ASIC has welcomed changes to the 30 June 2014 financial report of Jervois Mining Limited (Jervois) to correct errors in its tax effect accounting and its capitalisation of exploration and evaluation assets.
ASIC reviewed Jervois Mining Limited's financial report for the years ending 30 June 2014. Following ASIC's inquiries, Jervois has reissued its 30 June 2014 and 31 December 2014 financial reports.
In its 30 June 2014 financial report the company has:
- written back a deferred tax liability of $1.5 million (2013: $0.9 million)
- removed an income tax expense of $0.3 million at 30 June 2013
- reduced exploration and evaluation asset balances by $0.7 million (2013: $0.5 million)
- reduced impairment expense by $0.4 million (2013:$0.1 million)
In its 31 December 2014 financial report the company has made similar adjustments, but also reduced revenue by $0.5 million (2013: $0.7 million) relating to a research and development tax offset, and reduced the carrying value of exploration and evaluation assets.