| Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Corporate Information The consolidated financial report of Immuron
Limited (“the Company”) for the year ended June 30, 2020, 2019 and 2018 was authorized for issue in accordance with
a resolution of the Directors on October 28, 2020. Immuron Limited is a listed public company
limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange
(ASX) and The NASDAQ Capital Market (“NASDAQ”). The Group’s principal activity is
oral immunotherapy research and development and product sales focused on bovine-colostrum enriched with antibodies of choice for
the treatment and prevention of a range of infectious diseases. Product sales comprise Travelan which is indicated to reduce the
risk of contracting travelers’ diarrhea and Protectyn an OTC immune supplement for GI tract and liver health.
(a) 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 and the Corporations Act 2001
(i) Compliance
with IFRS The consolidated financial statements
of the Immuron Limited group also comply with International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB).
(ii) Historical
cost convention The financial statements have been prepared on a
historical cost basis.
(iii) Significant estimates and judgements Going concern The group is in a position to
meet future commitments in the current business cycle and pay its debts as and when they fall due. Furthermore, the group is able
to progress its research and development programs for at least the next 12 months.The annual report has been prepared on a going
concern basis. Accordingly, the annual report does not include adjustments relating to the recoverability and classification of
recorded asset amounts, or the amounts and classification of liabilities that might be necessary should the group not continue
as a going concern. On 24 July 2020, the company
completed a capital raising comprising 1,066,668 American Depositary Shares (ADS) at US$18.75 per security. The gross proceeds
to the company were US$18,379,623. COVID-19 Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had,
or may have, on the group based on known information. This consideration extends to the nature of the products and services offered,
customers, supply chain, staffing and geographic regions in which the group operates. Sales of Travelan have significantly dropped
from March 2020 and as at reporting date it is unknown the prolonged effect that COVID-19 will continue to have on sales.
(iv) New
and amended standards adopted by the group A number of new or amended standards
became applicable for the current reporting period and the group had to change its accounting policies and make retrospective adjustments
as a result of adopting IFRS 16 Leases. The impact of the adoption of
leasing standard and the new accounting policies are disclosed in section ‘New and amended standards adopted by the group’
below. The other standards did not have any impact on the group’s accounting policies and did not require retrospective
adjustments.
(v) Revsion
of immaterial error During the year ended June 2020 the following immaterial
error corrections were identified. Representative warrants Immuron Limited raised capital
in June 2017 and May 2019, representative warrants were included as part of these public offerings. These were not identified
and accounted for at the time of these capital raisings. Management has undertaken an
assessment of the impact of this and concluded this to be an immaterial error. This has been corrected in the current year by
restating prior period financial statements presented and the related notes included herein to include the representative warrants. Reserves as of 30 June 2017
has been revised to increase by A$489,586 for the June 2017 representative warrants (1,220,000 options) with a corresponding decrease
in share capital of the same amount. The impact of the 2017 revision has been also reflected in the 30 June 2018 and 30 June 2019
years presented. Reserves as of 30 June 2019
has been revised to increase by A$110,400 for the May 2019 representative warrants (800,000 options) with a corresponding decrease
in share capital of the same amount. Fair value of equity instruments Shares issued to Grandlodge
Pty Ltd for services. Commencing 1 June 2013, Immuron Limited contracted Grandlodge on normal commercial terms and conditions
to provide warehousing, distribution, and invoicing services for Immuron’s products for A$70,000 per annum. The terms of
the agreement was to have fees payable in new fully paid ordinary shares in Immuron Limited as a set price of A$0.16 per
share. The fair value of the equity
instrument has been identified as not having been previously assessed and accounted for in accordance with IFRS 2 Share Based Payments.
