Page 34 - NZPM Annual Report 2017

NZPM GROUP ANNUAL REPORT 2017

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2017

1. ACCOUNTING POLICIES Basis of measurement
The consolidated financial statements have
been prepared on the historical cost basis, with
REPORTING ENTITY the exception of certain items as identified in the
specific accounting policies.
The consolidated financial statements presented
are those of the NZPM Group (‘the Group’),
comprising NZPM Group Limited (‘the company’ These consolidated financial statements are
or ‘NZPM’) and its subsidiaries and the Group’s expressed in New Zealand dollars which is the
associates as at 31 March 2017. Group’s presentation currency. All financial
information has been rounded to the nearest
thousand ($’000) unless otherwise stated.
The Group is primarily involved in the provision of
plumbing supplies.
Use of accounting estimates and judgements
The preparation of financial statements requires
STATUTORY BASE the use of certain critical accounting estimates.
It also requires the directors to exercise their
NZPM is a co-operative. It is a profit-orientated
company incorporated and domiciled in New judgement in the process of applying the Group
Zealand. The address of the registered office is accounting policies. Estimates and associated
Metrix Building, 155 The Strand, Parnell, Auckland. assumptions are based on historical experience
The company changed its name from NZ and other factors, as appropriate to the particular
Plumbers’ Merchants Limited on 14 August 2008. circumstances. The Group reviews the estimates
NZPM is registered in New Zealand under the and assumptions on an ongoing basis.
Companies Act 1993 and the Co-operative
Companies Act 1996 and is a FMC reporting Areas involving a higher degree of judgement
entity under the Financial Markets Conduct or complexity, or areas where assumptions
Act 2013. The financial statements have been and estimates are significant to the financial
prepared in accordance with the Financial statements, are disclosed within the specific
Markets Conduct Act 2013, the Financial accounting policy or note. These include goodwill
Reporting Act 2013 and the Companies Act 1993. impairment (note 12), provision for obsolete
inventory and shrinkage (note 10), and provision
for credit notes and allowance for doubtful debts
BASIS OF PREPARATION (note 9).

The Group prepares its consolidated financial
statements in accordance with New Zealand SIGNIFICANT ACCOUNTING POLICIES
Generally Accepted Accounting Practice (‘NZ
GAAP’). NZ GAAP consists of New Zealand Significant accounting policies applied by the
equivalents to International Financial Reporting Group during the year are set out below and
Standards (‘NZ IFRS’) and other applicable have been applied consistently to all periods
financial reporting standards. These financial presented in these consolidated financial
statements comply with NZ IFRS and International statements. There have been no changes to
Financial Reporting Standards (‘IFRS’). accounting policies apart from the application of
new standards adopted by the Group during the
year as disclosed.
The consolidated financial statements were
approved by the board of directors on
29 June 2017.

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