Statement of Cash Flows

Te Kāhui O Taranaki Trust & Group as at 30 June 2021

Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.

Current Income Tax

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax also includes any tax liability arising from the declaration of dividends. Te Kāhui is registered with the Inland Revenue Department as a Māori Authority for tax purposes.

Deferred Tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:

• Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and

• Temporary differences arising on the initial recognition of goodwill.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.

In determining the amount of current and deferred tax Te Kāhui takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. Te Kāhui believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events.

New information may become available that causes Te Kāhui to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they 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.

Te Kāhui and Fisheries are a Māori Authority for taxation purposes and are liable for income tax on assessable net income at the relevant Māori Authority tax rate. Taxation is charged for the current year is based on the estimated taxation payable.

13. INVESTMENTS RECORDED AT COST

Investments are stated at cost

At each balance date, the Company assesses whether there is objective evidence that the investments are impaired. When the asset is considered impaired, the movement is recognised in the Statement of Financial Performance.

Moana New Zealand Shares

Moana New Zealand Shares (formally known as Aotearoa Fisheries Limited) are stated at cost less any accumulated impairment loss. Gains and losses are recognised in profit or loss when the assets are derecognised or impaired. Cost is based on the transfer price when transferred from Te Ohu Kaimoana in 2007.

The company owns 1,768 out of a total 250,000 income shares in Moana New Zealand. This shareholding has a book value of $3,203,779 based on the Moana New Zealand audited financial statements of September 2020.

Other Investments

Other investments are stated at cost.

Statement of Cash Flows

Te Kāhui O Taranaki Trust & Group as at 30 June 2021

Investment in managed funds are recognised at fair value. Changes in the fair values are recognised in profit and loss. If the value of the funds has increased it will appear as income, if it has decreased it will appear as a loss.

Investments are recorded at market value as determined by the fund managers using unit prices at year end.

For the 2021 year, Te Pūia Tāpapa Limited Partnership & Direct Capital V have been reclassified as recorded at fair value instead of recorded at cost as the investment property in the LP has been revalued and the revaluation gains have been transferred down to the limited partners in their share of profit.

15. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is stated at cost less aggregate depreciation to date. Depreciation has been charged over the expected useful life of the asset using depreciation rates and methods below:

• Computer Software & Equipment - at cost 40-67% DV

• Office Furniture & Equipmentat cost 13-50% DV

• Plant & Equipment - at cost 1367% DV.

As part of the Treaty Deed of Settlement dated 5 September 2015, ownership of various ““cultural redress properties”” were vested to the Te Kāhui o Taranaki Trust.

The Trustees have not undertaken a valuation of the properties. The properties are listed below:

Properties Vested in Fee Simple Arawhata property, Cape Egmont Lighthouse property, Cape Egmont site, Kahui site A, Kahui site B, Opunake site A, Ōrimupiko /Headlands site A, Pungarehu property, Puniho property, Rahotu site A, Rahotu site B, Rahotu site C, Warea site A and Warea site B.

Properties vested in fee simple to be administered as reserves Cape Egmont site B, Maitahi property, Manihi Road property, Ōākura Coast property, Ōāonui property, Okahu Stream property, Ōkato Coast property, Ōmata