Cellmid 2018 Annual Report 37
The Group will adopt this standard from 1 July 2018. Based on the initial assessment by management, although this new
standard may impact the preparation and reporting of the Group, the initial assessment indicates that the overall net financial
impact will be immaterial.
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019.
Under AASB 16, a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. Under AASB 117, a lessee was required to make a distinction between a finance
lease (on balance sheet) and an operating lease (off balance sheet). AASB 16 now requires a lessee to recognise a lease liability
reflecting future lease payments and a ‘right-of-use asset’ for virtually all lease contracts. Included is an optional exemption for
certain short-term leases and leases of low-value assets; however, this exemption can only be applied by lessees. Under AASB
16, the lease commitments will be capitalised on the balance sheet and then depreciated.
The Group will adopt AASB 16 from 1 July 2019. Based on its currently existing leases, the impact to the profit and loss in
2020 is expected to be neutral and in the years 2021 to 2023 the impact to the profit and loss is expected to be a reduction
in expense of between $10,000 and $50,000 per year. A right of use asset and lease liability of approximately $750,000 is
expected to be capitalised on the balance sheet upon adoption.
The following information has been extracted from the books and records of the parent, Cellmid Limited, and has been
prepared on the same basis as the consolidated financial statements, except as disclosed below. Investments in subsidiaries
and intercompany loans are accounted for at cost, less any relevant impairment, in the financial statements of the parent entity.
2018 2017 1 July 2016
(Restated) (Restated)
Note $ $ $
Statement of Financial Position
CURRENT ASSETS 847,998 3,401,880 2,245,484
NON-CURRENT ASSETS 3,605,018 3,214,876 7,844,835
Total Assets 4,453,016 6,616,756 10,090,319
CURRENT LIABILITIES (2,590,589) (2,544,956) (1,324,282)
NON-CURRENT LIABILITIES (7,255) (774) (68,071)
Total Liabilities (2,597,844) (2,545,730) (1,392,353)
Issued capital 38,014,078 36,715,030 32,426,826
Accumulated losses (38,525,679) (34,899,288) (25,817,837)
Reserves 2,366,773 2,255,284 2,088,977
Total Equity 1,855,172 4,071,026 8,697,966
Statement of Profit or Loss and Other Comprehensive Income
Loss of the parent entity (3,626,391) (9,081,451) (1,320,599)
Total comprehensive income (3,626,391) (9,081,451) (1,320,599)