IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) Group structure This section of the notes provides information which will help users understand how the group structure affects the financial position and performance of the Group. 22 Assets held for sale On 14 June 2017, the Company announced its intention to divest of the Stockman Project, which was owned by the Group's wholly owned subsidiary Independence Stockman Project Pty Ltd. The associated assets were consequently presented as held for sale in the 2017 financial statements. (a) Assets and liabilities classified as held for sale The following assets were reclassified as held for sale as at 30 June 2018: 2018 $'000 2017 $'000 Assets classified as held for sale Exploration and evaluation expenditure - 30,732 Property, plant and equipment - 1,013 Total assets - 31,745 The sale of the Stockman Project was completed in December 2017. Partial proceeds of $22,262,000 have been received during the current financial year, offset by costs of sale of $480,000. The net proceeds are disclosed as Net proceeds on sale of Stockman Project in the consolidated statement of cash flows. (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. 23 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: Independence Group NL 47 IGO ANNUAL REPORT 2018— 111 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018