Page 62 - Bauxite Resources Annual Report 2014

60 | Bauxite Resources Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements cont.
Annual Report 2014 Bauxite Resources 60
(c) Liquidity risk
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash and
marketable securities are available to meet the current and future commitments of the Group. Due to the nature of the Group’s
activities, being mineral exploration, the Group does not have ready access to credit facilities, with the primary source of funding
being equity raisings. The Board of Directors constantly monitor the state of equity markets in conjunction with the Group’s
current and future funding requirements, with a view to initiating appropriate capital raisings as required.
The financial liabilities of the Group and the parent entity are confined to trade and other payables as disclosed in the Balance
Sheet. All trade and other payables are non-interest bearing and due within 12 months of the balance sheet date.
(d) Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure
purposes. All financial assets and financial liabilities of the Group and the parent entity at the balance date are recorded at
amounts approximating their carrying amount.
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. The
quoted market price used for financial assets held by the Group is the current bid price.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due
to their short-term nature.
3. PARENT ENTITY FINANCIAL INFORMATION
(a) Summary financial information
2014 2013
$ $
Current assets 41,234,007 44,782,686
Non-current assets 27,685,367 26,517,784
Total assets 68,919,374 71,300,470
Current liabilities 253,434 279,478
Total Liabilities 253,434 279,478
Net assets 68,665,940 71,020,992
Shareholders’ equity
Contributed equity 87,651,716 87,872,818
Reserves 580,953 469,219
Accumulated profit/(loss) (19,566,729) (17,321,045)
Net equity 68,665,940 71,020,992
(Loss)/profit for the year after tax (2,245,686) (1,572,700)
Total comprehensive income/(loss) (2,245,686) (1,572,700)
(b) Guarantees entered into by parent entity
2014 2013
$ $
Unconditional performance bonds issued in relation to rehabilitation and rental obligations 352,000 355,570
The parent entity has given guarantees in respect of exploration rehabilitation and restoration. The parent entity has also
provided a bank guarantee to secure its obligations to pay rental under the lease for its premises. These guarantees are
secured by cash deposits of equivalent or greater value lodged with the issuing bank (see Note 9).