Page 72 - OneVue Annual Report 2015

Notes to the financial statements

Note 16. Current liabilities - financial liabilities

Convertible note Consolidated 2014
2015 $'000
$'000
706 706

On 2 September 2013 as part of the CFS acquisition, OneVue issued 1,440 convertible notes, with an issue price of
$1,000 each, for total proceeds of $1.44 million. The convertible note does not bear interest. The notes are
redeemable at the discretion of the noteholder.

The convertible notes are a compound financial instrument with a liability and equity component. The liability was
calculated at the fair value of the anticipated cash flows and deducted from the undiscounted value to give a
residual equity component. Using a discount rate of 8.5% p.a, the fair value of the liability at issue was $1.28 million. As
at 30 June 2015, the value of the liability is $0.71 million given repayment of the first instalment on 2 September 2014.

Subsequent to year end the noteholder requested that the convertible notes in the second tranche be settled in
cash with $0.72 million paid to the noteholder on 2 September 2015.

Refer to notes 23 and 24 for further information on financial instruments and fair value measurement respectively.

Note 17. Current liabilities – other financial liabilities

Loan payable Consolidated 2014
Transaction settlement outstanding 2015 $'000
$'000 1,000
-
200 560
200 1,560

In addition to the ordinary shares issued as consideration at the date of acquisition of Select Investment Partners
Limited, further consideration remained payable under the sale and purchase agreement.

Refer to note 33 for further information on business combinations.

Note 18. Employee benefits

Current Consolidated 2014
Non-current 2015 $'000
$'000
1,324 981
301 386
1,625 1,367

Amounts not expected to be settled within the next 12 months

The current provision for employee benefits includes all unconditional entitlements where employees have
completed the required period of service and also those where employees are entitled to pro-rata payments in
certain circumstances. The entire amount of the annual leave provision is presented as current, since OneVue does
not have an unconditional right to defer settlement. However, based on past experience, OneVue does not expect
all employees to take the full amount of accrued leave or require payment within the next 12 months.

72 - ONEVUE ANNUAL REPORT 2015