Landcorp - Crown Ownership Monitoring Unit

LANDCORP FARMING LIMITED AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS CONTINUEDNote 5 – Operational Management (continued)ProtectedPastoral Land Land All Other Inter-Function Other ConsolidatedFarming Development Management Functions Eliminations Adjustments Group2009 2009 2009 2009 2009 2009 2009Comment $000 $000 $000 $000 $000 $000 $000RevenueLivestock 98,464 – – – – – 98,464Milk 54,164 – – – – – 54,164Other revenue 7,766 – (57) – – – 7,709160,394 – (57) – – – 160,337Income from equityaccounted joint ventures – 382 – – – – 382Other income A 6,784 2,001 1,213 7,555 (6,821) 2,624 13,356167,178 2,383 1,156 7,555 (6,821) 2,624 174,075ExpensesFarm working expenses 68,970 – – – – – 68,970Personnel B 40,867 110 – 513 – 11 41,501Depreciation and amortisation 11,882 – 107 246 – – 12,235Other expenses 30,881 232 920 953 (1,215) – 31,771Total expenses 152,600 342 1,027 1,712 (1,215) 11 154,477Net Profit Before Interest, PropertySales and Revaluations 14,578 2,041 129 5,843 (5,606) 2,613 19,598Interest revenue 52 34 – 6,579 (6,576) – 89Interest expense (7,387) (829) (3,064) (8,126) 6,576 – (12,830)Net Finance Costs (7,335) (795) (3,064) (1,547) – – (12,741)Net Operating Profit C 7,243 1,246 (2,935) 4,296 (5,606) 2,613 6,857AssetsLivestock 218,050 – – – – – 218,050Property, plant and equipment 1,185,676 – 117,374 1,845 – – 1,304,895Other assets A,D 86,057 28,173 (2,520) 235,666 (226,883) 25,310 145,803Total assets 1,489,783 28,173 114,854 237,511 (226,883) 25,310 1,668,748Other adjustments predominantly arise from the adoption of NZ IFRS. Many of these adjustments relate to the recognition in profit of items thatwill not have a cash impact on the business, and cannot be realised in the ordinary course of livestock farming. Specific adjustments made in theabove tables relate to:ABAgricultural produce on handUnder NZ IFRS all harvested feed must be recognised at its fair value at time of harvest. Landcorp considers this part of the normal farmingoperation and monitors physical feed conditions across all properties. Landcorp does not measure the dollar value impact of periodic variancesin the amount of internally harvested feed for management purposes.Employee benefitsNZ IFRS requires Landcorp to value accumulating employee compensated absences, such as sick leave entitlements, to the extent thatbalances currently earned are likely to be taken in the future. Landcorp does not measure this liability for management reporting purposes asthis liability is not expected to arise in normal operations.64