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Investor Presentaiton

Armour Energy and controlled entities Financial report continued Notes to the consolidated financial statements continued NOTE 15. CURRENT ASSETS - NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE NOTE 17. NON-CURRENT ASSETS - EXPLORATION AND EVALUATION ASSETS armourenergy.com.au or personal use only, Refer to note 28 for further information on financial risk management. ACCOUNTING POLICY FOR TRADE AND OTHER PAYABLES These amounts represent financial liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Financial liabilities are carried at amortised cost and are initially measured at fair value including transaction costs. They are subsequently measured at amortised cost using the effective interest rate method. Movements in the provision for impairment amounts Balance at the beginning of the year Provisions raised (6,790,424) (720,491) (6,745,271) (45,153) (7,510,915) (6,790,424) Consolidated 30 June 2020 $ 30 June 2019 $ Trade payables Other payables Other tax liabilities GST payable Accrued expenses Consolidated 30 June 30 June Movements in carrying amounts 2020 $ 2019 Balance at the beginning of the year 49,276,740 $ Additions 2,270,311 48,903,126 802,021 3,547,686 600,656 24,539 182,775 2,250,069 6,605,725 2,613,838 Government grants relating to Exploration and Evaluation assets Farm-in agreement proceeds* (617,281) (311,925) (15,000,000) Exploration expenditure written off (71,329) 33,827 114,576 Provision for impairment (720,491) (45,153) 1,378,071 4,140,312 35,209,279 49,276,740 The Group has entered into an agreement with Australia Pacific LNG to sell them a 10% stake in Petroleum Lease 1084 (Murrungama). A $0.5 million deposit was received by the Group in June 2020. This deposit is refundable to Australia Pacific LNG should completion not occur within 6 months. The deposit is sitting in Other payables (see Note 16). NOTE 16. CURRENT LIABILITIES - TRADE AND OTHER PAYABLES Consolidated 30 June 2020 $ 30 June 2019 $ 35,209,279 49,276,740 10% Interest in Murrungama PL1084 44,581 Exploration and evaluation assets Less: Accumulated impairment 42,720,194 (7,510,915) 56,067,164 (6,790,424) Consolidated 30 June 30 June 2020 $ 2019 $ Consolidated 30 June 2020 $ $ 30 June 2019 80 Details on how the fair value of financial instruments is determined are disclosed in note 27. Trade payables are non-interest bearing and are generally on 30-60 days terms. Due to their short-term nature trade and other payables are not discounted. 81
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