Page 54 - Sun Resources 2014 Annual Report

1 Summary of Significant Accounting Policies (continued)
t Business Combinations
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date
on which control is transferred to the Group. Control is the power to govern the financial and operation policies of
an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential
voting rights that currently are exercisable.
u Leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee
are classified as operating leases. Payments made under operating leases (net of any incentives received from the
lessor) are charged to profit or loss on a straight-line basis over the period of the lease.
2 Segment Information
a Description of segments
The business is analysed in two geographical segments namely, Australasia and the United States of America (USA).
The principal activity in these locations is the exploration, development and production of oil and gas projects. The
following table presents revenue, expenditure and certain asset information regarding geographical segments for the
years ended 30 June 2014 and 30 June 2013.
b Segment information provided to the Board
30 June 2014 Australasia
$
USA
$
Unallocated
$ (i)
Consolidated
$
Revenue - oil and gas sales - 581,593 - 581,593
Other income - 106,166 123,641 229,807
Total segment income - 687,759 123,641 811,400
Segment result after income tax (2,268,202) (25,703,704) 123,641 (27,848,265)
Total segment assets 244,124 51,503,153 2,657,972 54,405,249
Segment liabilities 136,710 5,191,882 - 5,328,592
Segment acquisition of assets 6,849 8,851 - 15,700
Segment amortisation and depreciation 31,085 775,629 - 806,714
Segment acquisition of exploration and
production assets - 14,848,198 - 14,848,198
Segment exploration expenditure written-off 234,757 23,216,930 - 23,451,687
Segment production expenditure written-off - 1,779,378 - 1,779,378
30 June 2013 Australasia
$
USA
$
Unallocated
$
Consolidated
$
Revenue - oil and gas sales - 299,607 - 299,607
Other income 381,867 - 69,050 450,917
Total segment income 381,867 299,607 69,050 750,524
Segment result after income tax (6,982,112) (3,334,934) 69,050 (10,247,996)
Total segment assets 157,898 59,548,998 3,550,749 63,257,645
Segment liabilities 115,477 5,992,338 - 6,107,815
Segment acquisition of assets 130,523 - - 130,523
Segment amortisation and depreciation 8,101 471,350 - 479,451
Segment acquisition of exploration and
production assets - 21,336,671 - 21,336,671
Segment exploration expenditure written-off 4,798,053 - - 4,798,053
Segment production expenditure written-off - 2,929,104 - 2,929,104
(i) Unallocated segment amounts relate to cash balances and interest received on these cash balances.
c Other segment information
Revenue from external customers is derived from the sale of oil and gas in the USA.
The economic entity is domiciled in Australia with segment revenue from external customers based on the country in
which the customer is located.
Unallocated segment amounts relate to cash balances and interest received on these cash balances.
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
52 SUN RESOURCES ANNUAL REPORT 2014