Page 56 - Sun Resources 2014 Annual Report

Consolidated
4 Income Tax (continued) 2014 2013
c Deferred Tax Liabilities $ $
Exploration and evaluation expenditure - Australia - -
Exploration and evaluation expenditure - USA - -
Temporary differences - Australia - 25,123
Temporary differences - USA - -
25,123
Difference in overseas tax rates - -
Off-set of deferred tax assets - (25,123)
Net deferred tax liabilities recognised - -
d Unrecognised deferred tax assets arising on timing differences
Tax losses - Australia 3,445,411 2,991,699
Tax losses - USA 14,293,935 3,281,640
Temporary differences - Australia 221,648 43,538
Temporary differences - USA 1,807,916 1,862,726
Expenses taken to equity - -
19,768,910 8,179,603
Difference in overseas tax rate - -
Off-set of deferred tax liabilities - (25,123)
Net deferred tax assets not brought to account 19,768,910 8,154,480
No deferred tax assets have been recognised as it is not probable that future tax profits will be available to offset
these balances.
5 Cash and Cash Equivalents
Cash at bank and on-hand 1,807,972 2,723,425
Term Deposits 850,000 827,324
2,657,972 3,550,749
Cash at bank bears floating interest rates between 0% and 2.7% (2013: 0% and 2.8%). Term deposits are for thirty
days and bear approximately 3.4% interest (2013: 4%).
Non-cash financing and investing activities
2014
Amerril Energy LLC agreed in terms of a placement in November 2013 to offset an amount of A$1,050,000 owed to it
by Sun in consideration for 35 million new shares worth A$1,050,000.
2013
During the year the Company issued shares, options and performance options for no cash as part consideration to
acquire the Delta Oil Project and Amerril Oil Project.
The fair value of these issued securities are as follows:
Shares (Note 11)(i) 15,488,589
Options - Performance and other (Note 12)(ii) 7,318,782
Total (Note 8) 22,807,371
(i) The value of the share placements for the expansion of the Delta Oil Project and Amerril Oil Project on the 12
September 2012 is determined not by fair value based on leases or service, but on the value of the shares as
quoted by the Australian Securities Exchange Limited at this date. The fair value of the leases or service at this
date could not be determined as there was not an active market for these leases or services.
(ii) The value of the options granted for the expansion of the Delta Oil Project and Amerril Oil Project is determined
not by fair value based on leases or service, but on the value of the options using the black-scholes option
pricing model. The fair value of the leases or service could not be determined as there was not an active market
for these leases or services.
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
54 SUN RESOURCES ANNUAL REPORT 2014