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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
144 Independence Group NL
Notes to the consolidated financial statements
30 June 2015
27 Equity (continued)
(a) Contributed equity (continued)
(iii)
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business.
The capital structure of the Group consists of debt, which includes the borrowings, cash and cash equivalents and
equity, comprising issued capital, reserves and retained earnings.
Operating cash flows are used to maintain and expand the Group’s operating and exploration assets, as well as to
make dividend payments. The Board and management assess various financial ratios to determine the Group’s debt
levels and capital structure prior to making any major investment or expansion decisions.
None of the Group’s entities are currently subject to externally imposed capital requirements.
There were no changes in the Group’s approach to capital management during the year.
28 Reserves and retained earnings
(a) Reserves
2015
$'000
2014
$'000
Hedging reserve
-
(2,038)
Share-based payments reserve
13,057
12,372
Foreign currency translation
(8)
-
Acquisition reserve
3,142
3,142
16,191
13,476
The movements in each of the reserves is as follows:
2015
$'000
2014
$'000
Hedging reserve
Balance at beginning of financial year
(2,038)
2,397
Revaluation - gross
4,349
(7,894)
Deferred tax
(1,305)
2,368
Transfer to net profit - gross
(1,237)
1,559
Deferred tax
231
(468)
Balance at end of financial year
-
(2,038)
Share-based payments reserve
Balance at beginning of financial year
12,372
8,793
Share-based payments expense
2,949
4,632
Issue of shares under the Employee Performance Rights Plan
(2,264)
(1,053)
Balance at end of financial year
13,057
12,372
Foreign currency translation reserve
Balance at beginning of financial year
-
-
Currency translation differences arising during the year
(8)
-
Balance at end of financial year
(8)
-
Acquisition reserve
Balance at beginning of financial year
3,142
3,142
Balance at end of financial year
3,142
3,142
Independence Group NL
80