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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. See note 3 for details of entities that have
charitable status.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise
from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset
or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting
nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively
enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
Deferred tax in respect of property, plant and equipment has been assessed on the basis of the asset value being realised
through sale.
2.25 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 Trust and Group and
those activities relating to the cost of servicing the Trust’s and Group’s equity capital.
2.26 Goods and services tax (GST)
The profit and loss component of the statement of comprehensive income has been prepared so that all components are stated
exclusive of GST. All items in the statement of financial position are stated net of GST, with the exception of receivables and
payables, which include GST invoiced.
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
