58
ICON ENERGY LIMITED
2015 Annual Report ABN 61 058 454 569
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
58
FOR THE YEAR ENDED 30 JUNE 2015
(k)
Provisions
(l)
Segment Reporting
(m)
Comparative Figures
(n)
Provisions are measured at the present value of management's best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value is
a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability. The increase in the provision due to the passage of time is recognised as interest expense.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market and are stated at amortised cost using the effective interest rate method. Gains and losses
are recognised in profit or loss when the loans and receivables are derecognised or impaired. Loans and
receivables are classified as current assets, except for those with maturities greater than 12 months after the
reporting period which are classified as non-current assets. The entity classifies cash and cash equivalents, trade
and other receivables and performance guarantees as loans and receivables.
Held-to-maturity investments
These investments have fixed or determinable payments and fixed maturities, and it is the group’s intention to
hold these investments to maturity. Any held-to-maturity investments held by the group are stated at amortised
cost using the effective interest rate method. Gains or losses are recognised in profit or loss when the
investments are derecognised or impaired, as well as through the amortisation process. These assets are
included in non-current assets, except for those with maturities less than 12 months from the end of the reporting
period, which would be classified as current assets. The entity classifies term deposits as held-to-maturity
investments.
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker. The Chief Operating Decision Maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Managing Director.
Financial instruments are initially measured at fair value at settlement date, which includes transaction costs,
when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are
measured as set out below.
Changes in the estimates of restoration costs are dealt with prospectively by recognising an adjustment to the
restoration liability and a corresponding adjustment to the asset to which it relates. If any reduction in the
restoration liability exceeds the carrying amount of that asset, any excess is recognised in the consolidated
statement of profit or loss and other comprehensive income.
Other provisions for make good obligations are recognised when the group has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of resources will be required to settle the
obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses.
NOTE 1 - STATEMENT OF ACCOUNTING POLICIES (Continued)
The entity recognises a restoration provision to meet all future obligations for the restoration of petroleum assets
when the petroleum assets are abandoned. Site restoration costs include the dismantling and removal of mining
plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses
of the mining permits. The liability for restoration is discounted to present value and capitalised as part of the
exploration expenditure of an area of interest and revised at the end of each reporting period through the profit
and loss. The capitalised costs are amortised over the life of the petroleum asset. The periodic unwinding of the
discount is recognised in the consolidated statement of profit or loss and other comprehensive income as part of
finance costs.
Restoration provision
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Recognition
Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in
presentation for the current financial year. Refer to note 24 for more information on correction of prior period error.
Loans and receivables
Financial Instruments
