Company: COOT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005620
Chunk: 7

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-02-10
Form: 10-Q
Item: Item 8
Chunk 7
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    assets measured at amortised cost; and

    ●
    debt
    investments measured at FVOCI.

When
determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL,
the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes
both quantitative and qualitative information and analysis based on the Company’s historical experience and informed credit assessment
and including forward-looking information.

The
Company uses the presumption that an asset which is more than 30 days past due has seen a significant increase in credit risk.

The
Company uses the presumption that a financial asset is in default when:

    ●
    the
    other party is unlikely to pay its credit obligations to the Company in full, without recourse to the Company to actions such as
    realising security (if any is held); or

    ●
    the
    financial assets is more than 90 days past due. 

Credit
losses are measured as the present value of the difference between the cash flows due to the Company in accordance with the contract
and the cash flows expected to be received. This is applied using a probability weighted approach.

Trade
receivables and contract assets

Impairment
of trade receivables and contract assets have been determined using the simplified approach in IFRS 9 which uses an estimation of lifetime
expected credit losses. The Company has determined the probability of non-payment of the receivable and contract assets and multiplied
this by the amount of the expected loss arising from default.

The
amount of the impairment is recorded in a separate allowance account with the loss being recognised in finance expense. Once the receivable
is determined to be uncollectable then the gross carrying amount is written off against the associated allowance.

Where
the Company renegotiates the terms of trade receivables due from certain customers, the new expected cash flows are discounted at the
original effective interest rate and any resulting difference to the carrying value is recognised in profit or loss.

     9 

Other
financial assets measured at amortised cost

Impairment
of other financial assets measured at amortised cost are determined using the expected credit loss model in IFRS 9. On initial recognition
of the asset, an estimate of the expected credit losses for the next 12 months is recognised. Where the asset has experienced significant
increase in credit risk then the lifetime losses are estimated and recognised.

Financial
liabilities

The
Company measures