b'Centaurus Metals Limited and its controlled entitiesCentaurus Metals Limited and its controlled entities CENTAURUS METALS ANNUAL REPORT 2024Financial Report 31 December 2024Financial Report 31 December 20244.1JudgementsNote 5.Material Accounting Policies Information about judgements made in applying accounting policies that have the most significant effects on the amountsThe Group has consistently applied the following accounting policies to all periods presented in these consolidated financial recognised in the consolidated financial statements is included below and also in the following notes:statements. 4Note 15 - Other Receivables and Prepayments; and5.1Basis of Consolidation 4Note 17 - Exploration and Evaluation Assets. The application of the Groups accounting policy for exploration anda)Subsidiaries evaluation expenditure requires judgement to determine whether future economic benefits are likely, from either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable assessment ofSubsidiaries are entities controlled by the Group.The Group controls an entity when it is exposed to, or has rights to, the existence of reserves.variable returns from its involvement with the entity and has the ability to affect those returns through its power over the 4.2Assumptions and Estimation Uncertaintiesentity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustmentThe accounting policies of subsidiaries have been changed when necessary to align them with policies adopted by the Group. to the carrying amounts of assets and liabilities in the year ending 31 December 2024 is included in Note 17Exploration and Evaluation Assets. In addition to applying judgement to determine whether future economic benefits are likely to ariseb)Transactions Eliminated on Consolidation from the Groups Exploration and Evaluation assets or whether activities have not reached a stage that permits a reasonableInter-Group balances and transactions and any unrealised income and expenses arising from intra-Group transactions, are assessment of the existence of Reserves, the Group has to apply a number of estimates and assumptions. eliminated in preparing the consolidated financial statements. The Group is required to make estimates and assumptions as to future events and circumstances, in particular, whether5.2Foreign Currency successful development and commercial exploitation, or alternatively sale, of the respective areas of interest will be achieved. Critical to this assessment are estimates and assumptions as to Ore Reserves, the timing of expected cash flows,a)Foreign Currency Transactions exchange rates, commodity prices and future capital requirements. Changes in these estimates and assumptions as newTransactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates information about the recoverability of Ore Reserves becomes available, may impact the assessment of the recoverableat the dates of the transactions. amount of exploration and evaluation assets.If, after the expenditure is capitalised, information becomes available suggesting that the recovery of expenditure is unlikely, the relevant capitalised amount is written off to profit or loss in theMonetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at the foreign period when that information becomes available.exchange rate at the reporting date.The foreign currency gain or loss on monetary items is the difference between 4.3Measurement of Fair Valuesamortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the period.Non-A number of the Groups accounting policies and disclosures require the measurement of fair values, for both financial andmonetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the non-financial assets and liabilities. functional currency at the exchange rate at the date that the fair value was determined. Fair values have been determined for measurement and/or disclosure purposes based on the methods described below. Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising on the When applicable, further information about the assumptions made in determining fair values is disclosed in the notesretranslation of financial instruments, a financial liability designated as a hedge of the net investment in a foreign operation, specific to that asset or liability.or qualifying cash flow hedges, which are recognised in other comprehensive income.Non-monetary items that are a)Trade and Other Receivablesmeasured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the marketb)Foreign Operations rate of interest at the reporting date. b)Share-based Payment TransactionsThe assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to Australian dollars at exchange rates at reporting date.The income and expenses of foreign operations are The fair value of employee share options is estimated using the applicable valuation methodology.Measurement inputstranslated to Australian dollars at average exchange rates for the period. include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted averageForeigncurrencydifferencesarerecognisedinothercomprehensiveincomeandpresentedintheforeigncurrency historic volatility adjusted for changes expected due to publicly available information), weighted average expected life oftranslation reserve (FCTR) within equity.the instruments (based on historical experience and general option holder behaviour), expected dividends, and the risk-free interest rate (based on government bonds).Service and performance conditions attached to vesting are not taken intoWhen a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred to profit or loss as account in determining fair value.Where the service period commences prior to grant date the fair value is provisionallypart of the profit or loss on disposal. calculated and subsequently revised upon grant date.When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income and are presented within equity in the FCTR. 5.3Comparative Revisions Where necessary comparative figures have been adjusted to conform with changes in presentation in the current financial year.Page 33 of 60Page 34 of 6058 ANNUAL REPORT CENTAURUS METALS LIMITED'