Management has undertaken an assessment of the impact of this and concluded this to be an immaterial error. This has been corrected
in the current year by restating the prior period financial statements presented and the related notes included herein to present
the fair value of equity instruments issued. The immaterial error to record the fair value of the equity instruments issued for
the years 30 June 2014 to 30 June 2017 resulted in an increase of A$297,204 in share capital and a corresponding increase in accumulated
losses. The impact of the 2014-2017 revision has been also reflected in the 30 June 2018 and 30 June 2019 years presented. General
and administrative expenses have been revised to increase by A$57,653 and A$23,678 for the fair value of the equity instruments issued
in 2018 and 2019 respectively, with a corresponding increase in share capital for the same amount. The below tables summarise the aggregate impact of the two immaterial
errors on the June 30, 2019 and 2018 financial statements presented. Previously issued Financial Statements Statement
of Profit or Loss and Comprehensive Income:
For the year ended June 30,
2019 2019 2018 2018
A$ Revision Revised A$ Revision Revised
Revenue from contracts with customers 2,387,426 - 2,387,426 1,842,909 - 1,842,909
Cost of Goods Sold (667,371 ) - (667,371 ) (418,693 ) - (418,693 )
Gross Profit 1,720,055 - 1,720,055 1,424,216 - 1,424,216
Other Income 532,050 - 532,050 1,849,163 - 1,849,163
Other gains/(losses) – net 38,413 - 38,413 95,167 - 95,167
Expenses
General and administrative expenses (5,014,128 ) (23,678 ) (5,037,806 ) (3,412,576 ) (57,653 ) (3,470,229 )
Research and development expenses (1,044,528 ) - (1,044,528 ) (2,257,224 ) - (2,257,224 )
Selling and marketing expenses (864,644 ) - (864,644 ) (686,714 ) - (686,714 )
Operating loss (4,632,782 ) (23,678 ) (4,656,460 ) (2,987,968 ) (57,653 ) (3,045,621 )
Finance income 39 - 39 1,238 - 1,238
Finance expenses — - — (24,199 ) - (24,199 )
Finance costs - net 39 - 39 (22,961 ) - (22,961 )
Loss Before Income Tax (4,632,743 ) (23,678 ) (4,656,421 ) (3,010,929 ) (57,653 ) (3,068,582 )
Income Tax Expense — - — — - —
Loss for the Period (4,632,743 ) (23,678 ) (4,656,421 ) (3,010,929 ) (57,653 ) (3,068,582 ) Consolidated Statement of Financial
Position
For the year ended June 30,
2019 2019 2018 2018
A$ Revision Revised A$ Revision Revised
ASSETS
Current
Assets
Cash and cash equivalents 5,119,887 - 5,119,887 4,727,430 - 4,727,430
Trade and other receivables 968,926 - 968,926 1,683,305 - 1,683,305
Inventories 544,341 - 544,341 497,902 - 497,902
Other current assets 49,290 - 49,290 141,800 - 141,800
Total Current
Assets 6,682,444 - 6,682,444 7,050,437 - 7,050,437
- -
Non-Current
Assets - -
Plant and equipment 17,140 - 17,140 20,384 - 20,384
Inventories 1,862,063 - 1,862,063 2,171,867 - 2,171,867
Total Non-Current Assets 1,879,203 - 1,879,203 2,192,251 - 2,192,251
TOTAL ASSETS 8,561,647 - 8,561,647 9,242,688 - 9,242,688
- -
LIABILITIES - -
Current
Liabilities - -
Trade and other payables 1,091,919 - 1,091,919 689,326 - 689,326
Employee benefit obligations 103,612 - 103,612 114,012 - 114,012
Total Current Liabilities 1,195,531 - 1,195,531 803,338 - 803,338
- -
Non-Current
Liabilities - -
Employee benefit obligations 14,980 - 14,980 — - —
Total Non-Current Liabilities 14,980 - 14,980 — - —
TOTAL LIABILITIES 1,210,511 - 1,210,511 803,338 - 803,338
NET ASSETS 7,351,136 - 7,351,136 8,439,350 - 8,439,350
- -
EQUITY - -
Issued capital 60,511,326 (221,451 ) 60,289,875 58,372,043 (134,729 ) 58,237,314
Reserves 3,700,333 599,986 4,300,319 2,606,722 489,586 3,096,308
Accumulated losses (56,860,523 ) (378,535 ) (57,239,058 ) (52,539,415 ) (354,857 ) (52,894,272 )
TOTAL EQUITY 7,351,136 - 7,351,136 8,439,350 - 8,439,350 The revision had no net impact on the consolidated
statement of financial position for each period. This note provides a list of the significant
accounting policies adopted in the preparation of these consolidated financial statements to the extent they have not already
been disclosed in the other notes above. These policies have been consistently applied to all the years presented, unless otherwise
stated. The financial statements are for the group consisting of Immuron Limited and its subsidiaries. Summary of significant accounting
policies The following is a summary of the material
accounting policies adopted by the Company in the preparation of the financial report. The accounting policies have been consistently
applied, unless otherwise stated.
