Page 70 - GMT and GMT Bond Issuer Annual Report 2017 v2

GENERAL
Reporting entity
GMT Bond Issuer Limited (“the Company”) was incorporated on 5 November 2009. The address of its registered of ce is Level 28, 151 Queen Street, Auckland. GMT Bond Issuer Limited is an issuer for the purposes of the Financial Reporting Act 2013 as its issued debt securities are listed on the New Zealand Debt Exchange (“NZDX”). GMT Bond Issuer Limited is a registered company under the Companies Act 1993.
INFORMATION
GMT Bond Issuer Limited is a pro t-oriented company incorporated and domiciled in New Zealand. The Company was incorporated to undertake issues of debt securities with the purpose of on lending the proceeds to Goodman Property Trust (“GMT”) by way of interest bearing advances.
For the year ended 31 March 2017
The nancial statements were authorised for issue by the Board of Directors on 17 May 2017. The Board does not have the power to amend these nancial statements once issued.
Basis of preparation and measurement
The nancial statements of the Group have been prepared in accordance with the requirements of Part 7 of the Financial Markets Conduct Act 2013. The nancial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”), comply with New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”), other New Zealand accounting standards and authoritative notices that are applicable to entities that apply NZ IFRS. The Group is a for-pro t entity for the purposes of complying with NZ GAAP. The nancial statements also comply with International Financial Reporting Standards (“IFRS”).
The nancial statements have been prepared on the historic cost basis.
The nancial statements are in New Zealand dollars, the Company’s functional currency.
Signi cant estimates and judgements
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in the future periods affected.
Signi cant accounting policies
Interest income
Interest income from advances to related parties is recognised using the effective interest method.
Interest cost
Interest expense charged on borrowings is recognised as incurred using the effective interest method.
Advances to related parties
Advances to related parties are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, they are carried at amortised cost using the effective interest method.
Interest receivable from related parties
These amounts represent the fair value of interest income recognised but not yet due for payment. Due to the short term nature of the receivables the recoverable value represents the fair value.
Borrowings
Borrowings are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, borrowings are carried at amortised cost using the effective interest method.
Interest payable
Interest payable represents interest costs recognised as an expense but not yet due for payment.
Financial risk management
Financial instruments are classi ed dependent on the purpose for which the nancial instrument was acquired or assumed. Management determines the classi cation of its nancial instruments at initial recognition between two categories:
Amortised cost
Fair value through Pro t or Loss
68 GENERAL INFORMATION
Instruments recorded at amortised cost are those with xed or determined receipts / payments that are recorded at their expected value at balance date.
Instruments recorded at fair value through Pro t or Loss have their fair value measured via active market inputs, or by using valuation techniques if no active market exists.
GMT BOND ISSUER LIMITED ANNUAL REPORT 2017 FINANCIAL STATEMENTS