| Significant accounting policies (Policies) | 12 Months Ended |
| Jun. 30, 2018 |
| Text block1 [abstract] | |
| New or amended Accounting Standards and Interpretations adopted | New or amended
Accounting Standards and Interpretations adopted The consolidated entity has
adopted all of the new, revised or amending Accounting Standards
and Interpretations issued by the International Accounting
Standards Board (‘IASB’) that are mandatory for the
current reporting period. Any new, revised or
amending Accounting Standards or Interpretations that are not yet
mandatory have not been early adopted. |
| Going concern | Going
concern The consolidated entity
incurred a loss after income tax of A$6,039,242 (2017:
A$10,670,377), was in a net current asset position of A$5,372,114
(2017: net current asset position of A$14,096,234) and had net cash
outflows from operating activities of A$8,661,236 (2017:
A$11,434,698) for the year ended June 30, 2018. As at June 30, 2018 the
consolidated entity had cash in hand and at bank of A$5,956,182 and
current assets of A$9,259,615. In addition, the consolidated entity
holds listed shares and unlisted options with a year-end The financial statements
have been prepared on a going concern basis, which contemplates
continuity of normal activities and realisation of assets and
settlement of liabilities in the normal course of business. As is
often the case with drug development companies, the ability of the
consolidated entity to continue its development activities as a
going concern is dependent upon it deriving sufficient cash from
investors, from licensing and partnering activities and from other
sources of revenue such as grant funding. The directors have
considered the cash flow forecasts and the funding requirements of
the business and continues to explore grant funding, licensing
opportunities and equity investment opportunities in the Company.
The directors are confident that these strategies are appropriate
to generate sufficient funding to allow the consolidated entity to
continue as a going concern. Accordingly the directors
have prepared the financial statements on a going concern basis.
Should the above assumptions not prove to be appropriate, there is
material uncertainty whether the consolidated entity will continue
as a going concern and therefore whether it will realise its assets
and extinguish its liabilities in the normal course of business and
at the amounts stated in these financial statements. |
| Basis of preparation | Basis of
preparation These general purpose
financial statements have been prepared in accordance with
Australian Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (‘AASB’) and the
Corporations Act 2001, as appropriate for for-profit Historical cost
convention The financial statements
have been prepared under the historical cost convention, except for
available-for-sale Critical accounting
estimates The preparation of the
financial statements requires the use of certain critical
accounting estimates. It also requires management to exercise its
judgement in the process of applying the consolidated
entity’s accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements, are
disclosed in note 3. |
| Parent entity information | Parent entity
information In accordance with the
Corporations Act 2001, these financial statements present the
results of the consolidated entity only. Supplementary information
about the parent entity is disclosed in note 32. |
| Principles of consolidation | Principles of
consolidation The consolidated financial
statements incorporate the assets and liabilities of all
subsidiaries of Kazia Therapeutics Limited (‘company’
or ‘parent entity’) as at June 30, 2018 and the
results of all subsidiaries for the year then ended. Kazia
Therapeutics Limited and its subsidiaries together are referred to
in these financial statements as the ‘consolidated
entity’. Subsidiaries are all those
entities over which the consolidated entity has control. The
consolidated entity controls an entity when the consolidated entity
is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those
returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control
is transferred to the consolidated entity. They are de-consolidated Intercompany transactions,
balances and unrealised gains on transactions between entities in
the consolidated entity are eliminated. Unrealised losses are also
eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of
subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the consolidated
entity. The acquisition of
subsidiaries is accounted for using the acquisition method of
accounting. A change in ownership interest, without the loss of
control, is accounted for as an equity transaction, where the
difference is between the consideration transferred and the book
value. Where the consolidated
entity loses control over a subsidiary, it derecognises the assets
including goodwill, liabilities and non-controlling |
| Operating segments | Operating
segments Operating segments are
presented using the ‘management approach’, where the
information presented is on the same basis as the internal reports
provided to the Chief Operating Decision Makers
(‘CODM’). The CODM is responsible for the allocation of
resources to operating segments and assessing their
performance. |
| Foreign currency translation | Foreign currency
translation The financial statements
are presented in Australian dollars, which is the consolidated
entity’s functional and presentation currency.
