EQ Resources Limited Annual Report 2021

48 EQ Resources Limited Annual Report 2021 Notes to the Consolidated Financial Statements continued ANNUAL Report June 2021 Notes to the Consolidated Financial Statements 34 No franking credits are available for subsequent years. Tax consolidation The tax consolidation scheme is applicable to the Company. As at the date of this report the Directors have assessed the financial effect the scheme may have on the Company and its consolidated entities and have made a decision to be taxed as a consolidated entity. The financial effect of the tax consolidation scheme on the Group has not been recognised in the financial statements. 4. INVENTORY 2021 $ 2020 $ Current Finished Goods 493,400 108,000 Work-in-progress 7,953 - Raw materials 64,661 - Workshop inventory 107,010 - 673,024 108,000 Non-current Raw materials 7,142,176 7,437,413 7,142,176 7,437,413 7,815,200 7,545,413 The above amount for raw materials incorporates the fair value of the estimated 7 million tonnes of stockpiled inventory acquired as part of the acquisition of Mt Carbine Quarries Pty Ltd on 28 June 2019 along with the work-in-progress and finished goods inventory which have been created from this stockpiled material. The inventory will be consumed on a units of operation basis in accordance with AASB102. All inventory, regardless of type and stage in the production process has been valued at the lower of cost and net realisable value (NRV). Inventories expected to be processed or sold within twelve months after the balance sheet date are classified as current assets. All other inventories are classified as non-current assets. The cost of inventories recognised as an expense includes write-downs of inventory to NRV in the amount of $81,406. 5. FINANCIAL ASSETS 2021 $ 2020 $ Shares in listed companies: Critical Resources Limited (ASX: CRR) | Formerly Force Commodities Limited (ASX: 4CE) 3,610 2,113 Equity instruments are measured at fair value as at reporting date with all changes recognised as other comprehensive income / (loss) in the Consolidated Statement of Profit or Loss and Other Comprehensive Income.