Westgold Resources Limited Annual Report 2020

102 Westgold Resources Limited Annual Report 2020 Financial Report Notes to the Consolidated Financial Statements for the year ended 30 June 2020 2020 2019 Liabilities Trade and other payables – (6,170,363) Provisions – (23,025,720) Deferred tax liabilities – (3,857,859) – (33,053,942) Gain on disposal – 16,435,747 40. ACCOUNTING STANDARDS New and amended standards and interpretations The Group has adopted all Accounting Standards and Interpretations effective from 1 July 2019. Other than the changes described below, the accounting policies adopted are consistent with those of the previous financial year. The Group applied AASB 16 Leases and Interpretation 23 Uncertainty over Income Tax Treatments for the first time from 1 July 2019. The nature and effect of the adoption of these new standards are described below. Several other new and amended Accounting Standards and Interpretations applied for the first time from 1 July 2019 but did not have an impact on the consolidated financial statements of the Group and, hence, have not been disclosed. AASB 16 Leases Overview AASB 16 supersedes AASB 117 Leases , IFRIC 4 Determining whether an Arrangement contains a Lease , SIC-15 Operating Leases - Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease . The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the balance sheet under a single on-balance sheet model. AASB 16 also requires lessees and lessors to make more extensive disclosures than under AASB 117. Impact The Group has lease contracts for various items of mining equipment, motor vehicles and buildings. It does not have any sub-leases. Before the adoption of AASB 16, the Group classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease. The Group adopted AASB 16 using the modified retrospective method of adoption, with the date of initial application of 1 July 2019. On the date of initial application, the right-of-use assets were recognised based on the amount equal to the lease liabilities. Lease liabilities were recognised based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application. Upon adoption of AASB 16, the Group applied a single recognition and measurement approach for all leases except for short-term leases and leases of low-value assets. Refer to Note 19. The standard provides specific transition requirements and practical expedients, which have been applied by the Group, as set out below: Leases previously accounted for as operating leases The Group recognised right-of-use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases with lease terms that end within 12 months of the date of initial application and leases of low-value assets. The right-of-use assets for all leases were recognised based on the amount equal to the lease liabilities. No adjustments were needed for any previously recognised prepaid or accrued lease expenses as there were none. Lease liabilities were recognised based on the present value of the remaining lease, discounted using the incremental borrowing rate at the date of initial application. 39. DISCONTINUED OPERATIONS (CONTINUED) Higginsville Gold Operations (continued)