Impact Minerals Ltd Annual Report 2023 53 Notes to the Consolidated Financial Statements continued NOTE 11: EXPLORATION AND EVALUATION (CONTINUED) Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either: i) t he expenditures are expected to be recouped through successful development and exploitation or from sale of the area of interest; or ii) a ctivities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability, and facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the exploration activity relates. The cash generating unit shall not be larger than the area of interest. Once the technical feasibility and commercial viability of the extraction of minerals in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified to mineral property and development assets within property, plant and equipment. When an area of interest is abandoned or the directors decide that it is not commercial, any accumulated costs in respect of that area are written off in the financial period the decision is made. NOTE 12: RIGHT OF USE ASSETS Carrying value Consolidated 2023 $ 2022 $ Cost 449,604 – Accumulated depreciation (7,517) – Carrying value at end of financial year 442,087 – Reconciliation Consolidated 2023 $ 2022 $ Opening balance – – Additions 449,604 – Depreciation expense (7,517) – Closing balance 442,087 – NOTE 13: OTHER NON-CURRENT ASSETS Consolidated 2023 $ 2022 $ Deposits paid 234,055 273,055 234,055 273,055
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