12 DECEMBER 2006

NEW ZEALAND GAZETTE, No. 170

4925

Investing activities are those activities relating to the acquisition and disposal of current and non-current investments and any other non-current assets.

Financing activities are those activities relating to changes in the equity and debt capital structure of the company and group and those activities relating to the cost of servicing the company’s equity capital.

t) Comparative information – financial instruments

The Company has elected not to restate comparative information for financial instruments within the scope of NZ IAS -32 ‘Financial Instruments: Disclosure and Presentation’ and NZ IAS -39 ‘Financial Instruments: Recognition and Measurement’, as permitted on the first time adoption of NZ IFRS.

The accounting policies applied to accounting for financial instruments in the current financial year are detailed in notes 1 a) to s). The following accounting policies were applied to accounting for financial instruments in the comparative financial year.

Receivables

Accounts receivable are valued at expected realisable value, after providing for doubtful debts. All known bad debts have been written off during the period under review.

Financial Instruments

The company has various financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to fluctuations in interest rates. Financial instruments as at 30 June 2005 consisted of interest rate swaps and cross currency swaps. While these financial instruments are subject to risk that market rates may change subsequent to acquisition, such changes would generally be offset by opposite effects on the items being hedged.

For interest rate swap agreements entered into in connection with the management of interest rate exposure, the differential to be paid or received is accrued as interest rates change and is recognised as a component of interest income/expense over the life of the agreement.

u) Comparative information – financial instruments

The Company has elected not to restate comparative information for financial instruments within the scope of NZ IAS -32 ‘Financial Instruments: Disclosure and Presentation’ and NZ IAS -39 ‘Financial Instruments: Recognition and Measurement’, as permitted on the first time adoption of NZ IFRS.

The accounting policies applied to accounting for financial instruments in the current financial year are detailed in notes 1 a) to s). The following accounting policies were applied to accounting for financial instruments in the comparative financial year.

Receivables

Accounts receivable are valued at expected realisable value, after providing for doubtful debts. All known bad debts have been written off during the period under review.

Financial Instruments

The company has various financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to fluctuations in interest rates. Financial instruments as at 30 June 2005 consisted of interest rate swaps and cross currency swaps. While these financial instruments are subject to risk that market rates may change subsequent to acquisition, such changes would generally be offset by opposite effects on the items being hedged.