Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
Financial report continued
Notes to the consolidated financial statements continued
NOTE 43. ACCOUNTING POLICIES CONTINUED
NEW AND REVISED ACCOUNTING STANDARDS AND INTERPRETATIONS CONTINUED
AASB 16 Leases continued
Former operating leases
AASB 16 changes how Armour's accounts for leases previously classified as operating leases under AASB 117, which were off-
balance sheet.
See note 33 for further information on accounting for AASB16.
Short term leases (lease terms of 12 months or less) and lease of low value assets
Armour has elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12
months or less and do not contain a purchase option ('short term leases'), and the lease contracts for which the underlying asset is
of low value ('low-value assets').
For short-term leases (lease term of 12 months or less) and leases of low value assets, Armour has opted to recognise a lease
expense on a straight-line basis as permitted by AASB 16. This expense is presented within other expenses in the consolidated
statement of profit or loss.
For personal use only
IFRIC 23 Uncertainty over income tax treatments
IFRIC 23 Uncertainty over income tax treatments is to be applied when there is uncertainty of income tax treatments under IAS 12.
It requires judgement to be made in relation to whether or not tax treatments should be considered independently or together, with
the decision being based on the most probable resolution of the uncertainty. It is not expected to have a significant effect on the
current or future periods.
Australian Accounting Standards and Interpretations that have been recently issued or amended but are not yet effective have not
been adopted by Armour for the annual reporting period ended 30 June 2020. On evaluating these standards and interpretations,
management do not expect a material impact upon the financial statements on their adoption.
The adoption of the remaining standards and interpretations of the above has been assessed and will not have any material impact
on the current or any prior period and is not likely to materially affect future periods.
Directors' declaration
The Directors of the Group declare that:
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements.
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements.
the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2020 and
of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to Section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
Mallin
Nicholas Mather
Executive Chairman
30 September 2020
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