Cellmid 2018 Annual Report 35
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
Cellmid Limited is a public company, listed on the Australian Stock Exchange, limited by shares and incorporated and
domiciled in Australia.
The ﬁnancial statements are general purpose ﬁnancial statements that have been prepared in accordance with Australian
Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (“AASB”) and the Corporations
Act 2001, as appropriate for for-proﬁt oriented entities. These ﬁnancial statements also comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board (“IASB”).
The ﬁnancial statements cover Cellmid Limited as a Group, consisting of Cellmid Limited and the entities it controlled at the
end of, or during the year.
The ﬁnancial statements were authorised for issue by the directors on 19th September 2018.
Basis of Preparation
Historical Cost Convention
The ﬁnancial statements have been prepared on an accruals basis and are based on historical costs, except for certain
non-current assets and ﬁnancial instruments that are measured at re-valued amounts or fair values. Historical cost is generally
based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars,
unless otherwise noted.
Critical Accounting Estimates
The preparation of ﬁnancial statements in conformity with International Financial Reporting Standards requires the use of
certain accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s
accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates are signiﬁcant to the ﬁnancial statements, are disclosed in the relevant notes.
Parent Entity Information
In accordance with the Corporations Act 2001, these ﬁnancial statements present the results of the Consolidated Group only.
Supplementary information about the parent entity is included in Note 2.
(a) Going concern
The Directors have prepared the ﬁnancial statements on a going concern basis, which contemplates continuity of normal
business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
On 31 July 2018 the Group announced that it had raised $9 million, before costs (of 5%), via a capital raising to new and
existing institutional investors. On that date the Group also announced a Share Purchase Plan to raise $1 million from existing
shareholders. Shareholder approval was required for a certain portion of this capital raising and this was obtained on 7
September 2018. The Share Purchase Plan closed on 30 August 2018 raising $1,025,000.
These funds have been included in the cash ﬂow forecast for the next twelve months, prepared by management, which
indicates that the Group will have the ability to meet its debts as and when they fall due.
(b) Principles of consolidation
The consolidated ﬁnancial statements incorporate the assets and liabilities of all subsidiaries of Cellmid Limited (“the
Company”) as at 30 June 2018 and the results of all subsidiaries for the year then ended. Cellmid Limited and its subsidiaries
together are referred to in these ﬁnancial statements as the Group.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to
the Group. They are de-consolidated from the date that control ceases.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.