ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements Freight and logistics activities performed before control of the concentrate transfers, including DAP arrangements where the contractual terms establish that control passes at the named destination, do not constitute a separate performance obligation where they do not transfer a distinct service to the customer. The related costs are accounted for under the applicable Australian Accounting Standards, including AASB 102 Inventories. Variable and Provisional Pricing Sales consideration may vary as a result of benchmark commodity prices and contractual quotational periods, final weight, moisture and assay results, impurity adjustments, logistics and financing adjustments, or subsequent sales prices achieved with end customers. At the date revenue is recognised, the Group estimates variable consideration in accordance with AASB 15 and includes it in the transaction price only to the extent that it is highly probable that a significant reversal of cumulative revenue will not occur when the uncertainty is resolved. Estimates are updated at each reporting date. Changes in the transaction price allocated to a satisfied performance obligation are recognised as revenue, or as a reduction of revenue, in the period in which the estimate changes. Once the Group has an unconditional right to consideration and recognises a receivable, the receivable is subsequently accounted for in accordance with AASB 9 Financial Instruments. Principal and Agent Arrangements Where another party is involved in marketing, selling or delivering the Group’s products, the Group assesses whether it controls the specified goods or services before they are transferred to the customer. When the Group is principal, revenue is recognised on a gross basis and marketing commissions or similar fees are recognised as expenses. When the Group acts as agent, revenue is limited to the fee or commission to which the Group expects to be entitled. In addition to the above, the following specific recognition criteria must also be met before revenue is recognised: Other income Interest Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset. Research and Development Refundable Tax Offset The Research and Development (R&D) Refundable Tax Offset is recognised as other income when it is received as it relates to expenditure incurred in the past. That part of the R&D Tax Offset that relates to capitalised expenditure recognised in a prior period (if any) is offset against that capitalised expenditure. Government Grants Government grant(s) are recognised when there is a reasonable assurance that the Company will comply with the relevant conditions and that the grant will be received. If the conditions are met, the government grant is recognised in profit or loss on a systematic basis in line with its recognition of the expenses that the grant(s) are intended to compensate. 58 EQ Resources Limited Annual Report 2026 Notes to the Consolidated Financial Statements continued
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