Cue Energy Resources Limited Notes to the financial statements 30 June 2025 Note 11. Non-current assets - production properties (continued) 44 Impairment losses and reversals are recognised in respect of cash-generating units are allocated to reduce the carrying amount of the assets in the unit (group of units) on a pro rata basis. Accounting policy for calculation of recoverable amount For oil and gas assets the estimated future cash flows are based on either the fair value less costs to sell or the value-in-use calculations, which use estimates of hydrocarbon reserves, future production profiles, commodity prices, operating costs and any future development costs necessary to produce the reserves. Estimates of future commodity prices are based on contracted prices where applicable or based on estimates of forward market prices. The recoverable amount of cash generating units is the greater of their fair value less cost to dispose and value-in-use. In assessing value-in-use, the estimated future cash flows are discounted to their present value using a post-tax discount rate based on assumptions that reflect current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cashgenerating unit to which the asset belongs. The restoration provision is deducted from the carrying value of the asset as the cost of restoration is included in its cost base. This adjustment is required to allow a true reflection of its carrying value against its recoverable value. Development assets Consolidated Net accumulated cost incurred on areas of interest 30 June 2025 30 June 2024 Development assets $'000 $'000 Sampang - Paus Biru 4,407 4,339 Mereenie 61 214 4,468 4,553 Note 12. Non-current liabilities - provisions Consolidated 30 June 2025 30 June 2024 $'000 $'000 Employee benefits 6 2 Restoration provisions 30,402 28,607 30,408 28,609 Movements in restoration provision during the financial year are set out below: Restoration provisions Consolidated - 30 June 2025 $'000 Carrying amount at the start of the year 28,607 Change in provisions recognised 735 Unwinding of provision 691 Impact of foreign currency translation 369 Carrying amount at the end of the year 30,402 56 Cue Energy Resources Limited Annual Report 2025
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