Axiom 2014 Annual Report - page 98

Notes to the Financial Statements
for the year ended 30 September 2014
96
Axiom Mining Limited
5. Significant accounting estimates and assumptions
Estimates and judgements used in preparing the financial statements are continually evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under
the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting
estimates may not equal the related actual results. The estimates and assumptions that have a significant effect on the
carrying amounts of assets and liabilities are discussed below.
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 that have been abandoned or sold, shall be written off or written down.
Income tax
The Company 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 Company 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.
6. Loss before tax
2014
$000
2013
$000
Loss before tax is arrived at after charging:
Administration and legal comprises:
Legal
5,374
380
Consultants
1,391
190
Travel
470
411
Other
644
633
7,879
1,614
Finance costs comprise:
Interest on convertible notes
36
–
Interest on bank borrowings
2
12
38
12
Minimum lease payments under operating leases of office premises
45
59
COMPANY FINANCIAL REPORT
1...,88,89,90,91,92,93,94,95,96,97 99,100,101,102,103,104,105,106,107,108,...116
Powered by FlippingBook