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 2024The Group applies the low-value assets and the short-term lease exemptions to leases. Lease payments on short term leasesb)Non-financial Assets and leases of low-value assets are recognised as an expense on a straight-line basis over the lease term.The carrying amounts of the Groups non-financial assets, other than deferred tax assets, are reviewed at each reporting 5.9Asset Acquisition date to determine whether there is any indication of impairment.If any such indication exists, then the assets recoverable When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a carryingamount is estimated. amount based on their relative fair values. No deferred tax is recognised in relation to the acquired assets and assumedThe recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to liabilities as the initial recognition exemption for deferred tax under AASB 112 applies. No goodwill will arise on thesell.In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount acquisition of the net assets and transaction costs relating to the asset acquisition will be included in the capitalised cost ofrate that reflects current market assessments of the time value of money and the risks specific to the asset.For the purpose the asset.of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that Any contingent consideration arising from the acquisition will be recognised at fair value at the acquisition date. Contingentgenerates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of consideration classified as a liability that is a financial instrument and within the scope of AASB 9 is measured at fair value,assets.The group of assets is referred to as the Cash Generating Unit or CGU.with changes in fair value recognised in profit or loss in the statement of profit or loss and other comprehensive income inThe Groups corporate assets do not generate separate cash inflows. If there is an indication that a corporate asset may be accordance with AASB 9.impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs. 5.10Impairment An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount.a)Non-derivative Financial AssetsImpairment losses are recognised in profit or loss.Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other A loss allowance for expected credit loss (ECL) is recognised on financial assets measured at amortised cost.assets in the unit (group of units) on a pro rata basis. The loss allowances are measured at an amount equal to lifetime ECLs, except for, bank balances which are measured at 12- In respect of assets, other than goodwill, impairment losses recognised in prior periods are assessed at each reporting date month ECLs, for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has notfor any indications that the loss has decreased or no longer exists.An impairment loss is reversed if there has been a change increased significantly since initial recognition. in the estimates used to determine the recoverable amount.An impairment loss is reversed only to the extent that the Loss allowances for trade receivables are always measured at an amount equal to lifetime ECLs. assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when5.11Employee Benefits estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Groups historicala)Defined Contribution Plans experience and informed credit assessment and including forward-looking information. A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. Theentity and will have no legal or constructive obligation to pay further amounts.Obligations for contributions to defined Group considers a financial asset to be in default when the financial asset is more than 90 days past due. contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which services are Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12- rendered by employees. month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reportingb)Other Long-term Employee Benefits date (or a shorter period if the expected life of the instrument is less than 12 months).The Groups net obligation in respect of long-term employee benefits is the amount of future benefit that employees have The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposedearned in return for their service in the current and prior periods plus related on-costs. That benefit is discounted to to credit risk. determine its present value, and the fair value of any related assets is deducted. i)Measurement of ECLsc)Short-term Benefits ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cashShort-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount shortfalls. ECLs are discounted at the effective interest rate of the financial asset.expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service ii)Credit-impaired financial assetsprovided by the employee and the obligation can be estimated reliably. At each reporting date, the Group assesses whether financial assets carried at amortised costs are credit-impaired. Ad)Share-based Payment Transactions financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cashThe fair value of share-based payment awards granted to employees is recognised as an expense at grant date with a flows of the financial asset have occurred. corresponding increase in equity, over the period that employees become entitled to the awards.The amount recognised iii)Presentation of allowance for ECL in the statement of financial positionas an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that Loss allowances for financial assets measured at amortised costs are deducted from the gross carrying amount of the assets.meet the related service and non-market performance conditions at the vesting date.For share-based payment awards iv)Write-offwith non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes. The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recoveringShare-based payment arrangements in which the Group receives goods or services as consideration for its own equity a financial asset in its entirety or a portion thereof.instrumentsareaccountedforasequity-settledshare-basedpaymenttransactions,regardlessofhowtheequity instruments are obtained by the Group. When the Company grants options over its shares to employees of subsidiaries, the fair value at grant date is recognised as an increase in the investments in subsidiaries, with a corresponding increase in equity over the vesting period of the grant. Page 37 of 60Page 38 of 6062 ANNUAL REPORT CENTAURUS METALS LIMITED'