IGO Annual Report 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Annual Report 2015 107

Notes to the consolidated financial statements

30 June 2015

2 Summary of significant accounting policies (continued)

(ab) Goods and Services Tax ("GST") (continued)

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation

authority.

(ac) Rounding of amounts

The Company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments

Commission, relating to the 'rounding off' of amounts in the financial statements. Amounts in the financial statements

have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the

nearest dollar.

(ad) Parent entity financial information

The financial information for the parent entity, Independence Group NL, disclosed in note 35 has been prepared on the

same basis as the consolidated financial statements, except as set out below.

(i)

Investments in subsidiaries, associates and joint venture entities

Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial statements of

Independence Group NL. Dividends received from associates are recognised in the parent entity's profit or loss when its

right to receive the dividend is established.

(ii)

Tax consolidation legislation

Independence Group NL and its wholly-owned Australian controlled entities have implemented the tax consolidation

legislation.

The head entity, Independence Group NL, and the controlled entities in the tax consolidated group account for their own

current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group

continues to be a stand alone taxpayer in its own right.

In addition to its own current and deferred tax amounts, Independence Group NL also recognises the current tax

liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from

controlled entities in the tax consolidated group.

The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate

Independence Group NL for any current tax payable assumed and are compensated by Independence Group NL for

any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are

transferred to Independence Group NL under the tax consolidation legislation. The funding amounts are determined by

reference to the amounts recognised in the wholly-owned entities' financial statements.

The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice from the

head entity, which is issued as soon as practicable after the end of each financial year. The head entity may also

require payment of interim funding amounts to assist with its obligations to pay tax instalments.

Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current

amounts receivable from or payable to other entities in the Group.

Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are

recognised as a contribution to (or distribution from) wholly owned tax consolidated entities.

(ae) Comparatives

Where appropriate, comparatives have been reclassified to be consistent with the current year presentation. The

reclassification does not have an impact on the results presented.

Independence Group NL