Port Nelson Annual Report 2012 (pdf)

summary of significant accounting policies
policies
reporting entity
Port Nelson Limited (Port Nelson) is registered under the Companies Act 1993 and created pursuant to the Port Companies Act 1988.
Port Nelson is a reporting entity in terms of the Financial Reporting Act 1993. The financial statements of Port Nelson have been
prepared in accordance with the Financial Reporting Act 1993.
basis of preparation
The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (‘NZ GAAP’).
They comply with New Zealand equivalents to International Financial Reporting Standards (‘NZ IFRS’) and other applicable reporting
standards as appropriate for profit-orientated entities.
The financial statements are presented in New Zealand dollars and the functional currency of Port Nelson is New Zealand dollars.
The financial statements were authorised for issue by the directors on 28 September 2012.
standards and interpretations issued and not yet adopted
There are no standards, interpretations and amendments that have been issued, that are not yet effective, and that are relevant to
Port Nelson that Port Nelson has not yet applied except for NZ IFRS 8. NZ IFRS 8 provides guidance on the disclosure requirements
in respect of the operating segments of the entity. Port Nelson is awaiting the outcome of a proposed change in the standard by the
Financial Reporting Standards Board that may result in Port Nelson being outside the scope before assessing the impact.
The amendments to the following standards and interpretations are not relevant to Port Nelson’s operations and are not expected to
have any significant impact:
Effective for the
financial year ending:
NZ IFRS 7 Disclosures – Transfers of Financial Assets (Amendments) 2013
NZ IAS 12 Income Taxes – Deferred Tax Recovery of Underlying Assets (Amendments) 2013
NZ IAS 1 Presentation of Items of Other Comprehensive Income – Amendment to NZ IAS 1 2014
NZ IAS 19 Employee Benefits (Revised) 2014
NZ IAS 28 Investments in Associates and Joint Ventures 2014
NZ IFRS 12 Disclosure of Interests in Other Entities 2014
NZ IFRS 13 Fair Value Measurement 2014
NZ IFRS 9 Financial Instruments – Classification and Measurement 2016
accounting policies
FRS-44 New Zealand Additional Disclosures and Amendments to NZ IFRS was adopted during the year to harmonise with source
IFRS and Australian Accounting Standards (Harmonisation Amendments). The purpose being to eliminate many of the differences
between the accounting standards in each jurisdiction. Apart from this additional policy adoption there have been no other changes
in accounting policies during the financial year disclosed in the Financial Statements.
measurement system
Those accounting principles considered appropriate for the measurement and reporting of results and financial position under the
historical cost method, modified by the revaluation of land, buildings, wharves, offshore vessels and investment property, have been
followed.
rounding of amounts
Amounts in this report have, unless otherwise indicated, been rounded to the nearest 1,000 dollars.
specific accounting policies
The accounting policies adopted in the financial statements which have a significant effect on the result and the financial position
disclosed are set out below:
1.1 Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to Port Nelson and that revenue
can be reliably measured as follows:
Cargo and Marine revenue – is recognised based on departure of the vessel.
Stevedoring – is recognised based on partial completion of the vessel at balance date.
Property lease revenue – is recognised on an accrual basis at balance date. Rentals are payable in advance.
Interest revenue – is recognised on a time proportion basis using the effective interest method.
1.2 Provisions
Provisions are recognised when a present obligation exists as a result of a past event, the future sacrifice of economic benefits
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