IGO Interactive Annual Report 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2020 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2020 Notes to the consolidated financial statements 30 June 2020 (continued) 22 Financial risk management (continued) (d) Recognised fair value measurements (continued) (iii) Valuation techniques used to determine level 2 and level 3 fair values (continued) • Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments. All of the resulting fair value estimates are included in level 2. (iv) Fair value of other financial instruments The Group also has a number of financial instruments which are not measured at fair value in the balance sheet. These instruments had the following fair value at the reporting date. 30 June 2020 30 June 2019 Carrying amount $'000 Fair value $'000 Carrying amount $'000 Fair value $'000 Current liabilities Bank loans 56,937 57,145 56,226 57,142 Lease liabilities 6,235 7,706 - - 63,172 64,851 56,226 57,142 Non-current liabilities Bank loans - - 28,363 28,574 Lease liabilities 33,550 37,347 - - 33,550 37,347 28,363 28,574 IGO Limited 47 Notes to the consolidated financial statements 30 June 2020 (continued) Group structure This section of the notes provides information which will help users understand how the group structure affects the financial position and performance of the Group. 23 Subsidiaries (a) Significant investments in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of IGO Limited and the subsidiaries listed in the following table: Name of entity Note Country of incorporation Equity holding 2020 % 2019 % IGO Newsearch Pty Ltd Australia 100 100 IGO Stockman Parent Pty Ltd Australia 100 100 IGO Stockman Project Pty Ltd Australia 100 100 IGO Windward Pty Ltd Australia 100 100 Flinders Prospecting Pty Ltd Australia 100 100 IGO Europe Pty Ltd Australia 100 100 IGO Nova Holdings Pty Ltd (a) Australia 100 100 IGO Nova Pty Ltd (a) Australia 100 100 Independence Group Europe AB Sweden 100 100 IGO Downstream Technologies Pty Ltd Australia 100 100 (a) These subsidiaries have been granted relief from the necessity to prepare financial reports in accordance with ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 issued by the Australian Securities and Investments Commission. For further information refer to note 29. (b) Principles of consolidation Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entities. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group (refer to note 31(c)(i)). Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. IGO Limited 48 114 — IGO ANNUAL REPORT 2020 IGO ANNUAL REPORT 2020— 115