6 06 0
2.13 Financial assets and liabilities
Recognition and measurement
A fnancial asset or liability is recognised if the Group becomes party to the contractual provisions of the instrument.
Regular purchases and sales of fnancial assets and liabilities are recognised on the trade date, the date on which the
Group commits to purchase or sell the asset or liability. A fnancial asset or liability is recognised initially at its fair value
and in the case of a fnancial asset or liability measured at amortised cost includes transaction costs that are directly
attributable to the acquisition or issue of the instrument.
Financial assets and liabilities measured at amortised cost
Financial assets and liabilities measured at amortised cost are non‑derivative fnancial assets and liabilities which meet
the following criteria:
a) held within a business model whose objective is to hold an instrument in order to collect contractual cash fows; and
b) the contractual terms of the instrument gives rise on specifed dates to cash fows that are solely payments of
principal and interest on the principal amount outstanding.
A gain or loss on a fnancial asset and liability that is measured at amortised cost and is not part of a hedging relationship
is recognised in proft and loss when the instrument is derecognised, impaired or reclassifed and through the
amortisation process.
Trade and other receivables are classifed as fnancial assets measured at amortised cost. Trade and other payables and
debt instruments are classifed as fnancial liabilities measured at amortised cost.
Financial assets and liabilities measured at fair value through proft or loss
Financial assets and liabilities are measured at fair value unless measured at amortised cost. At initial recognition, an
entity may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value
of an investment in an equity instrument within the scope of NZ IFRS 9 ‘Financial Instruments’ that is not held for trading.
If an entity makes this election, it shall recognise in proft or loss dividends from that investment when the entity’s right
to receive payment of the dividend is established in accordance with NZ IAS 18 ‘Revenue’. An entity may also at initial
recognition, designate an instrument as measured at fair value through proft or loss if doing so eliminates or signifcantly
reduces a measurement or recognition inconsistency that would otherwise arise from measuring the instruments or
recognising gains and losses on them on different bases.
The fair values of quoted investments are based on current bid prices. If the market for a fnancial asset is not active (and
for unlisted securities), the Group establishes fair value by using valuation techniques. These include the use of recent
arm’s length transaction pricing models refned to refect the Group’s specifc circumstances.
A gain or loss on a fnancial asset or liability that is measured at fair value and is not part of a hedging relationship shall
be recognised in proft and loss unless the fnancial asset is an investment in an equity instrument and the entity has
made an irrevocable election to present gains and losses on that investment in other comprehensive income.
Financial assets are de‑recognised when the rights to receive cash fows from the fnancial assets have expired or have
been transferred and the Group has transferred substantially all risks and rewards of ownership. Financial liabilities are
de‑recognised if the Group’s obligations specifed in the contract expire or are discharged or cancelled.
Investment property liabilities are classifed as fnancial liabilities measured at fair value through proft or loss. Derivative
fnancial instruments are classifed as either fnancial assets or fnancial liabilities measured at fair value through proft or
loss.
2.14 Investments in subsidiaries and associates
Investments in associates, subsidiaries and joint ventures are valued at cost less impairment in the Company.
2.15 Intangible assets
(i) Computer software
Separately acquired computer software and licenses at a cost greater than $10,000 are capitalised on the basis of the
costs incurred to acquire and bring to use the specifc asset. These costs are amortised on a straight line basis over their
notes to the financial Statements continued