Notes to the consolidated financial statements 30 June 2022 (continued) 12 Provisions (continued) (b) Recognition and measurement (continued) (ii) Employee benefits The provision for employee benefits represents annual leave and long service leave entitlements accrued by employees. Short-term obligations Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service, are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The amounts are recognised in Trade and other payables in the balance sheet. Other long-term employee benefit obligations The liabilities for long service leave and annual leave that are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period of government bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss. The obligations are presented as current liabilities in the consolidated balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual settlement is expected to occur. (c) Key estimates and judgements Rehabilitation and restoration provisions The provision for rehabilitation and restoration costs is based on the net present value of the estimated cost of rehabilitating and restoring the environmental disturbance that has occurred up to the reporting date. Significant estimates and assumptions are made in determining the provision for mine rehabilitation as there are numerous factors that will affect the ultimate liability payable. These factors include estimates of the extent and costs of rehabilitation activities, technological changes, regulatory changes, cost increases as compared to the inflation rates and changes in discount rates. These uncertainties may result in future actual expenditure differing from the amounts currently provided. The provision at reporting date represents management’s best estimate of the present value of the future rehabilitation costs required. Long service leave Long service leave is measured at the present value of benefits accumulated up to the end of the reporting period. The liability is discounted using an appropriate discount rate. Management requires judgement to determine key assumptions used in the calculation, including future increases in salaries and wages, future on-costs rates and future settlement dates of employees' departures. Notes to the consolidated financial statements 30 June 2022 (continued) Invested Capital This section of the notes provides further information about property, plant and equipment, leases, mine properties and exploration and evaluation expenditure and the carrying amount of these non-financial assets, including accounting policies, key judgements and estimates relevant to understanding these items. 13 Property, plant and equipment Land and buildings $M Mining plant and equipment $M Furniture, fittings and other equipment $M Motor vehicles $M Assets under construction $M Total $M Year ended 30 June 2022 Cost 15.5 80.1 22.8 4.0 24.3 146.7 Accumulated depreciation (4.8) (11.5) (12.9) (2.5) - (31.7) Net book amount 10.7 68.6 9.9 1.5 24.3 115.0 Movements Opening net book amount 2.6 14.6 8.4 0.5 8.0 34.1 Acquisition of subsidiary 4.2 54.8 0.7 0.4 10.0 70.1 Additions 3.2 1.2 2.1 0.3 11.2 18.0 Depreciation charge (0.7) (3.7) (2.5) (0.2) - (7.1) Disposals - - - (0.1) - (0.1) Transfers 1.4 1.7 1.2 0.6 (4.9) - Closing net book amount 10.7 68.6 9.9 1.5 24.3 115.0 Year ended 30 June 2021 Cost 6.7 22.4 18.8 2.9 8.0 58.8 Accumulated depreciation (4.1) (7.8) (10.4) (2.4) - (24.7) Net book amount 2.6 14.6 8.4 0.5 8.0 34.1 Movements Opening net book amount 9.9 19.2 6.5 0.8 12.2 48.6 Additions 1.1 4.7 1.0 0.4 7.7 14.9 Disposals - - - - - - Depreciation charge (3.2) (7.4) (2.3) (0.4) - (13.3) Transfers 0.6 7.3 3.7 0.3 (11.9) - Transfers from mine properties under construction 4.7 8.8 - - - 13.5 Disposal of joint venture (10.5) (18.0) (0.5) (0.6) - (29.6) Closing net book amount 2.6 14.6 8.4 0.5 8.0 34.1 (a) Non-current assets pledged as security Refer to note 17 for information on non-current assets pledged as security by the Group. Notes to the consolidated financial statements 30 June 2022 Notes to the consolidated financial statements 30 June 2022 110 — IGO ANNUAL REPORT 2022 IGO ANNUAL REPORT 2022 — 111
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