2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) 24 Interests in subsidiaries (continued) (b) Principles of consolidation Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entities. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. 25 Interests in associates (a) Interests in associates Set out below are the associates of the Group as at 30 June 2021 which, in the opinion of the Directors, are material to the Group. The entities listed below have share capital consisting solely of ordinary shares, which are held directly by the Group. The country of incorporation or registration is also their principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held. Name of entity Place of business/ country of incorporation % of ownership interest Nature of relationship Measurement method Quoted fair value Carrying amount 2021 % 2020 % 2021 $'000 2020 $'000 2021 $'000 2020 $'000 TLEA* Australia 49 - Associate Equity method 1,855,939 - 1,855,939 - * Tianqi Lithium Energy Australia Pty Ltd The Group completed the transaction to acquire 49% of the share capital of Tianqi Lithium Energy Australia Pty Ltd (TLEA) from Tianqi Lithium Corporation (Tianqi) on 30 June 2021. TLEA is the exclusive vehicle for lithium investments for IGO and Tianqi outside of China. As the transaction completed on 30 June 2021, there is no impact to the Group's profit or loss for the current financial year. (i) Summarised financial information for associates The tables below provide summarised financial information for the associates that are material to the Group. The information disclosed reflects the amounts presented in the financial statements of the relevant associates and not IGO Limited’s share of those amounts. They have been amended to reflect adjustments made by the Group when using the equity method, including provisional accounting fair value adjustments of $1,857,177,000 (IGO 49% share: $910,017,000) and modifications for differences in accounting policy. IGO Limited 45 Notes to the consolidated financial statements 30 June 2021 (continued) 25 Interests in associates (continued) (a) Inter sts in assoc ates (continued) (i) Summarised financial information for associates (continued) TLEA Summarised balance sheet 2021 $'000 2020 $'000 Current assets Cash and cash equivalents 133,149 - Other current assets 341,211 - Total current assets 474,360 - Non-current assets 4,512,941 - Current liabilities 250,293 - Non-current liabilities 949,378 - Net assets 3,787,630 - TLEA 2021 $'000 2020 $'000 Reconciliation to carrying amounts: Opening net assets 1 July - - Profit for the period* - - Acquisition during the period 3,787,630 - 3,787,630 - Group share in % 49.0% -% Notes to The Consolidated Financial Statements 30 June 2021 IGO ANNUAL REPORT 2021 — 121