Foreign currency
transactions Foreign currency
transactions are translated into Australian dollars using the
exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such
transactions and from the translation at financial year-end Foreign
operations The assets and liabilities
of foreign operations are translated into Australian dollars using
the exchange rates at the reporting date. The revenues and expenses
of foreign operations are translated into Australian dollars using
the average exchange rates, which approximate the rate at the date
of the transaction, for the period. All resulting foreign exchange
differences are recognised in other comprehensive income through
the foreign currency reserve in equity. The foreign currency
reserve is recognised in profit or loss when the foreign operation
is disposed of. Exchange differences
arising on a monetary item that forms part of a reporting
entity’s net investment in a foreign operation shall be
recognised initially in other comprehensive income and reclassified
from equity to profit or loss on disposal of the net
investment. |
| Revenue recognition | Revenue
recognition Revenue is recognised when
it is probable that the economic benefit will flow to the
consolidated entity and the revenue can be reliably measured. In
determining the economic benefits, provisions are made for certain
trade discounts and returned goods. The following specific
recognition criteria must also be met: Interest Interest revenue is
recognised as interest accrues using the effective interest method.
This is a method of calculating the amortised cost of a financial
asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly
discounts estimated future cash receipts through the expected life
of the financial asset to the net carrying amount of the financial
asset. The R&D Tax Incentive
is a government program which helps to offset some of the incurred
costs of R&D. Eligible expenditure incurred under the scheme in
a financial year attracts an additional 43.5% tax deduction, and
for a group earning income of less than A$20 million, the cash
value of the additional deduction is remitted to the taxpayer. In
accordance with AASB 120, as the compensation relates to expenses
already incurred, it is recognised in profit or loss of the period
in which it becomes receivable. Accordingly the group accounts for
the R&D Tax Incentive in the same year as the expenses to which
it relates. Other
revenue Other revenue is recognised
when it is received or when the right to receive payment is
established. |
| Grant Income | Grant
Income The R&D Tax Incentive
is a government program which helps to offset some of the incurred
costs of R&D. Eligible expenditure incurred under the scheme in
a financial year attracts an additional 43.5% tax deduction, and
for a group earning income of less than A$20 million, the cash
value of the additional deduction is remitted to the
taxpayer. In accordance with AASB 120, as the compensation
relates to expenses already incurred, it is recognised in profit or
loss of the period in which it becomes receivable. Accordingly the
group accounts for the R&D Tax Incentive in the same year as
the expenses to which it relates. |
| Income tax | Income
tax The income tax expense or
benefit for the period is the tax payable on that period’s
taxable income based on the applicable income tax rate for each
jurisdiction, adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences, unused tax
losses and the adjustment recognised for prior periods, where
applicable.
Deferred tax assets and
liabilities are recognised for temporary differences at the tax
rates expected to apply when the assets are recovered or
liabilities are settled, based on those tax rates that are enacted
or substantively enacted, except for:
•
When the deferred income tax asset or liability arises from the
initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the
time of the transaction, affects neither the accounting nor taxable
profits; or
•
When the taxable temporary difference is associated with
interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that
the temporary difference will not reverse in the foreseeable
future. Deferred tax assets are
recognised for deductible temporary differences and unused tax
losses only if it is probable that future taxable amounts will be
available to utilise those temporary differences and
losses. The carrying amount of
recognised and unrecognised deferred tax assets are reviewed each
reporting date. Deferred tax assets recognised are reduced to the
extent that it is no longer probable that future taxable profits
will be available for the carrying amount to be recovered.
