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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Annual Report 2015 145
Notes to the consolidated financial statements
30 June 2015
28 Reserves and retained earnings (continued)
(b) Nature and purpose of reserves
Hedging reserve
The hedging reserve is used to record gains or losses on derivatives that are designated and qualify as cash flow
hedges and that are recognised in other comprehensive income, as described in note 2(l). Amounts are reclassified to
profit or loss when the associated hedged transaction affects profit or loss.
As at the reporting date, cash flow hedges comprise only gold collar structures as set out in note 25(i). The fair value of
the gold collars outstanding at the reporting date is comprised exclusively of the extrinsic value (time value) of the
options and hence no amount of gains or losses are recorded in the hedging reserve at 30 June 2015.
Share-based payments reserve
The share-based payments reserve is used to record the value of share-based payments provided to employees,
including key management personnel, as part of their remuneration. Refer to note 31 for further details of these plans.
Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive
income as described in note 2(d) and accumulated in a separate reserve within equity. The cumulative amount is
reclassified to profit or loss when the net investment is disposed of.
Acquisition reserve
The acquisition reserve is used to record differences between the carrying value of non-controlling interests and the fair
value of the shares issued, where there has been a transaction involving non-controlling interests that do not result in a
loss of control. The reserve is attributable to the equity of the parent.
(c) Accumulated losses
Notes
2015
$'000
Restated*
2014
$'000
Balance at beginning of financial year
(139,031)
(178,277)
Net profit for the period
76,779
48,579
Dividends paid during the year
11
(25,768)
(9,333)
Balance at end of financial year
(88,020)
(139,031)
Independence Group NL
81