64 / 100
2 S umm a r y o f s i g n i f i c a n t a c c o u n t i n g p o l i c i e s ( c on t i n u e d )
Land and buildings (hotels), tribal 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. Tribal properties
comprise of buildings located at Hopuhopu, reserve lands and a residential property in Pukawa.
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 owner occupied 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 statement 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.
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 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.
2.18 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.
2.19 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.
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 5
62