lease payments made at or before the commencement of the contract, less any lease incentives received, any initial direct 
costs and any restoration costs. Subsequently the asset is measured at cost less any accumulated depreciation and 
impairment losses and adjusted for certain re-measurements of the lease liability. Right-of-use assets are depreciated over 
the shorter period of either the useful life of the underlying asset or the lease term. 
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement 
date, discounted using the interest rate implicit in the lease or, if that rate cannot be determined the lessee’s incremental 
borrowing rate is used, being the rate the lessee would have to pay to borrow funds necessary to obtain an asset of similar 
value in a similar economic environment with similar terms and conditions.  
The lease liability is subsequently increased by the interest costs on the lease liability and decreased by lease payments 
made. It is re-measured where there is a change in future lease payments arising from a change in an index rate, or as 
appropriate, changes in the assessment of whether an extension option is reasonably certain to be exercised. 
The Group applies the low-value assets and the short-term lease exemptions to leases. Lease payments on short term leases 
and leases of low-value assets are recognised as an expense on a straight-line basis over the lease term. 
5.10 Asset Acquisition  
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a carrying 
amount based on their relative fair values. No deferred tax is recognised in relation to the acquired assets and assumed 
liabilities as the initial recognition exemption for deferred tax under AASB 112 applies. No goodwill will arise on the 
acquisition of the net assets and transaction costs relating to the asset acquisition will be included in the capitalised cost of 
the asset. 
Any contingent consideration arising from the acquisition will be recognised at fair value at the acquisition date. Contingent 
consideration classified as a liability that is a financial instrument and within the scope of AASB 9 is measured at fair value, 
with changes in fair value recognised in profit or loss in the statement of profit or loss and other comprehensive income in 
accordance with AASB 9.   
5.11 Impairment  
a) 
Non-derivative Financial Assets 
A loss allowance for expected credit loss (ECL) is recognised on financial assets measured at amortised cost. 
The loss allowances are measured at an amount equal to lifetime ECLs, except for, bank balances which are measured at 12-
month ECLs, for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not 
increased significantly since initial recognition.  
Loss allowances for trade receivables are always measured at an amount equal to lifetime ECLs.  
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when 
estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue 
cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical 
experience and informed credit assessment and including forward-looking information.  
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The 
Group considers a financial asset to be in default when the financial asset is more than 90 days past due.  
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-
month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting 
date (or a shorter period if the expected life of the instrument is less than 12 months). 
The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed 
to credit risk.  
i) 
Measurement of ECLs 
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash 
shortfalls. ECLs are discounted at the effective interest rate of the financial asset. 
 
 
59
CENTAURUS METALS LIMITED     ANNUAL REPORT

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