Note 28: Net Worth
|
Taxpayer funds |
PPE revaluation reserve |
Cash flow hedge reserve |
Investment revaluation reserve |
Foreign currency translation reserve |
Minority interest |
Total net worth |
|
|---|---|---|---|---|---|---|---|
| $m | $m | $m | $m | $m | $m | $m | |
| Net worth at 30 June 2007 | 44,222 | 52,442 | (122) | 23 | (34) | 296 | 96,827 |
| Operating balance | 2,384 | - | - | - | - | 67 | 2,451 |
| Net revaluations | - | 6,214 | - | - | - | - | 6,214 |
| Transfer to taxpayer funds | 90 | (90) | - | - | - | - | - |
| Transfer into reserve | - | - | 9 | 14 | - | - | 23 |
| Transfer to the statement of financial performance | - | - | 22 | - | - | - | 22 |
| Transfer to initial carrying value of hedged item | - | (60) | - | - | - | (60) | |
| Other movements | 4 | - | - | (3) | 17 | 19 | 37 |
| Net worth at 30 June 2008 | 46,700 | 58,566 | (151) | 34 | (17) | 382 | 105,514 |
| Operating balance | (10,505) | - | - | - | - | 25 | (10,480) |
| Net revaluations | - | 4,235 | - | - | - | - | 4,235 |
| Transfer to taxpayer funds | 189 | (189) | - | - | - | - | - |
| Transfer into reserve | - | - | 322 | 23 | - | - | 345 |
| Transfer to the statement of financial performance | - | - | - | - | - | - | - |
| Transfer to initial carrying value of hedged item | - | (153) | - | - | - | (153) | |
| Other movements | (2) | - | - | (1) | 17 | 40 | 54 |
| Net worth at 30 June 2009 | 36,382 | 62,612 | 18 | 56 | - | 447 | 99,515 |
The property, plant and equipment (PPE) revaluation reserve arises on the revaluation of physical assets. Where revalued property, plant or equipment is sold, the portion of the property, plant and equipment revaluation reserve that relates to that asset is effectively realised, and is transferred to taxpayer funds.
The cash flow hedge reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges. The cumulative deferred gain or loss on the hedge is recognised in the statement of financial performance when the hedged transaction impacts the statement of financial performance, or is included as a basis adjustment to the non-financial hedged item, consistent with the applicable accounting policy.
The investment revaluation reserve arises on the revaluation of available-for-sale financial assets. Where a revalued financial asset is sold, the portion of the reserve that relates to that financial asset is effectively realised, and is recognised in the statement of financial performance. Where a revalued financial asset is impaired, the portion of the reserve that relates to that financial asset is recognised in the statement of financial performance.
The foreign currency translation reserve holds foreign exchange gains and losses arising from translating monetary items that form part of the net investment in a foreign operation into New Zealand dollars, and foreign exchange gains and losses associated with translating non-monetary assets into New Zealand dollars if revaluations of those assets are reflected in another reserve rather than in the statement of financial performance.