Previously unrecognised deferred tax assets are recognised to the
extent that it is probable that there are future taxable profits
available to recover the asset. Deferred tax assets and
liabilities are offset only where there is a legally enforceable
right to offset current tax assets against current tax liabilities
and deferred tax assets against deferred tax liabilities; and they
relate to the same taxable authority on either the same taxable
entity or different taxable entities which intend to settle
simultaneously. Kazia Therapeutics Limited
(the ‘parent entity’) and its wholly-owned Australian
controlled entities have formed an income tax consolidated group
under the tax consolidation regime. Kazia Therapeutics Limited as
the parent entity discloses all of the deferred tax assets of the
tax consolidated group in relation to tax losses carried forward
(after elimination of inter-group transactions). The tax
consolidated group has applied the ‘separate taxpayer in the
group’ allocation approach in determining the appropriate
amount of taxes to allocate to members of the tax consolidated
group. As the tax consolidation
group continues to generate tax losses there has been no reason for
the company to enter a tax funding agreement with members of the
tax consolidation group. |
| Current and non-current classification | Current and non-current Assets and liabilities are
presented in the statement of financial position based on current
and non-current An asset is current when:
it is expected to be realised or intended to be sold or consumed in
normal operating cycle; it is held primarily for the purpose of
trading; it is expected to be realised within 12 months after the
reporting period; or the asset is cash or cash equivalent unless
restricted from being exchanged or used to settle a liability for
at least 12 months after the reporting period. All other assets are
classified as non-current. A liability is current
when: it is expected to be settled in normal operating cycle; it is
held primarily for the purpose of trading; it is due to be settled
within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at
least 12 months after the reporting period. All other liabilities
are classified as non-current. Deferred tax assets and
liabilities are always classified as non-current. |
| Cash and cash equivalents | Cash and cash
equivalents Cash and cash equivalents
includes cash on hand, deposits held at call with financial
institutions, other short-term, highly liquid investments with
original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value. |
| Trade and other receivables | Trade and other
receivables Trade receivables are
initially recognised at fair value and subsequently measured at
amortised cost using the effective interest method, less any
provision for impairment. Trade receivables are generally due for
settlement within 30 to 60 days. Collectability of trade
receivables is reviewed on an ongoing basis. Debts which are known
to be uncollectable are written off by reducing the carrying amount
directly. A provision for impairment of trade receivables is raised
when there is objective evidence that the consolidated entity will
not be able to collect all amounts due according to the original
terms of the receivables. Significant financial difficulties of the
debtor, probability that the debtor will enter bankruptcy or
financial reorganisation and default or delinquency in payments
(more than 120 days overdue) are considered indicators that the
trade receivable may be impaired. The amount of the impairment
allowance is the difference between the asset’s carrying
amount and the present value of estimated future cash flows,
discounted at the original effective interest rate. Cash flows
relating to short-term receivables are not discounted if the effect
of discounting is immaterial. Other receivables are
recognised at amortised cost, less any provision for
impairment. |
| Investments and other financial assets | Investments and other
financial assets Investments and other
financial assets are initially measured at fair value. Transaction
costs are included as part of the initial measurement, except for
financial assets at fair value through profit or loss. They are
subsequently measured at either amortised cost or fair value
depending on their classification. Classification is determined
based on the purpose of the acquisition and subsequent
reclassification to other categories is restricted. Financial assets are
derecognised when the rights to receive cash flows from the
financial assets have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and
rewards of ownership. Loans and
receivables Loans and receivables are
non-derivative Financial assets at fair
value through profit or loss (FVTPL) Financial assets at fair
value through profit or loss (FVTPL) include financial assets that
are either classified as held for trading or that meet certain
conditions and are designated at FVTPL upon initial
recognition. Assets in this category are
measured at fair value with gains or losses recognised in profit or
loss. The fair values of financial assets in this category are
determined by reference to active market transactions or using a
valuation technique where no active market exists. Available-for-sale Available-for-sale non-derivative available-for-sale available-for-sale available-for-sale
Impairment of financial
assets The consolidated entity
assesses at the end of each reporting period whether there is any
objective evidence that a financial asset or group of financial
