72 / 96
68
10 INVENTORIES
Consolidated
2016
$'000
2015
$'000
Land - sections for sale
-
407
Other inventories at cost
842
167
Total inventory
842
574
Recognition and Measurement
Inventories are stated at the lower of cost and net realisable value. Cost of inventory is comprised of section costs and other
direct costs using the weighted average cost basis. Net realisable value is the estimated selling price in the ordinary course of
business less estimated costs of completion and the estimated costs necessary to make the sale.
11 BIOLOGICAL ASSETS
Consolidated
Note
2016
$'000
2015
$'000
Current - Livestock
Balance at beginning of year
2,492
824
Additions
2,051
1,844
Decreases due to sales
(450)
(715)
Changes in fair value
(550)
539
Balance at fair value at the end of the year
3,543
2,492
Non-current - forestry assets
Balance at beginning of year
5,148
4,364
Additions
-
105
Changes in fair value
5
1,214
679
Balance of fair value at the end of the year
6,362
5,148
The livestock consists of mixed age sheep, cattle and cows, which are held for dairy and dry stock farming. M Gaustad from PGG
Wrightson determined the fair value of sheep, cattle and cows at 31 March 2016 and 31 March 2015. The valuation is based on
reference to market evidence of current market prices less point of sale costs.
The forestry assets are comprised of Pinus Radiata forest planted from 1996 to 1997, 150 hectares Pinus Radiata forest planted
from 2001 to 2002 and Californian Coast Redwoods planted from 2005 to 2007. It is expected that the rotation age for the
Pinus Radiata crop will be 25 years and 34 years for the Californian Coast Redwoods, at which time the crop will be harvested.
The forests are valued using the Crop Expectation Value method. The non-current biological assets are held for investment. All
non-current biological assets were valued by P Silcock from NZ Forestry Limited at 31 March 2016 and 31 March 2015.
All valuers are independent registered valuers not related to the Trust or Economic entity. All valuers hold recognised and
relevant professional qualifications and have recent experience in the categories of biological assets they have valued.
WAIKATO RAUPATU LANDS TRUST
Notes to the financial statements
FOR THE YEAR ENDED 31 MARCH 2016