Table:
|  | CONSOLIDATED |  |
| --- | --- | --- |
|  | 2019 $’000 | 2018 $’000 |
| Consolidated income statement |  |  |
| Loss from continuing operations before income tax | (20,111) | (21,033) |
| Income tax benefit | 5,949 | 6,734 |
| Net loss for the year | (14,162) | (14,299) |
| Retained earnings at the beginning of the period | 4,101 | 30,790 |
| Transferred in from divested subsidiary | (8,676) | - |
| Net loss for the year | (14,162) | (14,299) |
| Dividends paid | - | (12,390) |
| Retained earnings at the end of the year | (18,737) | 4,101 |
Paragraphs:
6.4 Deed of cross guarantee
Pursuant to the iSelect Deed of Cross Guarantee (“the Deed”) and in accordance with ASIC Class Order 98/1418, the subsidiaries identified with a ‘2’ in note 6.2 are relieved from the requirements of the Corporations Act 2001 relating to the preparation, audit and lodgment of their financial reports.
iSelect Limited and the subsidiaries identified with a ‘2’ in note 6.2 together are referred to as the “Closed Group”. The Closed Group, with the exception of General Brokerage Services Pty Ltd, Energy Watch Trading Pty Ltd, Procure Power Pty Ltd, Energy Watch Services Pty Ltd and iSelect International Pty Ltd entered into the Deed on 26 June 2013.
General Brokerage Services Pty Ltd, Energy Watch Trading Pty Ltd, Procure Power Pty Ltd and Energy Watch Services Pty Ltd entered into the Deed on 1 July 2014, the date they were acquired as part of the Energy Watch Group acquisition. iSelect International entered the Deed on 8 September 2014. The effect of the Deed is that iSelect Limited guarantees to each creditor payment in full of any debt in the event of winding up any of the entities in the Closed Group.
The consolidated income statement of the entities that are members of the Closed Group is as follows:
Question:
What is the effect of the Deed?
Answer: iSelect Limited guarantees to each creditor payment in full of any debt in the event of winding up any of the entities in the Closed Group