Investor Presentaiton
Armour Energy and controlled entities
Financial report continued
Notes to the consolidated financial statements continued
NOTE 12. CASH FLOW INFORMATION CONTINUED
(B) RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
Convertible note Convertible note
armourenergy.com.au
ACCOUNTING POLICY FOR TRADE AND OTHER RECEIVABLES
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest
method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30-60 days.
Due to the short-term nature of these receivables, their carrying value is assumed to approximate fair value. The maximum
exposure to credit risk is the carrying value of receivables. Collateral is not held as security, and the receivables are not exposed to
foreign exchange risk.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance.
To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
3,760,165
For personal we only
Withholding tax receivable
Other receivables
Trade receivables
Cash calls from (to) JV parties
Cash call receivable - Lakes Oil NL
1,734,337
97,978
61,132
1,893,447
2,698,854
(30,676)
2,668,178
Consolidated
30 June
30 June
2020
$
2019
$
-
NOTE 13. CURRENT ASSETS – TRADE AND OTHER RECEIVABLES
Balance at 30 June 2020
5,663,940
49,172,579
54,836,519
Balance at 30 June 2019
Net cash used in financing
activities
Amortisation
4,648,566
52,766,677
57,415,243
1,015,374
(3,850,000)
255,902
(3,850,000)
1,271,276
Balance at 1 July 2018
Net cash from/ (used in)
financing activities
Transaction costs
Equity settled
Amortisation
Cost of convertible note
early redemptions
3,760,165
37,511,879
1,543,466
39,055,345
(43,388,436)
(1,543,466)
(154,126)
2,270,518
6,759,200
(137,219)
(2,893,012)
919,597
55,000,000
(2,350,866)
117,543
16,827,298
(2,488,085)
(3,047,138)
3,307,658
Consolidated
liabilities
$
coupons
Tribeca Loan Corporate Bonds
Total
$
$
$
As at 30 June 2020, included in trade receivables is one significant debtor accounting for approximately 57% (2019: 70%) of the total
trade receivables.
NOTE 14. CURRENT ASSETS - INVENTORIES
Finished goods - at cost
Stock on hand - at cost
ACCOUNTING POLICY FOR INVENTORIES
Consolidated
30 June
2020
$
30 June
2019
$
364,834
2,222,746
523,401
1,437,421
2,587,580
1,960,822
Oil and Gas inventory is measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in
the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
123,000
(3,432)
2,770
The cost of Oil and Gas inventory includes direct materials, direct labour, transportation costs and variable and fixed overhead
costs related to production activities.
78
ALLOWANCE FOR EXPECTED CREDIT LOSSES
2,016,447
2,667,516
The Group has not recognised any expense in profit or loss in respect of the expected credit losses for the year ended 30 June
2020 (30 June 2019: Nil). Based on the historical recovery of receivables, the small number of customers and customer payment
obligations per gas sales agreements, the historical loss rates are adjusted for current and forward looking information on
economic factors affecting the Group's customers, including the COVID-19 pandemic. As such the company considers that no
allowance for expected credit losses is appropriate for the Group.
Consumable inventory on hand is stated at the lower of cost and net realisable value. Net realisable value is the estimated
recoverable price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to
make the sale.
The cost of consumable inventory comprises purchase and delivery costs, net of rebates and discounts received or receivable.
12
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