Rangatira Annual Report 2025 - Flipbook - Page 43
Annual Report 2025
Critical judgements in applying accounting policies
Management has exercised the following critical judgements in applying accounting policies:
• Investment entity status exemption
- as disclosed above and see Note 19.1
• Venture capital organisation exemption
- see Note 19.2
Goods and services tax
Items in the financial statements are stated exclusive of goods and services tax (GST), except for receivables
and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax, it is
recognised as part of the related asset or expense.
The net amount of GST either recoverable or receivable from the Inland Revenue Department (IRD) is included as
part receivables or payables in the statement of financial position. The net GST paid to, or received from, the IRD
including the GST to investing and financing activities, is classified as an operating cash flow in the statement of
cash flows.
Foreign currency translations
Foreign currency translations are translated into New Zealand Dollars (the functional currency) using the spot
exchange rate at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement
of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised through profit or loss.
Note 2 Income
Material accounting policies
Dividend and interest income
Dividends are recognised when the right to receive payment has been established. They are recognised through
profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.
Interest revenue is recognised using the effective interest method.
Revenue from sale of goods and rendering of services
Revenue is recognised when or as performance obligations are satisfied by transferring control of a promised
service to the customer. This revenue stream was predominantly from the Company’s consolidated financial
information up to 30 September 2024 and the following is a summary of the nature and timing of revenue
recognition as required by NZ IFRS 15 from those activities:
Sale of packaging goods
Revenue is recognised at a point in time, when the goods are delivered to and have been accepted at the
customer premises as this is the point of control that goods have been passed to the customer.
Access to recreational facilities
Revenue is recognised when the customer enters the recreational facilities. This includes ticket sales at
Polynesian Spa and Rainbow’s End.
Service agreements
Revenue is recognised over time as the services are provided to the customers.
Medical services
Revenue derived from the operation of a private medical hospital at Boulcott, recognised over time as those
services are provided to patients.
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