Page 44 - NZPM Annual Report 2020

NZPM GROUP LIMITED
Notes to the Consolidated Financial Statements for the year ended 31 March 2020

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are
listed below:

• calculation of credit notes - assessing the level of future sales returns by customers for items sold prior to year-end based on the
historical level of credit notes issued.

5. Other income
2020 2019
$’000 $’000
Government COVID-19 wage subsidy scheme 240 0
Tenancy rents received 104 0
Other 66 93
Total other income 410 93
The wage subsidy had been recognised on the date of application and has been allocated over a 12 week period from this date.

6. Administration expenses
2020 2019
$’000 $’000
Administration expenses include:
Lease - motor vehicles 31 1,433
Lease - other 86 84

The comparative information for administration expenses has been restated to reclassify direct freight costs of $1,363,000 to cost of
goods sold to conform to this year’s presentation. This change has been made in order to provide users of the financial statements
with a more comparable benchmark to improve the understandability of the financials overall as these costs are a direct cost to incur
revenue.

7. Other operating expenses
2020 2019
$’000 $’000
Other operating expenses include:
Auditors’ fees:
Auditing the Group financial statements 139 122
Other assurance fees (review of Trustee reporting and share register audit) 7 7
New Zealand tax compliance fees 13 16
159 145
Lease and occupancy costs:
Operating lease costs 0 7,055
Tenancy rents received 0 (72)
Other occupancy costs 1,115 1,004
1,115 7,987

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NZPM GROUP LIMITED ANNUAL REPORT 2020