INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 1 Segment information (continued) (f) Segment liabilities A reconciliation of reportable segment liabilities to total liabilities is as follows: 2017 $'000 2016 $'000 Total liabilities for reportable segments 960,837 810,569 Intersegment eliminations (828,456) (690,382) Unallocated liabilities: Deferred tax liabilities 139,903 100,949 Creditors and accruals 3,854 63,358 Provision for employee entitlements 2,520 1,280 Bank loans 197,041 265,826 Total liabilities as per the balance sheet 475,699 551,600 2 Revenue 2017 $'000 2016 $'000 Sales revenue Sale of goods 419,169 411,567 419,169 411,567 Other revenue Interest revenue 2,217 1,458 Other revenue 540 163 2,757 1,621 Total revenue 421,926 413,188 (a) Recognition and measurement Revenue is measured at the fair value of the consideration received or receivable to the extent that it is probable that the economic benefits will flow to the Group and revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when there is persuasive evidence indicating that there has been a transfer of risks and rewards to the customer. Sales revenue comprises gross revenue earned, net of treatment and refining charges where applicable, from the provision of products to customers, and includes hedging gains and losses. Sales are initially recognised at estimated sales value when the product is sold. Adjustments are made for variations in metals price, assay, weight and currency between the time of sale and the time of final settlement of sales proceeds. Interest income Interest income is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. Independence Group NL 44 74 — IGO ANNUAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017