IGO Annual Report 2016

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2016

66 Independence Group NL

About this report

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.

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

ended 30 June 2016 was authorised for issue in accordance with a resolution of the Directors on 29 August 2016.

Basis of preparation

This financial report is a general purpose financial report, prepared by a for-profit entity, which:

• Has been prepared in accordance with the requirements of the

Corporations Act 2001,

Australian Accounting

Standards and other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and

International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board

(IASB);

• Has been prepared on a 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;

• Is presented in Australian dollars with values rounded to the nearest thousand dollars or in certain cases, the

nearest dollar, in accordance with the Australian Securities and Investments Commission "ASIC Corporation

Legislative Instrument 2016/191";

• Presents comparative information where required for consistency with the current year's presentation;

• Adopts all new and amended Accounting Standards and Interpretations issued by the AASB that are relevant to the

operations of the Group and effective for reporting periods beginning on or after 1 July 2015 as disclosed in note 31;

and

• Does not early adopt Accounting Standards and Interpretations that have been issued or amended but are not yet

effective with the exception of AASB 9

Financial Instruments

(December 2010) as amended by 2013-0 (AASB 9

(2013)) including consequential amendments to other standards which was adopted on 1 July 2015. Refer to note

31 for further details.

This financial report has been re-designed with the aim of streamlining and improving readability. The notes to the

consolidated financial statements have been organised into logical groupings to help users find and understand the

information. Where possible, related information has been provided in the same note.

Key estimates and judgements

In the process of applying the Group's accounting policies, management has made a number of judgements and applied

estimates of future events. 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 the following notes:

Note 5 Income tax expense

Note 9 Inventories

Note 12 Provisions

Note 13 Property, plant and equipment

Note 14 Mine properties

Note 15 Exploration and evaluation expenditure

Note 26 Share-based payments

Basis of consolidation

The consolidated financial statements comprise the financial statements of the Group. A list of controlled entities

(subsidiaries) at year end is contained in note 23.

The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using

consistent accounting policies.

In preparing the consolidated financial statements, all inter-company balances and transactions, income and expenses

and profit and losses resulting from intra-Group transactions have been eliminated. Subsidiaries are consolidated from

the date on which control is obtained to the date on which control is disposed. The acquisition of subsidiaries is

accounted for using the acquisition method of accounting.

Independence Group NL