7 7
Tainui Group Holdings
Annual Report
2012
7 7
Tainui Group Holdings
Annual Report
2012
(d) Financial risk management strategies relating to agricultural activities
The Group undertakes agricultural activities through its farm operations and forestry land. These operations are exposed
to business risks, including the volatility of revenue and valuation of its assets.
The Group utilises the skills of appropriately qualifed and experienced farm consultants, farm managers and
sharemilkers to mitigate the fnancial risk relating to farming activities.
The Group utilises the skills of appropriately qualifed and experienced forestry consultants and forestry contractors to
mitigate the fnancial risk relating to forestry activities.
(e) Fair value estimation
The fair value of fnancial instruments traded in active markets is based on quoted market prices at balance date. The
quoted market price used for fnancial assets held by the Group is the current bid price.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their
fair values due to their short term nature. The fair value of fnancial liabilities for disclosure purposes is estimated by
discounting the future contractual cash fows at the current market interest rate that is available to the Group for similar
fnancial instruments.
(f) Financial instruments by category
Assets at
fair value
Assets at
through proft
amortised
or loss
cost
Total
Financial assets as per statement of fnancial position
$’000
$’000
$’000
Consolidated
At 31 March 2012
Financial assets
5,385
-
5,385
Trade and other receivables
-
2,484
2,484
Cash and cash equivalents
-
6,257
6,257
5,385
8,741
14,126
At 31 March 2011
Financial assets
57,407
-
57,407
Trade and other receivables
-
4,908
4,908
Cash and cash equivalents
-
2,251
2,251
57,407
7,159
64,566
Parent
At 31 March 2012
Advances
- 254,339 254,339
Financial assets
5,294
-
5,294
Trade and other receivables
-
626
626
Cash and cash equivalents
-
2,054
2,054
5,294 257,019 262,313
At 31 March 2011
Advances
- 217,388 217,388
Financial assets
57,226
-
57,226
Trade and other receivables
-
798
798
Cash and cash equivalents
-
1,023
1,023
57,226 219,209 276,435