Page 38 - NZPM Annual Report 2017

NZPM GROUP ANNUAL REPORT 2017

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2017

right of offset, and included as a component of Financial assets carried at fair value through
cash and cash equivalents in the statement of profit or loss are initially recognised at fair
cash flows. value. Realised and unrealised gains arising
from changes in fair value are included in the
Cash flows are included in the statement of cash statement of financial performance.
flows net of goods and services tax.
Loans and receivables are carried at amortised
Trade and other receivables cost less any impairment.
Trade and other receivables are recognised at
cost less any provision for impairment. All trade Available-for-sale financial assets are carried at
receivables are individually reviewed regularly fair value. Unrealised gains and losses arising
for impairment as part of normal operating from changes in fair value are recognised in
procedures and provided for where appropriate, other comprehensive income, except for foreign
refer to note 9. exchange movements in monetary assets which
are recognised in the statement of financial
performance. When available-for-sale financial
A provision for impairment of trade receivables assets are sold, the accumulated fair value
is established when there is objective evidence adjustments are included in the statement of
that the Group will not be able to collect all financial performance as gains or losses.
amounts due according to the original terms of
receivables. Bad debts are written-off when they
are considered to have become uncollectable. Fair value estimation
The Group uses various valuation methods to
Inventories determine the fair value of certain assets and
liabilities. The inputs to the valuation methods
Inventories are measured at the lower of used to measure fair value are categorised into
cost (weighted average cost method) and three levels:
net realisable value, after due allowance for
damaged and obsolete stock.
• Level 1: Quoted prices (unadjusted) in active
markets for identical assets or liabilities.
Net realisable value is the estimated selling price
in the ordinary course of business, less applicable • Level 2: Inputs other than quoted prices
variable selling expenses. included within level 1 that are observable
for the asset or liability, either directly (that is,
Financial assets as prices) or indirectly (that is, derived from
The Group classifies its financial assets as: prices).
• Level 3: Inputs for the asset or liability that are
• Financial assets at fair value through profit not based on observable market data (that is,
or loss; unobservable inputs).
• Loans and receivables; and
Impairment
• Available-for-sale financial assets.
The carrying amounts of the Group’s assets
The classification depends on the purpose are reviewed at each balance sheet date
for which the investments were acquired. to determine whether there is any objective
Management determines the classification of its evidence of impairment. Impairment is deemed to
investments at initial recognition and re-evaluates occur when the recoverable amount of an asset
this designation at every reporting date.

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