(b) Principles
of consolidation (i) Subsidiaries Subsidiaries are all entities
(including structured entities) over which the group has control. The group controls an entity when the group 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
group. They are deconsolidated from the date that control ceases. The acquisition method of accounting
is used to account for business combinations by the group. Intercompany transactions, balances
and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the group.
(c) Segment
reporting Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating decision maker. This has been identified as the executive management
team consisting of the CEO and COO.
(d) Foreign
currency translation
(i) Functional
and presentation currency Items included in the financial
statements of each of the group’s entities are measured using the currency of the primary economic environment in which
the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian
dollar (“A$” or “$”), which is Immuron Limited’s functional and presentation currency.
(ii) Transactions
and balances Foreign currency transactions
are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains
and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated
in foreign currencies at year end exchange rates are generally recognized in profit or loss. Foreign exchange gains and
losses that relate to borrowings are presented in the consolidated statement of profit or loss and other comprehensive
income, within finance costs. All other foreign exchange gains and losses are presented in the consolidated statement of
profit or loss and other comprehensive income on a net basis within other gains/(losses). Non-monetary items that are measured
at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation
differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation
differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in
profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities classified
as at fair value through other comprehensive income are recognized in other comprehensive income.
(iii) Group
companies The results and financial position
of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different
from the presentation currency are translated into the presentation currency as follows:
● assets and liabilities for
each consolidated balance sheet presented are translated at the closing rate at the date
of that consolidated balance sheet;
● income and expenses for each consolidated statement
of profit or loss and consolidated statement of profit or loss and other comprehensive income are translated
at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of
the rates prevailing on the transaction dates, in which case income and expenses are translated at the
dates of the transactions); and
● all resulting exchange differences are recognized in other comprehensive
income. On consolidation, exchange differences
arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated
as hedges of such investments, are recognized in other comprehensive income. When a foreign operation is sold or any borrowings
forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part
of the gain or loss on sale.
(e) Revenue
recognition
(i) Sale
of hyperimmune products Revenue
arises mainly from the sale hyperimmune products. To determine whether to recognize revenue, the group follows the process of
identifying the contract with a customer, identifying the performance obligations, determining the transaction price, allocating
the transaction price to the performance obligations and recognising revenue when performance obligations are satisfied. Revenue
from the sale of hyperimmune products is recognized when or as the group transfers control of the assets to the customer. There
is no variable consideration or significant cost to obtain the contract. There are no warranties and no refunds. Returns are provided
where this is outlined in a customer agreement.
(ii) Financing
components The group does not expect to
have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the
customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value of money.
(f) Government
grants Grants from the government are
recognized at their fair value where there is a reasonable assurance that the grant will be received and the group will comply
with all attached conditions. Fair value of other grants The group’s other grant income
consists of grants received by the group with relation to COVID-19. Grants are recognized as other income when the group is reasonable
assured that it will comply with the conditions attaching to it and the grant will be received. For the year ended 30 June 2020,
the group has recognized A$154,904 in assistance packages.
