IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) 18 Reserves and accumulated losses (continued) (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. 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 26 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. (c) Accumulated losses Movements in accumulated losses were as follows: Notes 2018 $'000 2017 $'000 Balance at beginning of financial year (159,130) (158,540) Net profit for the period 52,686 17,011 Dividends paid during the period 19 (11,736) (17,601) Transfer from acquisition reserve 3,142 - Balance at end of financial year (115,038) (159,130) 19 Dividends paid and proposed (a) Ordinary shares 2018 $'000 2017 $'000 Final ordinary dividend for the year ended 30 June 2017 of 1 cent (2016: 2 cents) per fully paid share 5,868 11,734 Interim dividend for the year ended 30 June 2018 of 1 cent (2017: 1 cent) per fully paid share 5,868 5,867 Total dividends paid during the financial year 11,736 17,601 Independence Group NL 34 98 — IGO ANNUAL REPORT 2018 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018