IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) 2 Revenue (continued) (b) Key estimates and judgements Judgement is exercised in estimating variable consideration. This is determined by past experience with respect to the goods returned to the Group where the customer maintains a right of return pursuant to the customer contract or where goods or services have a variable component. Revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised under the contract will not occur when the uncertainty associated with the variable consideration is subsequently resolved. 3 Other income 2019 $'000 2018 $'000 Net foreign exchange gains 1,967 - Net gain on disposal of property, plant and equipment 2,636 135 Net gain on sale of tenements - 13 Write-back of rehabilitation provision 1,187 - Net gain on sale of subsidiaries 2,587 2,541 8,377 2,689 4 Expenses and losses 2019 $'000 2018 $'000 Cost of sale of goods 327,569 373,725 Employee benefits expenses 53,234 88,795 Share-based payments expense 3,123 3,267 Exploration and growth costs 57,317 38,926 Rental expense relating to operating leases 1,933 1,872 Net foreign exchange losses - 582 Amortisation expense 228,121 237,993 Depreciation expense 8,997 14,140 Borrowing and finance costs Rehabilitation and restoration borrowing costs 1,416 1,609 Borrowing and finance costs - other entities 4,306 8,174 Amortisation of borrowing costs 916 916 Finance costs expensed 6,638 10,699 Independence Group NL 7 78 — IGO ANNUAL REPORT 2019