INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 18 Reserves 2017 $'000 2016 $'000 Hedging reserve (391) (632) Share-based payments reserve 10,698 10,371 Foreign currency translation (4) (8) Acquisition reserve 3,142 3,142 13,445 12,873 (a) Movements in reserves The following table shows a breakdown of the movements in these reserves during the year. A description of the nature and purpose of each reserve is provided below the table. Hedging reserve $'000 Share- based payments reserve $'000 Acquisition reserve $'000 Foreign currency translation reserve $'000 Total $'000 Balance at 1 July 2016 (632) 10,371 3,142 (8) 12,873 Revaluation - gross 676 - - - 676 Deferred tax (203) - - - (203) Transfer to profit or loss - gross (331) - - - (331) Deferred tax 99 - - - 99 Currency translation differences - current period - - - 4 4 Share-based payment expenses - 1,147 - - 1,147 Issue of shares under the Employee Performance Rights Plan - (820) - - (820) Balance at 30 June 2017 (391) 10,698 3,142 (4) 13,445 Balance at 1 July 2015 - 13,057 3,142 (8) 16,191 Reclassification on adoption of AASB 9, net of tax (1,036) - - - (1,036) Adjusted balance at 1 July 2015 (1,036) 13,057 3,142 (8) 15,155 Revaluation - gross 577 - - - 577 Deferred tax (173) - - - (173) Share-based payment expenses - 819 - - 819 Issue of shares under the Employee Performance Rights Plan - (3,505) - - (3,505) Balance at 30 June 2016 (632) 10,371 3,142 (8) 12,873 (b) Nature and purpose of reserves Hedging reserve The hedging reserve is used to record gains or losses on derivatives that are designated and qualify as cash flow hedges and that are recognised in other comprehensive income. Amounts are reclassified to profit or loss when the associated hedged transaction affects profit or loss. Independence Group NL 64 94 — IGO ANNUAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017