ABN 61 058 454 569
ICON ENERGY LIMITED
2015 Annual Report
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Impairment
(o)
(p)
Foreign Currency Transactions and Balances
(q)
Impairment
The financial results and position of foreign operations whose functional currency is different from the group’s
presentation currency are translated as follows:
The functional currency of each of the controlled entities is measured using the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented in Australian
dollars which is the parent entity’s functional and presentation currency.
Where it is not possible to estimate the recoverable amount of an individual asset, the consolidated entity
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
At each reporting date, the consolidated entity assesses whether there is objective evidence that a financial
instrument has been impaired.
The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial
liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation
using the effective interest method of any difference between that initial amount and the maturity amount, and
minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility.
Amortised cost
Financial liabilities
NOTE 1 - STATEMENT OF ACCOUNTING POLICIES (Continued)
The directors assess impairment at each reporting date by evaluating conditions specific to the entity that may
lead to impairment of assets including exploration and evaluation expenditure. Where an impairment trigger
exists, the recoverable amount of the asset is determined. Any exess of asset's carrying value over recoverable
amount is expensed and included in profit and loss.
Impairment of Assets
- retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the group’s foreign
currency translation reserve in the consolidated statement of financial position and are recognised as other
comprehensive income.
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal
payments and amortisation. The entity classifies trade and other payables and borrowings as financial liabilities.
The directors evaluate estimates and judgments incorporated into the financial statements based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events
and are based on current trends and economic data, obtained both externally and within the group.
At each reporting date, the directors review the carrying values of its assets which include exploration, evaluation
and development expenditures and property, plant and equipment, to determine whether there is any indication
that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the
higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any
excess of the asset’s carrying value over its recoverable amount is expensed and included in profit or loss.
Functional and presentation currency
Group
- income and expenses are translated at average exchange rates for the period; and
- assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
The resulting accounting estimates may not equal the related actual results. The estimates, assumptions and
judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
Critical accounting estimates and judgments
