The key and IV is derived by concatenating D_1, D_2, etc until enough data is available for the key and IV. D_i is defined as:
D_i = HASH^count(D_(i-1) || data || salt)
where || denotes concatentaion, D_0 is empty, HASH is the digest algorithm in use, HASH^1(data) is simply HASH(data), HASH^2(data) is HASH(HASH(data)) and so on.
The initial bytes are used for the key and the subsequent bytes for the IV.