Icon Energy Limited Annual Report 2016

ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2016 Adjustment Restated 30 June 2014 1 July 2014 $ $ $ Statement of financial position (extract) Equity Reserves (1,364,134) 2,238,510 874,376 Accumulated losses (36,274,920) (2,238,510) (38,513,430) Total Equity (65,085,917) - (65,085,917) There is no impact on the Statement of Financial Position and Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June 2015. A third column in the Statement of Financial Position for the opening balance of the comparative year (30 June 2015) has not been presented as the impact on net assets and total equity is Nil. Icon received a costs recovery of $33,000 from the first strike out application in August 2015. Icon will pursue a cost recovery against Southern Fairway Investments and Ronald Baldwin for the costs payable by them pursuant to the costs orders made on 18 February 2016. Mr Baldwin and Southern Fairway Investments filed a Third Further Amended Statement of Claim on 1 March 2016. Icon filed its Notice of Intention to Defend on 7 June 2016 and the discovery process is expected to be completed by 14 October 2016. Icon gives no credence to the alleged estimate of loss given by Southern Fairway Investments Pty Ltd and Mr Baldwin. It is estimated that the e[tent of the &ompany’s e[posure to this dispute will be limited to appro[imately , to , representing future legal fees. On 12 May 2015, Southern Fairway Investments Pty Ltd (formerly Babcock & Brown Australia Infrastructure Pty Ltd) and 5onald %aldwin submitted a )urther $mended 6tatement of &laim and on -uly the plaintiff’s counsel acknowledged that there were still deficiencies in that pleading. Directions were made to allow for the submission of a further amendment to the Second Further Amended Statement of Claim, which was filed. A costs order was made in favour of Icon Energy. NOTE 24 - EVENTS AFTER BALANCE DATE There are no after balance sheet date events at the date of signing (30 June 2015: Nil). NOTE 23 - CONTINGENT LIABILITIES On the 15 October 2015, Justice McMurdo ordered that the majority of the Second Further Amended Statement of Claim be struck out. Justice McMurdo allowed the plaintiffs the liberty to re-plead on two matters. On 18 February 2016, Justice McMurdo awarded Icon Energy 100% of its costs of the application determined on 15 October 2015 to be recovered from Southern Fairway Investments and Ronald Baldwin. During the year, the following prior period error was noted in the financial statements to the year ended 30 June 2016. An intercompany loan was written off in the 2013 financial year, however, the foreign currency reserve relating to this loan was not accounted for. The impact of this for the year ended 30 June 2015 was Nil (30 June 2014: reclassification of $2.24 million from foreign exchange reserve to accumulated losses). The abovementioned misstatement in the previous year's consolidated financial statements represents a prior period accounting error which must be accounted for retrospectively. The error has been corrected by restating each of the affected financial statement line items for the period as follows: NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 25 - CORRECTION OF PRIOR PERIOD ERROR NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2016 FINANCIAL REPORT 58 ICON ENERGY ANNUAL REPORT 2016