Cue Energy Resources Limited Notes to the financial statements 30 June 2023 Note 9. Income tax expense (continued) 17 Cue Taranaki Pty Ltd is subject to the provisions of its Petroleum Mining Permit (the Permit) which, in conjunction with the Minerals Programme for Petroleum (1995) Act and Crown Minerals (Royalties for Petroleum) Regulations 2013 (collectively the Legislation), defines the basis of provisional royalty payments made each reporting period. The provisions of the Permit define a hybrid royalty system whereby the minimum royalty payment, is the higher of 5% of revenues or 20% of the provisional accounting profit (APR), as defined in the legislation. The Consolidated Entity recognises the minimum royalty payment as a royalty expense, included in the statement of profit or loss and other comprehensive income as production costs, with any excess of the APR over the minimum royalty payment presented as an income tax expense, in accordance with AASB 112. At 30 June 2023 a deferred tax asset of $5.06 million and a deferred tax liability of $1.38 million have been recognised in respect of the application of the terms of the Legislation to timing differences arising between the recognition and measurement criteria in the Legislation and the application of Australian Accounting Standards. These deferred tax balances are in addition to balances recognised on temporary timing differences generated through the application of the respective corporate income tax legislation in the jurisdictions in which the Consolidated Entity operates. Note 10. Current assets - trade and other receivables Consolidated 2023 2022 $'000 $'000 Trade receivables 8,510 4,508 Other receivables 2,121 2,221 10,631 6,729 Prepayments 191 175 10,822 6,904 Allowance for expected credit losses The group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The consolidated entity has not recognised any losses in profit or loss in respect of the expected credit losses for the year ended 30 June 2023 (30 June 2022: Nil). The ageing of trade and other receivables at the reporting date was as follows: Consolidated 2023 2022 $'000 $'000 Not overdue 5,432 2,150 Less than one month 5,148 4,415 More than 1 month overdue, not impaired 51 - 10,631 6,565 Trade and other receivables are not considered impaired and relate to a number of independent customers for whom there is no recent history of default. On 10 July 2023, $3.07 million was received from Maari oil sales in June 2023, reducing amount noted as trade and other receivables. 63 Cue Energy Resources Limited Annual Report 2023
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