Note 1. Summary of Material Accounting Policies continued (iii) Group companies The results and the financial position of all the Group entities (none of which has a 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 are translated at period-end exchange rates prevailing at the reporting date; – Income and expenses are translated at average exchange rates for the period; and – Retained profits are translated at the exchange rates prevailing at the date of the transaction. Exchange differences arising on the translation of foreign operations are transferred directly to the Group’s foreign currency translation reserve in the Statement of Financial Position. These differences are recognised in the profit or loss in the period in which the operation is disposed. (s) Application of new and revised Accounting Standards In the current year, the Group has applied a number of new and revised AASBs issued by the Australian Accounting Standards Board (AASB) that are mandatorily effective for an accounting period that begins on or after 1 July 2023. The amendments did not have a significant impact on the Group’s financial statements. (t) New Accounting Standards issued but not yet effective There are no accounting standards that are not yet effective and that are expected to have a material impact to the Group in the current or future reporting periods and on foreseeable future transactions. Note 2. Critical 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 2024 was $81,224,918 (2023: $68,284,493). 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 will be sold within 12 months. Note 3. Earnings per share 2024 $ 2023 $ Basic earnings per share (0.1) (0.1) Diluted earnings per share (0.1) (0.1) Weighted average number of shares Number Number Used in calculating basic earnings per share 3,341,257,905 2,659,209,327 Used in calculating diluted earnings per share 3,341,257,905 2,659,209,327 $ $ Profit/(loss) used in calculating basic and diluted loss per share (2,293,242) (1,882,932) Due to the loss incurred in the current year, no share options or performance rights have been included in the calculation as they have an anti-dilutive effect on the loss. Notes to the Financial Statements for the year ended 30 June 2024 44 Sunstone Metals Limited Annual Report 2024
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