MHSC ANNUAL REPORT 2020

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Mine Health and Safety Council for the year ended March 31, 2020 Accounting Policies (continued)

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item

Depreciation method Average useful life

Licenses and software

Straight line

1‑8 years

Intangible assets are derecognised: • on disposal; or • when no future economic benefits or service potential are expected from its use or disposal. The gain or loss arising from the derecognition of intangible assets is included in surplus or deficit when the asset is derecognised.

1.6 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest of another entity. A financial asset is: • cash; • a residual interest of another entity; or • a contractual right to: ◊ receive cash or another financial asset from another entity; or ◊ exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity. • exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Liquidity risk is the risk encountered by an entity in the event of difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Classification Financial instruments are measured at amortised cost using the effective interest rate method less any impairment losses. A financial liability is any liability that is a contractual obligation to: • deliver cash or another financial asset to another entity; or

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“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”