Company: COOT
Filing Date: 2025-06-18
Form Type: S-1/A
Source: 0001641172-25-015645
Chunk: 162

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-06-18
Form: S-1/A
Chunk 162
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 IFRS 16 - Lease Liability in a Sale and Leaseback                        |
| ● | Amendments to IFRS 18 – Presentation and Disclosure in Financial Statements |

The amendments listed above have been published but are not mandatory for 30 June 2024 reporting periods and have not been early adopted by the Company. These amendments are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

4 Critical Accounting Estimates and Judgments

The directors make estimates and judgements during the preparation of these consolidated financial statements regarding assumptions about current and future events affecting transactions and balances. These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates. The significant estimates and judgements made have been described below.

Key estimates — provisions

As described in the accounting policies, provisions are measured at management’s best estimate of the expenditure required to settle the obligation at the end of the reporting period. These estimates are made taking into account a range of possible outcomes and will vary as further information is obtained.

Key estimates — expected credit losses

Credit risk is the risk that a counterparty will not meet its obligations
under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating
activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions,
foreign exchange transactions and other financial instruments. In assessing the expected credit losses, the Company takes in account recent sales experience and historical collection
rates.

Key estimates — inventory

Each item on inventory is reviewed on an annual basis to determine whether it is being carried at higher than its net realisable value. During the year, managementconducts routine evaluations of its inventories to ensure that the carrying value of inventories does not
exceed net realizable value (“NRV”). NRV is based on the estimated selling price of inventories less, estimated costs of completion.
If the carrying value of inventories exceeds NRV, the surplus is recognized within Cost of sales, writing down the value of inventories
to establish a new cost basis. Management conducts routine analyses to determine if estimates (e.g., estimated selling prices and estimated
costs) used in the NRV calculation require changes and if additional impairment adjustments to inventories are required.

Key estimates - impairment of non-financial
assets

The Company assesses impairment of all assets (including