Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 417

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 417
---
 conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgements. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Evaluation of the impairment assessment for the Kennecott Utah Copper Cash Generating Unit As described in Note 4, as at December 31, 2024, the Kennecott Utah Copper CGU has US$2.2 billion in carrying value. The Group determined that there was an indicator of impairment of property, plant and equipment in the Kennecott Utah Copper CGU, as a result of worsening geotechnical conditions. The Group performed a full impairment assessment by estimating the recoverable amount of the CGU based on cash flow forecasts for fair value less costs of disposal purposes and comparing to the respective carrying amount. The Group concluded that the Kennecott Utah Copper CGU’s recoverable amount exceeded its carrying value. We identified the evaluation of the impairment assessment for the Kennecott Utah Copper cash generating unit as a critical audit matter. Significant auditor judgement was required to evaluate key assumptions, including the uncertainty over forecast copper prices and the life of mine plan.

| Annual Report on Form 20-F 2024 | 247 |

Financial statements | Report of Independent Registered Public Accounting Firms

The following are the primary procedures we performed to address this critical audit matter: – we evaluated the design and tested the operating effectiveness of certain internal controls related to the impairment process for the determination of the recoverable amount of property, plant and equipment for the Kennecott Utah Copper CGU; – we involved our valuation professionals with specialised skills and knowledge who assisted us in assessing the forecast copper prices used in the Group’s assessment by comparing them to, and considering changes in, market observable price forecasts; and – we assessed the scope, competency and objectivity of the Group’s internal experts who prepared the life of mine plan utilised in the Group’s impairment assessment, by examining the work they were involved to perform, and their professional qualifications and experience