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Recognition and measurement
Subsidiaries are all entities (including special purpose entities) over which the Economic entity has the power to govern the
financial and operating policies, generally accompanying a shareholding of more than one half of the voting rights. The
existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing
whether the Economic entity controls another entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the Economic entity. They are de consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between the Trust’s companies are eliminated.
Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Trust.
(b) Joint venture partnership
The Trust has interests in joint venture partnerships, which are all resident in New Zealand.
The interests in the joint venture partnerships are accounted for in the financial statements using equity method of accounting.
Information and the effect the joint venture interest had on the Trust’s financial statements is set out below.
Joint venture
Principal activity
Ownership interest
Consolidated
Carrying value of investment
2016
2015
2016
$'000
2015
$'000
Callum Brae Tainui
Property
50%
50%
5
186
Ngai Tahu Tainui Go Bus Holdings Limited
Direct investment
33%
33% 25,701
24,240
Raukura Moana Sealord Limited Partnership
Primary Industries
50%
50%
435
336
Rotokauri Development Limited
Property
70%
70%
7,965
5,186
TAG Forestry Joint Venture
Primary Industries
50%
50%
515
436
Waikato Milking Systems Limited Partnership
Direct investment
32%
32% 16,652
14,006
51,273
44,390
Consolidated
2016
$'000
2015
$'000
Movements in carrying amounts of the joint venture partnerships
Carrying value at the beginning of the year
44,390
22,189
Share of surplus/(deficits) after income tax
7,585
(3,552)
New investments
-
25,570
Contribution
1,824
2,356
Dividends received
(2,526)
(2,173)
Balance at 31 March
51,273
44,390