2021 Annual Report

Acquisition Accounting – Tianqi Lithium Energy Australia Pty Ltd Key audit matter How the matter was addressed in our audit During the financial year ended 30 June 2021, the Group acquired a 49% non-controlling interest in Tianqi Lithium Energy Australia Pty Ltd (“TLEA”). Note 25 discloses details of the transaction, in- cluding, the cost of the acquisition and the sum- marised financial position of the associate. The in- vestment in TLEA is considered to be a significant transaction for the Group. The recognition of the TLEA investment is impacted by various key estimates and judgements, in particular the:  Determination of control and significant influence;  Determination of business combination or asset acquisition; and  Treatment of transaction costs. This is a key audit matter due to the importance and significance of the presentation, measurement and disclosures in relation to the users’ understanding of the financial statements. Our work included but was not limited to the following procedures:  Reviewing all executed agreements in order to understand the structure and terms and conditions of the transaction;  Evaluating management's assessment of whether control, joint control or significant influence existed, which included completing the following;  Agreeing equity ownership to supporting documentation; and  Reviewing shareholders agreement to assess the voting rights of each party;  Verifying the transaction settlement date to supporting documentation;  Verifying the transaction consideration to supporting documentation, including bank statements;  Verifying the assets and liabilities disclosed on acquisition to the audited financial information of the acquired businesses; and We also assessed the adequacy of related disclosures in Note 25 to the financial statements. Independent Auditors Report IGO ANNUAL REPORT 2021 — 135