Port Nelson Annual Report 2007 (pdf)

N O T E S T O T H E A C C O U N T S
N o t e s t o t h e R e c o n c i l i a t i o n s 3 0 J u n e 2 0 0 6
(a) Hedging Liability
Port Nelson qualifies for treatment of its financial derivatives as Cash Flow Hedges per NZ IAS 39. At 30 June 2006 Port Nelson had a $78,000
Hedging Asset.
Effect of movement: Effect of
Previous transition to
NZGAAP NZIFRS NZIFRS
$000 $000 $000
Hedging Asset - 78 78
Deferred Tax Liability - (26) (26)
Hedging Reserve - 52 52
(b) Intangibles
The effect of the reclassifications as at 30 June 2006 are as below. Effect of
transition to
Previous
NZIFRS
NZGAAP Reclassification NZIFRS
30 June 2006 $000 $000 $000
I N T A N G I B L E S 709 (709) -
Software (Intangibles) 709 (709) -
Intangibles in the nature of software amounting to $709,000 have been reclassified as Intangibles.
(c) Deferred Tax Liability $000
Opening 3,663
Reversal of existing NZ GAAP (3,663)
3 0 J U N E 2 0 0 6 N Z I F R S L I A B I L I T Y 3,820
Consisting of:
Deferred Tax Asset (805)
Deferred Tax Liability 4,625
3 0 J U N E 2 0 0 6 N Z I F R S L I A B I L I T Y 3,820
At 30 June 2006 a temporary difference of $12,602,000 existed between the total tax base value of depreciable assets and the total carrying
value of the same assets. A Deferred Tax Liability of $4,625,000 in relation to the temporary difference between the value of the asset bases was
established requiring an increase to the Deferred Tax Liability. Against the increase in Deferred Tax Liability, a Deferred Tax Asset of $466,000
relating to the temporary differences between tax base value of depreciable assets and the carrying value of those assets and $339,000 relating
to the Employee was netted. The Deferred Tax asset of $805,000 has been netted against the Deferred Tax Liability as per NZIAS 12 (74).
(d) Retained Earnings
30 June 2006 $000
NZ GAAP 18,469
Investment Property revaluation 1/7/05 5,469
Transfer of balance previously attributable to Investment Property from Revaluation Reserve 5,763
Transfer from Revaluation Reserve of debit balances relating to individual assets previously netted off on a class basis (1,109)
Reversal of existing NZ GAAP Deferred Tax Liability balance at Transition 1,259
Deferred Tax Liability adjustment on differing tax bases as at 1 July 2005 excluding revaluations (1,319)
Reversal of Investment Property revaluation at 30 June 2006 previously transferred to Revaluation Reserve 712
NZ IFRS transition adjusting entry (209)
3 0 J U N E 2 0 0 6 N Z I F R S R E T A I N E D E A R N I N G S 29,035
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