New accounting

standards and
interpretations
Issued but not yet effective
31 March 2010
Introduction
NZ IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors requires disclosure of the possible impact of
new and revised Accounting Standards that have been issued but are not yet effective. This includes pronouncements
issued by the International Accounting Standards Board (IASB) and International Financial Reporting Interpretations
Committee (IFRIC) for entities that are required to make a statement of compliance with IFRS.

The following table should be used in conjunction with Castle (International) Limited, in particular for the disclosure in
Note 2(c). This table lists all applicable Standards/Interpretations issued but not yet effective for 31 March 2010 year
ends and assumes that the entity has elected not to “early adopt” any of these Standards/Interpretations. The table is
accurate as at 31 March 2010 and any further Standards/Interpretations issued after this date will also need to be
disclosed up until the date of authorisation of the financial report. An entity does not need to refer to Standards/
Interpretations that are not applicable to them provided the entity ensures that the Standard/Interpretation is, in fact,
not relevant. If the effect of a particular Standard/Interpretation has not yet been determined, those details should be
disclosed. The impact on Group financial statements should be added based on the entity’s specific circumstances.

This table will be updated and released for reporting periods ending 31 March, 30 June, 30 September and 31 December.

New accounting standards and interpretations 31 March 2010 2


Reference Title
NZ IFRIC 17 Distributions of Non-cash
Assets to Owners
NZ IFRIC 19 Extinguishing Financial
Liabilities with Equity
Instruments
NZ IFRIC 14 Amendments to NZ IFRIC 14
Prepayments of a Minimum
Funding Requirement
NZ IFRS 3 (Revised) Business Combinations
New accounting standards and interpretations 31 March 2010
Application date Impact on group Application date
Summary
of standard* financial report for group*
The Interpretation outlines how an entity should measure 1 July 2009 1 April 2010
distributions of assets, other than cash, as a dividend to its
owners acting in their capacity as owners. This applies to
transactions commonly referred to as spin-offs, split offs or
demergers and in-specie distributions.
This Interpretation addresses the accounting by an entity 1 July 2010 1 April 2011
when the terms of a financial liability are renegotiated and
result in the entity issuing equity instruments to a creditor
of the entity to extinguish all or part of the financial liability.
It does not address the accounting by the creditor.
This amendment provides entities with the ability to 1 January 2011 1 April 2011
recognise an asset for prepayments of minimum funding
requirement contributions.
The revised Standard introduces a number of changes 1 July 2009 1 April 2010
to the accounting for business combinations, the most
significant of which includes the requirement to have to
expense transaction costs and a choice (for each business
combination entered into) to measure a non-controlling
interest (formerly a minority interest) in the acquiree
either at its fair value or at its proportionate interest in
the acquiree’s net assets. This choice will effectively result
in recognising goodwill relating to 100% of the business
(applying the fair value option) or recognising goodwill
relating to the percentage interest acquired. The changes
apply prospectively.
3
 Application date Impact on group Application date
Reference Title Summary
of standard* financial report for group*
NZ IAS 27 Consolidated and Separate There are a number of changes arising from the revision 1 July 2009 1 April 2010
(Revised) Financial Statements to NZ IAS 27 relating to changes in ownership interest in
a subsidiary without loss of control, allocation of losses
of a subsidiary and accounting for the loss of control of
a subsidiary. Specifically in relation to a change in the
ownership interest of a subsidiary (that does not result in
loss of control) — such a transaction will be accounted for as
an equity transaction.
Amendments to Amendments to New Zealand The improvements project is an annual project that provides 1 July 2009 1 April 2010
NZ IFRS Accounting Standards a mechanism for making non-urgent, but necessary,
arising from the Annual amendments to IFRSs. The changes arising from the first
Improvements Project — set of amendments (issued in 2008) are already effective,
Amendments to NZ IFRS 5 except for the amendment to NZ IFRS 5, which is not
effective until periods beginning on or after 1 July 2009.
The amendment to NZ IFRS 5 is expected to have limited
application. It provides clarification as to which disclosure
requirements set out in other standards must be considered
for non-current assets (or disposal groups) held for sale
within the scope of NZ IFRS 5.
NZ IAS 39 Amendments to NZ IAS The amendment to NZ IAS 39 clarifies how the principles 1 July 2009 1 April 2010
39 Financial Instruments: underlying hedge accounting should be applied when
Recognition and Measurement (i) a one-sided risk in a hedged item is being hedged and
Standards — Eligible (ii) inflation in a financial hedged item existed or was likely
Hedged Items to exist.
Omnibus Omnibus amendments The amendments aim to correct and clarify a number of 1 July 2009 1 April 2010
Amendments matters concerning the New Zealand specific paragraphs
(2009-1) included in the standards.
The main additional disclosure requirement is NZ IFRS 4
Insurance Contracts, Appendix C Life Insurance Entities
which now requires disclosure of whether the amount
of solvency reserves disclosed has been determined in
accordance with the standards and guidelines of the New
Zealand Society of Actuaries (Inc.).

