Annual Report 2005 - Pioneer Resources Limited

PIONEER NICKEL LIMITED AND ITS CONTROLLED ENTITYPioneer Nickel LimitedNotes to the Concise Financial Report9. IMPACT OF ADOPTING AUSTRALIAN EQUIVALENTS TO IFRS(d) Income TaxesUnder AIFRS, tax balances are determined using a ‘balance sheet’ approach, which significantly differs from the currentmethodology prescribed and applied. Changes in deferred tax assets and deferred tax liabilities may arise as a consequence of thedifferent method of measurement, including changes in deferred tax assets and deferred tax liabilities arising as a consequence ofthe recognition of the fair value of exploration assets and investments quoted on prescribed stock exchanges. The impact of thesechanges have not yet been quantified.Under AIFRS, the criteria for recognition of carried forward tax losses is ‘probable’ as compared to the current ‘virtually certain’test. The consolidated entity has carried forward tax losses which have not been recognised as deferred tax assets as they do notsatisfy the ‘probable’ criteria under AIFRS.(e) Financial InstrumentsThe Directors have elected to apply the first-time adoption exemption available to the consolidated entity to defer the date oftransition of AASB 132 ‘Financial Instruments: Disclosure and Presentation’ and AASB 139 ‘Financial Instruments: Recognition andMeasurement’ to 1 July 2005. Accordingly, there are no quantitative impacts on the 30 June 2005 financial statements.10. FULL FINANCIAL REPORTFurther financial information can be obtained from the full financial report which is available from the Company, free of charge, onrequest. A copy may be requested by calling the Company on (08) 9091 6974.Pioneer Nickel Annual Report 200542