Rangatira Annual Report 2025 - Flipbook - Page 54
Rangatira Investments
Note 13 Payables
Accounting policy
Trade payables and other accounts payable are recognised when the Company becomes obliged to make future
payments resulting from the purchase of goods and services.
2025
$000
Trade creditors(i)
2024
$000
842
5,193
GST payable
-
1,025
Accrued interest
-
57
Deferred income
-
372
Other payables
-
1,657
Total payables
842
8,304
The average credit period on purchases of certain goods is 30 days (2024: 30 days). No interest is charged on trade payables. The Group
has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.
(i)
Note 14 Financial Instruments
A. Capital Risk Management
The Company manages its capital to ensure it will be able to continue as a going concern while maximising the
return to stakeholders through the optimisation of the debt and equity balance. Financial and capital management
involves ensuring that the Company’s income, expenses and statement of financial position are managed in such
a way as to maximise returns to investors. This includes:
•
Ensuring that cash flows from dividends and other income are utilised as they come available. This may be by
way of capital expenditure for expansion of the business, or simply by debt repayments or by ensuring that
cash balances are earning competitive interest rates.
•
Ensuring that borrowings are used prudently, minimising interest costs, while at the same time making
appropriate decisions about the trade-off between the cost of borrowing and the potential return from
investment opportunities.
The capital structure of the Company consists of debt, which includes the borrowings, cash and cash equivalents
and equity, comprising issued capital, retained earnings and reserves.
B. Categories of financial instruments
The Company has classified its financial instruments into the following categories as required by NZ IFRS 9:
amortised cost, fair value through other comprehensive income (FVOCI), and fair value through profit or loss
(FVTPL).
Amortised cost
$000
FVOCI
$000
FVTPL
$000
Total
$000
6,720
-
-
6,720
28
-
-
28
17,982
-
-
17,982
-
115,141
272,146
387,287
24,730
115,141
272,146
412,017
Payables
842
-
-
842
Total financial liabilities
842
-
-
842
2025
Financial assets
Cash and cash equivalents
Trade receivables
Loans receivable - see note 12
Investments - see note 8.1
Total financial assets
Financial liabilities
54
