11. Events After The Balance Sheet Date

A decision by the Land Valuation Tribunal (LV T) released on 30 July 2009, found in favour of the pastoral lessee and stated that valuations for assessing rents should not adopt capital value or land value in the ordinary sense, but should instead discount those values based solely on pastoral farming use.

This decision would not have a material impact on the current financial statements, as LINZ does not currently use the disputed valuation methodology for asset valuations purposes.

The Crown is appealing the decision, seeking clarification of the meaning of capital value. The Crown is aiming to receive a clear direction as to the proper interpretation of the relevant statutory provisions, so that it can, where appropriate, be applied to the other cases presently before the LV T and to other valuations of pastoral leases in future.