INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 23 Assets held for sale (continued) (a) Assets and liabilities classified as held for sale (continued) Terms of the sale agreement include a deferred cash consideration component of $31,600,000, and a net smelter return royalty for which the Company has determined a value. (b) Recognition and measurement Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value. An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of derecognition. Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. 24 Subsidiaries (a) Significant investments in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of Independence Group NL and the subsidiaries listed in the following table: Name of entity Note Country of incorporation Equity holding 2017 % 2016 % Independence Long Pty Ltd (a) Australia 100 100 Independence Newsearch Pty Ltd Australia 100 100 Independence Karlawinda Pty Ltd Australia 100 100 Independence Jaguar Pty Ltd (a) Australia 100 100 Independence Stockman Parent Pty Ltd Australia 100 100 Independence Stockman Project Pty Ltd Australia 100 100 Independence Jaguar Project Parent Pty Ltd Australia 100 100 Independence Jaguar Project Pty Ltd Australia 100 100 Independence Europe Pty Ltd Australia 100 100 Independence Nova Holdings Pty Ltd (a) Australia 100 100 Independence Nova Pty Ltd (a) Australia 100 100 Independence Windward Pty Ltd (b) Australia 100 - Independence Group Europe AB Sweden 100 100 (a) These subsidiaries have been granted relief from the necessity to prepare financial reports in accordance with ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 issued by the Australian Securities and Investments Commission. For further information refer to note 30. (b) On 14 July 2017, Windward Resources Pty Ltd changed its name to Independence Windward Pty Ltd. Independence Group NL 78 108 — IGO ANNUAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017