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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
78 Independence Group NL
Notes to the consolidated financial statements
30 June 2016
(continued)
8 Trade and other receivables
2016
$'000
2015
$'000
Trade receivables
21,561
13,481
GST Receivable
3,804
1,924
Sundry debtors
2,741
3,442
Prepayments
2,794
3,239
30,900
22,086
No balances within trade and other receivables contain impaired assets. The balance of trade receivables includes
amounts of $1,448,000 (2015: $nil) that are past due but not impaired.
(a) Change in accounting policy
The Group has early adopted AASB 9
Financial Instruments
(AASB 9) with effect from 1 July 2015. AASB 9 introduces
a new impairment model for financial assets at amortised cost (including trade receivables). The new model did not
have a material impact on the Group's assessment of its doubtful debt provision for the 2016 financial year which was
assessed as $nil.
(b) Recognition and measurement
(i)
Trade receivables
Trade receivables are generally received up to four months after the shipment date. The receivables are initially
recognised at fair value.
Trade receivables are subsequently revalued by the marking-to-market of open sales. The Group determines
mark-to-market prices using forward prices at each period end for copper and zinc concentrates and nickel ore.
(ii)
Impairment of trade receivables
Collectibility of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible
are written off when identified. An allowance is made for doubtful debts based on credit losses expected over the life of
the trade receivable taking into account information about past events, current conditions and forecasts of further
economic conditions. On confirmation that the trade receivable will not be collectible, the gross carrying value of the
asset is written off against the associated provision.
9 Inventories
2016
$'000
2015
$'000
Current
Mine spares and stores - at cost
16,368
16,103
ROM inventory - at cost
19,513
9,670
Concentrate inventory - at cost
7,058
4,726
Concentrate inventory - at net realisable value
-
5,696
Work in progress - gold in process
1,175
881
Gold in circuit
1,145
798
Gold dore
1,239
2,424
46,498
40,298
Non-current
ROM inventory - at cost
31,995
24,979
31,995
24,979
Independence Group NL
50