| Significant accounting policies (Policies) | 12 Months Ended |
| Jun. 30, 2019 |
| Text block [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.
Any
significant impact on the accounting policies of the consolidated
entity from the adoption of these Accounting Standards and
Interpretations are disclosed below. The adoption of these
Accounting Standards and Interpretations did not have any
significant impact on the financial performance or position of the
consolidated entity.
The following
Accounting Standards and Interpretations are most relevant to the
consolidated entity:
IFRS 9
Financial Instruments
IFRS 9
Financial Instruments replaces IAS 39 Financial Instruments:
Recognition and Measurement requirements. It makes major changes to
the previous guidance on the classification and measurement of
financial assets and introduces an ‘expected credit
loss’ model for impairment of financial assets. When
adopting IFRS 9, the Group has applied transitional relief and
elected not to restate prior periods. Rather, differences arising
from the adoption of IFRS 9 in relation to classification,
measurement, and impairment are recognised in opening retained
earnings as at 1 July 2018.
The impacts
on the consolidated entity from the adoption of this accounting
policy were as follows:
Listed
equity investments
Trade and
other receivables
There was no
change to financial liabilities.
IFRS 15 Revenue from Contracts with
Customers
IFRS 15
replaces IAS 18 Revenue, IAS 11 Construction Contracts
and several revenue-related Interpretations. The new Standard has
been applied from 1 July 2018.
As the
consolidated entity does not enter into contracts with customers,
the adoption of this standard has not had any impact on the
financial statements. |
| Going concern | Going
concern The consolidated entity
incurred a loss after income tax of $10,270,264 (2018: $6,039,242),
was in a net current asset position of $5,273,710 (2018: net
current asset position of $5,372,114) and had net cash outflows
from operating activities of $6,714,210 (2018: $8,661,236) for the
year ended 30 June 2019. As at 30 June 2019 the
consolidated entity had cash in hand and at bank of $5,433,868 and
current assets of $7,514,175. 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 oriented
entities. These financial statements also comply with International
Financial Reporting Standards as issued by the International
Accounting Standards Board (‘IASB’). The financial statements
have been prepared on an accruals basis and under the historical
cost conventions, except for listed equity investments which are
carried at fair value. 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 31. |
| 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 30 June 2019 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
from the date that control ceases.
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 interest in the
subsidiary together with any cumulative translation differences
recognised in equity. The consolidated entity recognises the fair
value of the consideration received and the fair value of any
investment retained together with any gain or loss in profit or
loss. |
| 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.
The CODM is considered to be the Board of Directors. |
| 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
exchange rates of monetary assets and liabilities denominated in
foreign currencies are recognised in profit or loss. 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. |
| Financial instruments | Financial
Instruments
Recognition and derecognition
Financial
assets and financial liabilities are recognised when the Group
becomes a party to the contractual provisions of the financial
instrument and are measured initially at fair value adjusted by
transactions costs, except for those carried at fair value through
profit or loss, which are measured initially at fair value.
Subsequent measurement of financial assets and financial
liabilities are described below. Financial assets are derecognised
when the contractual rights to the cash flows from the financial
asset expire, or when the financial asset and substantially all the
risks and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged, cancelled or
expires.
Classification and initial measurement of financial
assets
Except for
those trade receivables that do not contain a significant financing
component and are measured at the transaction price in accordance
with IFRS 15, all financial assets are initially measured at
fair value adjusted for transaction costs (where
applicable).
Subsequent
measurement of financial assets
For the
purpose of subsequent measurement, financial assets are classified
into the following categories upon initial recognition:
•
financial assets at amortised cost
•
financial assets at fair value through profit or loss
(FVPL)
Classifications are determined by both:
•
The entity’s business model for managing the financial
asset
•
The contractual cash flow characteristics of the financial
assets
All income
and expenses relating to financial assets that are recognised in
profit or loss are presented within finance costs, finance income
or other financial items, except for impairment of trade
receivables which is presented within other expenses.
Financial
assets at amortised cost
Financial
assets are measured at amortised cost if the assets meet the
following conditions (and are not designated as
FVPL):
•
they are held within a business model whose objective is to
hold the financial assets and collect its contractual cash
flows
•
the contractual terms of the financial assets give rise to cash
flows that are solely payments of principal and interest on the
principal amount outstanding
After initial
recognition, these are measured at amortised cost using the
effective interest method. Discounting is omitted where the effect
of discounting is immaterial. The Group’s cash and cash
equivalents, trade and most other receivables fall into this
category of financial instruments.
Financial
assets at fair value through profit or loss (FVPL)
Financial
assets that are held within a business model other than ‘hold
to collect’ or ‘hold to collect and sell’ are
categorised at fair value through profit and loss. Further,
irrespective of business model, financial assets whose contractual
cash flows are not solely payments of principal and interest are
accounted for at FVPL. The Group’s investments in equity
instruments and derivatives fall under this category.
Impairment
of financial assets
IFRS 9’s new impairment model uses more forward
looking information to recognize expected credit losses - the
‘expected credit losses (ECL) model’. The application
of the new impairment model depends on whether there has been a
significant increase in credit risk. The Group considers a
broader range of information when assessing credit risk and
measuring expected credit losses, including past events, current
conditions, reasonable and supportable forecasts that affect the
expected collectability of the future cash flows of the
instrument.
In applying
this forward-looking approach, a distinction is made
between:
•
financial instruments that have not deteriorated significantly
in credit quality since initial recognition or that have low credit
risk (‘Stage 1’) and
•
financial instruments that have deteriorated significantly in
credit quality since initial recognition and whose credit risk is
not low (‘Stage 2’).