New accounting standards and interpretations 31 March 2010 4

 Application date Impact on group Application date
Reference Title Summary
of standard* financial report for group*
NZ IAS 34 Amendment to NZ Equivalent The amended scope of NZ IAS 34 aligns with the scope of 1 July 2009 1 April 2010
to IAS 34 Interim Financial IAS 34 and no longer includes discussion on which entities
Reporting — Scope should or should not apply NZ IAS 34 when preparing
interim financial reports.
The amended scope clarifies that NZ IAS 34 applies if an
entity is required or elects to publish an interim financial
report in accordance with New Zealand equivalents to
International Financial Reporting Standards.
Improvements to Amendments to New Zealand The amendments to some Standards result in accounting 1 July 2009 for 1 April 2010
NZ Equivalents Accounting Standards changes for presentation, recognition or measurement amendments to
to IFRS arising from the Annual purposes (some of which are summarised below), while NZ IFRS 2, NZ IAS 38
Improvements Project some amendments that relate to terminology and and NZ IFRIC 9 and 16
editorial changes are expected to have no or minimal
effect on accounting. 1 January 2010 for
all other amendments
The amendment to NZ IFRIC 16 allows qualifying hedge
instruments to be held by any entity or entities within the
group, including the foreign operation itself, as long as the
designation, documentation and effectiveness requirements
in NZ IAS 39 that relate to a net investment hedge are
satisfied. More hedging relationships will be eligible for
hedge accounting as a result of the amendment.
The amendment to NZ IAS 17 removes the specific
guidance on classifying land as a lease so that only the
general guidance remains. Assessing land leases based on
the general criteria may result in more land leases being
classified as finance leases and if so, the type of asset
which is to be recorded (intangible vs. property, plant and
equipment) needs to be determined.
The amendment to NZ IAS 1 stipulates that the terms of
a liability that could result, at anytime, in its settlement
by the issuance of equity instruments at the option of the
counterparty do not affect its classification.
The amendment to NZ IAS 7 explicitly states that only
expenditure that results in a recognised asset can be
classified as a cash flow from investing activities.

New accounting standards and interpretations 31 March 2010 5

 Application date Impact on group Application date
Reference Title Summary
of standard* financial report for group*
Improvements Amendments to New Zealand The amendment to NZ IAS 36 clarifies that the largest unit 1 April 2010
to NZ Equivalents Accounting Standards permitted for allocating goodwill acquired in a business
to IFRS (Cont.) arising from the Annual combination is the operating segment, as defined in IFRS 8
Improvements Project (Cont.) before aggregation for reporting purposes.
The main change to NZ IAS 39 clarifies that a prepayment
option is considered closely related to the host contract
when the exercise price of a prepayment option reimburses
the lender up to the approximate present value of lost
interest for the remaining term of the host contract. The
other changes clarify the scope exemption for business
combination contracts and provide clarification in relation to
accounting for cash flow hedges.
NZ IFRS 2 Amendments to NZ IFRS This Standard makes amendments to NZ IFRS 2 Share-based 1 January 2010 1 April 2010
2 – Share-based Payment Payment and supersedes NZ IFRIC 8 Scope of NZ IFRS 2
Transactions and NZ IFRIC 11 NZ IFRS 2 — Group and Treasury Share
Transactions.
The amendments clarify the accounting for group cash-
settled share-based payment transactions in the separate
or individual financial statements of the entity receiving the
goods or services when the entity has no obligation to settle
the share-based payment transaction.
The amendments clarify the scope of NZ IFRS 2 by requiring
an entity that receives goods or services in a share-based
payment arrangement to account for those goods or
services irrespective which entity in the group settles the
transaction, and regardless of whether the transaction is
settled in shares or cash.

New accounting standards and interpretations 31 March 2010 6


Reference Title
Amendment to Amendments to NZ IFRS
International 1 First-time Adoption of
Financial Reporting International Financial
Standards Reporting Standards.
NZ IAS 24 Related Party Disclosures
(Revised 2009)
NZ IFRS 9 Financial Instruments
NZ IFRS 1 Amendments to NZ IFRS
1 First-time Adoption of
International Financial
Reporting Standards
* designates the beginning of the applicable annual reporting period unless otherwise stated
New accounting standards and interpretations 31 March 2010
Application date Impact on group Application date
Summary
of standard* financial report for group*
The amendments address the retrospective application of 1 January 2010 1 April 2010
IFRSs to particular situations and are aimed at ensuring that
entities applying IFRSs will not face undue cost or effort in
the transition process.
Specifically, the amendments:
• exempt entities using the full cost method from
retrospective application of IFRSs for oil and gas assets
• exempt entities with existing leasing contracts from
reassessing the classification of those contracts in
accordance with NZ IFRIC 4 Determining whether an
Arrangement contains a Lease when the application of
their national accounting requirements produced the
same result.
This Standard makes amendments to New Zealand 1 January 2011 1 April 2011
Accounting Standard NZ IAS 24 Related Party Disclosures.
The amendments simplify the definition of a related
party and provide a partial exemption from the disclosure
requirements for government-related entities.
This standard is part of the IASB’s project to replace IAS 39 1 January 2013 1 April 2013
Financial Instruments: Recognition and Measurement. The
standard applies to financial assets, their classification and
measurement.
All financial assets are required to be classified on the basis
of the entity’s business model for managing the financial
assets and the contractual cash flow characteristics of the
financial asset. Financial assets are initially measured at
fair value plus, in the case of a financial asset not at fair
value through profit or loss, particular transaction costs and
subsequently measured at amortised cost or fair value.
This amendment provides first time adopters of NZ IFRS with 1 July 2010 1 April 2011
the ability to apply the transitional provisions in NZ IFRS 7
Improving Disclosures about Financial Instruments, as they
relate to the March 2009 amendments.
7
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