NORTH077 Annual Report 2020 V5.2 DIGITAL

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NORTHERN MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
5. Revenue
The Group derives the following types of revenue:
Consolidated
2021
$
2020
$
Revenue from contracts with customers - 3,069,070
R&D rebate on eligible expenditure 9,782,024 23,272,772
Covid-19 grant programs 990,600 583,000
Other government grants 1,333,581 1,333,680
Other (25,478) 143,699
Total revenue from continuing operations 12,080,727 28,402,221
Revenue Recognition
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to
be entitled in exchange for transferring goods or services to a customer. For each contract with a
customer, the Group:
−
−
−
−
−
identifies the contract with a customer;
identifies the performance obligations in the contract;
determines the transaction price which takes into account estimates of variable consideration
and the time value of money;
allocates the transaction price to the separate performance obligations on the basis of the
relative stand-alone selling price of each distinct good or service to be delivered; and
recognises revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods and services promised.
Current year revenue from contracts with customers has resulted from the sale of Rare Earth Carbonate
(“REC”) to a single external customer. Revenue from REC sales is brought to account when the
significant risks and rewards of ownership have transferred to the buyer and selling prices are known
or can be reliably estimated.
R&D rebates and government grants
The Company’s accounting policy for R&D rebates and government grants is to recognise these when
there is reasonable assurance that:
• The expenditure incurred during the financial period complies with relevant legislation and
activities; and
• The rebates claimed will be received.
Rebates and grants relating to costs are deferred and recognised in the profit or loss over the period
necessary to match them with the costs that they are intended to compensate.
Government grants relating to the purchase of property, plant and equipment are included in liabilities
as deferred revenue and are credited to profit or loss on a straight-line basis over the expected lives of
the related assets.
For details of unfulfilled conditions or other contingencies attaching to these grants see Note 14.
A government grant is not recognised until there is reasonable assurance that the entity will comply
with the conditions attaching to it, and that the grant will be received. Receipt of a grant does not of
itself provide conclusive evidence that the conditions attaching to the grant have been or will be fulfilled.
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NORTHERN MINERALS _ ANNUAL REPORT 2021