71 / 100
Nature and purpose of reserves
Farm and owner occupied properties reserve recognises the change in fair value of properties held in this category. Associates
revaluation reserves comprises of the Group’s share of revaluation of property, plant and equipment in associate entity, Hamilton
Riverview Hotel. On 16 October 2013, TGH Property Limited purchased an additional 41% shares in Hamilton Riverview Hotel
Limited, taking its total shareholding to 82%, and as a result, this company has been reclassified from an associate to a subsidiary (see
notes 25 and 30). Accordingly, the associate revaluation reserve balance has been derecognised and transferred to retained earnings.
(b) Retained earnings
Movements in retained earnings were as follows:
Consolidated
Notes
2015
$’000
2014
$’000
Balance at beginning of year
755,012
678,337
Net profit for the year
81,872
69,453
Derecognition of associate revaluation reserve
25
-
7,222
Acquisition of non-controlling interest – Hamilton Riverview Hotel Limited
910
-
Balance at end of year
837,794
755,012
1 0 T r a d e a n d o t h e r r e c e i v a b l e s
Consolidated
Notes
2015
$’000
2014
$’000
Trade receivables
4,952
5,912
Property settlements
1,515
-
Less provision for doubtful debt
(350)
(253)
Trade receivables from related parties
13
4,041
-
Income tax receivable
1,023
1,000
Prepayments
1,424
1,303
GST
483
10
Other receivables
881
1,164
13,969
9,136
Consolidated
2015
$’000
2014
$’000
Movements in the provision for doubtful receivables are as follows:
Balance at beginning of the year
253
211
Additional provisions
281
167
Provision reversals
(184)
(125)
350
253
69
waikato-tainui
annual report 2015