Notes to the consolidated financial statements 30 June 2022 (continued) 4 Expenses and losses 2022 $M 2021 $M Profit before income tax from continuing operations includes the following specific expenses: Cost of sale of goods 268.3 229.4 Employee benefits expenses 59.7 51.5 Share-based payments expense 6.3 4.9 Exploration and evaluation expense 67.7 61.5 Impairment of exploration and evaluation expenditure 3.0 - Net foreign exchange losses 0.1 - Amortisation expense 163.7 165.2 Depreciation expense 11.9 10.4 Borrowing and finance costs Borrowing and finance costs 4.3 24.8 Lease interest expense 0.9 1.1 Rehabilitation and restoration borrowing costs 0.7 0.4 Amortisation of borrowing costs 0.1 0.2 Finance costs expensed 6.0 26.5 5 Income tax (a) Income tax expense 2022 $M 2021 $M The major components of income tax expense are: Current tax on profits for the year 104.4 172.4 Adjustments for current tax of prior periods (2.3) (0.5) Total current tax expense 102.1 171.9 Deferred income tax expense Decrease in deferred tax assets 4.1 94.0 (Decrease)/increase in deferred tax liabilities 26.4 (33.9) Total deferred tax expense 30.5 60.1 Income tax expense 132.6 232.0 Income tax expense is attributable to: Profit from continuing operations 132.6 39.8 Profit from discontinued operation - 192.2 132.6 232.0 Notes to the consolidated financial statements 30 June 2022 (continued) 5 Income tax (continued) (b) Amounts recognised directly in equity 2022 $M 2021 $M Deferred income tax (benefit)/expense related to items charged or credited to other comprehensive income or directly to equity: Recognition of hedge contracts 2.7 0.7 Business-related capital allowances - (5.0) Financial assets at fair value through other comprehensive income (0.6) - Income tax expense (benefit) reported in equity 2.1 (4.3) (c) Numerical reconciliation of income tax expense to prima facie tax payable 2022 $M 2021 $M Profit from continuing operations before income tax expense 463.5 156.6 Profit from discontinued operation before income tax expense - 624.1 463.5 780.7 Tax expense at the Australian tax rate of 30% (2021: 30%) 139.0 234.2 Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Share-based payments (1.1) (0.2) Non-deductible costs associated with acquisition of subsidiary and associate 21.3 - Other non-deductible items 0.2 - Deferred tax unwind of investment in associate (21.2) - 138.2 234.0 Capital losses not brought to account - 0.2 Adjustments for current tax of prior periods (3.4) (0.3) Research and development tax credit of prior periods (0.2) (0.2) Recoupment of tax losses not recognised (2.0) (6.6) Adjustment for write-off of deferred tax balances on disposal of joint venture - 4.9 Income tax expense 132.6 232.0 (d) Reconciliation of carry forward tax losses and income tax paid 2022 $M 2021 $M Tax effected balances at 30% Carry forward tax losses at the beginning of the year 0.3 91.7 Tax losses recouped during the current year (2.3) (98.0) Recoupment of tax losses not recognised 2.0 6.6 Carry forward tax losses at the end of the year - 0.3 Notes to the consolidated financial statements 30 June 2022 Notes to the consolidated financial statements 30 June 2022 98 — IGO ANNUAL REPORT 2022 IGO ANNUAL REPORT 2022 — 99
RkJQdWJsaXNoZXIy MjE2NDg3