| Significant Accounting Judgments, Estimates and Assumptions |
| 4. |
Significant
Accounting Judgments, Estimates and Assumptions |
The
preparation of the Company’s consolidated financial statements in conformity GAAP requires management to make judgments, estimates
and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated financial
statements and reported amounts of income and expenses during the reporting period. Estimates and assumptions are continuously evaluated
and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances. However, actual outcomes can differ from these estimates.
Significant judgement, estimates and assumptions
that affect reported amounts of assets and liabilities are outlined below:
| |
● |
The
Company has determined that intangible asset costs incurred which were capitalized have future economic benefits and will be economically
recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits
including anticipated cash flows and estimated economic life. The amortization expense related to intangible assets is determined
using estimates relating to the useful life of the intangible asset. |
| |
● |
The
functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which the entity
operates. Determination of the functional currency involves certain judgments to determine the primary economic environment and the
Company reconsider the functional currency of its entities if there is a change in events and conditions which determined the primary
economic environment. The Company has determined that its functional currency is the United States dollar. |
| |
● |
The
evaluation of the fair value of financial instruments, including the Company’s warrants and options to purchase common shares
requires judgement in selecting the appropriate methodologies and models, and evaluating the ranges of assumptions and financial
inputs to calculate estimates of fair value. |
| |
● |
These
consolidated financial statements have been prepared on a basis which assumes the Company will continue to operate for the foreseeable
future and will be able to realize its assets and discharge its liabilities in the normal course of operations. In assessing whether
this assumption is appropriate, management takes into account all available information about the future, which is at least, but
not limited to, 12 months from the end of the reporting period. This assessment is based upon planned actions that may or may not
occur for a number of reasons including the Company’s own resources and external market conditions. |
International
Battery Metals Ltd.
Notes
to the Condensed Consolidated Financial Statements
For
the Three and Six Months Ended September 30, 2025 and 2024
|
| 4. |
Significant
Accounting Judgments, Estimates and Assumptions |
The
preparation of the Company’s consolidated financial statements in conformity GAAP requires management to make judgments, estimates
and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated financial
statements and reported amounts of income and expenses during the reporting period. Estimates and assumptions are continuously evaluated
and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances. However, actual outcomes can differ from these estimates.
Judgement,
estimates and assumptions where there is significant risk of material adjustments to assets and liabilities in future accounting periods
are outlined below:
| |
● |
The
Company has determined that intangible asset costs incurred which were capitalized have future economic benefits and will be economically
recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits
including anticipated cash flows and estimated economic life. The amortization expense related to intangible assets is determined
using estimates relating to the useful life of the intangible asset. |
| |
● |
The
functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which the entity
operates. Determination of the functional currency involves certain judgments to determine the primary economic environment and the
Company reconsiders the functional currency of its entities if there is a change in events and conditions which determined the primary
economic environment. The Company has determined that its functional currency is the United States dollar. |
| |
● |
The
evaluation of the fair value of financial instruments, including the Company’s warrants and options to purchase common shares
requires judgement in selecting the appropriate methodologies and models, and evaluating the ranges of assumptions and financial
inputs to calculate estimates of fair value. |
| |
● |
These
consolidated financial statements have been prepared on a basis which assumes the Company will continue to operate for the foreseeable
future and will be able to realize its assets and discharge its liabilities in the normal course of operations. In assessing whether
this assumption is appropriate, management takes into account all available information about the future, which is at least, but
not limited to, 12 months from the end of the reporting period. This assessment is based upon planned actions that may or may not
occur for a number of reasons including the Company’s own resources and external market conditions. |
International
Battery Metals Ltd.
Notes
to the Consolidated Financial Statements
For
the Years Ended March 31, 2025 and 2024
|