In addition to the above transactions, the Company has: However, should insuf fi  cient funds be derived from the transactions described above or should such transactions  be delayed, there is signi fi  cant uncertainty as to whether the Company and its wholly owned controlled entities will  be able to continue as a going concern and, therefore, whether they will realise their assets and settle their liabilities  and commitments in the normal course of business. At this time the directors are of the opinion that no asset is likely  to be realised for an amount less than the amount at which it is recorded in the  fi  nancial report. Accordingly, the  fi  nancial  report does not include any adjustments relating to the recoverability and classi fi  cation of the asset carrying amounts or  the classi fi  cation of liability amounts that might be necessary should the entity not continue as a going concern. The consolidated  fi  nancial statements incorporate the assets and liabilities of all entities controlled by St Barbara Mines  Limited as at 30 June 2004 and the results of all controlled entities for the year ended. St Barbara Mined Limited  and its controlled entities are together referred to in this  fi  nancial report as the consolidated entity. The effects of all  transactions between entities in the consolidated entity are eliminated in full. Outside equity interests in the results and  equity of controlled entities are shown separately in the consolidated statement of fi  nancial performance and statement  of fi  nancial position respectively. Where control of an entity is obtained during a  fi  nancial year, its results are included in the consolidated statement  of fi  nancial performance from the date on which control commences. Where control of an entity ceases during a  fi  nancial year its results are included for that part of the year during which control existed. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted  to their present value as at the date of the acquisition. The discount rate used is the incremental borrowing rate,  being the rate at which a similar borrowing could be obtained from an independent  fi  nancier under comparable  terms and conditions. The purchase method of accounting is used for all acquisitions of assets regardless of whether equity instruments  or other assets are acquired. Cost is measured as the fair value of the assets given up, shares issued or liabilities  undertaken at the date of acquisition plus incidental costs directly attributable to the acquisition. Where equity  instruments are issued in an acquisition the value of the instruments is their market price as at the acquisition date,  unless the notional price at which they could be placed in the market is a better indicator of fair value. Transaction costs arising from the issue of equity instruments are charged directly against the equity raised. (b) Principles of Consolidation (c)  Acquisition of Assets •  commenced a comprehensive review and data compilation of the Paddy’s Flat tenements (100% owned)  in the Meekatharra region with a view to exploration or divestment; •  reviewed the Aurogenic and Elara joint ventures which require the joint venture partners to spend approximately  $6.5 million during the coming twelve months; and •  entered into negotiations with a third party for the use of the Bluebird plant at Meekatharra which will at least cover  the care and maintenance costs while the operations are suspended. 31