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CURRENT LIABILITIES (8)
Bank Overdrafts 126,109 71,408
Creditors 563,537 558,593
Loans and Advances 144,427 1,066,362
Provision for Taxation 2,243 1,084
836,316 1,697,447
$9,420,464 $9,148,390

FIXED ASSETS (9)
Land and Buildings 5,412,658 5,550,105
Plant, Vehicles and Fittings 299,909 388,262
5,712,567 5,938,367

INVESTMENTS (10)
Shares in “
Public Companies 535,069 950,650
Associate Companies 931,365 648,620
Other Investments 733,753 662,160
2,200,187 2,261,430

CURRENT ASSETS (11)
Cash and Marketable Securities 874,312 327,824
Debtors 364,748 434,681
Short-term Investments 27,521 11,143
Inventories 241,129 174,945
1,507,710 948,593
$9,420,464 $9,148,390
776 Case: Brierley Investments Limited




46 Part 4 Additional Cases




CONSOLIDATED STATEMENT OF CASH FLOWS

1995 1994
For the year ended 30 June 1995 $000 $000
Cash Flows from Operating Activities
Received from Customers 2,450,876 1,640,717
Interest Received 54,363 111,449
Brierley Investments Limited




Dividends Received 123,808 52,400
Paid to Suppliers and Employees (2,256,180) (1,457,359)
Interest Paid (275,555) (363,388)
Tax Paid (7,074) 20,456
Other 62,991 138,427
Total Operating Cash Flows (21) 153,229 142,702
Cash Flows from Investing Activities (20)
Sale of Fixed Assets 94,614 13,233
Sale of Investments 941,965 1,154,846
Loans and Advances Repaid 723 2,000
Purchase of Fixed Assets (278,761) (230,702)
Interest Paid Capitalised (14,345) ”
Purchase of Investments (971,048) (684,310)
Loans and Advances (11,069) ”
Other 114,687) 153,902
Total Investing Cash Flows (123,234) 408,969
Cash Flows from Financing Activities (20)
Issue of Shares and Capital Notes 58,672 317,517
Borrowings 2,455,015 899,537
Repayment of Borrowings (1,821,023) (2,197,576)
Dividends Paid (178,968) (138,576)
Other (28,384) ”
Total Financing Cash Flows 485,312 (1,119,098)

Net Change in Cash 515,307 (567,427)
Opening Cash 256,416 839,798
Effect of Acquisition and Disposal of Subsidiaries (16,183) 5,232
Effect of Exchange Rate Changes on Cash (7,337) (21,187)
Closing Cash $748,203 $256,416
Closing Cash Comprises
Cash and Marketable Securities (11) 874,312 327,824
Bank Overdrafts (8) (126,109) (71,408)
$748,203 $256,416
777
Case: Brierley Investments Limited




47
Part 4 Additional Cases




STATEMENT OF ACCOUNTING POLICIES

GENERAL ACCOUNTING POLICIES The ¬nancial statements of associate
companies are included in the Group ¬nan-
cial statements using the equity method with
The following general accounting policies have
the Group™s share of associate companies™
been adopted in these ¬nancial statements which
pro¬ts re¬‚ected in the consolidated pro¬t
have been prepared on a going concern basis:
and loss account.




Brierley Investments Limited
historical cost adjusted by the revaluation of cer-
tain assets;
(iii) Details of Subsidiary and Associate
accrual accounting to match expenses with reve- Companies
nues
Details of subsidiary and associate compa-
The ¬nancial statements have been prepared
nies are listed in the Group Investments sec-
under the requirements of the Companies Act 1955
tion of the Annual Report. Subsidiary and
and Financial Reporting Act 1993.
associate company results are included for
the period to the Group balance date except
PARTICULAR ACCOUNTING POLICIES as follows:
Last Balance Period
(a) Principles of Consolidation
Date Included
(i) Subsidiaries Paul Y. ” ITC Construction 31 March Year to
The Group ¬nancial statements include the Holdings Limited 1995 31 March 1995
30 April Year to
¬nancial statements of all subsidiaries, being
Steego Corporation 1995 30 April 1995
companies which Brierley Investments Lim- 31 May Year to
ited control either directly, indirectly or bene- Tasman Agriculture Limited 1995 31 May 1995
¬cially.
The ¬nancial statements of subsidiaries (iv) Joint Ventures
are included in the Group ¬nancial state- The following joint ventures are included in
ments using the purchase method. the Group ¬nancial statements on a propor-
All material inter-company balances and tionate basis:
pro¬ts resulting from intra-group trans-
AsiaPower Developments
actions have been eliminated.
Sealord Products Group
Where subsidiaries are acquired during
the year, their results are included from the (b) Balance on Acquisition
date of acquisition, while for subsidiaries
On the acquisition of a subsidiary or associate
disposed of during the year, their results are
company the fair value of net identi¬able assets
included to the date of disposal.
is ascertained. The difference between the fair
Date of acquisition is either the date on
value and the cost of investment in the subsid-
which the title to the asset passes, or in
iary or associate company is brought to account
respect of listed public companies, the date
either as a surplus or goodwill on acquisition.
of the last published ¬nancial statements,
Goodwill is amortised by systematic charges
from which the acquisition price is deter-
against income over the appropriate periods in
nined.
which bene¬ts are expected to be realised, but
(ii) Associate Companies not exceeding 20 years. The periods over which
An associate company is one in which the the amounts are to be amortised are subject to
Group has an equity interest of between annual review.
20% and 50% and has the capacity to signif- Surplus on acquisitions is included under
”Other Capital Funds” on the balance sheet and
icantly in¬‚uence the policies of that com-
pany. is released to the pro¬t and loss account as and
778 Case: Brierley Investments Limited