(g) Income
tax The income tax expense or credit
for the period is the tax payable on the current 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 and to unused tax
losses. The current income tax charge
is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries
where the company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions
taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is provided
in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise
from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition
of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset
is realised or the deferred income tax liability is settled. Deferred tax assets are recognized
only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Current and deferred tax is
recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly
in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.
(h) Leases The group’s leasing
activities and how these are accounted for In January 2019 the group entered
into a three-year commercial lease in Blackburn North. The lease is for the use of warehousing and office facilities. This lease
includes an extension option for a further 3 years by written request to the landlord before 31 December 2021. There is no variability
and no covenants included in the lease. Leases are recognized as a right-of-use
asset and a corresponding liability at the date at which the leased asset is available for use by the group. Each lease payment
is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as
to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset
is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Assets and liabilities arising
from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following
lease payments:
● fixed payments (including in-substance fixed payments),
less any lease incentives receivable
● variable lease payment that are based on an index
or a rate
● amounts expected to be payable by the lessee under
residual value guarantees
● the exercise price of a purchase option if the lessee
is reasonably certain to exercise that option, and
● payments of penalties for terminating the lease, if
the lease term reflects the lessee exercising that option. The lease payments are discounted
using the interest rate implicit in the lease, if that rate can be determined, or the group’s incremental borrowing rate. Right-of-use assets are measured
at cost comprising the following:
● the amount of the initial measurement of lease liability
● any lease payments made at or before the commencement
date, less any lease incentives received
● any initial direct costs, and
● restoration costs. Payments associated with short-term
leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases
are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture.
(i) Impairment
of assets An impairment loss is recognized
for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher
of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped
at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows
from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment
are reviewed for possible reversal of the impairment at the end of each reporting period.
(j) Cash and
cash equivalents For the purpose of presentation
in the consolidated statement of cash flows, 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, and bank overdrafts. Bank overdrafts
are shown within borrowings in current liabilities in the consolidated balance sheet.
(k) Trade
receivables Trade receivables are recognized initially at fair value and
subsequently measured at amortised cost using the effective interest method, less loss allowance. See note 20(b) for a description
of the group’s impairment policies.
(i) Classification as trade receivables Trade receivables are amounts
due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement
within 30 days and therefore are all classified as current. Trade receivables are recognized initially at the amount of consideration
that is unconditional unless they contain significant financing components, when they are recognized at fair value. The group holds
the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised
cost using the effective interest method. Details about the group’s impairment policies and the calculation of the loss allowance
are provided below.
(ii) Accrued receivables These amounts primarily comprise
receivables from the Australian Taxation Office in relation to the R&D tax incentive.
(iii) Fair value of trade and other receivables Due to the short-term nature
of the current receivables, their carrying amount is considered to be the same as their fair value.
(iv) Impairment and risk exposure Information about the impairment
of trade receivables and the group’s exposure to credit risk and foreign currency risk can be found in note 20.
(l) Inventories Raw materials and stores, work in progress and
finished goods Raw materials and stores, work
in progress and finished goods are stated at the lower of cost and net realisable value. Cost comprises direct materials, direct
labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal
operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs. Costs of purchased
inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
(m) Investments
and other financial assets
(i) Classification The group classifies its financial assets in the following
measurement categories:
● those
to be measured subsequently at fair value (either through other comprehensive income or through profit or loss); and
● those to
be measured at amortised cost. The
classification depends on the group’s business model for managing the financial assets and the contractual terms of the
cash flows . For assets measured at fair value, gains
and losses will either be recorded in profit or loss and other comprehensive income. For investments in equity instruments that
are not held for trading, this will depend on whether the group has made an irrevocable election at the time of initial recognition
to account for the equity investment at fair value through other comprehensive income (FVOCI).
(ii) Recognition
and derecognition Regular way purchases and sales
of financial assets are recognized on trade-date, the date on which the group commits to purchase or sell the asset. Financial
assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and
the group has transferred substantially all the risks and rewards of ownership.
