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Recognition and measurement
Biological assets are measured at fair value less estimated point of sale costs. The fair value of livestock is determined based on
market prices of livestock of similar age, breed and genetic merit. The fair value of forests is determined annually by independent
valuers by calculating the crop expectation and future value discounted back to the present value, based on the rotation age of
the crop and the current market prices of the logs. The valuation of Redwood trees is based on the current replacement cost
method used for young trees.
12 NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE
During August 2015, Tainui Group Holdings Limited announced its intention to sell 50 percent of shares in The Base Ltd. On
8 April 2016, TGH entered into an unconditional sale and purchase agreement to sell the shares in The Base Limited to Kiwi
Property Holdings Limited for $192.5m. Settlement occurred on 31 May 2016. Non currents assets classified as Held for Sale
include investment properties, property plant and equipment and lease incentives associated with 50 percent of The Base.
The assets have been valued using the sale price as the key input to the valuation.
Consolidated
2016
$'000
2015
$'000
Plant and equipment
720
-
Investment properties
180,456
-
Lease incentives
621
-
Total non-current assets held for sale
181,797
-
The net revaluation of Non-current assets classified as held for sale as at 31 March 2016 is $4.5m.