Axiom Mining 2015 Annual Report

COMPANY FINANCIAL REPORT

Notes to the financial statements for the year ended 30 September 2015

84

3.1. Changes in accounting policies and disclosures The Company has adopted the following new and revised standards and interpretation for the first time for the current year’s financial statements:

Amendments to HKFRSs Amendments to HKFRSs

Annual Improvements to HKFRSs 2010-2012 Cycle Annual Improvements to HKFRSs 2011-2013 Cycle

Amendments to HKFRS 10, HKFRS 12 and HKAS 27 (2011) Amendments to HKAS 19 Amendments to HKAS 32 Amendments to HKAS 36 Amendments to HKAS 39

Investment Entities

Defined Benefit Plans: Employee Contributions

Offsetting Financial Assets and Financial Liabilities

Recoverable Amount Disclosures for Non-Financial Assets

Novation of Derivatives and Continuation of Hedge Accounting

HK(IFRIC) - Int 21

Levies

The adoption of the new and revised HKFRSs in the current year has had no material effect on the Company’s financial performance and positions for the current year. In addition, the requirements of Part 9, “Accounts and Audit” of the Hong Kong Companies Ordinance (Cap. 622) came into effect for the first time, during the current financial year. The main impact to the financial statements is on the presentation and disclosure of certain information in the financial statements. 3.2. Issued but not yet effective HKFRSs The Company has not early applied any of the new and revised HKFRSs that have been issued but are not yet effective for the accounting year ended 30 September 2015, in these financial statements. The Company is in the process of making an assessment of the impact of these new and revised HKFRSs upon initial application. So far, the Company considers these new and revised HKFRSs are unlikely to have a significant impact on the Company’s results of operations and financial position. 4. Summary of significant accounting policies Subsidiaries A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e. existing rights that give the Company the current ability to direct the relevant activities of the investee).

When the Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: a. the contractual arrangement with the other vote holders of the investee; b. rights arising from other contractual arrangements; and c. the Company’s voting rights and potential voting rights. The results of subsidiaries are included in the Company’s statement of profit or loss to the extent of dividends received and receivable. The Company’s investments in subsidiaries that are not classified as held for sale in accordance with HKFRS 5 are stated at cost less any impairment losses. Fair value measurement The Company measures its certain financial liability at fair value at the end of each reporting period. Fair value is 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. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 – based on quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly Level 3 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

AXIOM MINING LIMITED ANNUAL REPORT 2015