12 DECEMBER 2006

NEW ZEALAND GAZETTE, No. 170

4927

The following transitional provisions have an effect on future profits:

• The effectiveness of hedging relationships are assessed from 1 July 2005, no adjustment is made in relation to hedges under the superseded policies which were not highly effective before 1 July 2005.

The main adjustments necessary that would make the comparative financial statements comply with NZ IAS -32 and NZ IAS -39 are listed below. Similar adjustments were made at 1 July 2005 to restate the opening financial position of the company and consolidated entity to a position consistent with the accounting policies specified in note 1(a) to s):

• The recognition and measurement of all derivatives (including any embedded derivatives) at fair value;
• The recognition in profit or loss of the movement in the fair value of derivatives which did not qualify for hedge accounting or were not designated as hedging instruments;
• The transfer of deferred hedging gains and losses recognised as assets and liabilities arising from a cash flow hedge of a forecast transaction to the hedging reserve;
• The deferral in equity of the effective portion of the movement in fair value of derivatives accounted for as a cash flow hedge;
• The recognition in profit or loss of the movement in fair value of derivatives accounted for as a fair value hedge and the fair valuing of hedge items;
• The adjustment to the carrying amount of items that would qualify as a fair value hedge under NZ IFRS and were designated as a hedge under previous GAAP for the lower of the cumulative change in fair value of the hedge item for the designated risk and the cumulative change in fair value of the hedging instrument;
• The recognition of any current or deferred taxes in relation to the adjustments described above.

It is not practicable for the company to detail the amounts of the adjustments to profit and loss and to opening retained earnings for the comparative period had the new accounting policies been applied from the beginning of the comparative period. In addition, it is not practicable for the company to detail for the current period, the amounts of the adjustments resulting to each financial statement line item as a consequence of applying the accounting policies specified elsewhere in note 1.

v)

Standards, Amendments and Interpretations Issued But Not Yet Effective

The Company has not applied the following Standards, Amendments and Interpretations that have been issued but are not yet effective.

• Amendments to NZ IFRS 4 and IFRS 4 Appendices C and D
• NZ IFRS 7 and IFRS 7 Financial Instruments: Disclosures and complementary amendments to NZ IAS 1 and IAS 1 Presentation of Financial Statements – Capital Disclosures (effective for annual periods beginning on or after 1 January 2007)
• Amendments to NZ IFRS 7 and IFRS 7 Financial Instruments: Disclosures – Disclosure and Measurement of Day One Profit (effective for annual periods beginning on or after 1 January 2007)
• Amendment to NZ IAS 1 and IAS 1 Presentation of Financial Statements: Added disclosures about an entity’s capital (effective for annual periods beginning on or after 1 January 2007)
• Amendment to the scope of NZ IAS 14 Segment Reporting
• Amendments to NZ IAS 19 and IAS 19 Employee Benefits – Actuarial Gains and Losses, Group Plans and Disclosures; Actuarial Assumptions – Allowance for Taxes in Defined Benefit Plans.
• Amendments to NZ IAS 36 Impairment of Assets – Impairment of Non Cash Generating Assets by Public Benefit Entities.
• Amendments to NZ IAS 39 and IAS 39 Financial Instruments: Recognition and Measurement – Cash Flow Hedge Accounting of Forecast Intragroup Transactions; The Fair Value Option