Sunrise Diamonds plc
Notes to the Financial Statements
for the year ended 30 September 2009
Accounting policies Sunrise Diamonds plc is a public company incorporated and domiciled in England. It is traded on the AIM market of the London Stock Exchange and its shares also trade on Plus Markets — code: SDS.
The Company’s financial statements are presented in Pounds Sterling (£) which is also the functional currency of the Company.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Company’s financial statements.
(a) Statement of compliance The financial statements have been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS), as adopted by the European Union, and their interpretations adopted by the International Accounting Standards Board (IASB). They have also been prepared in accordance
with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
The Company has not adopted any standards or interpretations in advance of the required implementation dates. It is not expected that those standards or interpretations which have been issued by the International Accounting Standards Board, but which have not been adopted, will have a material impact on the financial statements of the Company in the period of initial application.
The Company has taken advantage of the exemption conferred by IFRS 1 in relation to share options and warrants issued prior to 7 November 2002.
(b) Basis of preparation The financial statements present information about the Company as an individual undertaking. During the period the Company disposed of its only subsidiary (Note 8) and as a result the Company is no longer required to
prepare consolidated financial statements. All comparative information relates to the Company as an individual undertaking and not as a Group.
In common with many exploration companies, the Company raises finance for its exploration and appraisal activities in discrete tranches. Further funding is raised as and when required. When any of the Company’s projects move to the development stage, specific project financing will be required.
The directors prepare annual budgets and cash flow projections that extend beyond 12 months from the date of this report. These projections include the proceeds of future fundraising and planned discretionary project expenditures necessary to maintain the Company as a going concern. Although the Company has been successful in raising finance in the past, there is no assurance that it will obtain adequate finance in the future. However, the directors have a reasonable expectation that they will secure additional funding when required to continue meeting corporate overheads and exploration costs for the foreseeable future and therefore believe that the “going concern” basis is appropriate for the preparation of the financial statements.
(c) Intangible assets Exploration and evaluation Accumulated exploration and evaluation costs incurred in relation to separate areas of interest (which may comprise more than one exploration licence or exploration licence applications) are capitalised and carried forward where:
such costs are expected to be recouped through successful exploration and development of the area, or alternatively by its sale; or