48 Part 4 Additional Cases




when the assets to which it relates are disposed (g) Debtors
of. Debtors are shown at their expected realisable
value.
(c) Fixed Assets
(h) Foreign Currency
Fixed assets are recorded at cost of purchase or
Overseas investments and balances payable in
at adjusted fair values. Investment properties are
foreign currency to and by the Group have been
recorded at their net current value determined
included in the Group ¬nancial statements at
by reference to independent valuations. Net
Brierley Investments Limited




rates ruling at balance date. Where transactions
changes in the value of investment properties
have been hedged by way of obtaining forward
are recorded in the pro¬t and loss account.
exchange cover over the balances outstanding
(d) Depreciation they are converted at the forward rate.
The assets, liabilities and operating results of
Fixed assets are depreciated on a straight-line or
overseas subsidiaries are translated at balance
diminishing value basis over their estimated eco-
date rates. Foreign exchange movements on
nomic lives.
independent foreign operations, and any offset-
Where depreciation is not charged by an
ting foreign exchange movement on monetary
overseas subsidiary, its policy has been consis-
assets or liabilities designated as a hedge of an
tently applied in the preparation of the Group
independent foreign operation, are taken to the
¬nancial statements.
Foreign Currency Translation Reserve.
Depreciation sales are: All other exchange differences, including dif-
Buildings 1%“5% ferences arising on the conversion of short-term
Plant, Vehicles and Fittings 4%“331„3% and long-term monetary items, whether realised
or unrealised, are taken directly to the pro¬t and
(e) Investments
loss account.
( i ) Listed Public Securities Exchange rates used at balance date:
Investments in shares in listed public compa- A $0.94 = NZ$1.00
nies are recorded at market value based on SFr 0.77 = NZ$1.00
of¬cial stock exchange quotations at bal- HK $5.16 = NZ$1.00
ance date. The difference between market US $0.67 = NZ$1.00
value and cost is shown in “Investment Fluc- Stg £0.42 = NZ$1.00
tuation,” which is included in the pro¬t and
( i ) Taxation
loss account when realised.
Taxation has been provided in the ¬nancial
Unrealised losses in the value of invest-
statements on the basis of the estimated taxation
ments are taken to the pro¬t and loss
payable on the taxable income by each member
account where the diminution is considered
company of the Group after taking advantage
to be permanent.
of all available deductions and concessions.
( i i ) Other Investments The deferred tax provision is calculated using
the liability method, resulting from short-term
All other investments are included at cost or
differences between pro¬ts computed for tax
valuation.
purposes and pro¬ts as stated in the ¬nancial
( f ) Inventories statements. Provision is not made for timing dif-
ferences unless a liability is expected to arise in
Inventories are valued at lower of cost or net
the foreseeable future.
realisable value including a share of ¬xed and
variable overheads where appropriate. Cost is Deferred tax assets of subsidiaries are recog-
determined using various methods including nised where the individual subsidiary is able to
speci¬c identi¬cation, average cost, ¬rst in ¬rst justify the deferred tax assets. Deferred tax liabil-
out and standard cost. ities of individual subsidiaries are recognised if
779
Case: Brierley Investments Limited




49
Part 4 Additional Cases




the subsidiary is unable to use Group tax losses dividends on the election of shareholders has

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