IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) 7 Cash and cash equivalents (continued) (c) Recognition and measurement Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. Bank overdrafts are included within borrowings in current liabilities on the balance sheet. 8 Trade and other receivables 2019 $'000 2018 $'000 Current Trade receivables 24,568 50,858 GST Receivable 2,463 738 Other receivables 18,556 40,563 Prepayments 2,161 1,934 47,748 94,093 Non-current Other receivables 14,998 29,495 14,998 29,495 (a) Recognition and measurement (i) Trade receivables Trade receivables are generally received in the current month, or up to three months after the shipment date. The receivables are initially recognised at fair value, less any allowance for expected credit losses. The Group has applied the simplified approach to measuring expected credit losses, which applies a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Trade receivables are subsequently revalued by the mark-to-market of open sales. The Group determines mark-to-market prices using forward prices at each period end for nickel, copper and cobalt sales. (ii) Other receivables Other receivables include amounts outstanding on the sale of the Jaguar Operation in May 2018. The discounted values (using a discount rate of 3.5%) of the outstanding cash proceeds of $15,519,000 (2018: $15,520,000) and $14,994,000 (2018: $29,480,000) are shown in current and non-current receivables respectively. Refer further information at note 22(c). (iii) Impairment and risk exposure Note 21(b)(i) sets out information about the impairment of financial assets and the Group's exposure to credit risk. Given our credit risk management processes, the resulting level of expected credit losses are insignificant. (b) Key estimates and judgements Allowance for expected credit losses Independence Group NL 21 Notes to the consolidated financial statements 30 June 2019 (continued) 8 Trad and other receivables (continued) (b) Key stimates and ju gements (continued) The allowance for expected credit losses assessment requires a estimation based on a degree of judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience and historical collection rates. 9 Inventories 2019 $'000 2018 $'000 Current Mine spares and stores 19,023 13,831 ROM inventory 32,866 39,943 Concentrate inventory 12,006 23,258 Gold in circuit 1,454 1,585 Gold dore 4,925 3,870 70,274 82,487 84 — IGO ANNUAL REPORT 2019