56 Impact Minerals Ltd Annual Report 2022 Notes to the Consolidated Financial Statements continued NOTE 10: FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Consolidated 2022 $ 2021 $ Opening balance 145,000 – Additions 50,000 100,000 Change in fair value (Note 16(c)) 27,500 45,000 Closing balance 222,500 145,000 In February 2021, the Company announced that it had reached an agreement for the sale of tenement EL8632 and the northern part of block EL8505 in the Company’s Lachlan Fold Belt portfolio to Orange Minerals Pty Ltd an unrelated company. The consideration being (a) a non-refundable deposit of $15,000; (b) $50,000 in shares in a company to be listed (ultimately Orange Minerals NL ASX:OMX); (c) $180,000 in cash; and (c) a 1% Net Smelter Royalty. During the current reporting period the sale was completed, and the Company recognised a gain on the sale of the tenements of $114,859. The Company holds 250,000 shares in Orange Minerals NL. The Company also holds 1,000,000 shares in Australasian Metals Ltd (ASX:A8G). Financial assets are recognised and derecognised on settlement date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned. They are initially measured at fair value, net of transaction costs, except for those financial assets classified as fair value through profit or loss, which are initially measured at fair value. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. The Group classifies its financial assets as either financial assets at fair value though profit or loss (“FVPL”), fair value though other comprehensive income (“FVOCI”) or at amortised cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For investments in equity instruments, the classification depends on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at FVPL or FVOCI. Financial assets at FVOCI For assets measured at FVOCI, gains and losses will be recorded in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. The Group has elected to measure its listed equities at FVOCI. Assets in this category are subsequently measured at fair value. The fair values of quoted investments are based on current bid prices in an active market.
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