6 1
Tainui Group Holdings
Annual Report
2012
6 1
Tainui Group Holdings
Annual Report
2012
estimated useful lives of two years.
Costs under $10,000 associated with maintaining computer software programmes are recognised as an expense as
incurred.
(ii) Quota
Separately acquired fshing quota has an indefnite useful life and will generate economic benefts beyond one year.
Fishing quota is tested annually for impairment and is carried at cost less accumulated impairment. The useful life is
assessed annually to determine whether the indefnite useful life assessment continues to be supportable.
(iii) Carbon credits
Intangible assets include carbon credits acquired by way of a Government grant and are initially recognised at fair value
at the date of acquisition. Following initial recognition, these intangible assets are carried at cost less any accumulated
impairment losses.
Carbon credits are not consumed in the production and are therefore not amortised. They are tested for impairment
annually and whenever there is an indication that impairment exists.
2.16 Property, plant and equipment
Farm and other properties are comprised of land, buildings and plant held on the farms as well as the building occupied
by the Parent, and are shown at fair value, based on periodic, but at least triennial, valuations by external independent
valuers, less subsequent depreciation. Any accumulated depreciation at the date of revaluation is eliminated against
the gross carrying amount of the asset, and the net amount is restated to the revalued amount of the asset. Land at cost,
hotels, development properties, vehicles, equipment, fxtures and fttings are stated at historical cost less depreciation
and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefts associated with the item will fow to the Group and the cost of the item
can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income
during the fnancial period in which they are incurred.
Increases in the carrying amounts arising on revaluation of farm and other properties are credited to the revaluation
reserve in shareholders’ equity. To the extent that the increase reverses a revaluation decrease previously recognised
in the statement of comprehensive income, the increase is frst recognised in statement of comprehensive income.
Decreases that reverse previous increases of the same asset are frst charged against revaluation reserves directly in
equity to the extent of the remaining reserve attributable to the asset; all other decreases are charged to the statement of
comprehensive income.
Development property and land is not depreciated. Depreciation on other assets is calculated using the diminishing value
method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives, as follows:
‑ Farm and other properties
2.0% ‑ 11.4%
‑ Farm plant and equipment
4.8% ‑ 48.0%
‑ Hotels
1.0% ‑ 50.0%
‑ Vehicles
12.0% ‑ 31.2%
‑ Computer, offce equipment, furniture and fttings
9.5% ‑ 50.0%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
statement of comprehensive income. When revalued assets are sold, it is Group policy to transfer the amounts included
in revaluation reserves in respect of those assets to retained earnings.