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(v) Functional and presentation currency
Items included in the fnancial statements of each of the subsidiaries’ operations are measured using the currency of the
primary economic environment in which it operates (‘the functional currency’). The consolidated fnancial statements are
presented in New Zealand dollars, which is the Company’s functional currency and the Group’s presentation currency.
2.5 Revenue recognition
Revenue comprises the fair value of the sale of goods and services, net of Goods and Services Tax (GST), rebates and
discounts and after eliminating sales within the Group. Revenue is recognised as follows:
(i) Hotel income
Revenue from hotels comprises amounts earned in respect of services, facilities and goods supplied. Any revenue
not recognised, but received by the reporting date, is treated as deposits in advance, and shown as a liability in the
Statement of Financial Position.
(ii) Rental income
Rental income is recognised on a straight line basis over the lease term.
(iii) Sales of goods
Sales of goods are recognised when the Group has transferred the signifcant risks and rewards of ownership of the
goods sold. For sections, recognition is on the sale contract becoming unconditional and the title passing. The recorded
revenue is the gross amount of the sale.
(iv) Quota lease income
Quota lease income is recognised when the Group has receipted income from the quota lessee. Quota is recognised on
a monthly accruals basis.
(v) Dairy income
Dairy income is recognised when the Group has transferred the signifcant risks and rewards of ownership of the goods
sold.
(vi) Interest income
Interest income is recognised on a time‑proportion basis using the effective interest method. When a receivable is
impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash fow
discounted at original effective interest rate of the instrument, and continues unwinding the discount as interest income.
Interest income on impaired loans is recognised using the rate of interest used to discount the future cash fows for the
purpose of measuring the impairment loss.
(vii) Dividend income
Dividend income is recognised when the right to receive payment is established.
(viii) Government grants
Government grants are assistance provided by the Government in the form of transfers of resources to the Group in
return for past or future compliance with certain conditions relating to operating activities of the Group. The Group was
eligible for and has received units under the New Zealand Emission Trading Scheme as part of the fsheries allocation for
quota owned. The fair value of units received is recognised in the statement of comprehensive income on allocation by
the Government to the Group.
2.6 Employee benefts
Liabilities are recognised for benefts accruing to employees in respect of wages and salaries, annual leave, and sick
leave where it is probable that settlement will be required and they are capable of being measured reliably.
Liabilities in respect of employee benefts expected to be settled within 12 months, are measured at their nominal values
using the remuneration rate expected to apply at the time of settlement.
Liabilities in respect of employee benefts which are not expected to be settled within 12 months are measured at
notes to the financial Statements continued
Note 2.4 continued