Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
Financial report continued
Notes to the consolidated financial statements continued
NOTE 33. NON-CURRENT ASSETS - RIGHT-OF-USE ASSETS CONTINUED
ACCOUNTING POLICY FOR RIGHT-OF-USE ASSETS CONTINUED
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12
months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there
is a change in the following: future lease payments arising from a change in an index or an interest rate used; residual guarantee;
lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to
the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
Refer to note 43 for further information on the impact of the adoption of AASB 16.
NOTE 34. KEY MANAGEMENT PERSONNEL DISCLOSURES
COMPENSATION
The aggregate compensation made to Directors and other members of key management personnel of the Group is set out below:
S
Short-term employee benefits
Post-employment benefits
Share-based payments
Short-term non-monetary benefits
Refer to note 45 for further information on the transition to AASB 16.
NOTE 36. CURRENT LIABILITIES - EMPLOYEE BENEFITS
Consolidated
30 June
2020
30 June
2019
$
Consolidated
Employee benefit obligations
401,071
309,040
30 June
30 June
2020
$
2019
ACCOUNTING POLICY FOR EMPLOYEE BENEFITS
$
Short-term employee benefits
1,741,662
73,720
72,916
48,242
1,607,495
75,796
22,019
66,956
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled
wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Expenses for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable
Defined contribution superannuation expense
1,936,540
1,772,266
NOTE 35. CURRENT AND NON-CURRENT LIABILITIES - LEASE LIABILITIES
Consolidated
30 June
30 June
2020
$
2019*
$
Current Lease liability
Non-Current Lease liability
Reclassification of capital leases in 2019 from borrowings into lease liabilities.
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
NOTE 37. NON-CURRENT LIABILITIES - EMPLOYEE BENEFITS
189,884
38,381
Employee benefits
33,247
223,131
28,786
67,167
ACCOUNTING POLICY FOR EMPLOYEE BENEFITS
Consolidated
30 June
2020
$
30 June
2019
$
49,177
51,371
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value
of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease
incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which
they are incurred.
The liability for long service leaves not expected to be settled within 12 months of the reporting date are recognised in non-current
liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value
of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected
unit credit method. Consideration is given to expected future wages and salary levels, experience of employee departures, and
periods of service. Expected future payments are discounted using market yields at the reporting date on Australian corporate
bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
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