REA Group Ltd Annual Report 2021

Annual Report 2021 | REA Group Ltd 16. Contingencies and commitments (a) Contingent liabilities (i) Claims Various claims arise in the ordinary course of business against REA Group Ltd and its subsidiaries. The amount of the liability (if any) at 30 June 2021 cannot be ascertained, and any resulting liability would not materially affect the financial position of the Group. (ii) Guarantees At 30 June 2021, the Group had bank guarantees totalling $4.5 million (2020: $3.6 million) in respect of various property leases for offices used by the Group. In December 2020, REA and News Corp acquired preference shares in Elara Technologies Pte. Ltd. by issuing cash consideration for repayment of the USD$69.0 million revolving credit facility (“RCF”) with Citibank. This resulted in the derecognition of a $1.3 million guarantee liability and accrued income asset on settlement of the RCF facility on completion. (iii) Other Matters From time to time, the Group is subject to both formal and informal reviews by various tax authorities as well as legal claims. The final outcome of any tax review or audit cannot be determined with an acceptable degree of reliability. At 30 June 2021 the Consolidated Statement of Financial Position accurately reflects all potential taxation liabilities and the Group is taking reasonable steps to conclude all outstanding matters with the relevant tax authorities. (b) Commitments The Group has no capital commitments at 30 June 2021 (2020: nil). As set out in Note 19(b) (vii) REA has agreed to provide ongoing funding to Elara for a minimum of 18 months from the date of acquisition, on terms consistent with the RCF previously held by Elara. As at 30 June 2021, the Group is committed to provide future funding up to a maximum of USD$8.77 million to the 99 Group. Refer to Note 27 for further information. Year in review Directors’ Report Financial Statements Remuneration Report Sustainability Our Leaders 99