Red Bubble Annual Report 2022

22. Related party transactions continued (b) Transactions with key management personnel 2022 There were no related party transactions in the current year. 2021 Limited recourse loan On 10 February 2021, Redbubble Limited and Mr Ilczynski, CEO, entered into a limited recourse loan arrangement with a loan amount of $1,600,000. Mr Ilczynski used the loan amount plus $400,000 of his own funds to purchase Redbubble Limited shares on-market in the trading window that followed release of Redbubble’s half-year 2021 results and Appendix 4D. This transaction was completed on 4 March 2021, with an average share price of $5.53. The loan amount plus interest equal to the RBA cash rate plus 3% (compounding annually) is to be repaid 5 years from date of loan, or on cessation of employment if earlier. The purchased shares are subject to dealing restrictions, including a prohibition on granting security interests, which fall away upon the loan being repaid in full. The security for the loan is limited to the shares acquired with the loan amount. The loan is recognised as an option grant under AASB 2 Share Based Payment and as a result this loan is not recognised in the consolidated statement of financial position. (c) Transactions with related parties There were no other related party transactions in the current and prior year. 23. Remuneration of auditors Fees to Ernst & Young (Australia) 2022 $ 2021 $ Audit fees: Fees for auditing the statutory financial report of the parent covering the group and auditing the statutory financial reports of any controlled entities 331,791 285,890 Fees for other services: Assistance in developing the Group’s ESG strategy 197,944 30,370 Taxation services 68,150 43,630 Remuneration of Ernst & Young 597,885 359,890 Fees to other overseas member firms of Ernst & Young (Australia) Fees for other services: Taxation services 21,505 - Remuneration of other overseas member firms of Ernst & Young Australia 21,505 - Total auditor’s remuneration 619,390 359,890 24. Segment information AASB 8 Operating Segments allows for the aggregation of operating segments where they exhibit similar economic characteristics. Notes to the Consolidated Financial Statements continued For the Year Ended 30 June 2022 The Group considers the Redbubble and TeePublic marketplaces to have similar economic characteristics and therefore have been aggregated to form a single reportable operating segment. Geographical information required per AASB 8 and disaggregated revenue reporting is detailed below: 2022 2021 Revenue $’000 Non-current assets(1) $’000 Revenue $’000 Non-current assets(1) $’000 Australia 38,202 16,601 37,715 7,939 United States 396,856 64,828 443,682 60,475 United Kingdom 56,013 – 73,476 – Rest of the world 82,322 471 102,450 466 Total 573,393 81,900 657,323 68,880 (1) Non-current assets for this purpose consist of property, plant and equipment, intangible assets and right of use assets. 25. Events occurring after the balance sheet date The financial report was authorised for issue on 17 August 2022 by the Board of Directors. Other than the above, there have been no further significant events after the balance sheet date that require disclosure. 26. Other significant accounting policies (a) Principles of consolidation Subsidiaries are all entities over which the Group has control. Control is established when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which the Group gains control. They would be deconsolidated from the date that control ceases. A list of the subsidiaries is provided in note 18 to the financial statements. Intercompany transactions, balances and unrealised gains or losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies of subsidiaries have been aligned where necessary to ensure consistency with the policies adopted by the Group. (b) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in operations and administration expenses. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree. Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of AASB 9 Financial Instruments, is measured at fair value with the changes in fair value recognised in the statement of profit or loss in accordance with AASB 9. Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Where goodwill has been allocated to a single cash-generating unit (CGU) and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained. 87 Redbubble – Annual Report 2022 86 Redbubble – Annual Report 2022

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