That New Zealand International Financial Reporting Standards (NZ IFRS) be adopted from 1 July 2006.
That the Council retain[s] its existing policy with respect to revaluations of property, plant and equipment (PPE) with the trading entities required to adopt the same policy.
That trading entities that do not currently revalue Land and Buildings and Infrastructure Assets be required to do so for the year ended 30 June 2006 or equivalent.
That the Council retain[s] its existing policy of not capitalising borrowing costs and the trading entities adopt the same accounting policy.
That trading entities that do currently capitalise borrowing costs be required to discontinue this policy from 1 July 2005.
That there be a group accounting policy to the effect that where a group entity has entered into a derivative financial instrument for the purposes of hedging an underlying transaction, it will document the rationale and planned effectiveness of the hedge, and account for it as a hedge transaction within the context of New Zealand International Accounting Standards 39 (NZ IAS 39) provided all the necessary conditions continue to be met.
That the use of the fair value option be the approach followed by the Council for accounting for investments in subsidiaries in its parent financial statements under NZ IFRS.
Council
14 April 2005
