| |
| |
| 1 | Accounting policies |
|
|
|
|
|
|
|
|
|
|
| 1.19 | Foreign currency translation |
|
| Transactions in currencies other than Sterling, the presentational and functional currency of the Company, are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Gains and losses arising on retranslation are included in the income statement for the period, except for exchange differences on non-monetary assets and liabilities, which are recognised directly in equity, where the changes in fair value are recognised directly in equity |
|
|
|
|
| On consolidation, the assets and liabilities of the Group's overseas entities (none of which has the currency of a hyper-inflationary economy) are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are classified as equity and transferred to the Group's translation reserve. Such translation differences are recognised as income or as expenses in the period in which the operation is disposed of. |
|
|
|
|
|
|
|
|
|
|
| The exchange rate on 31 December 2014 was £1: 91.423 KGS ("Kyrgyzstanian Som") (2013 £1: 81.157 KGS) the functional and presentational currency of the main subsidiary undertaking. The average rate applied to transactions during the year was £1: 87.484 KGS. |
|
|
|
|
|
|
|
|
|
| 1.20 | Taxation |
|
| The income tax expense or taxation recoverable represents the sum of tax currently payable or recoverable and deferred tax. The tax currently payable is based on the taxable profit for the period using the tax rates that have been enacted or substantially enacted by the balance sheet date. Taxable profit differs from the net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Deferred 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 for financial reporting purposes. Deferred tax is determined using tax rates that have been enacted or substantially enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred tax liability is settled. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are only recognised to the extent that it is probable that future taxable profit will be available against which the asset can be utilised. |
| 1.21 | Leasing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rentals payable under operating leases are charged against income on a straight line basis over the lease term. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1 | Accounting policies |
|
|
|
|
|
|
|
|
|
1.22 | Accounting Standards issued but not yet effective and/or adopted |
| As at the date of approval of these financial statements, the following standards were in issue but not yet effective. These standards have not been adopted early by the company as they are not expected to have a material impact on the company's financial statements. |
|
|
|
|
|
|
|
|
| IFRS 9 | Financial instruments - classification and measurement (revised) |
| IFRS 9 | Financial instruments - Hedge accounting (revised) |
| IFRS 10 and IAS 28 | Consolidated financial statements - sale or contribution of assets between an investor and its associates or joint venture (amendment) |
| IFRS 11 | Joint arrangements - accounting for acquisitions of an interest in a joint operation (amendment) |
| IFRS 12 | Disclosure of interests in other entities - application of the consolidation exception (amendment) |
| IFRS 14 | Regulatory deferral accounts |
| IFRS 15 | Revenue from contracts with customers |
| IFRS 2, 3, 8, IAS 16, 24, 38 | Annual improvements 2010 - 2012 cycle |
| IFRS 1, 3, 13 IAS 40 | Annual improvements 2011 - 2013 cycle |
| IAS 1 | Presentation of financial statements - disclosure initiative (amendment) |
| IAS 19 | Defined benefit plans: Employee contributions (amendment) |
| IAS 27 | Separate financial statements - use of equity accounting method for investments (amendment) |
| IAS 38 | Intangible assets - acceptable methods of depreciation and amortisation (amendment) |
| IAS 39 | Novation of derivatives and continuation of hedge accounting (amendment) |
| IAS 41 | Agriculture - bearer plants |
|
|
|
|
|
|
|
|
| The International Financial Reporting Interpretations Committee has also issued interpretations which the company does not consider will have a significant impact on the financial statements. |
|
|
|
|
|
|
|
|
| 2 | Critical accounting estimates and judgements | |
|
| The preparation of the financial information in conformity with IFRS requires the use of certain critical accounting estimates that affect the reported amounts of assets and liabilities at the date of the financial information and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amounts, events or actions, actual results ultimately may differ from these estimates. The estimates and underlying assumptions are as follows: | |
|
|
|
|
|
| |
|
| Exploration and evaluation costs and licences | |
|
| Capitalisation of exploration and evaluation costs and the cost of acquiring licences requires that costs be assessed against the likelihood that such costs will be recoverable against future exploitation or sale or alternatively, where activities have not reached a stage which permits a reasonable estimate of the existence of mineral reserves, a judgement that future exploration or evaluation should continue. This requires management to make estimates and judgements and to make certain assumptions, often of a geological nature, and most particularly in relation to whether or not an economically viable mining operation can be established in future. Such estimates, judgements and assumptions are likely to change as new information becomes available. When it becomes apparent that recovery of expenditure is unlikely the relevant capitalised amount is written off to the income statement. | |
|
|
|
|
|
| |
| | | | | | | | | | | | |