4 AUGUST 2009 NEW ZEALAND GAZETTE, No. 112 2551

Notes to the financial statements

3 Significant accounting policies (continued)

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Additional income taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend is recognised.

(m) New standards adopted and interpretations not yet adopted

A number of new interpretations and amendments to current standards are not yet effective for the year ended 31 March 2009, and have not been applied in preparing these consolidated financial statements. The Group expects the following amendments to standards to have an impact on its financial statements in future periods:

NZ IAS 1 Presentation of Financial Statements (Revised) supersedes the 2003 version of NZ IAS 1. The revised standard introduces “total comprehensive income” (i.e. changes in equity during a period, other than those resulting from transactions with owners in their capacity as owners) and a “Statement of Comprehensive Income”. It requires all non-owner changes in equity to be presented in one statement (i.e. a Statement of Comprehensive Income) or two statements (i.e. an Income Statement and a Statement of Comprehensive Income). The revised standard will be mandatory for the Group’s 2010 financial statements and will impact the disclosures in the Group’s primary statements.

NZ IFRS 7: Financial Instrument Disclosures (Amendments). The amended IFRS 7 requires fair value measurements to be disclosed by the source of inputs using the following three-level hierarchy:

• Quoted prices in active markets for identical assets or liabilities (Level 1)
• Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2)
• Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

The revised standard will be mandatory for the Group’s 2010 financial statements and will impact the disclosures of financial instruments.

The Group has revised the following changes to the standards and new interpretations that have been issued but not yet effective and has concluded that they will not have a material impact on the Group’s financial statements:

• NZ IFRS 4: Insurance Contracts (Amendments).
• NZ IFRS 8 Operating Segments.
• NZ IFRS 3: Business Combinations (Revised)
• NZ IAS 23 Borrowing Costs (Revised and Amendments)
• NZ IFRIC 13: Customer Loyalty Programs
• NZ IFRIC 15: Agreements for the construction of real estate
• NZ IFRIC 16: Hedges of a net investment in a foreign operation
• NZ IFRIC 17: Distributions of Non-cash assets to owners
• NZ IFRIC 18: Transfer of assets from customers
• NZ IAS 39: Financial Instruments and Recognition (Amendments)
• NZ IAS 27: Consolidated and Separate Financial Statements (Revised and Amendments)
• NZ IFRS 1: First time adoption
• NZ IFRS 2: Share based payments (Amendments)
• NZ IAS 32: Financial Instruments Presentation (Amendments)

(n) Change in accounting policies

There has not been any changes in accounting policies during the year.