75 / 100
1 4 Ot h e r r e c e i v a b l e s ( non - c u r r e n t )
Consolidated
2015
$’000
2014
$’000
Relativity settlement receivable
76,401
19,000
Co-management settlement receivable
9,546
9,455
Other receivables
264
607
Provision for doubtful receivable
(264)
(450)
Lease fitout contribution
1,216
1,158
87,163
29,770
Relativity is the mechanism under which further settlement is recognised (see note 1 for details and note 2.3 (a) and 2.10 on
accounting policy for relativity settlement). A relativity settlement receivable of $76m has been recognised at 31 March 2015
(2014: $19m) based on the Group’s accounting policy. The receivable is not to be settled until 2017.
The Co-management settlement receivable is comprised of the Waikato Raupatu River Trust Co-management settlement
receivable. The Co-Management settlement receivable has been valued based on a discounted cash flow method using the
annual swap rates for the relative term. The swap rates applied range from 3.56% to 3.75% (2014: 3.63% to 5.08%). The Co-
Management funding settlement provided that an annuity of $1m be provided for 27 years effective from 2010. During the 2014
year, $11m was received for the Co-management debtor, which included the annuity of $1m plus an advance of $10m, reducing
the settlement period by 10 years.
1 5 Ot h e r f i n a n c i a l a s s e t s
Consolidated
2015
$’000
2014
$’000
Categorised as at fair value through profit or loss:
Call option agreement – property
-
647
Listed companies
12,881
1,957
Unlisted companies
14,238
10,883
Unlisted company – AFL income shares
10,521
10,521
37,640
24,008
(a) Listed companies
The fair value of shares in listed companies is the investment in Genesis Energy Limited and Fonterra Co-operative Group Limited.
(b) Unlisted companies
The fair value of shares in unlisted companies is represented by the investment in Pioneer Capital Partners LP. The investment
in Pioneer Capital Partners LP is based on the fair value of the Group’s investment. The fair value of the Group’s investment is
valued using common valuation methods such as discounted cash flow and comparable trading multiple methods as set out in the
International Private Equity and Venture Capital Valuation Guidelines.
(c) Unlisted companies – Aotearoa Fisheries Limited (AFL) income shares
The fair value of the AFL income shares is based a valuation undertaken by Toroa Strategy Limited. The valuation methodology
uses a mixture of historical performance, multiple earnings over a four year period, dividend streams and liquidity. Toroa Strategy
Limited is not related to the Group and holds recognised and relevant professional qualifications having had recent experience and
knowledge in the assets they have valued.
73
waikato-tainui
annual report 2015