Statement of Cash Flows

Te Kāhui O Taranaki Trust & Group as at 30 June 2021 increase of value of $420,000. The valuers have recent experience in the location and category of the item being valued. Investment properties are stated at fair value by the independent valuer supported by market evidence of sale transactions and leasing activity. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value under NZFRS 13 is generally synonymous with the concept of Market Value under International Valuation Standards. The level of fair value hierarchy within the fair value measurement is category 2 as there are observable inputs for the valuation.

19. CREDITORS AND ACCRUED EXPENSES

The properties recorded at cost are the Opunake, Cape Properties and DSP acquisition costs. The acquisition process involved each party instructing an independent valuer before negotiating on the difference. It is considered the acquisition values reflect current fair value however technically they are held at cost. These properties will be revalued every year moving forward.

Trade and Other payables are carried at amortised cost. They represent liabilities for goods and services provided prior to the end of the financial year that are unpaid at year end. The amounts are unsecured and are usually paid within 30 days of the year end.

20.

21. LEASE LIABILITY RIGHT OF USE ASSETS

Te Kāhui o Taranaki Trust is leasing part of the building at 1 Young Street, New Plymouth, The term of the lease is for one year, with two annual right of renewals.

22. MARAE LOANS

Taranaki Iwi Holdings Limited Partnership accepts loans from registered member marae and hapū of Te Kāhui o Taranaki. These loans are short or long term by agreement between TIHLP and marae. Interest is calculated and paid in accordance with agreed commercial terms.

23. OPERATING LEASES

The Limited Partnership has entered into property lease agreements. The minimum future lease payments receivable are as follows:

Taranaki Iwi Holdings Limited Partnership are the Lessors in regard to the Land Leases with the Ministry of Education. The lease is paid monthly in advance. The Lessor leases to the Lessee and the Lessee accepts the lease of 21 years from 26 October 2017 for both school properties.

Right of Renewal

Perpetual rights of renewal of 21 years each with the first renewal date being the 21st anniversary of the Start Date, and then each subsequent renewal date being each 21st anniversary after that date.

Rent Review Dates

The 7th anniversary of the Start Date and each subsequent 7th anniversary after that date. The proposed Annual Rent will be calculated on the basis of an Annual Rent of 6% of the lesser of:

(a) the Current Market Value of the Land as a School Site, as defined in clause 3.2; or

(b) the Nominal Value being:

(i) during the initial Term: a value based on 3.5% growth per annum of the Transfer Value of the Land; or

(ii) for subsequent Terms: a value based on 3.5% growth per annum of the reset

Nominal Value.

Management feel that there is very little risk as the lease’s are long term and with Government Agencies.