77,902
62,633
Reserves
–
–
Exchange reserve
(933)
(933)
–
–
Share-based payment reserve
1,120
417
Accumulated losses
(76,931)
(62,086)
1,158
31
Financial performance
Loss for the year
(14,845)
(9,051)
Total comprehensive loss for the year
(14,845)
(9,051)
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The Company issued convertible notes during the year partially secured by the issue of 15,000,000 shares held as
collateral security (2013: nil).
Contingent liabilities of the parent entity
Contingent liabilities of the parent entity for which no amount has been provided in the financial statements include:
2014
$000
2013
$000
Funds held in trust relating to Solomon Islands court proceedings
121
269
Rental bond deposits paid for office & accommodation
10
–
Commitments for the acquisition of property, plant and equipment by the parent entity
Nil (2013: nil)
GROUP FINANCIAL REPORT
1...,67,68,69,70,71,72,73,74,75,76 78,79,80,81,82,83,84,85,86,87,...116
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