Page 41 - NZPM Annual Report 2017

to the Group and the revenue can be reliably The useful lives and residual value of the assets
measured, regardless of when payment is made. are, at the end of each accounting period,
Revenue is measured at the fair value of the reassessed and adjusted if significant.
consideration received or receivable. Specific
accounting policies are as follows: Finance costs
Finance costs comprise interest expenses on
Sale of goods borrowings and losses on derivative instruments
Revenue comprises amounts received and that are recognised in profit or loss.
receivable by the Group for goods and services
supplied in the ordinary course of business. Rebate dividends
Revenue is stated net of returns, trade discounts The total amount of rebate dividends paid are
and goods and services tax (GST). Revenue from approved by the board of directors on an
the sale of goods is recognised in the statement annual basis.
of financial performance when the significant risks
and rewards of ownership have been transferred
to the buyer. The rebate dividend is only paid to ordinary
shareholders of NZPM Group Limited and is
calculated according to the promptness of
Finance income
payments and total amounts received by
Finance income comprises interest income on Plumbing World Limited, (a subsidiary of the
funds invested and on deposit, and on loans Group). The rebate dividend is fully imputed for
to related parties. Interest income is recognised tax purposes (including dividend withholding tax).
in the statement of financial performance as it Rebate dividends are paid out of tax paid profits
accrues, using the effective interest method and are therefore deemed to be dividends for
where appropriate. tax purposes.

Other income Capital commitments
Dividend income is recognised on the date that Commitments shown are for those asset
the Group’s right to receive payment purchases authorised and contracted for as at
is established. reporting date but not provided for in the financial
statements, converted at the year end exchange
rate (if required).
EXPENSES AND COMMITMENTS
Depreciation and amortisation Goods and services tax (GST)
Depreciation of property, plant and equipment, The statement of financial performance and
(other than commercial land which is not other comprehensive income and statement of
depreciated), and amortisation of finite life cash flows have been presented with all items
intangible assets are calculated on a straight-line exclusive of GST. All items in the statement of
basis so as to expense the cost of the assets to financial position are stated net of GST, with the
their expected residual values over their estimated exception of receivables and payables, which
useful lives as follows: include GST invoiced.
• Plant and equipment 1-10 years
The net amount of GST recoverable from, or
• Leasehold improvements 10 years
payable to, the taxation authority is included as
• Motor vehicles 4-6 years part of receivables or payables.
• Computer equipment 3-5 years
• Software 3-10 years

39