Note 2. Accounting estimates and judgements Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Group and are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. Below are key estimates and assumptions that have a significant risk of causing a material adjustment to carrying amounts of certain assets and liabilities within the next annual reporting period. Exploration and evaluation assets have been capitalised on the basis that the Group will commence commercial production in the future from which the costs will be amortised in proportion to the depletion of the mineral resources. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. The carrying value of exploration and evaluation assets at 30 June 2022 is $42,304,313 (2021: $19,950,190). The financial assets at fair value through profit or loss fall under level 1 of the fair value hierarchy referred to in AASB 13 Fair Value measurement i.e. their fair value has been determined using quoted market prices. Refer to notes 8 and 21 for further detail regarding the key estimates applied to determine the fair value of these financial assets. Investments in shares in listed companies (note 8) has been classified as a current asset as it is management’s intention, subject to favourable market conditions, that these investments will be sold within 12 months. Note 3. Other income 2022 $ 2021 $ Other income - Gain on sale of investment in shares – 133,868 Other income - Gain on sale of assets 88,943 27,338 Other income - Government grants – 152,000 88,943 313,206 Note 4. Expenses Profit/(loss) before income tax includes the following: 2022 $ 2021 $ Employee benefits expense* Salaries & wages 633,226 553,614 Directors' fees 145,000 143,166 Defined contribution superannuation expense 42,473 42,238 Share based payments (refer Note 18(b)) 938,806 162,799 Movement in leave provisions 78,122 58,448 Other 45,950 12,726 1,883,577 972,991 * Excludes employee costs capitalised to exploration and evaluation expenditure Impairment Expense/(Reversal of Impairment) Exploration concessions – 410,928 Shares in Copperstone Resources AB – (891,994) – (481,066) Notes to the Financial Statements for the year ended 30 June 2022 42 Sunstone Metals Limited Annual Report 2022 SUNSTONE METALS LIMITED ANNUAL REPORT 2022
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