Speciality Metals International Limited Annual Report 2020

44 Speciality Metals International Limited Annual Report 2020 Notes to the Consolidated Financial Statements continued NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Page | 45 No provision for income tax is considered necessary in respect of the Company for the period ended 30 June 2020. Deferred tax assets have not been recognised in respect of these items because it is not probable in the short to medium term that these assets will be realised. The Group has total tax losses at 30 June 2020 of $24,148,795 (2019: $20,324,832). A future income tax benefit which may arise from tax losses of 26% of approximately $6,278,688 will only be obtained if: - the parent and the subsidiaries derive future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised; - the parent and the subsidiaries continue to comply with the conditions for deductibility imposed by the law; and - no changes in tax legislation adversely affect the Parent and the Subsidiaries in realising the benefit from the deductions for the losses, i.e. current tax legislation permits carried forward tax losses to be carried forward indefinitely. No franking credits are available for subsequent years. Tax consolidation The tax consolidation scheme is applicable to the Company. As at the date of this report the Directors have assessed the financial effect the scheme may have on the Company and its consolidated entities and have made a decision to be taxed as a consolidated entity . The financial effect of the tax consolidation scheme on the Group has not been recognised in the financial statements. 4. INVENTORY 2020 2019 $ $ Current 108,000 - Non-current 7,437,413 7,545,413 7,545,413 7,545,413 The above amount represents the fair value of the estimated 7 million tonnes of stockpiled inventory acquired as part of the acquisition of Mt Carbine Quarries Pty Ltd on 28 June 2019. This inventory will be consumed on a units of operation basis. In accordance with AASB 102 all other inventory, regardless of the type and stage in the production process, will be valued at the lower of cost and net realisable value. 5. FINANCIAL ASSETS 2020 2019 $ $ Shares in listed companies: Force Commodities Limited (ASX: 4CE) 2,113 1,289 Equity instruments are measured at fair value as at reporting date with all changes recognised as other comprehensive income / (loss) in the Consolidated Statement of Profit or Loss and Other Comprehensive Income.