IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) 18 Reserves and accumulated losses (continued) (a) Reserves (continued) (ii) 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 25 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. (b) Accumulated losses Movements in accumulated losses were as follows: Notes 2019 $'000 2018 $'000 Balance at beginning of financial year (115,038) (159,130) Net profit for the period 76,085 52,686 Dividends paid during the period 19 (23,619) (11,736) Transfer from acquisition reserve - 3,142 Balance at end of financial year (62,572) (115,038) 19 Dividends paid and proposed (a) Ordinary shares 2019 $'000 2018 $'000 Final ordinary dividend for the year ended 30 June 2018 of 2 cents (2017: 1 cent) per fully paid share 11,809 5,868 Interim dividend for the year ended 30 June 2019 of 2 cents (2018: 1 cent) per fully paid share 11,810 5,868 Total dividends paid during the financial year 23,619 11,736 (b) Dividends not recognised at the end of the reporting period 2019 $'000 2018 $'000 In addition to the above dividends, since year end the Directors have recommended the payment of a final dividend of 8 cents per fully paid ordinary share, franked to 97% (2018: 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 26 September [2019out of retained earnings at [30 June 2019 but not recognised as a liability at year end, is: 47,264 11,809 Independence Group NL 29 98 — IGO ANNUAL REPORT 2019