Annual Report

Notes to the Financial Statements

Washington H. Soul Pattinson and Company Limited

Annual Report 2016

Accounting for Our Investments

NOTE 13

TERM DEPOSITS

Accounting policy –

Term deposits

Term deposit investments are non-derivative financial assets with fixed or determinable payments and fixed

maturities that the Group’s management has the positive intention and ability to hold to maturity. Term deposit

financial assets are included in current assets, except those with maturities of more than 12 months from the

reporting date, which are classified as non-current assets.

Recognition and derecognition

A term deposit is recognised on the date when the cash funds are deposited with the bank. The term deposit is

derecognised on the term maturity date of the deposit.

Subsequent measurement

Term deposits are carried at amortised cost using the effective interest method.

2016

2015

$’000

Current Assets

Term deposits

47,660

1,217,011

Term deposits are held to their maturity of less than one year and carry a weighted average interest rate of

2.44% per annum (2015:2.77%).

Term deposits in the statement of financial position at reporting date include term deposits held by the Parent

company and its controlled entities.

At 31 July 2016, Washington H. Soul Pattinson and Company Limited (the Parent company) held $46.000 million

(2015: $138.079 million); and New Hope Corporation Limited, a controlled entity, held $116,000 (2015: $1.040

billion) of the consolidated balance.