EQ Resources Limited Annual Report 2021

66 EQ Resources Limited Annual Report 2021 ANNUAL Report June 2021 Audit r’s Independenc Declaration 52 Auditor’s Independence Declaration Auditor’s Indep ndenc D claration Independent Auditor’s Report to the Members of EQ Resources Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of EQ Resources Limited (the Company and its subsidiaries (the Group)), which comprises the statement of financial position as at 30 June 2021, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of EQ Resources Limited is in accordance with the Corporations Act 2001 , including: i) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance for the year then ended; and ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Nexia Melbourne Audit Pty Ltd Registered Audit Company 291969 Level 12, 31 Queen Street Melbourne VIC 3000 p +61 3 8613 8888 f +61 3 8613 8800 e info@nexiamelbourne.com.au w nexia.com.au Liability limitedbyaschemeapprovedunder Professional StandardsLegislation. NexiaMelbourneAudit PtyLtd (ABN86005105975) isan independent firmofCharteredAccountants. It isaaffiliatedwith, but independent fromNexiaAustraliaPtyLtd,which isamember ofNexia International, aworldwidenetworkof independent accountingandconsultingfirms. NeitherNexia International norNexiaAustraliaPtyLtd, deliver services in itsownnameor otherwise. Nexia International Limitedand the member firmsof theNexia International network (including thosememberswhich tradeunder anamewhich includesNEXIA) arenot part of aworldwidepartnership. The trademarksNEXIA INTERNATIONAL, NEXIAand theNEXIA logoareownedbyNexia International Limitedandusedunder licence. Ind pendent Auditor’s Report o the Members of EQ Resources Limited Key audit matter How our audit addressed the key audit matter Carrying value Deferred exploration and e aluation expe diture Refer to Note 10 non-current assets The Group carries significant exploration and evaluation assets at 30 June 2021 which is material to the financial report. As a result the capitalised exploration and evaluation expenditure were required to be considered for impairment indicators in accordance with AASB 6 Exploration and Evaluation of Mineral Resources and therefore consid red a key audit matter. Our procedures included, amongst others: • Obtain schedules of the areas of interest held by the Group and assessing whether the rights to tenure remain current at balance date; • Considering whether any such areas of interest had reached a stage where a reasonable assessment of economically recoverable reserves existed; • Review the Group’s capitalisation of exploration expenditure in the current year, ensuring that it is consistent with the criteria as stated under AASB 6. This included disc ssion with management, reviewing Group exploration budgets, ASX an ounc m nts nd directors’ minutes; • Review and c nsidered whether any facts or circumstances existed that suggest impairment was required; • Assessing the adequacy of the related disclosures in Note 10 to the financial report. Other information The directors are responsible for the other information. The other information comprises the information in the Group’s ann al r port for th year ended 30 June 2021, but does not include the financi l report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the other information we are required to report that fact. We have nothing to report in this regard.