ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements Impairment of financial assets The Group recognises a loss allowance for expected credit losses (ECL) on financial assets measured at amortised cost, including trade receivables. For trade receivables, the Group applies the simplified approach permitted by AASB 9, which requires the loss allowance to be measured at an amount equal to lifetime ECL from initial recognition of the receivable. Lifetime ECL are estimated using a provision matrix based on the Group's historical credit loss experience, adjusted for factors specific to the debtor and general economic conditions, including the concentration of revenue with a small number of offtake counterparties. Derecognition A financial asset is derecognised when the contractual rights to the cash flows from the asset expire, or the Group transfers the rights to receive the cash flows and either transfers substantially all the risks and rewards of ownership or neither transfers nor retains substantially all the risks and rewards but transfers’ control. A financial liability is derecognised when the obligation is discharged, cancelled or expires. (o) Borrowings Borrowings are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the accounting policy for borrowing costs. Borrowings are classified as current unless the Group has an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date. (p) Employee Benefits Short-term employee benefits Liabilities recognised for salaries and wages, annual leave and any other short term employee benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are measured at the amounts expected to be paid when the liabilities are settled in respect of services provided by employees up to the reporting date. Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Group in respect of services provided by employees up to the reporting date. Long term employee benefits Liabilities recognised in respect of long service leave and any other long term employee benefits that are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are measured at the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to the reporting date. Consideration is given to expected future salary levels, historical employee turnover rates and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. 56 EQ Resources Limited Annual Report 2026 Notes to the Consolidated Financial Statements continued
RkJQdWJsaXNoZXIy MjE2NDg3