Waikato-Tainui Annual Report 2015

Te Wherowhero investment properties comprise of properties located at Kawhia, Onewhero, 192 The Terrace in Wellington,

Hopuhopu, The Base and the University of Waikato, Hamilton. Te Wherowhero investment properties are 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.

As at 31 March 2015 (and 31 March 2014), the title is protected by the Custodial Trustee – Kiingi Tuheitia. Lands under this title

are separately disclosed in note 19.

Custodians of Te Wherowhero title are the Head of the Kaahui Ariki and two successors who are yet to be elected.

2.20 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.

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.

2.21 Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable

that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are

not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by

considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any

one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax

rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in

the provision due to passage of time is recognised as interest expense.

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.

waikato-tainui

annual report 2015