INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 16 Borrowings (continued) (c) Financing arrangements The Group had access to the following financing arrangements at the reporting date: 2017 $'000 2016 $'000 Total facilities Corporate debt facility 400,000 550,000 Contingent instrument facility 1 1,281 1,315 401,281 551,315 Facilities used as at reporting date Corporate debt facility 200,000 271,000 Contingent instrument facility 1,281 1,315 201,281 272,315 Facilities unused as at reporting date Corporate debt facility 200,000 279,000 200,000 279,000 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 2017 $'000 2016 $'000 Fully paid issued capital 1,878,469 1,601,458 Independence Group NL 62 92 — IGO ANNUAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017