assets is impaired. Objective evidence includes significant
financial difficulty of the issuer or obligor; a breach of contract
such as default or delinquency in payments; the lender granting to
a borrower concessions due to economic or legal reasons that the
lender would not otherwise do; it becomes probable that the
borrower will enter bankruptcy or other financial reorganisation;
the disappearance of an active market for the financial asset; or
observable data indicating that there is a measurable decrease in
estimated future cash flows. The amount of the
impairment allowance for loans and receivables carried at amortised
cost is the difference between the asset’s carrying amount
and the present value of estimated future cash flows, discounted at
the original effective interest rate. If there is a reversal of
impairment, the reversal cannot exceed the amortised cost that
would have been recognised had the impairment not been made and is
reversed to profit or loss. Available-for-sale available-for-sale |
| Property, plant and equipment | Property, plant and
equipment Plant and equipment is
stated at historical cost less accumulated depreciation and
impairment. Historical cost includes expenditure that is directly
attributable to the acquisition of the items. Depreciation is calculated
on a straight-line basis to write off the net cost of each item of
plant and equipment over their expected useful lives from 2.5 to 10
years. The residual values, useful
lives and depreciation methods are reviewed, and adjusted if
appropriate, at each reporting date. An item of property, plant
and equipment is derecognised upon disposal or when there is no
future economic benefit to the consolidated entity. Gains and
losses between the carrying amount and the disposal proceeds are
taken to profit or loss. |
| Research and development | Research and
development Expenditure during the
research phase of a project is recognised as an expense when
incurred. Development costs are capitalised only when technical
feasibility studies identify that the project will deliver future
economic benefits and these benefits can be measured
reliably. |
| Leases | Leases The determination of
whether an arrangement is or contains a lease is based on the
substance of the arrangement and requires an assessment of whether
the fulfilment of the arrangement is dependent on the use of a
specific asset or assets and the arrangement conveys a right to use
the asset. A distinction is made
between finance leases, which effectively transfer from the lessor
to the lessee substantially all the risks and benefits incidental
to ownership of leased assets, and operating leases, under which
the lessor effectively retains substantially all such risks and
benefits. Finance leases are
capitalised. A lease asset and liability are established at the
fair value of the leased assets, or if lower, the present value of
minimum lease payments. Lease payments are allocated between the
principal component of the lease liability and the finance costs,
so as to achieve a constant rate of interest on the remaining
balance of the liability. Leased assets acquired
under a finance lease are depreciated over the asset’s useful
life or over the shorter of the asset’s useful life and the
lease term if there is no reasonable certainty that the
consolidated entity will obtain ownership at the end of the lease
term.
Operating lease payments,
net of any incentives received from the lessor, are charged to
profit or loss on a straight-line basis over the term of the
lease. |
| Intangible assets | Intangible
assets Intangible assets acquired
as part of a business combination, other than goodwill, are
initially measured at their fair value at the date of the
acquisition. Intangible assets acquired separately are initially
recognised at cost. Indefinite life intangible assets are not
amortised and are subsequently measured at cost less any
impairment. Finite life intangible assets are subsequently measured
at cost less amortisation and any impairment. The gains or losses
recognised in profit or loss arising from the derecognition of
intangible assets are measured as the difference between net
disposal proceeds and the carrying amount of the intangible asset.
The method and useful lives of finite life intangible assets are
reviewed annually. Changes in the expected pattern of consumption
or useful life are accounted for prospectively by changing the
amortisation method or period. Patents and
trademarks Significant costs
associated with patents and intellectual property are deferred and
amortised on a straight-line basis over the period of their
expected benefit, being their finite useful life of 5
years. Software Amortisation is calculated
on a straight-line basis to write off the net cost of each item of
software over their expected useful lives from 2.5 to 10
years. Licensing agreement for
GDC-0084 The Licensing Agreement
asset was initially brought to account at fair value, and is being
amortised on a straight-line basis over the period of its expected
benefit, being the remaining life of the patent, which was15 years
from the date of acquisition. |
| Impairment of non-financial assets | Impairment of
non-financial Non-financial Recoverable amount is the
higher of an asset’s fair value less costs of disposal and
value-in-use. value-in-use pre-tax |
| Trade and other payables | Trade and other
payables These amounts represent
liabilities for goods and services provided to the consolidated
entity prior to the end of the financial year and which are unpaid.
