Rangatira Annual Report 2025 - Flipbook - Page 60
Rangatira Investments
Note 19.1 Investment in subsidiaries and investment entity status
Accounting policy
Consolidation (applied up to 30 September 2024)
Subsidiaries are entities controlled by the Company and are consolidated. Control exists when the Company
has the power to govern the financial and operating policies of an entity to obtain benefits from its activities.
Consolidated figures are prepared by adding together like items of assets, liabilities, equity, revenue and
expenses, and cash flows of the Company and its controlled entities on a line-by-line basis. Intragroup
transactions and balances are eliminated on consolidation.
Goodwill (applied up to 30 September 2024)
Goodwill arising on the acquisition of subsidiaries were recognised as an asset at the date control was acquired.
Goodwill was measured as the excess of the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree and the fair value of the acquirer’s previously held equity interest (if any) in the
acquiree over the fair value of the identifiable net assets recognised. Goodwill was not amortised and was tested
for impairment at least annually. Goodwill impairment was recognised immediately through profit or loss and was
not subsequently reversed.
Significant judgement - Investment entity status (applied from 30 September 2024)
Under NZ IFRS 10, an investment entity does not consolidate its subsidiaries or apply NZ IFRS 3 Business
Combinations when it obtains control of another entity. Instead, an investment entity measures its investment in
controlled entities at fair value through profit or loss in accordance with NZ IFRS 9.
As the investment entity status was concluded at 30 September 2024, these financial statements consolidate
the Company’s subsidiaries up to 30 September 2024. As of that date, the subsidiaries were deconsolidated, and
recognised as investments in subsidiaries at their fair value at 30 September 2024.
Deconsolidation and recognition as investments at FVTPL
Following the change in investment entity status on 30 September 2024, the Company deconsolidated its
subsidiaries and recognised them as investments at fair value at 30 September 2024. The investment entity
status change is accounted for prospectively, and the following is a summary of changes to the Company’s
statement of financial position on 30 September 2024:
Before change
in status
$000
Effect of change
in status
$000
After change
in status
$000
12,830
(7,188)
5,642
Current assets
Cash and cash equivalents
Receivables
7,077
(7,024)
53
Investments
1,925
13,056
14,981
Inventories
2,879
(2,879)
-
Tax Receivable
3,074
(1,756)
1,318
Total current assets
27,785
(5,791)
21,994
Non-current assets
Investments
136,730
236,797
373,527
Investment in associate companies
130,025
(130,025)
-
Goodwill
17,812
(17,812)
-
Property, plant and equipment
82,884
(82,505)
379
Intangible assets
13,017
(13,017)
-
Investment property
1,784
(1,784)
-
Other non-current assets
4,067
(3,665)
402
Total non-current assets
386,319
(12,011)
374,308
Total assets
414,104
(17,802)
396,302
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