Page 53 - GMT and GMT Bond Issuer Annual Report 2017 v2

NOTES TO THE
9. TAX(CONTINUED)
9.2 Deferred tax
FINANCIAL
$ million
Deferred tax assets Derivative financial instruments Total deferred tax assets
Deferred tax liabilities
Investment properties – depreciation recoverable Investment properties – deferred expenses Borrowings issue costs
Total deferred tax liabilities
Net deferred tax
2017
3.7
3.7
(24.8) (7.1) (0.5)
(32.4)
(28.7)
2016
5.2
5.2
(35.3) (9.1) (0.6)
(45.0)
(39.8)
STATEMENTS
continued
For the year ended 31 March 2017
KEY JUDGEMENT
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable pro ts will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax bene t will be realised.
For deferred tax liabilities potentially arising on investment property measured at fair value there is a rebuttable presumption that the carrying amount
of the investment property asset will be recovered through sale. In estimating this deferred tax liability, the Group has made reference to independent valuers’ assessments of the market value of the tax depreciable components of a representative sample of properties, and the Group’s experience of tax depreciation recovered when properties have been sold.
10. RELATED PARTY DISCLOSURES
As a Unit Trust, GMT does not have any employees. Consequently services that the Group requires are provided for under arrangements governed by GMT’s Trust Deed, or by contractual arrangements. The Trust has related party relationships with the following parties, as well as its joint venture.
Entity
Goodman (NZ) Limited
Goodman Property Services (NZ) Limited
Goodman (Wynyard Precinct) Limited
Goodman Investment Holdings (NZ) Limited Goodman Limited
Goodman Industrial Trust
Wynyard Precinct Holdings Limited
51 NOTES TO THE FINANCIAL STATEMENTS
Nature of relationship
GNZ Manager of the Trust
GPSNZ Provider of property management, development management and related services to the Trust and to its joint venture
GWP Developer of Fonterra and Bayleys House buildings acquired / to be acquired by the joint venture
GIH Unitholder in GMT
GL Parent entity of GNZ, GPSNZ, GIH and GWP
GIT Property co-owner with GMT
WPHL Joint venture between GMT and GIC, Singapore’s sovereign wealth fund
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 FINANCIAL STATEMENTS