Notes to the Financial Statements
continued
54
Trade and other receivables are classified as financial assets measured at amortised cost. Trade and other
payables and debt instruments are classified as financial liabilities measured at amortised cost.
Financial assets and liabilities measured at fair value through profit or loss
Financial assets and liabilities are measured at fair value unless measured at amortised cost. At initial
recognition, the Group may make an irrevocable election to present in other comprehensive income subsequent
changes in the fair value of an investment in an equity instrument within the scope of NZ IFRS 9 ‘Financial
Instruments’ that is not held for trading. If the Group makes this election, it shall recognise in profit or loss
dividends from that investment when the Group’s right to receive payment of the dividend is established in
accordance with NZ IAS 18 ‘Revenue’. The Group may also at initial recognition, designate an instrument as
measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement or
recognition inconsistency that would otherwise arise from measuring the instruments or recognising gains and
losses on them on different bases.
The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not
active (and for unlisted securities), the Group establishes fair value by using valuation techniques. These include
the use of recent arm’s length transaction pricing models refined to reflect the Group’s specific circumstances.
A gain or loss on a financial asset or liability that is measured at fair value and is not part of a hedging
relationship shall be recognised in profit and loss unless the financial asset is an investment in an equity
instrument and the Group has made an irrevocable election to present gains and losses on that investment in
other comprehensive income.
Financial assets are de‑recognised when the rights to receive cash flows from the financial assets have expired
or have been transferred and the Group has transferred substantially all risks and rewards of ownership.
Financial liabilities are de‑recognised if the Group’s obligations specified in the contract expire or are discharged
or cancelled.
Investment property liabilities are classified as financial liabilities measured at fair value through profit or loss.
Derivative financial instruments are classified as either financial assets or financial liabilities measured at fair
value through profit or loss.
2.14 Investments in subsidiaries
Investments in subsidiaries are valued at cost less impairment in the Company.
2.15 Intangible assets
(a) Computer software
Separately acquired computer software and licenses at a cost greater than $10,000 are capitalised on the basis
of the costs incurred to acquire and bring to use the specific asset. These costs are amortised on a straight line
basis over their estimated useful lives of two years.
Costs under $10,000 associated with maintaining computer software programmes are recognised as an
expense as incurred.
(b) Quota
Separately acquired fishing quota has an indefinite useful life and will generate economic benefits beyond one
year. Fishing quota is tested annually for impairment and is carried at cost less accumulated impairment. The
useful life is assessed annually to determine whether the indefinite useful life assessment continues to be
supportable.
(c) Carbon credits
Intangible assets include carbon credits acquired by way of a Government grant and are initially recognised at
fair value at the date of acquisition. Following initial recognition, these intangible assets are carried at cost less
any accumulated impairment losses.
The Group is able to either hold the New Zealand Units (NZU) within the carbon register or alternatively trade
the NZU’s in domestic and international carbon markets.
Carbon credits are not consumed in the production and are therefore not amortised. The NZU’s are not
amortised but are tested for impairment on an annual basis or when indications of impairment exist.
2.16 Property, plant and equipment
Farm and other properties are comprised of land, buildings and plant held on the farms as well as the building
occupied by the Parent, and are shown at fair value, based on periodic, but at least triennial, valuations by
Note 2.13 continued
