IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) 5 Income tax (continued) (h) Recognition and measurement (continued) Offsetting deferred tax balances Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. (i) Significant estimates In addition, deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future forecast taxable profits are available to utilise those temporary differences and losses, and the tax losses continue to be available having regard to the relevant tax legislation associated with their recoupment. The Australian consolidated tax group has recognised a deferred tax asset relating to carry forward tax losses of $154,388,000 at 30 June 2019 (2018: $180,695,000). The utilisation of this deferred tax asset amount depends upon future taxable amounts in excess of profits arising from the reversal of temporary differences. The Group believes this amount to be recoverable based on taxable income projections. 6 Earnings per share (a) Earnings used in calculating earnings per share Profit used in calculating basic and diluted earnings per share attributable to ordinary equity holders of the parent is $76,085,000 (2018: $52,686,000). (b) Weighted average number of shares used as the denominator 2019 Number 2018 Number Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share 590,335,278 586,808,843 Adjustments for calculation of diluted earnings per share: Share rights 2,524,470 2,261,529 Weighted average number of ordinary and potential ordinary shares used as the denominator in calculating diluted earnings per share 592,859,748 589,070,372 (c) Information concerning the classification of securities Share rights Share rights granted to Executives and employees under the Company's Employee Incentive Plan and any outstanding service rights are included in the calculation of diluted earnings per share as they could potentially dilute basic earnings per share in the future. The share rights are not included in the determination of basic earnings per share. Further information about the share rights is provided in note 25. (d) Calculation of earnings per share (i) Basic earnings per share Basic earnings per share is calculated by dividing: • the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares, • by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares. Independence Group NL 18 Notes to the consolidated financial statements 30 June 2019 (continued) 6 Earnings per share (continued) (d) Calcul tion of arnings per shar (conti u d) (ii) Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account: • the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares; and • the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. 82 — IGO ANNUAL REPORT 2019