2000 Annual Report - Heron Resources Limited

5.0 Continued
Financial Statements
Economic Entity
Parent Entity
2000 1999 2000 1999
$ $ $ $
NOTE 3. ABNORMAL ITEMS
Included in the operating loss after tax is the
following abnormal item:
Exploration expenditure written off - 5,140,990 - 5,140,990
NOTE 4. INCOME TAX
Prima facie income tax benefit on operating loss
reconciles to the income tax expense as follows:
Operating loss before tax (535,636) (5,680,473) (535,636) (5,680,473)
Prima facie tax at 36% (192,829) (2,044,970) (192,829) (2,044,970)
Non deductible items 62,492 1,728,904 62,492 1,728,904
Timing differences and tax losses not brought
to account 130,337 316,066 130,337 316,066
Income tax expense - - - -
The Directors estimate the potential tax losses and section 330 exploration expenditure deduction entitlements available to the
economic entity to be $7,748,391 (1999 : $5,119,000).
The future income tax benefit arising from tax losses has not been recognised as an asset because recovery is not virtually
certain.
The tax benefits will only be obtained if:
a) The economic entity derives future assessable income of a nature and of an amount sufficient to enable the benefit from the
deductions for the losses to be realised;
b) The economic entity continues to comply with the conditions for deductibility imposed by tax legislation; and
c) No changes in tax legislation adversely affect the economic entity in realising the benefit from the deductions for losses.
NOTE 5. RECEIVABLES (CURRENT)
Accrued interest - 4,289 - 4,289
Goods & Services Tax Paid 6,661 - 6,661 -
6,661 4,289 6,661 4,289
NOTE 6. RECEIVABLES (NON CURRENT)
Loan to controlled entity - - 363,346 -
- - 363,346 -
NOTE 7. INVESTMENTS IN CONTROLLED ENTITIES
Shares in controlled entities – at cost (Note 22) - - 10 -
- - 10 -
Heron Resources NL Annual Report 2000
page 51