rights may give control. The standard is  applicable to the Group from 1 July 2013.  Based on investments held by the Group as  at 30 June 2013, the standard is not  expected to have a significant impact.  The financial information for the parent entity  Kingsgate Consolidated Limited, disclosed in  Note 32 has been prepared on the same basis as  the consolidated financial statements except as  set out below: Investments in subsidiaries are accounted for at  cost in the financial statements of Kingsgate. The issue by the Company of equity instruments  to extinguish liabilities of a subsidiary under- taking in the Group is treated as a capital contri- bution to that subsidiary undertaking. Estimates and judgements are continually  evaluated and are based on historical experience  and other factors, including expectation of  future events that may have a financial impact  on the Group and that are believed to be  reasonable under the circumstances. The Group  makes estimates and assumptions concerning  the future. Actual results may differ from these  estimates under different assumptions and  conditions. The estimates and assumptions that  could materially affect the financial position and  results are discussed below: The Group determines and reports ore reserves  under the Australian Code for Reporting of  Mineral Resources and Ore Reserves December  2004, known as the JORC Code. The information  on mineral resources and ore reserves was  prepared by or under the supervision of  Competent Persons as defined in the JORC  Code.  There are numerous uncertainties inherent in  estimating mineral resources and reserves and  assumptions that are valid at the time of estima- tion may change significantly when new infor- mation becomes available. Changes in reported ore reserves may affect the  Group’s financial position and results, including  asset carrying value, depreciation and amortisa- tion expenses using units-of-production  method, provision for restoration and rehabilita- tion and stripping costs if the stripping ratios  are revised. Exploration and evaluation expenditure for each  area of interest is carried forward as an asset  provided certain conditions are met (Note 2o).  Exploration and evaluation assets are assessed  for impairment when facts and circumstances  suggest that the carrying amount of an explora- tion and evaluation asset may exceed its recov- erable amount. These calculations and reviews  require the use of assumptions and judgement.  The related carrying amounts are disclosed in  Note 13. The Group defers mining costs incurred during  the production stage of its operations. Changes  in an individual mine’s design will generally result  in changes to the life of mine waste to contained  gold ounce (life of mine) ratio. Changes in other  technical or economic parameters that impact  reserves will also have an impact on the life of  mine ratio even if they do not affect the mine’s  design. Changes to the life of mine are  accounted for prospectively. continued 〉 AASB 12  Disclosure of Interests in Other  Entities  (effective for annual reporting  periods commencing on or after 1 January  2013). AASB 12 includes all disclosures  relating to an entity’s interests in subsidi- aries, joint arrangements, associates and  structures entities. New disclosures have  been introduced about the judgements  made by management to determine whether  control exists, and to require summarised  information about joint arrangements,  associates and structured entities and  subsidiaries with non-controlling interests.  The standard is applicable to the Group from  1 July 2013. Based on interests held by the  Group as at 30 June 2013, the standard is not  expected to have a significant impact. 〉 AASB 13  Fair Value Measurement  (effective  for annual reporting periods commencing on  or after 1 January 2013). AASB 13 establishes  a single framework for measuring fair value  of financial and non-financial items recog- nised at fair value in the statement of finan- cial position or disclosed in the notes to the  financial statements. The standard is not  applicable until 1 January 2013 but is avail- able for early adoption. The Group does not  expect any material impact on adoption of  the standard. 〉 AASB 119  Employee Benefits  (effective for  annual reporting periods commencing on or  after 1 January 2013). The revised standard  changes the definition of short-term  employee benefits. The distinction between  short-term and other long-term employee  benefits is now based on whether the bene- fits are expected to be settled wholly within  12 months after the reporting date. 〉 IFRIC 20  Stripping Costs in the Production  Phase of a Surface Mine  (effective for annual  reporting periods commencing on or after 1 January 2013). IFRIC 20 provides guidance  on the accounting for the costs of stripping  activity in the production phase of surface  mining when two benefits accrue to the  entity from the stripping activity: useable  ore that can be used to produce inventory  and improved access to further quantities of  material that will be mined in future periods.  The Company will adapt IFRIC 20 from 1 July  2013. Based on the current mine plans this  IFRIC is not expected to have a significant  impact. 〉 AASB 2011-4  Amendments to Australian  Accounting Standards to Remove Individual Key Management Personnel Disclosure  Requirements  (effective from 1 July 2013).  AASB 2011-4 makes amendments to remove  individual key management personnel disclo- sure requirements from AASB 124.  〉 AASB 2012-2  Amendments to Australian  Accounting Standards – Disclosures –  Offsetting Financial Assets and Financial  Liabilities  (effective from 1 July 2013). ASB  2012-2 principally amends AASB 7 Financial  Instruments: Disclosures to require disclo- sure of information that will enable users of  an entity’s financial statements to evaluate  the effect or potential effect of netting  arrangements, including rights of set-off  associated with an entity’s recognised  financial assets and recognised financial  liabilities, on the entity’s financial position. 〉 AASB 2012-3  Amendments to Australian  Accounting Standards - Offsetting Financial  Assets and Financial Liabilities  (effective from  1 July 2014). AASB 2012-3 adds application  guidance to AASB 132 Financial Instruments:  Presentation to address inconsistencies  identified in applying some of the offsetting  criteria of AASB 132, including clarifying the  meaning of “currently has a legally enforce- able right of set-off” and that some gross  settlement systems may be considered  equivalent to net settlement. dd . Parent entity financial information Investments in subsidiaries Share-based payments 3.   Critical accounting estimates, assumptions and judgements (i)   Mineral resources and ore reserves estimates (ii) Exploration and evaluation assets (iii) Deferred mining expenditure 75 Notes to the Financial Statements Notes t o the Financial Statements