Company: COOT
Filing Date: 2025-05-30
Form Type: 10-Q
Source: 0001641172-25-013065
Chunk: 9

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-05-30
Form: 10-Q
Item: Item 8
Chunk 9
---
 but where such
a level is not larger than an operating segment. Gains and losses on the disposal of an entity include the carrying amount of goodwill
related to the entity sold.

(g)
Cash and cash equivalents

Cash
and cash equivalents comprise cash on hand, demand deposits and short-term investments which are readily convertible to known amounts
of cash and which are subject to an insignificant risk of change in value.

(h)
Employee benefits

Provision
is made for the Company’s liability for employee benefits arising from services rendered by employees to the end of the reporting
period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid
when the liability is settled. Employee benefits expected to be settled more than one year after the end of the reporting period have
been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability,
consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are
discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms
to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.

(i)
Provisions

Provisions
are recognised when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an
outflow of economic benefits will result, and that outflow can be reliably measured.

Provisions
are measured at the present value of management’s best estimate of the outflow required to settle the obligation at the end of
the reporting period. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and
the risks specific to the liability. The increase in the provision due to the unwinding of the discount is taken to finance costs in
the consolidated statement of profit or loss and other comprehensive income.

(j)
Convertible Promissory Note

Convertible
notes are presented as a financial liability in the consolidated statement of financial position. On issuance of the convertible notes,
the liability is measured at fair value, and subsequently carried at amortised cost (net of transaction costs) until it is extinguished
on conversion or redemption. Convertible notes are classified as current liabilities based on the expected conversion date in accordance
with the convertible note’s agreements.

    9

(k)
Derivative warrant liabilities

The
Company does not use