Note 28: Net Worth
| Forecast | Actual | |||
|---|---|---|---|---|
|
Original Budget $m |
Estimated Actuals $m |
30 June 2010 $m |
30 June 2009 $m |
|
| 31,803 | 34,027 | Taxpayer funds | 31,087 | 36,382 |
| 57,723 | 62,110 | Property, plant and equipment revaluation reserve | 63,593 | 62,612 |
| 80 | 61 | Investment revaluation reserve | 59 | 56 |
| (98) | (190) | Cash flow hedge reserve | (143) | 18 |
| 59 | 24 | Foreign currency translation reserve | (10) | - |
| 382 | 447 | Net worth attributable to minority interest in Air New Zealand | 402 | 447 |
| 89,949 | 96,479 | Total net worth | 94,988 | 99,515 |
Taxpayer funds |
||||
| 37,534 | 36,382 | Opening taxpayers funds | 36,382 | 46,700 |
| (5,729) | (3,179) | Operating balance excluding minority interest | (4,509) | (10,505) |
| (1) | 825 | Transfers from/(to) property, plant and equipment revaluation reserve | (785) | 189 |
| (1) | (1) | Other movements | (1) | (2) |
| 31,803 | 34,027 | Closing taxpayers funds | 31,087 | 36,382 |
Property, Plant and Equipment Revaluation Reserve |
||||
| 57,723 | 62,612 | Opening revaluation reserve | 62,612 | 58,566 |
| (1) | 323 | Net Revaluations | 196 | 4,235 |
| 1 | (825) | Transfers from/(to) taxpayer funds | 785 | (189) |
| 57,723 | 62,110 | Closing revaluation reserve | 63,593 | 62,612 |
The property, plant and equipment 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, and is effectively realised, is transferred to taxpayer funds. The transfers from/(to) taxpayer funds includes a reclassification of $1,108 million from taxpayer funds to the property, plant and equipment revaluation reserve for the correction of misclassifications in previous years.
| Forecast | Actual | |||
|---|---|---|---|---|
|
Original Budget $m |
Estimated Actuals $m |
30 June 2010 $m |
30 June 2009 $m |
|
Investment Revaluation Reserve |
||||
| 83 | 56 | Opening investment revaluation reserve | 56 | 34 |
| (3) | 5 | Increase arising on revaluation of available-for-sale financial assets | 1 | 23 |
| - | - | Cumulative (gain)/loss transferred to the statement of financial performance on sale of available-for-sale financial assets |
2 | (1) |
| 80 | 61 | Closing investment revaluation reserve | 59 | 56 |
The investments 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, and is effectively realised, 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.
| Forecast | Actual | |||
|---|---|---|---|---|
|
Original Budget $m |
Estimated Actuals $m |
30 June 2010 $m |
30 June 2009 $m |
|
Cash Flow Hedge Reserve |
||||
| (83) | 18 | Opening cash flow hedge reserve | 18 | (151) |
| (18) | (205) | Transfer into reserve | (96) | 322 |
| - | - | Transfer to the statement of financial performance | (62) | - |
| 3 | (3) | Transfer to initial carrying value of hedged item | (3) | (153) |
| (98) | (190) | Closing cash flow hedge reserve | (143) | 18 |
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.
| Forecast | Actual | |||
|---|---|---|---|---|
|
Original Budget $m |
Estimated Actuals $m |
30 June 2010 $m |
30 June 2009 $m |
|
Foreign currency translation reserve |
||||
| 59 | - | Opening foreign currency translation reserve | - | (17) |
| - | 24 | Arising from translation of foreign operations | (10) | 17 |
| 59 | 24 | Closing foreign currency translation reserve | (10) | - |
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.
| Forecast | Actual | |||
|---|---|---|---|---|
|
Original Budget $m |
Estimated Actuals $m |
30 June 2010 $m |
30 June 2009 $m |
|
Net worth attributable to minority interest in Air New Zealand |
||||
| 382 | 447 | Opening minority interest | 447 | 382 |
| - | - | Operating balance attributable to minority interests | (17) | 25 |
| - | - | Transactions with minority interest | (11) | 29 |
| - | - | Other movements | (17) | 11 |
| 382 | 447 | Closing minority interest | 402 | 447 |
Minority interests represent the interests of minority holders of Air New Zealand shares. Transactions with minority interest include dividend payments and dividend reinvestments.
