IGO Annual Report 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

Annual Report 2015 97

Notes to the consolidated financial statements

30 June 2015

1 Corporate information

The financial report of Independence Group NL (the Company) and its subsidiaries (collectively, the Group) for the year

ended 30 June 2015 was authorised for issue in accordance with a resolution of the Directors on 21 August 2015.

Independence Group NL is a company limited by shares incorporated and domiciled in Australia whose shares are

publicly traded on the Australian Securities Exchange.

The nature of the operations and principal activities of the Group are described in the directors' report.

2 Summary of significant accounting policies

This note provides a list of all significant accounting policies adopted in the preparation of these consolidated financial

statements. These policies have been consistently applied to all the years presented, unless otherwise stated. The

financial statements are for the Group consisting of Independence Group NL and its subsidiaries.

(a) Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards

and interpretations issued by the Australian Accounting Standards Board and the

Corporations Act 2001

. Independence

Group NL is a for-profit entity for the purpose of preparing the financial statements.

(i)

Compliance with IFRS

The consolidated financial statements of the Group also comply with International Financial Reporting Standards

("IFRS") as issued by the International Accounting Standards Board ("IASB").

(ii)

Historical cost convention

These financial statements have been prepared under the historical cost basis, as modified by the revaluation of

available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through

profit or loss and certain classes of property, plant and equipment.

(iii)

New and amended standards adopted by the Group

The Group has applied the following standards and amendments for first time in their annual reporting period

commencing 1 July 2014:

• AASB 2013-3

Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets

The Group has not elected to early adopt any new accounting standards.

(iv)

Critical accounting estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires

management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a

higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial

statements, are disclosed in note 5.

(b) Principles of consolidation

(i)

Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Independence Group

NL ("Company" or "parent entity") as at 30 June 2015 and the results of all subsidiaries for the year then ended.

Independence Group NL and its subsidiaries together are referred to in this financial report as the Group or the

consolidated entity.

Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies, generally

accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential voting

rights that are currently exercisable or convertible are considered when assessing whether the Group controls another

entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated

from the date that control ceases.

The Group recognises its direct right to the assets, liabilities, revenues and expenses of the Tropicana Gold Project and

its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the

financial statements under the appropriate headings.

Independence Group NL