Notes to the Financial Statements
continued
56
amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash generating unit) in prior years. A reversal of an impairment loss is recognised in
the statement of comprehensive income immediately, unless the relevant asset is carried at fair value, in which
case the reversal of the impairment loss is treated as a revaluation increase.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash generating units). Non‑financial assets that suffered impairment, with the exception
of fishing quota, are reviewed for possible reversal of the impairment at each reporting date.
2.19 Trade and other payables
Trade payables and other accounts payable are recognised when the Group becomes obliged to make future
payments resulting from the purchase of goods and services. The amounts are unsecured. Current trade and
other payables are usually paid within 30 days of recognition. Non‑current other payables are usually paid
between one and two years. Trade and other payables are recognised initially at fair value plus transaction
costs and subsequently measured at amortised cost using the effective interest method.
2.20 Interest bearing liabilities
Interest bearing liabilities are initially recognised at fair value, net of transaction costs incurred. Interest
bearing liabilities are subsequently measured at amortised cost. Any difference between the proceeds (net of
transaction costs) and the redemption amount is recognised in the statement of comprehensive income over
the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of
the liability for at least 12 months after the balance date.
2.21 Contributed equity
Ordinary shares are classified as equity. Transaction costs arising on the issue of equity instruments are
recognised directly in equity as a reduction of the proceeds of the equity instrument. Transaction costs are the
costs arising on the issue of equity instruments, incurred directly in connection with the issue of those equity
instruments and which would not have been incurred had those instruments not been issued.
2.22 Dividends
Dividend distribution to the Company Shareholder is recognised as a liability in the Company’s and the Group’s
financial statements in the period in which the dividends are approved by the Directors and notified to the
Company’s Shareholder.
Provision is made for the amount of any dividend declared on or before the end of the financial year but not
distributed at balance date.
2.23 Current income tax
The Inland Revenue Department approved the Company as charitable for the purposes of the Income Tax Act
1994. Accordingly, no income tax is payable. See note 3 for details of entities that have charitable status.
However some subsidiary and associate entities are taxable. In the instances where an entity is taxable,
current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the
taxable profit or loss for the period. It is calculated using tax rates and tax laws that have been enacted or
substantively enacted by the reporting date. Current tax for current and prior periods is recognised as a liability
(or asset) to the extent that it is unpaid (or refundable).
The Group is not liable for tax on profits or losses from joint ventures as all entities within the Group that are
partners of a joint venture through a joint venture agreement have charitable tax status.
2.24 Statement of cash flows
The statement of cash flows are prepared exclusive of GST. For the purposes of the statement of cash flows,
cash and cash equivalents include cash in banks and investments in money market instruments, net of
outstanding bank overdrafts.
Operating activities include all transactions and other events that are not investing or financing activities.
Investing activities are those activities relating to the acquisition and disposal of current and non‑current
investments and any other non‑current assets.
Financing activities are those activities relating to changes in the equity and debt capital structure of the Company
and Group and those activities relating to the cost of servicing the Company’s and Group’s equity capital.
Note 2.18 continued
