2005 Annual Report - Millennium Minerals Limited

Notes To, And Forming Part Of, The Financial Statements
1. CORPORATE INFORMATION
Wedgetail Exploration NL (“Wedgetail” or the “Company”) is a public listed no liability company that is incorporated
and domiciled in Australia.
W e d g e t a i l E x p l o r a t i o n N L
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During the year, the principal activity of Wedgetail was gold exploration and development of the Nullagine gold
project in Western Australia.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
For The Year Ended 31 December 2005
(a) Basis Of Presentation
This is a general purpose financial report of the Company that has been prepared in accordance with applicable
accounting standards and other mandatory professional reporting requirements (Urgent Issues Group Consensus
Views) and the Corporations Act 2001. The accounting policies have been consistently applied.
The financial statements have been prepared on the basis of historical costs, except where stated certain current
and non-current assets are held at current valuation.
(b) Statement of Compliance
The full year financial report complies with Australian Accounting Standards, which include Australian
equivalents to International Financial Reporting Standards (‘AIFRS’). Compliance with AIFRS ensures that the
full year financial report, comprising the financial statements and notes thereto, complies with International
Financial Reporting Standards (‘IFRS’).
This is the first full year financial report prepared based on AIFRS and comparatives for the year ended 31
December 2004 have been restated accordingly. A summary of the significant accounting policies of the
Company under AIFRS are disclosed in Notes 2. (c) to (s).
Reconciliations of the transition from previous Australian Generally Accepted Accounting Principles (“AGAAP”)
to IFRS have been included in Note 26 to this report.
(c) Income Tax
Income tax on the income statement for the periods presented comprises current and deferred tax. Income tax
is recognised in the income statement except to the extent that it relates to items recognised directly in equity,
in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially
enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available
against which the asset can be utilised.