3.2 Disclosure is required of the following information relating to material transactions, both revenue and expenditure including certain capital expenditure, between related parties:
(1) the identity of each related party involved and the nature of the relationships; and
(2) detailed description of the good or service provided;
(3)the quantity and recorded income and expenditure values as appropriate, of the transactions with each related party expressed in dollar terms for each type of good or service(4) the period during which the good or service was supplied;(5) the total outstanding balances arising from related party transactions for each related party together with an indication of the terms of settlement for these balances;
(6) total debts with each related party that have been written off or forgiven during the financial year:
(7) where transactions take place at nil or nominal value, a brief description of such transactions and the fact that no charge has been made, or if made at nominal value, details of that nominal value.
3.3 If ZGL uses the exemption regarding disclosure of the "other" businesses within the 5% threshold (paragraph 2.6, Chapter 2) it must eliminate from those financial statements any transfer payments that were made during the financial year so as to reflect that no transfer payments took place. No disclosure of transfer payments would be required.
4. Financial Performance Measures
4.1 In addition to financial statements, each year ZGL must disclose an alternative revenue statement, indicators, and a cause of changes report.
4.2 The alternative revenue statement is to disclose ZGL's "fruit and service payments" and "tax paid profit" together with the key revenues and expenses that result in these two items.
4.3 The revenues and expenses that result in the fruit and service payments that ZGL must disclose in an alternative revenue statement are:
| Revenues | Expenses |
| Sales of New Zealand derived kiwifruit, other than through collaborative markets; Sales of New Zealand derived kiwifruit through collaborative marketers; and Other Pool income |
Freight; Insurance (onshore, offshore and crop); Promotion; Duty/Customs; Other direct pool costs - offshore; Other direct pool costs - onshore; and ZGL's margin |
4.4 The revenues and expenses that result in ZGL's tax paid profit that ZGL must disclose in an alternative revenue statement are:
| Revenues | Expenses |
| ZGL's margin, including how ZGL's margin is calculated; Non New Zealand derived kiwifruit; Other non pool revenue; and Interest income |
Onshore costs; Offshore costs; and Taxation |
4.5 The indicators that ZGL must disclose each year are:
(1) the costs of earning the net revenue attributable to the Pools expressed as percentages; and
(2) "equity ratio", "net tangible assets per share", "earnings per share", "net dividend yield" and "gross dividend yield".
4.6 For the disclosure of comparisons in relation to the alternative revenue statement and the indicators, the following rules should be observed:
(1) first time disclosures in accordance with this section of the Handbook may, at ZGL's discretion, contain no previous year's alternative revenue statement or indicators; and
(2) second time disclosures in accordance with this section of the Handbook must contain the previous year's alternative revenue statement and indicators as comparisons;and(3)thereafter, disclosures in accordance with this section of the Handbook must contain the previous two years' alternative revenue statement and indicators as comparisons.4.7 The cause of change report that ZGL must disclose each year must show the causes of changes in its total annual return (i.e., the sum of fruit and service payments made by ZGL and ZGL's profit). This report should show the impacts on ZGL's total annual return from year to year caused by changes in volume, price, reallocation of fruit to better returning markets, foreign exchange, other income movements, other cost movements, and change in tax expense.
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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