Aeris Annual Report 2022

Aeris Resources Limited
Notes to the consolidated financial statements
30 June 2022
37. Significant accounting policies (continued)
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the consolidated
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax
authority.
Rounding of amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with
that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2022.
The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and
Interpretations.
38. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates
in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates
and assumptions on historical experience and on other various factors, including expectations of future events, that
management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will
seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next
financial year are discussed below.
Mineral Resources and Ore Reserve estimates
In order to calculate Mineral Resources and Ore Reserves, estimates and assumptions are required about a range of
geological, technical and economic factors. Estimating the quality and/or grade of the Mineral Resources and Ore
Reserves requires the size, shape and depth of mineral and ore bodies to be determined by analysing geological data such
as drilling samples. This process may require complex and difficult geological judgements and calculations to interpret
the data. The consolidated entity is required to determine and report Mineral Resources and Ore Reserves in Australia
under the principles incorporated in the 2012 Edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves, known as the JORC Code. The JORC Code requires the use of reasonable investment
assumptions to calculate Mineral Resources and Ore Reserves.
AERIS ANNUAL REPORT 2022
As the economic assumptions used to estimate Mineral Resources and Ore Reserves change from year to year, and as
additional geological data is generated during the course of operations, estimates of Mineral Resources and Ore Reserves
may change from year to year. Changes in reported Mineral Resources and Ore Reserves may affect the consolidated
entity's financial results and financial position in a number of ways, including the following:
● Recognition of deferred tax on mineral rights and exploration recognised on acquisitions;
● Recoverable amount of deferred mining expenditure and capitalisation of development costs; and
● Units of production method of depreciation and amortisation.
50
126