84 / 96
80
WAIKATO RAUPATU LANDS TRUST
Notes to the financial statements
FOR THE YEAR ENDED 31 MARCH 2016
21 CURRENT - TRADE AND OTHER PAYABLES
Consolidated
Note
2016
$'000
2015
$'000
Trade payables
2,861
1,682
Trade payables to related parties
13
70
46
Income received in advance
2,160
2,277
Accrued expenses
10,526
11,957
Grants payable
4,783
6,037
Employee entitlements
1,853
2,587
Other payables
722
552
GST payable
666
1,349
Total creditors and other payables
23,641
26,487
Recognition and measurement
Trade payables and other accounts payable are recognised when the Trust becomes obliged to make future payments resulting
from the purchase of goods and services. The amounts are unsecured and are usually paid within 30 days of recognition. Non-
current other payables are usually paid between one and two years. Trade and other accounts payable are recognised initially at
fair value plus transaction costs and subsequently measured at amortised cost using the effective interest method.
22 CONTINGENCIES
22.1 Contingent liabilities
Guarantees
The Trust had contingent liabilities at 31 March 2016 in respect of:
Raukura Whare Limited has agreed to underwrite certain Housing Corporation of New Zealand mortgages. Raukura Whare
Limited is liable for any mortgages which default if total claims exceed $23.3m. The life of the loan is 20 years. Te Arataura
believe that the expectation of defaulting mortgages exceeding $23.3m is remote.
Te Arataura believe that the expectation of a liability arising due to the guarantees and mortgages in place is remote.
22.2 Contingent assets
There is a contingent asset at balance date in respect of the Relativity Settlement mechanism. The mechanism was triggered
in 2012 and the amount of $70m was received in December 2013 upon the first claim being made under the relativity clause.
Further to this in the year ended 31 March 2015 an amount of $12.5m was received as a result of the arbitration process which
followed the first claim.
The Trust is still in an ongoing dispute in relation to the first claim made in 2012. The dispute relates to interpretations of specific
clauses in Deed of Settlement and valuation of Total Redress Amounts. The final amount of the disputed receivable is contingent
on agreement being reached and cannot be reliably measured.