NORTH077 Annual Report 2020 V5.2 DIGITAL

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NORTHERN MINERALS _ ANNUAL REPORT 2021
7. Income Tax Expense (continued)
NORTHERN MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
The tax effect of certain temporary differences is not recognised, principally with respect to:
• Temporary differences arising on the initial recognition of an asset or liability in a transaction
other than a business combination that at the time of the transaction affects neither accounting
nor taxable profit or loss.
• Temporary differences relating to investments and undistributed earnings in subsidiaries, to the
extent that the company is able to control its reversal and it is probable that it will not reverse
in the foreseeable future.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to
utilise those temporary differences and losses. Deferred tax assets are reviewed at each balance date
and amended to the extent it is no longer probable that the related tax benefit will be realised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to
the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Current and deferred tax is recognised in profit and loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised
in other comprehensive income or directly in equity, respectively.
Based on the disclosure in note 3, the current income tax position represents the Directors’ best
estimate, in respect of R&D and the decline in value of the pilot plant.
8. Financial Assets and Financial Liabilities and other receivables and liabilities
(a)
Cash and cash equivalents
Current
2021
$
2020
$
Cash at bank and on hand 19,897,420 6,660,568
19,897,420 6,660,568
Cash in the statement of financial position comprises cash at bank and in hand and short-term
deposits, with an original maturity of three months or less, that are readily convertible to known
amounts of cash, and that are subject to an insignificant risk of changes in value.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and
cash equivalents as defined above, net of outstanding bank overdrafts.
(b)
Current
Trade and other receivables
2021
$
2020
$
Trade receivables - 407,335
GST receivable 113,566 516,718
Prepayments 159,260 2,664,719
Other receivables - 318,843
R&D rebate receivable (Refer note 5) 4,396,282 20,407,988
4,669,108 24,315,603
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