Page 99 - Sundance Resources 2014 Annual Report

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014 97
e) Share-based payments (continued)
Equity-settled share-based payments transactions with other parties are measured at the fair value of the goods and
services received, except where the fair value cannot be estimated reliably, in which case they are at the fair value of the
equity instrument granted, measured at the date the entity obtains the goods or the counterparty renders the service.
f) Income Tax
Current Tax
Current income tax is calculated by reference to the amount of income taxes payable or recoverable in respect to the
taxable profit or tax loss for the period. It is calculated using the tax rates that have been enacted or are substantially
enacted by the balance sheet date. Current tax for current and prior periods is recognised as a liability (or asset) to the
extent that it is unpaid (or refundable).
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in profit or loss, except when it relates to items that are
recognised outside profit or loss (whether in other comprehensive income or directly in equity) in which case, the tax is also
recognised outside of profit or loss.
g) Financial assets
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where
there is objective evidence that as a result of one or more events that occurred after the initial recognition of the financial
asset the estimated future cash flows of the investment have been impacted.
For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying
amount and the present value of estimated future cash flows, discounted at the original effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the
exception of trade receivables, where the carrying amount is reduced through the use of an allowance account.
h) Impairment of long-lived assets excluding goodwill
At each reporting date, the Group reviews the carrying amounts of its assets to determine whether there is any indication
that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows
that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which
the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also
allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units
for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have
not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised
immediately in profit or loss, unless the relevant asset is carried at revalued amount, in which case the impairment loss is
treated as a revaluation decrease.
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2014