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Land, hotels, development properties, trust and other properties, vehicles, equipment, fixtures and fittings are stated at historical
cost less depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of
the items. Trust and other porperties comprise of buildings located at Hopuhopu and reserve lands.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial
period in which they are incurred.
Increases in the carrying amounts arising on revaluation of farm and other properties are credited to the revaluation reserve in
equity. To the extent that the increase reverses a revaluation decrease previously recognised in the statement of comprehensive
income, the increase is first recognised in statements of comprehensive income. Decreases that reverse previous increases of the
same asset are first charged against revaluation reserves directly in equity to the extent of the remaining reserve attributable to
the asset; all other decreases are charged to the statement of comprehensive income.
Development property and land is not depreciated. Depreciation on other assets is calculated using the straight line method to
allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives. Estimated useful lives are as
follows:
• Computers
2-6 years
• Farm buildings
50 years
• Hotels (buildings)
50-100 years
• Hotels (other assets)
3-33 years
• Office equipment, furniture and fittings
1-17 years
• Other buildings
100 years
• Plant and equipment
1-14 years
• Vehicles
2-11 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement
of comprehensive income. When revalued assets are sold, it is Group policy to transfer the amounts included in revaluation
reserves in respect of those assets to retained earnings.
2.19 Investment properties
Investment properties include properties held to earn rental income, and/or for capital appreciation as well as investment
properties under construction. A property is also classified as an investment property if it does not have an operating lease in
place, but is held with the intention of attaining an operating lease.
Investment properties are initially recognised at cost, including transaction costs. Subsequent to initial recognition, investment
properties are carried at fair value, representing open‑market value determined annually by external valuers. Changes in fair
value are recorded in the statement of comprehensive income.
2.20 Te Wherowhero properties
Te Wherowhero title is the mechanism set up to protect the title of lands in the tribal estate. The benefits and the land in Te
Wherowhero title are for all Waikato‑Tainui and the land cannot be succeeded to, sold, alienated, mortgaged or gifted without
adherence to a process to obtain the mandate of the voting beneficiaries or their representatives and unanimous consent of the
Custodial Trustees.
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
