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• Income statement for the year ended 30 June 2008
• Statement of changes in equity for the year ended 30 June 2008
• Cash flow statement for the year ended 30 June 2008
• Notes to the financial statements of Housing New Zealand Corporation for the year ended 30 June 2008
  • 2. Summary of significant accounting policies
  • 3. Revenues and expenses
  • 4. Income tax
  • 5. Dividends paid and proposed
  • 6. Categories of financial assets and liabilities
  • 7. Receivables and prepayments
  • 8. Mortgage advances
  • 9. Investments
  • 10. Properties intended for sale
  • 11. Property, plant and equipment
  • 12. Intangible assets
  • 13. Properties under development
  • 14. Accounts payable and other liabilities
  • 15. Provisions
  • 16. Financial risk management objectives and policies
  • 17. Reconciliation of net profit after tax with cash flows from operating activities
  • 18. Commitments and contingencies
  • 19. Related party disclosure
  • 20. Mortgage Insurance Scheme claim liability
  • 21. Events subsequent to balance date
  • 22. Budgeted figures
  • 23. Remuneration of employees - $100,000 and over
  • 24. Impacts of adoption of NZ IFRS

About us

18. Commitments and contingencies

The Group has entered into commercial leases on 30 June 2008 where it is not in the best interest of the Group to purchase these assets.

These leases have an average life of 3 to 6 years with renewal terms included in the contracts. Renewals are at the option of the specific entity that holds the lease.

There are no restrictions placed upon the lessee by entering into these leases.

Future minimum rentals payable under non-cancellable operating leases as at 30 June 2008 are as follows:

Reconciliation from the net profit after tax to the net cash flows from operations.

The Corporation has future minimum payments receivable under non-cancellable subleases at 30 June 2008 of $190,000 (2007, $670,000).

The Group has entered into property leases for its property portfolio. These properties are held under operating leases and are measured under the fair value model in accordance with NZ IAS 16 as they are considered to provide a social benefit and are not maintained solely to provide rental income.

There are no non-cancellable leases executed by the Group.

At 30 June 2008 the Group has capital commitments amounting to $76 million (2007, $104 million).

At 30 June 2008 the Group has lending commitments approved but not yet drawn amounting to $18 million (2007, $18 million).

The Corporation is liable to the owners (ANZ National Bank Limited, Ichthus Limited and Westpac Banking Corporation) of mortgages sold by the Corporation during 1992 to 1999 for certain losses they may incur from specified limited aspects of their ownerships of those mortgages. The amount of the liability cannot be estimated.

The Corporation has a contingent liability to properties underwritten for the Home Equity Scheme, a community-based home ownership programme. The value of the liability at 30 June 2008 is $0.9 million (2007, $0.9 million). In the event of an actual liability, the Corporation will take the opportunity to use its acqusition budget to discharge the responsibility which is expected to have no material effect on the Corporation's financial position.