Port Nelson Annual Report 2007 (pdf)

S T A T E M E N T O F A C C O U N T I N G P O L I C I E S
R E P O R T I N G E N T I T Y
Port Nelson Limited is a public company 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.
B A S I S O F P R E P A R A T I O N
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 the 7 September 2007.
S T A N D A R D S A N D I N T E R P R E T A T I O N S I S S U E D A N D N O T Y E T A D O P T E D
There are no standards, interpretations and amendments that have been issued, but are not yet effective other than NZ IFRS 7 and 8, that Port
Nelson has not yet applied. When effective these standards will require additional disclosures in the financial statements.
A C C O U N T I N G P O L I C I E S
Unless otherwise stated, all accounting policies applied are consistent with those of the prior year. Where appropriate, comparative figures have
been amended to accord with the current year’s presentation and disclosure.
M E A S U R E M E N T S Y S T E M
Those accounting principles considered appropriate by the New Zealand Institute of Chartered Accountants for the measurement and reporting
of results and financial position under the historical cost method, modified by the revaluation of land, buildings, wharves, and investment
property, have been followed.
R O U N D I N G O F A M O U N T S
Amounts in this report have, unless otherwise indicated, been rounded to the nearest one thousand dollars.
S P E C I F I C A C C O U N T I N G P O L I C I E S
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 is probable,
and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.
1.3 Property, Plant and Equipment and Depreciation
Property, Plant and Equipment, except land, buildings, and wharves, are stated at valuation taken over from the Nelson Harbour Board
on 1 October 1988 and subsequent additions at cost. Depreciation is written off depreciable assets on a straight line basis over the
estimated economic lives of the assets, ranging as follows:
2 6
Years
Years
Wharves, Quays and Berths 20-65 Buildings 50-100
Vessels 20 Cranes 15-20
Forklifts 15-25 Tractors and Vehicles 10
Sundry Plant and Equipment 5-20 Navigation and Pilot Equipment 10-40
Office Equipment 5-15 Hard Standing 50
Software 5
Capital dredging is not amortised. The cost of maintaining the dredged depth is expensed. Land is valued at least every three years.