67
waikato-tainui
annual report 2014
Custodians of Te Wherowhero title are the Head of the Kaahui Ariki and two successors who are yet to be elected.
As at 31 March 2014 (and 31 March 2013), the title is protected by the Custodial Trustee ‑ Kiingi Tuheitia. Lands under this title
are separately disclosed in note 20.
Te Wherowhero investment property is carried at fair value, representing open‑market value determined by external valuers.
Changes in fair value are recorded in the statements of comprehensive income.
Te Wherowhero property that is not investment land is not leased and is recorded at historical cost.
2.21 Impairment of non‑financial assets
Assets that have an indefinite useful life ‑ for example goodwill or intangible assets not ready to use ‑ are not subject to
amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised when the asset’s carrying amount exceed its recoverable amount. The recoverable amount is the higher of an asset’s
fair value less costs to sell and value in use.
Impairment losses are recognised first against the revaluation reserves in respect of the impaired asset, and second as an
expense in the statements of comprehensive income.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash generating unit) is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying 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.
2.22 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 and are usually paid within 30 days of recognition.
Non‑current other payables are usually paid between one and two years. Trade and other accounts payable are recognised
initially at fair value plus transaction costs and subsequently measured at amortised cost using the effective interest method.
2.23 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.
2.24 Current and deferred income tax
The Inland Revenue Department approved the Trust as charitable for the purposes of the Income Tax Act 1994. Accordingly, no
income tax is payable.
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).
