Notes to the consolidated financial statements 30 June 2022 (continued) 29 Share-based payments (continued) (h) Recognition and measurement Equity-settled transactions The fair values of equity settled awards are recognised in share-based payments expense, together with a corresponding increase in share-based payments reserve within equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (vesting date). The cost of these equity-settled transactions is measured by reference to the fair value at the date at which they are granted. The fair value is determined with the assistance of a valuation software using a trinomial tree which has been adopted by the Boyle and Law (1994) node alignment algorithm, and takes into account the exercise price, the term of the performance right, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield, the risk-free interest rate for the term of the share right and the correlations and volatilities of the peer group companies. The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects: (i) the extent to which the vesting period has expired, and (ii) the number of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best available information at the reporting date. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition. Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of modification. Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new award is treated as if it was a modification of the original award, as described in the previous paragraph. 30 Related party transactions (a) Transactions with other related parties During the financial year, a wholly-owned subsidiary paid dividends of $590.0 million to IGO Limited (2021: $106.0 million). Any such amounts are eliminated on consolidation for the purposes of calculating the profit of the Group for the financial year. Loans were made between IGO Limited and certain entities in the wholly-owned group. The loans receivable from controlled entities are interest-free and repayable on demand. (b) Key management personnel Compensation of key management personnel 2022 $ 2021 $ Short-term employee benefits 6,217,938 7,325,162 Post-employment benefits 296,511 296,637 Long-term benefits 183,864 92,145 Share-based payments 3,023,836 2,782,708 9,722,149 10,496,652 Detailed remuneration disclosures are provided in the remuneration report on pages 60 to 82. Notes to the consolidated financial statements 30 June 2022 (continued) 31 Parent entity financial information (a) Summary financial information The following information relates to the parent entity, IGO Limited, at 30 June. 2022 $M 2021 $M Balance sheet Current assets 295.9 517.1 Non-current assets 4,276.8 2,861.5 Total assets 4,572.7 3,378.6 Current liabilities 273.5 190.6 Non-current liabilities 731.5 20.5 Total liabilities 1,005.0 211.1 Net assets 3,567.7 3,167.5 (3,567.7) (3,167.5) Equity Contributed equity 2,641.8 2,648.6 Reserves Distributable profits reserve 700.5 483.2 Share-based payments reserve 23.4 20.4 Retained earnings 202.0 15.3 Total equity 3,567.7 3,167.5 2022 $M 2021 $M Profit for the year 517.6 483.2 Other comprehensive income for the year - (0.1) Total comprehensive income for the year 517.6 483.1 (b) Guarantees entered into by the parent entity The parent entity has no unsecured guarantees in respect of finance leases of subsidiaries (2021: $nil). There are cross guarantees given by IGO Limited, IGO Nova Holdings Pty Ltd, IGO Nova Pty Ltd, IGO Nickel Holdings Pty Ltd, Western Areas Limited, Australian Nickel Investments Pty Ltd, BioHeap Ltd and Western Platinum NL, as described in note 32. No deficiencies of assets exist in any of these companies. (c) Contingent liabilities of the parent entity The parent entity did not have any contingent liabilities as at 30 June 2022 or 30 June 2021. (d) Contractual commitments for the acquisition of property, plant or equipment The parent entity did not have outstanding contractual commitments relating to the acquisition of property, plant and equipment at 30 June 2022 (2021: $4.8 million relating to the corporate office fit out). Notes to the consolidated financial statements 30 June 2022 Notes to the consolidated financial statements 30 June 2022 148 — IGO ANNUAL REPORT 2022 IGO ANNUAL REPORT 2022 — 149
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