Notes to Financial Statements

1. Basis of presentation

The interim financial statements presented are those of Fletcher Building Limited and its subsidiaries
(the “group”).

Fletcher Building Limited is a company domiciled in New Zealand, is registered under the Companies Act 1993, and is an issuer in terms of the Securities Act 1978 and the Financial Reporting Act 1993. The interim financial statements have been prepared in accordance with NZ IAS 34 Interim Financial Reporting.

Back to top2. Changes in accounting policies

During the period, the group complied with amendments to NZ IAS 38, Intangible Assets. This standard requires the group to expense marketing stock, previously capitalised. A six million dollar charge has been recorded against opening equity to reflect this change.

The International Accounting Standards Board has issued a number of other standards, amendments and interpretations which are not yet effective. The group has not yet applied these in preparing these interim financial statements although the application of these standards, amendments and interpretations would require further disclosures, but they are not expected to have a material impact on the group’s results.

There have been no other changes in accounting policy in the six months ended 31 December 2009, however certain comparatives have been restated to conform with the current period’s presentation.

Back to top3. Contingencies and commitments

Provision has been made in the ordinary course of business for all known and probable future claims but not for such claims as cannot presently be reliably measured. There have been no material movements in capital expenditure commitments, lease commitments, contingent liabilities or contingent assets to that disclosed in the 2009 annual report.

Back to top4. Other gains and losses

Other gains/(losses) include the following:

Back to top5. Taxation expense

Back to top6. Unusual items

During the year ended 30 June 2009 the group incurred $360 million of unusual items. Refer to the Fletcher Building 2009 annual report for further details.

Back to top7. Reconciliation of net earnings to net cash from operating activities

For the six months ended 31 December 2009 (unaudited)

¹ Includes loss on disposal of affiliates and fixed assets.

² As per the statement of cashflows.