Due to their short-term nature they are measured at amortised cost
and are not discounted. The amounts are unsecured and are usually
paid within 30 days of recognition. |
| Compound financial instruments | Compound financial
instruments Compound financial
instruments issued by the consolidated entity comprise convertible
notes that can be converted to share capital at the option of the
holder, and the number of shares does not vary with changes in fair
value. The liability component of a financial liability is
recognised at the fair value of a similar liability that does not
have an equity conversion option. The equity component is
recognised initially at the difference between the fair value of
the compound financial instrument as a whole and the fair value of
the liability component. Any directly attributable transaction
costs are allocated to the liability and equity components in
proportion to their initial carrying amounts. Subsequent to initial
recognition, the liability component of a compound financial
instrument is measured at amortised cost using the effective
interest rate method, whereas the equity component is not
remeasured. Interest, gains and losses relating to the financial
liability are recognised in profit or loss. On conversion, the
financial liability is reclassified to equity; no gain or loss is
recognised on conversion. |
| Provisions | Provisions Provisions are recognised
when the consolidated entity has a present (legal or constructive)
obligation as a result of a past event, it is probable the
consolidated entity will be required to settle the obligation, and
a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the
reporting date, taking into account the risks and uncertainties
surrounding the obligation. If the time value of money is material,
provisions are discounted using a current pre-tax |
| Employee benefits | Employee
benefits Short-term employee
benefits Liabilities for wages and
salaries, including non-monetary Other long-term employee
benefits The liability for annual
leave and long service leave not expected to be settled within 12
months of the reporting date is measured as the present value of
expected future payments to be made in respect of services provided
by employees up to the reporting date using the projected unit
credit method. Consideration is given to expected future wage and
salary levels, experience of employee departures 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. Defined contribution
superannuation expense Contributions to defined
contribution superannuation plans are expensed in the period in
which they are incurred. Share-based
payments Equity-settled share-based
compensation benefits are provided to employees under the terms of
the Employee Share Option Plan (‘ESOP’) and consultants
as compensation for services performed. Equity-settled transactions
are awards of shares, or options over shares, that are provided to
employees in exchange for the rendering of services. The cost of equity-settled
transactions are measured at fair value on grant date. Fair value
is independently determined using either the Binomial or
Black-Scholes option pricing model that takes into account the
exercise price, the term of the option, the impact of dilution, the
share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk free
interest rate for the term of the option, together with
non-vesting The cost of equity-settled
transactions are recognised as an expense with a corresponding
increase in equity over the vesting period. The cumulative charge
to profit or loss is calculated based on the grant date fair value
of the award, the best estimate of the number of awards that are
likely to vest and the expired portion of the vesting period. The
amount recognised in profit or loss for the period is the
cumulative amount calculated at each reporting date less amounts
already recognised in previous periods.
•
during the vesting period, the liability at each reporting date
is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
•
from the end of the vesting period until settlement of the
award, the liability is the full fair value of the liability at the
reporting date. Market conditions are taken
into consideration in determining fair value. Therefore any awards
subject to market conditions are considered to vest irrespective of
whether or not that market condition has been met, provided all
other conditions are satisfied.
If equity-settled awards
are modified, as a minimum an expense is recognised as if the
modification has not been made. An additional expense is
recognised, over the remaining vesting period, for any modification
that increases the total fair value of the share-based compensation
benefit as at the date of modification. If the non-vesting If equity-settled awards
are cancelled, it is treated as if it has vested on the date of
cancellation, and any remaining expense is recognised immediately.
If a new replacement award is substituted for the cancelled award,
the cancelled and new award is treated as if they were a
modification. |
| Finance costs | Finance
costs Finance costs attributable
to qualifying assets are capitalised as part of the asset. All
other finance costs are expensed in the period in which they are
incurred, including interest on short-term and long-term
borrowings. |
| Fair value measurement | Fair value
measurement When an asset or liability,
financial or non-financial, Fair value is measured
using the assumptions that market participants would use when
pricing the asset or liability, assuming they act in their economic
best interest. For non-financial Assets and liabilities
measured at fair value are classified, into three levels, using a
fair value hierarchy that reflects the significance of the inputs
used in making the measurements. Classifications are reviewed each
reporting date and transfers between levels are determined based on
a reassessment of the lowest level input that is significant to the
fair value measurement. For recurring and
non-recurring |
| Issued capital | Issued
capital Ordinary shares are
classified as equity. Incremental costs directly
attributable to the issue of new shares or options, including share
based payments relating to the issue of shares are, shown in equity
as a deduction, net of tax, from the proceeds. |
| Earnings per share | Earnings per
share Basic earnings per
share Basic earnings per share is
calculated by dividing the profit attributable to the owners of
Kazia Therapeutics Limited, excluding any costs of servicing equity
other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for
bonus elements in ordinary shares issued during the financial
year.
Diluted earnings per
share Diluted earnings per share
adjusts the figures used in the determination of basic earnings per
share to take into account the after income tax effect of interest
and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed
to have been issued for no consideration in relation to dilutive
potential ordinary shares. |
| Goods and Services Tax ('GST') and other similar taxes | Goods and Services Tax
(‘GST’) and other similar taxes Revenues, expenses and
assets are recognised net of the amount of associated GST, unless
the GST incurred is not recoverable from the tax authority. In this
case it is recognised as part of the cost of the acquisition of the
asset or as part of the expense. Receivables and payables
are stated inclusive of the amount of GST receivable or payable.
