Rangatira Annual Report 2025 - Flipbook - Page 47
Annual Report 2025
Note 7 Receivables
Accounting policy
Trade receivables without significant financing components are initially recognised at transaction cost and
subsequently measured at amortised cost. Impairment losses are calculated using the expected credit loss
model, as permitted under NZ IFRS 9, which uses a lifetime expected loss allowance. Changes in the carrying
amount of the allowance account are recognised through profit or loss.
Trade receivables(i)
Expected credit loss allowance(ii)
2025
$000
2024
$000
28
5,030
-
(25)
Net trade receivables
28
5,005
GST and other receivables
141
4,249
Total trade and other receivables
169
9,254
(i) The trade receivables balance were predominantly balances from the Company’s consolidated subsidiaries. No interest was charged on the
trade receivables or on the outstanding balances.
(ii) The Company’s subsidiaries fully measured impairment on trade receivable balances over 180 days because they were generally
unrecoverable based on previous experience. The receivables balance at 31 March 2025 are solely the Company’s and no loss allowance has
been recognised as the estimated amount for the balance is trivial.
Note 8 Investments
Accounting policy
Classification
The Company’s investments are primarily financial assets which under NZ IFRS 9 must be classified at amortised
cost, fair value through other comprehensive income (FVOCI), or fair value through profit or loss (FVTPL), on initial
recognition. The business model for managing these financial assets and the underlying contractual cash flow
characteristics are taken into account.
Classification of listed equity investments at FVOCI
The Company made an irrevocable election to classify some of its listed investments at FVOCI on initial
acquisition. None of these investments are held for trading. Apart from those classified at FVOCI, the rest are at
FVTPL.
Classification of unlisted equity investments at FVTPL
This note should be read in conjunction with note 19.1 and note 19.2 for clarity.
The remainder of the Company’s equity investments are classified at FVTPL. These include equity investments
which include:
- investments in controlled entities which were previously consolidated; and
- investment in associate companies which were previous equity accounted.
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