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Joint ventures’ accounting policies have been changed where necessary to ensure consistency with the policies adopted by
the Group.
2.5 Functional and presentation currency
Items included in the financial statements of each of the subsidiaries’ operations are measured using the currency of the primary
economic environment in which it operates (the functional currency). The consolidated financial statements are presented in
New Zealand dollars, which is the Parent’s functional currency and the Group’s presentation currency.
2.6 Revenue recognition
Revenue comprises the fair value of the sale of goods and services, net of Goods and Services Tax (GST), rebates and discounts
and after eliminating sales within the Group. Revenue is recognised as follows:
(a) Hotel income
Revenue from hotels comprises amounts earned in respect to services, facilities and goods supplied. Any revenue not recognised,
but received by the reporting date, is treated as deposits in advance and shown as a liability in the statement of financial
position.
(b) Rental income
Rental income is recognised on a straight line basis over the lease term. Lease incentives which are offered to tenants as an
inducement to enter into non‑cancellable operating leases are recognised as current prepayment and non‑current lease fitout
contribution and are subsequently amortised over the term of the lease as a reduction of rental income.
(c) Sales of goods
Sales of goods are recognised when the Group has transferred the significant risks and rewards of ownership of the goods sold.
For sections, recognition is on the sale contract becoming unconditional and the title passing. The recorded revenue is the gross
amount of the sale.
(d) Quota lease income
Quota lease income is recognised on a straight line basis over the lease term.
(e) Dairy income
Dairy income is recognised when the Group has transferred the significant risks and rewards of ownership of the goods sold.
(f) Interest income
Interest income is recognised on a time‑proportion basis using the effective interest method. When a receivable is impaired,
the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at original
effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired
loans is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the
impairment loss.
(g) Dividend income
Dividend income is recognised when the right to receive payment is established.
(h) Emission Trading Scheme Allocation
Emission Trading Scheme allocation is the assistance provided by the Government in the form of transfers of resources to the
Group in return for past or future compliance with certain conditions relating to operating activities of the Group. The Group
was eligible for and has received units under the New Zealand Emission Trading Scheme as part of the fisheries allocation for
quota owned. The fair value of units received is recognised in the statement of comprehensive income on allocation by the
Government to the Group.
2. Summary of significant accounting policies (continued)
waikato raupatu lands trust
notes to the financial statements
f o r t h e y e a r e n d e d 3 1 m a r c h 2 0 1 4