The net amount of GST recoverable from, or payable to, the tax
authority is included in other receivables or other payables in the
statement of financial position. Cash flows are presented on
a gross basis. The GST components of cash flows arising from
investing or financing activities which are recoverable from, or
payable to the tax authority, are presented as operating cash
flows. Commitments and
contingencies are disclosed net of the amount of GST recoverable
from, or payable to, the tax authority. |
| New Accounting Standards and Interpretations not yet mandatory or early adopted | New
Accounting Standards and Interpretations not yet mandatory or early
adopted
Accounting
Standards and Interpretations that have recently been issued or
amended but are not yet mandatory, have not been early adopted by
the consolidated entity for the annual reporting period ended June
30, 2018. The consolidated entity’s assessment of the impact
of these new or amended Accounting Standards and Interpretations,
most relevant to the consolidated entity, are set out
below.
IFRS 9
Financial Instruments and its consequential
amendments
This standard
and its consequential amendments are applicable to annual reporting
periods beginning on or after January 1, 2018 and completes phases
I and III of the IASB’s project to replace IAS 39 (AASB 139)
‘Financial Instruments: Recognition and Measurement’.
This standard introduces new classification and measurement models
for financial assets, using a single approach to determine whether
a financial asset is measured at amortised cost or fair value.
Chapter 6 ‘Hedge Accounting’ supersedes the general
hedge accounting requirements in IAS 139 and provides a new
simpler approach to hedge accounting that is intended to more
closely align with risk management activities undertaken by
entities when hedging financial and non-financial
In December
2014, the IFRS made further changes to the classification and
measurement rules and also introduced a new impairment model. These
latest amendments now complete the new financial instruments
standard.
The
consolidated entity will adopt this standard and the amendments
from July 1, 2018, and from that date assets previously treated as
‘available for sale’ will now be treated as fair value
through profit and loss (FVTPL). Based on our assessment, the
Standard is not expected to have a material impact on the
transactions and balances recognised in the financial statements
when it is first adopted for the year ending June 30, 2019, apart
from any gains or losses on investments in listed assets which
would previously have been accounted for as ‘available for
sale’. Had the new standard been applied during the year
ended June 30, 2018, there would be no impact on the financial
statements for the year ended June 30, 2018 because impairment
losses on available-for-sale assets were taken to profit and loss
in the current financial year.
IFRS 15
Revenue from Contracts with Customers
This standard
is applicable to annual reporting periods beginning on or after
January 1, 2018. The standard provides a single standard for
revenue recognition. The core principle of the standard is that an
entity will recognise revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in
exchange for those goods or services. The standard will require:
contracts (either written, verbal or implied) to be identified,
together with the separate performance obligations within the
contract; determine the transaction price, adjusted for the time
value of money excluding credit risk; allocation of the transaction
price to the separate performance obligations on a basis of
relative stand-alone selling price of each distinct good or
service, or estimation approach if no distinct observable prices
exist; and recognition of revenue when each performance obligation
is satisfied. Credit risk will be presented separately as an
expense rather than adjusted to revenue. For goods, the performance
obligation would be satisfied when the customer obtains control of
the goods. For services, the performance obligation is satisfied
when the service has been provided, typically for promises to
transfer services to customers. For performance obligations
satisfied over time, an entity would select an appropriate measure
of progress to determine how much revenue should be recognised as
the performance obligation is satisfied. Contracts with customers
will be presented in an entity’s statement of financial
position as a contract liability, a contract asset, or a
receivable, depending on the relationship between the
entity’s performance and the customer’s payment.
Sufficient quantitative and qualitative disclosure is required to
enable users to understand the contracts with customers; the
significant judgements made in applying the guidance to those
contracts; and any assets recognised from the costs to obtain or
fulfil a contract with a customer.
The
consolidated entity will adopt this standard and the amendments
from July 1, 2018. When this Standard is first adopted for the year
ending June 30, 2019 there will be no material impact on the
transactions and balances recognised in the financial statements.
This is because the entity is still in the R&D stage of its
development and is not anticipating generating material revenue
streams during the year ending June 30, 2019.
IFRS 16
Leases
This standard
is applicable to annual reporting periods beginning on or after
January 1, 2019. The standard replaces IAS 17
‘Leases’ and for lessees will eliminate the
classifications of operating leases and finance leases. Subject to
exceptions, a ‘right-of-use’ low-value ‘right-of-use’
Based on our
assessment, the Standard is not expected to have a material impact
on the transactions and balances recognised in the financial
statements when it is first adopted for the year ending June 30,
2020, because the Company is not a party to any material
leases. |
