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ICON ENERGY LIMITED
2015 Annual Report ABN 61 058 454 569
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
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FOR THE YEAR ENDED 30 JUNE 2015
Share based payments
Exploration and evaluation expenditure
Restoration provision
Useful life of property, plant and equipment
(r)
Share buy-back
(t)
Share based payments
2. The fund for Share buy-back should come from our income such as interest.
Share based payment benefits are provided to employees through the Icon's Employee Performance Rights Plan.
Information relating to this scheme is set out in Note 12. The fair value of performance rights granted under the
Icon's Employee Performance Rights Plan is recognised as an employee benefits expense with a corresponding
increase in equity. The total amount to be expensed is determined by reference to the fair value of the rights
granted, which includes any market performance conditions and the impact of any non-vesting conditions but
excludes the impact of any service and non-market performance vesting conditions.
Non-market vesting conditions are included in assumptions about the number of rights that are expected to vest.
The total expense is recognised over the vesting period, which is the period over which all of the specified vesting
conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of rights
that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to
original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
Fair value of each share option granted in the Short Term Incentive Plan and Long Term Incentive plan was
calculated by applying the Black Scholes model. The model requires inputs where estimation is required for
expected volatility in line with the company’s share trading history. Refer to note 12 for key assumptions.
The application of entity's policy for exploration and evaluation discussed in Note 1(f) requires management to
make certain estimates and assumptions as to future events and circumstances. Any such estimates and
assumptions may change as new information becomes available. If, after having capitalised exploration and
evaluation expenditure, a judgement is made that the capitalised expenditure is unlikely to be recovered, the
relevant capitalised amount will be impaired through the consolidated statement of profit and loss and other
comprehensive income.
The consolidated entity assesses its future liabilities in relation to the restoration costs which include the removal
of facilities, abandonment of wells and restoration of affected areas. The estimate of future restoration costs is
done at the time of installation of the assets. In most instances, removal of assets occurs many years into the
future. Therefore, management is required to make judgments regarding the removal date, future environmental
legislation, the extent of restoraion activities and future removal technologies. Refer to note 10 for key
assumptions.
NOTE 1 - STATEMENT OF ACCOUNTING POLICIES (Continued)
The buy-back provides Icon with an opportunity to strengthen the Company’s capital position at a cyclical low
point in the resources market and also demonstrates the Board’s strong belief in the underlying value of the
Company’s assets. From March 2015, on-market share buy-back will be undertaken from market over the 12
months of up to 10% of Icon ordinary shares on issue.
In accordance with ASX listing rules, the price paid for shares purchased under the buy-back is no more than 5%
above the volume weighted average share price of Icon shares over the 5 days of trading before the share
purchase is made.
The timing and actual number of shares purchased under the buy-back will depend on the prevailing share price,
market conditions and other considerations. The Company reserves the right to suspend or terminate the buy-
back at any time and to buy-back less than 10% shares. All shares purchased are cancelled.
There are two conditions set by Icon Board:
1. Our cash position is sufficient to meet our near term exploration and administrative commitments and we retain
the ability to pursue valuable growth opportunities that may arise in the near future.â€
In preparation of the financial statements, estimates and assumptions have been made by the management
regarding the estimated useful lives of property, plant and eequipment.The management estimates that the useful
life of these assets, being the period of time during which the assets can be utilised without any significant
modifications, repairs or replacements, is noted in 1e. However, the actual useful life may be shorter or longer.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
