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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Annual Report 2016 89
Notes to the consolidated financial statements
30 June 2016
(continued)
16 Borrowings (continued)
(c) Financing arrangements
The Group had access to the following financing arrangements at the reporting date:
2016
$'000
2015
$'000
Total facilities
Corporate debt facility
550,000
20,000
Asset finance facility
-
20,000
Contingent instrument facility
1
1,315
20,000
551,315
60,000
Facilities used as at reporting date
Corporate debt facility
271,000
-
Asset finance facility
-
510
Contingent instrument facility
1,315
1,315
272,315
1,825
Facilities unused as at reporting date
Corporate debt facility
279,000
20,000
Asset finance facility
-
19,490
Contingent instrument facility
-
18,685
279,000
58,175
1. This facility provides financial backing in relation to non-performance of third party guarantee requirements.
(d) Recognition and measurement
(i)
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using the effective interest method.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is
probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs
and amortised over the period of the remaining facility.
(ii)
Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their
intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
17 Contributed equity
(a) Share capital
2016
$'000
2015
$'000
Fully paid issued capital
1,601,458
737,324
Independence Group NL
61