Siren Gold Limited Annual Report 2020

17 Interest in subsidiaries Investments in subsidiaries are accounted for at cost. The subsidiary’s country of incorporation is also its principal place of business: Percentage Owned Subsidiary Country of Incorporation Class of shares 2020 2019 Reefton Resources Pty Ltd New Zealand Ordinary 100% 100% 18 Commitments The Group has no future commitments as at 31 December 2020. 19 Events subsequent to reporting date There are no significant events that have arisen since the date of this report which have significantly affected or could significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years. 20 Contingent liabilities The company has no contingent liabilities as at 31 December 2020. 21 Operating segments a. Identification of reportable segments The Group operates in the mineral exploration industry. This comprises exploration and evaluation of gold. Inter- segment transactions are priced at cost to the Group. The Group has identified its operating segments based on the internal reports that are provided to the Board of Directors on a monthly basis in determining the allocation of resources. Management has identified the operating segments based on the two principal locations based on geographical areas and therefore different regulatory environments – Australia and New Zealand. b. Basis of accounting for purposes of reporting by operating segments i. Accounting policies adopted Unless stated otherwise, all amounts reported to the Board of Directors, being the chief decision maker with respect to operating segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Group. ii. Inter-segment transactions Inter-segment loans payable and receivable are initially recognised at the consideration received/to be received, net of transaction costs. If inter-segment loans receivable and payable are not on commercial terms, these are not adjusted to fair value based on market interest rates. This policy represents a departure from that applied to the statutory financial statements. iii. Segment assets Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of economic value from that asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location. iv. Segment liabilities Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group as a whole and are not allocated. Segment liabilities include trade and other payables and certain direct borrowings. v. Unallocated items The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment: – Impairment of assets and other non-recurring items of revenue or expense – Income tax expense – Current and deferred tax assets and liabilities Notes to the Consolidated Financial Statements for the year ended 31 December 2020 Annual Report 2020 49