Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Accounting for Expired, Forfeited or Cancelled Options and Rights Area of focus (refer also to notes 2, 3, 9, 10 and 17) During the year, the Group had a number of share options and rights that ceased through expiry, forfeiture, or cancellation. The accounting treatment of these events required judgement in determining whether the reversal or write-back of previously recognised amounts should be reflected in profit or loss, or directly in accumulated losses within equity. This assessment is significant and therefore considered a Key Audit Matter due to: — the complexity of the applicable accounting guidance under AASB 2 Share-based Payment and its interaction with equity classification under the Corporations Act; — the need to distinguish between vested instruments that relate to services received in prior periods (which remain permanently in equity) and those that represent unvested instruments which lapse without vesting (which may require reversal through profit or loss); and — the potential impact on reported financial performance and equity balances of the Group, which is particularly relevant to shareholders and other users of the financial report. How our audit addressed the key audit matter Our audit procedures included: — Obtaining a detailed schedule of all options and rights that expired, were forfeited, or cancelled during the year, and agreeing these to underlying supporting documentation; — Assessing management’s application of AASB 2 in determining whether the accounting treatment should be a charge or reversal to profit or loss, or to accumulated losses, by reference to the stage of vesting and service conditions at the date of cessation; — Considering the adequacy of disclosures in the financial report regarding the nature of the expired, forfeited, or cancelled options and rights, and the associated accounting treatment. Based on the procedures performed, we evaluated the Group’s treatment of the expiry, forfeiture, and cancellation of options and rights, and the related disclosures, as appropriate.
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