IGO Annual Report 2016

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2016

74 Independence Group NL

Notes to the consolidated financial statements

30 June 2016

(continued)

5 Income tax (continued)

(e) Deferred tax assets and liabilities

Balance Sheet

Profit or loss

Equity

Acquisition of

Subsidiary

2016

$'000

2015

$'000

2016

$'000

2015

$'000

2016

$'000

2015

$'000

2016

$'000

2015

$'000

Deferred tax liabilities

Capitalised exploration

expenditure

(20,393)

(24,914)

(4,521)

(6,021)

Mine properties

(73,270)

(44,443)

26,853

18,851

1,974

Deferred gains and losses

on hedging contracts

(1,440)

(1,467)

(323)

(697)

296

1,264

Trade debtors

(3,932)

(1,377)

2,555

(1,508)

Consumable inventories

(1,700)

(1,748)

(48)

489

Other

(214)

(31)

183

Gross deferred tax liabilities

(100,949)

(73,980)

24,699

11,114

296

1,264

1,974

Deferred tax assets

Property, plant and

equipment

21,370

20,640

(730)

3,379

Deferred losses on hedged

commodity contracts

1,711

904

(684)

1,148

(123)

(190)

Concentrate inventories

398

398

(366)

Business-related capital

allowances

5,007

908

1,554

494

(5,653)

Provision for employee

entitlements

2,654

2,700

(313)

Provision for rehabilitation

19,908

8,298

(9,636)

(1,093)

(1,974)

Mining information

1,022

1,392

370

1,288

Carry forward tax losses

166,506

92,958

(17,529)

17,341

(56,019)

Other

1,249

2,319

1,070

190

Gross deferred tax assets

219,427

130,517

(25,141)

22,068

(123)

(190)

(63,646)

Deferred tax expense

(benefit)

118,478

56,537

(442)

33,182

173

1,074

(61,672)

(f) Tax losses

In addition to the above recognised tax losses, the Group also has the following capital tax losses for which no deferred

tax asset has been recognised:

2016

$'000

2015

$'000

Unrecognised capital tax losses

2,403

Potential tax benefit @ 30% (2015: 30%)

721

(g) Recognition and measurement

Current taxes

The income tax expense or benefit for the period is the tax payable on the current period's taxable income based on the

applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to

temporary differences and to unused tax losses.

Independence Group NL