INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 18 Reserves (continued) (b) Nature and purpose of reserves (continued) Share-based payments reserve The share-based payments reserve is used to record the value of share-based payments provided to employees, including key management personnel, as part of their remuneration. Refer to note 27 for further details of these plans. Foreign currency translation reserve Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is disposed of. Acquisition reserve The acquisition reserve is used to record differences between the carrying value of non-controlling interests and the fair value of the shares issued, where there has been a transaction involving non-controlling interests that do not result in a loss of control. The reserve is attributable to the equity of the parent. 19 Dividends paid and proposed (a) Ordinary shares 2017 $'000 2016 $'000 Final ordinary dividend for the year ended 30 June 2016 of 2 cents (2015: 2.5 cents) per fully paid share 11,734 12,786 Interim dividend for the year ended 30 June 2017 of 1 cent (2016: nil cents) per fully paid share 5,867 - Total dividends paid during the financial year 17,601 12,786 (b) Dividends not recognised at the end of the reporting period 2017 $'000 2016 $'000 In addition to the above dividends, since year end the Directors have recommended the payment of a final dividend of 1 cent (2016: 2 cents) per fully paid ordinary share, fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend expected to be paid on 22 September 2017 out of retained earnings at 30 June 2017, but not recognised as a liability at year end, is: 5,867 11,734 (c) Franked dividends 2017 $'000 2016 $'000 Franking credits available for subsequent reporting periods based on a tax rate of 30% (2016: 30%) 34,829 42,373 The above amounts are calculated from the balance of the franking account as at the end of the reporting period, adjusted for: (a) franking credits that will arise from the payment of the amount of the provision for income tax; (b) franking debits that will arise from the payment of dividends recognised as a liability at the reporting date; and (c) franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date. The impact on the franking account of the dividend recommended by the Directors since the end of the reporting period, but not recognised as a liability at the reporting date, will be a reduction in the franking account of $2,515,000 (2016: $5,029,000). Independence Group NL 65 IGO ANNUAL REPORT 2017— 95 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017