(iii) Measurement At initial recognition, the
group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or
loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of
financial assets carried at FVPL are expensed in profit or loss.
(iv) Impairment The group assesses on a forward
looking basis the expected credit losses associated with its debt instruments carried at amortised cost. The impairment methodology
applied depends on whether there has been a significant increase in credit risk. For trade receivables, the group applies the simplified
approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables,
see note 20(b) for further details.
(v) Income
recognition Interest income Interest income is recognized
using the effective interest method. When a receivable is impaired, the group reduces the carrying amount to its recoverable amount,
being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding
the discount as interest income. Interest income on impaired loans is recognized using the original effective interest rate.
(n) Property,
plant and equipment Property, plant and equipment
is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition
of the items. Subsequent costs are included
in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount
of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged
to profit or loss during the reporting period in which they are incurred. Depreciation is calculated using
the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful
lives or, in the case of leasehold improvements and certain leased plant and equipment, the shorter lease term as follows:
● Plant and equipment 2
- 5 years
● Furniture, fittings and equipment 3 - 15 years
● Right-of-use assets 3 years The assets’ residual values
and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount
is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable
amount. Gains and losses on disposals
are determined by comparing proceeds with carrying amount. These are included in profit or loss.
(o) Intangible
assets Research and development Expenditure on research activities,
undertaken with the prospect of obtaining new scientific or technical knowledge and understanding, is recognized in the consolidated
statement of profit or loss and other comprehensive income as an expense when it is incurred. Expenditure on development activities,
being the application of research findings or other knowledge to a plan or design for the production of new or substantially improved
products or services before the start of commercial production or use, is capitalised if it is probable that the product or service
is technically and commercially feasible, will generate probable economic benefits, adequate resources are available to complete
development and cost can be measured reliably. Other development expenditure is recognized in the consolidated statement of profit
or loss and other comprehensive income as an expense as incurred.
(p) Trade
and other payables These amounts represent liabilities
for goods and services provided to the group prior to the end of financial year which are unpaid. The amounts are unsecured and
are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is
not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured
at amortised cost using the effective interest method.
(q) Employee
benefits
(i) Short-term
obligations Liabilities for wages and salaries,
including non-monetary benefits, annual leave and accumulating sick leave 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 recognized in respect of employees’ services
up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefit obligations in the balance sheet.
(ii) Other
long-term employee benefit obligations In some countries, the group
also has liabilities for long service leave and annual leave 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. These obligations are therefore measured as the present
value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period
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 end of the reporting period of high-quality corporate bonds with terms and
currencies that match, as closely as possible, the estimated future cash outflows. Remeasurements as a result of experience
adjustments and changes in actuarial assumptions are recognized in profit or loss. The obligations are presented
as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least
twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
(iii) Share-based
payments Share-based compensation benefits
are provided to employees via the ‘executive share and option plan’ (ESOP). Information relating to these schemes
is set out in note 18. Employee options The fair value of options granted
under the ESOP is recognized as a share-based payment expense with a corresponding increase in equity. The total amount to be
expensed is determined by reference to the fair value of the options granted:
- including any market performance conditions (e.g. the company’s
share price);
- excluding the impact of any service and non-market performance vesting
conditions (e.g. profitability, sales growth targets and remaining an employee of the company over a specified time period); and
- including the impact of any non-vesting conditions (e.g.
the requirement for employees to save or holdings shares for a specific period of time). The total expense is recognized
over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end
of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting
and service conditions. It recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding
adjustment to equity.
(r) Contributed
equity Ordinary shares are classified as equity. Incremental costs directly attributable
to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
(s) Loss per
share
(i) Basic
loss per share Basic loss per share is calculated by dividing:
● the loss attributable to
owners of the company, excluding any costs of servicing equity other than ordinary shares
● by the weighted average number of ordinary shares outstanding during
the financial year, a |
