2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) 25 Interests in associates (continued) (a) Interests in associates (continued) (i) Summarised financial information for associates (continued) 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% -% Group's share in $ 1,855,939 - Carrying amount 1,855,939 - * The transaction to acquire the Group's 49% share in TLEA was completed on 30 June 2021, therefore there is no impact to the Group's share of profit or loss for the current financial year. (b) Recognition and measurement Equity method Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost. Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the Group's share of the post-acquisition profits or losses of the investee in profit or loss, and the Group's share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates are recognised as a reduction in the carrying amount of the investment. Where the Group's share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in note 33(c)(i). IGO Limited 54 Notes to The Consolidated Financial Statements 30 June 2021 122 — IGO ANNUAL REPORT 2021