77 / 96
73
The Trust is deemed a participant in the New Zealand Emission Trading Scheme (ETS) as it is an owner of fishing quota and
forestry land. NZ Units (NZU’s) for 2016 and 2015 relate to 53,702 units that were allocated by the Ministry for the Environment.
The units were valued at $11.15 per unit (2015: $6.50) resulting in an impairment reversal of $249,710 (2015: impairment reversal
of $185,272).
Quota Management Systems Limited were contracted as an independent valuer to perform an impairment assessment of the
quota assets. Fair value has been assessed with reference to individual fish stock, the valuer’s knowledge of the market and the
Ministry of Fisheries Quota Monitoring System reports.
Recognition and measurement
(a) Computer software
Separately acquired computer software and licenses are capitalised on the basis of the costs incurred to acquire and bring to
use the specific asset. These costs are amortised on a straight line basis over their estimated useful lives of up to ten years.
Costs associated with maintaining computer software programmes are recognised as an expense as incurred.
(b) Quota
Separately acquired fishing quota has an indefinite useful life and will generate economic benefits 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 indefinite useful life assessment continues to be supportable.
(c) 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 their initial fair value, or deemed cost less
any accumulated impairment losses.
The carbon group is able to either hold the NZU’s within the carbon register or alternatively trade the NZU’s in domestic and
international carbon markets.
Carbon credits are not consumed in the production and are therefore not amortised. NZU’s are tested for impairment on an
annual basis or when indicators of impairment exist.