21 AUGUST 2008 NEW ZEALAND GAZETTE, No. 131 3435

23. Subsequent Event

There were no subsequent events after the year end of 31 March 2008 (2007 – none).

24. Explanation of Change in Accounting Policies

Reconciliation of equity

| Trust funds: | | | | | | | |
| Core real capital base reserve | | 371,422 | – | 371,422 | 371,422 | – | 371,422 |
| Capital base reserve | | 74,360 | – | 74,360 | 87,759 | – | 87,759 |
| Accumulated income reserve | (a), (d) | 81,043 | (726) | 80,317 | 93,691 | (2,041) | 91,650 |
| Total equity attributable to equity holders of the Parent | | 526,825 | (726) | 526,099 | 552,872 | (2,041) | 550,831 |

| Trade and other payables, including derivatives | (d) | 228 | 946 | 1,174 | 400 | 2,041 | 2,441 |
| Total current liabilities | | 228 | 946 | 1,174 | 400 | 2,041 | 2,441 |
| Total liabilities | | 228 | 946 | 1,174 | 400 | 2,041 | 2,441 |
| Total trust funds and liabilities | | 527,053 | 220 | 527,273 | 553,272 | – | 553,272 |

Changes in Accounting Policies

(a) In prior years, costs of disposing investment property have not been deducted from the carrying value of the investment property.

This has resulted in an increase in the carrying value of investment property at 1 April 2006 of $220,000 and decreased reported profit for the year ended 31 March 2007 by the same amount.

(b) The Group has changed its accounting policy to recognise all donations as distributions from equity. In the previous years’ financial statements, certain distributions had been accounted for as an expense. The impact of the change in accounting policy has to increase profit for the year ended 31 March 2007 by $12,170,000.

(c) The Group has changed its accounting policy in respect of capital base transfers. Transfers are now recognised as movements in equity rather than as an expense in the income statement. The impact of the change in accounting policy is to increase profits for the year by $13,399,000.

(d) For the year ending 31 March 2008, the Group changed its accounting policy to recognise donations paid at the point when they have been approved by the trustees and there are no further obligations that the donation recipient has to fulfil to receive the donation. This had the impact of increasing donations payable at 1 April 2006 by $946,000 and by $2,041,000 at 31 March 2007. There is no impact on the income statement as donations are recognised as distributions from equity as noted in point (b) above.

Reconciliation of Profit in New Zealand Dollars ($000s)

In addition to the above, rent received from investment property of $731,000 has been reclassified between revenue and other income to improve the presentation in the comparative income statement.