Notes to the Consolidated Financial Statements for the year ended 30 June 2024 32 Icon Energy Annual Report 2024 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2024 30 June 2024 30 June 2023 Non-interest bearing borrowings - unsecured NOTE $ $ Current - - Non-current 4 445,389 393,458 445,389 393,458 4,746,017 - - 208,825 - - 4,255,166 - 490,851 4,954,842 4,746,017 - 5,031,976 - (4,255,166) - (776,810) - - a. Ordinary Shares The group engaged an independent expert to assist in the calculation of the estimated costs of restoration. Balance at beginning of the year NOTE 9 - PROVISIONS Authorised and Issued Share Capital Issued share capital 768,013,667 (30 June 2023: 768,013,667) fully paid, no par value ordinary shares. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Balance at end of the year Reclassification from non-current provision Current Restoration provision Consolidated Entity Restoration provision Non-Current Reclassification to current provision Increase/(decrease) in the restoration provision The Directors base their judgements, estimates and assumptions on historical and on other various factors, including expectations of future events, which they believe are reasonable under the circumstances. CONSOLIDATED ENTITY NOTE 10 - ISSUED CAPITAL At each reporting date, the Directors review the classification of restoration provision into current or non-current and adjust the amount of the provision to reflect the best estimate. As a result of ATP 855 expiring on 1 November 2022, and the Group not having an unconditional right to defer settlement of the liability for at least twelve months after the reporting period, the Restoration Provision in respect to ATP 855 of $4,255,166 was reclassified from non-current to current liabilities in accordance with the Australian Accounting Standard AASB 101 Presentation of Financial Statements. Should renewal be granted, the Group will have the ability to defer the restoration expenditure. Increase/(decrease) in the restoration provision Restoration provision represents the present value of estimated costs for the rehabilitation ATP 855. As at 30 June 2024, the current restoration provision of $4,954,842 reflects the present value of estimated costs for rehabilitation in accordance with AASB 137. Balance at end of the year Consolidated Entity Balance at beginning of the year Non-current unsecured non-interest bearing borrowing is a loan from related party. Further information relating to loans from related parties is set out in note 4(d). Movements in the carrying amounts for each class of provision between the beginning and the end of the current financial year: NOTE 8 - NON-INTEREST BEARING BORROWINGS Movements in carrying amounts Charged to profit or loss: unwinding of discount The increase in the carrying amount of the provision due to the passage of time, known as the unwinding of the discount, amounted to $208,825 during the year. This unwinding interest is recognised as an interest expense in the Statement of Profit or Loss and Other Comprehensive Income. This reflects the time value of money associated with the discounted provision.
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