EQ Resources Limited Annual Report 2021

50 EQ Resources Limited Annual Report 2021 Notes to the Consolidated Financial Statements continued ANNUAL Report June 2021 Notes to the Consolidated Financial Statements 36 2021 $ 2020 $ Reconciliation of the carrying amount of plant and equipment at the beginning and end of the current and previous financial year Carrying amount at beginning 2,254,941 331,674 Additions 1,070,671 2,151,486 Disposals (105,490) (8,564) Plant and equipment written down - - Depreciation expense (412,507) (219,655) 2,807,615 2,254,941 10. DEFERRED EXPLORATION AND EVALUATION 2021 $ 2020 $ Costs brought forward 6,896,994 6,834,416 Costs incurred during the period 1,572,597 212,753 Costs recognised upon acquisition of MCQ on 28 June 2019 - (5,079) Exploration and evaluation expenditure written down - (140,855) Capitalised portion of R&D tax offset (13,200) (4,241) Total deferred exploration and evaluation 8,456,391 6,896,994 Amortisation deferred exploration and evaluation (176,038) - Costs carried forward 8,280,353 6,896,994 Exploration expenditure costs carried forward are made up of: Expenditure on joint venture areas - - Expenditure on non-joint venture areas 8,280,353 6,896,994 Costs carried forward 8,280,353 6,896,994 The above amounts represent costs of areas of interest carried forward as an asset in accordance with the accounting policy set out in Note 1. The ultimate recoupment of deferred exploration and evaluation expenditure in respect of an area of interest carried forward is dependent upon the discovery of commercially viable reserves and the successful development and exploitation of the respective areas or alternatively sale of the underlying areas of interest for at least their carrying value. Amortisation, in respect of the relevant area of interest, is not charged until a mining operation has commenced. The Directors reassess the carrying value of the Group’s tenements at each half year, or at a period other than that, should there be any indication of impairment. 11. TRADE AND OTHER PAYABLES 2021 $ 2020 $ PAYABLES Trade payables 2,485,388 494,259 Other taxation 171,343 92,846 Unearned revenue 393,519 - Accrued expenses 597,275 149,505 Other - - 3,647,525 736,610