MONUMENT MINING LIMITED Notes to Consolidated Financial Statements For the years ended June 30, 2010 and 2009 3. Adoption of Accounting Policies and Future Accounting Changes Future accounting changes  Business combinations  International Financial Reporting Standards ("IFRS")  Effective July 1, 2009, the Company adopted the following new accounting standards issued by the Canadian Institute of  Chartered Accountants (“CICA”). As required by the transitional provisions of these new standards, these standards have been  adopted with no restatement of prior period financial statements.  Section 3855, “Financial Instruments - Recognition and Measurement” was amended to clarify the application of the effective  interest method following an impairment loss of an investment in a debt instrument. This clarification applies to investment in  debt instruments classified as held-to-maturity and to those classified as available for sale. Section 3855 also clarified the  situation where the embedded prepayment option is considered closely related and therefore, is not separated from the host  debt instrument for recognition purposes. The adoption of this amendment had no impact on the Company’s financial  statements.  Section 3862 – “Financial Instruments - Disclosures” was amended to require disclosures about the inputs to fair value  measurements, including their classification within a hierarchy that prioritizes the inputs to fair value measurement. In the year  of adoption, comparative figures are not required. The three levels of the fair value hierarchy are:  Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;  Level 2 – Inputs other than quoted prices that are observable for the assets or liability either directly or indirectly; and  Level 3 – Inputs that are not based on observable market data.  Management has evaluated the impact of these new accounting standards and determined the additional disclosures are not  required as the Company has no financial instruments at June 30, 2010 which qualify.  Section 3064, “Goodwill and Intangible Assets” replaced Section 3062, “Goodwill and Other Intangible Assets” and Section  3450, “Research and Development Costs” in February 2008. This section establishes revised standards for the recognition,  measurement, presentation and disclosure of goodwill and intangible assets. The new standard also provides guidance for the  treatment of pre-production and start-up costs and requires that these costs be expensed as incurred. The Company adopted  these changes with no impact on its consolidated financial statements. The adoption of this section had no impact on the  Company’s financial statements.  In January 2009, the CICA issued Section 1582, “Business Combinations”, Section 1601, “Consolidated Financial Statements”,  and Section 1602, “Non-Controlling Interests”. These sections replace former Section 1581,” Business Combinations”, and  Section 1600, “Consolidated Financial Statements”, and establish a new section for accounting for a non-controlling interest in a  subsidiary.  Sections 1582 and 1602 will require net assets, non-controlling interests and goodwill acquired in a business combination to be  recorded at fair value and non-controlling interests will be reported as a component of equity. In addition, the definition of a  business is expanded and is described as an integrated set of business activities and assets that are capable of being managed  to provide a return to investors or economic benefits to owners. Acquisition costs are not part of the consideration and are to  be expensed when incurred. Section 1601 establishes standards for the preparation of consolidated financial statements. These  new sections apply to interim and annual consolidated financial statements relating to fiscal years beginning on or after January  1, 2011. Earlier adoption of these sections is permitted as of the beginning of a fiscal year. All three sections must be adopted  concurrently.  In February 2008, the Accounting Standards Board announced that 2011 is the changeover date for publicly-listed companies to  apply IFRS. The changeover is effective for interim and annual financial statements for fiscal years beginning on or after January  1, 2011. The effective date will require the restatement of comparative amounts reported by the Company for the year ending  June 30, 2011. The Company has commenced the process to transition from current Canadian GAAP to IFRS. The transition  process consists of diagnostic phase; impact analysis, evaluation and design phase; and implementation and review phase. 29 | P a g e