‘Stage
3’ would cover financial assets that have objective evidence
of impairment at the reporting date. ‘12-month expected
credit losses’ are recognised for the first category while
‘lifetime expected credit losses’ are recognised for
the second category. Measurement of the expected credit losses is
determined by a probability-weighted estimate of credit losses over
the expected life of the financial instrument.
Classification and measurement of financial
liabilities
As the
accounting for financial liabilities remains largely unchanged from
IAS 39, the Group’s financial liabilities were not
impacted by the adoption of IFRS 9. However, for completeness,
the accounting policy is disclosed below.
The
Group’s financial liabilities comprise trade and other
payables. Financial liabilities are initially measured at fair
value, and, where applicable, adjusted for transaction costs unless
the Group designated a financial liability at fair value through
profit or loss. Subsequently, financial liabilities are measured at
amortised cost using the effective interest method.
All
interest-related charges and, if applicable, changes in an
instrument’s fair value that are reported in profit or loss
are included within finance costs or finance income. |
| Investments and other financial assets | Investments and other
financial assets (comparative period accounting
policy) 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 with fixed or determinable payments
that are not quoted in an active market. They are carried at
amortised cost using the effective interest rate method. Gains and
losses are recognised in profit or loss when the asset is
derecognised or impaired. 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
financial assets Available-for-sale
financial assets are non-derivative financial assets, principally
equity securities, that are either designated as available-for-sale
or not classified as any other category. After initial recognition,
fair value movements are recognised in other comprehensive income
through the available-for-sale reserve in equity. Cumulative gain
or loss previously reported in the available-for-sale reserve is
recognised in profit or loss when the asset is derecognised or
impaired. 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
financial assets are considered impaired when there has been a
significant or prolonged decline in value below initial cost.
Subsequent increments in value are recognised in other
comprehensive income through the available for-sale
reserve. |
| Revenue recognition | Revenue
recognition Revenue from contracts
with customers The Group does not earn
revenue from contracts with customers. Finance
Income 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. 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 $20 million,
the cash value of the additional deduction is remitted to the
taxpayer. In accordance with IAS 20, 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
classification Assets and liabilities are
presented in the statement of financial position based on current
and non-current classification. 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. |
| 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 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. 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 was 15 years
from the date of acquisition. |
| Impairment of non-financial assets | Impairment of
non-financial assets Non-financial assets with
finite useful lives are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by
which the asset’s carrying amount exceeds its recoverable
amount. Recoverable amount is the
higher of an asset’s fair value less costs of disposal and
value-in-use. The value-in-use is the present value of the
estimated future cash flows relating to the asset using a pre-tax
discount rate specific to the asset or cash-generating unit to
which the asset belongs. Assets that do not have independent cash
flows are grouped together to form a cash-generating
unit. |
| Compound financial instruments | Compound financial
instruments 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 rate specific to
the liability. The increase in the provision resulting from the
passage of time is recognised as a finance cost. |
| Employee benefits | Employee
benefits Short-term employee
benefits Liabilities for wages and
salaries, including non-monetary benefits, annual leave and long
service leave expected to be settled within 12 months of the
reporting date are measured at the amounts expected to be paid when
the liabilities are settled.
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
conditions that do not determine whether the consolidated entity
receives the services that entitle the employees to receive
payment. No account is taken of any other vesting
conditions. 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
condition is within the control of the consolidated entity or
employee, the failure to satisfy the condition is treated as a
cancellation. If the condition is not within the control of the
consolidated entity or employee and is not satisfied during the
vesting period, any remaining expense for the award is recognised
over the remaining vesting period, unless the award is
forfeited. 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, is measured at fair value for
recognition or disclosure purposes, the fair value is based on the
price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at
the measurement date; and assumes that the transaction will take
place either: in the principal market; or in the absence of a
principal market, in the most advantageous market. 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, the fair value measurement
is based on its highest and best use. Valuation techniques that are
appropriate in the circumstances and for which sufficient data are
available to measure fair value, are used, maximising the use of
relevant observable inputs and minimising the use of unobservable
inputs. 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 fair value measurements, external valuers may be used
when internal expertise is either not available or when the
valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a
significant change in fair value of an asset or liability from one
period to another, an analysis is undertaken, which includes a
verification of the major inputs applied in the latest valuation
and a comparison, where applicable, with external sources of
data. |
| 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
Australian
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 30 June 2019. 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 16
Leases
This standard
is applicable to annual reporting periods beginning on or after
1 January 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’ asset will be capitalised
in the statement of financial position, measured as the present
value of the unavoidable future lease payments to be made over the
lease term. The exceptions relate to short-term leases of 12 months
or less and leases of low-value assets (such as personal computers
and small office furniture) where an accounting policy choice
exists whereby either a ‘right-of-use’ asset is
recognised or lease payments are expensed to profit or loss as
incurred. A liability corresponding to the capitalised lease will
also be recognised, adjusted for lease prepayments, lease
incentives received, initial direct costs incurred and an estimate
of any future restoration, removal or dismantling costs.
Straight-line operating lease expense recognition will be replaced
with a depreciation charge for the leased asset (included in
operating costs) and an interest expense on the recognised lease
liability (included in finance costs). In the earlier periods of
the lease, the expenses associated with the lease under
IFRS 16 will be higher when compared to lease expenses under
IAS 17. However EBITDA (Earnings before Interest, Tax,
Depreciation and Amortisation) results will be improved as the
operating expense is replaced by interest expense and depreciation
in profit or loss under IFRS 16. For classification within the
statement of cash flows, the lease payments will be separated into
both a principal (financing activities) and interest (either
operating or financing activities) component. For lessor
accounting, the standard does not substantially change how a lessor
accounts for leases.
The Standard
will not have a material impact on the transactions and balances
recognised in the financial statements when it is first adopted for
the year ending 30 June 2020, because the group is not a party
to any material leases. |
