ANNUAL Report June 2024 Notes to the Consolidated Financial Statements 24 Key Estimates The determination of useful lives, residual values and depreciation methods involves estimates and assumptions and are reviewed annually. Any changes to useful lives or other estimates or assumptions, may affect prospective depreciation rates and asset carrying values. Category Buildings Plant & Equipment Mineral Rights Capitalised exploration, evaluation and development expenditure Typical Depreciation Methodology SL SL UoP UoP Depreciation Rate 1 – 25 years Based on the rate of depletion of reserves Based on the rate of depletion of reserves. Remaining Mine Life In estimating the remaining life of the mine at each mine property for the purpose of amortisation and depreciation calculations, due regard is given not only to the volume of remaining economically recoverable reserves but also to limitations which could arise from the potential for changes in technology, demand, product substitution and other issues that are inherently difficult to estimate over a lengthy time frame. Capital Works in Progress Capital works in progress are measured at cost inclusive of associated on-costs and charges. Costs are only capitalised when it is probable that future economic benefits will flow to the Group and costs can be measured reliably. All assets included in capital works in progress are reclassified to other categories within property, plant and equipment when the asset is available and ready for use in the manner intended. Intangible Assets Intangible Assets Acquired Separately Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in the estimates being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. Initial payments for the acquisition of intangible mineral lease assets are capitalised and amortised over the term of the permit. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area. Capitalised costs are only carried forward to the extent that they are expected to be recovered through the successful exploitation of the area of interest or alternatively by its sale. To the extent that the capitalised expenditure is no longer expected to be recovered, it is charged to the income statement. Intangible Assets Acquired in a Business Combination Intangible assets acquired in a business combination and recognised separately from goodwill, are recognised initially at their fair value at the acquisition date (which is regarded as their cost). After initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately. Derecognition of intangible assets An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised. Notes to the Consolidated Financial Statements continued 90 EQ Resources Limited Annual Report 2024
RkJQdWJsaXNoZXIy MjE2NDg3