Page 71 - Bauxite Resources Annual Report 2014

Annual Report 2014 Bauxite Resources | 69
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements cont.
69 Bauxite Resources Annual Report 2014
Set out below is the summarised financial information for Bauxite Alumina Joint Venture Pty Ltd. Unless otherwise stated, the
disclosed information reflects the amounts presented in the Australian Accounting Standards financial statements of Bauxite
Alumina Joint Venture Pty Ltd. The following summarised financial information, however, reflects the adjustments made by the
Group when applying the equity method. This entity has the same financial year end as Bauxite Resources Limited.
Bauxite Alumina Joint Venture Pty Ltd
2014 2013
Summarised Financial Position $ $
Current assets 137,422 295,244
Non-current assets 1,233,425 1,167,541
Current liabilities 1,458,602 1,586,400
Non-current liabilities - -
NET ASSETS (87,755) (123,615)
Group’s Share 50% 50%
Group’s Share of joint venture’s net assets - unrecognised (43,878) (61,808)
Summarised Financial Performance
Income 43,079 -
Expenses - (109,514)
Income tax expense (7,219) (14,103)
Net profit / (loss) after tax 35,860 (123,617)
Group’s Share 50% 50%
Group’s Share of joint venture’s net profit/(loss) after tax - (1)
Reconciliation to Carrying Amounts
Group’s share of joint venture’s opening net assets - 1
Group’s share of joint venture’s net profit/(loss) after tax - (1)
Group’s share of joint venture’s closing net assets (Closing carrying amount of investment) - -
The Group’s share of losses in the year ended 30 June 2013 is limited to $1 such that its net share of the joint venture entity’s
net assets is reduced to $Nil. Pursuant to AASB 128 Investments in Associates, the Group has discontinued to recognise its
share of further losses. When the joint venture entity subsequently makes profits, the Group will resume recognising its share of
those profits once its share of the profits equals the share of the losses not recognised. At 30 June 2014, the total share of
unrecognised losses amounted to $43,878.
(b) Alumina Refinery Joint Venture
The Group has a 10% interest in the Alumina Refinery Joint Venture (“ARJV”), whose principal activity is to determine:
i. the feasibility of planning, developing, constructing and operating an Alumina Refinery; and
ii. if feasible, planning developing, constructing, operating and maintaining the Alumina Refinery.
Under the current terms of the ARJV, in the event that a bankable feasibility study is completed and the participants agree to
construct a refinery, 9% of the capital expenditure will be met by BRL, however, it will be entitled to 30% of the alumina
production and pay 30% of the operating costs.
(c) Bauxite Resource Joint Venture
The Group has a 30% interest in the Bauxite Resource Joint Venture, whose principal activity is exploring the tenements owned
by BRL in the Darling Range of Western Australia (as specifically set out in the agreement) to support the development of
bauxite mining and the conduct of mining operations to supply bauxite to an alumina refinery under the terms of the Agreement.
The Company has determined that the Bauxite Resource Joint Venture and the Alumina Refinery Joint Venture both meet the
definition of “joint operation” under IFRS 11. Accordingly the following amounts are included in the Group’s consolidated
financial statements representing the Group’s share of the assets liabilities, income and expenses of the Joint Ventures above: