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 2 4 : E X P L A N A T I O N O F T R A N S I T I O N T O N E W Z E A L A N D E Q U I V A L E N T S T O I F R S
A S A T T H E D A T E O F T R A N S I T I O N T O N Z I F R S : 1 J U L Y 2 0 0 5 ( . . . c o n t i n u e d )
(c) Deferred Tax Liability $000
Opening 1,558
Reversal of Existing NZ GAAP (1,558)
1 J U L Y 2 0 0 5 N Z I F R S L I A B I L I T Y 3,894
Consisting of:
Deferred Tax Asset (640)
Deferred Tax Liability 4,534
1 J U L Y 2 0 0 5 N Z I F R S L I A B I L I T Y 3,894
At Transition a temporary difference of $12,893,000 existed between the total tax base value of depreciable assets and the total carrying value
of the same assets. A Deferred Tax Liability of $4,534,000 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 $279,000
relating to the temporary differences between tax base value of depreciable assets and the carrying value of those assets, $318,000 relating to
the Employee Entitlements and $43,000 relating to the Hedging Liability was netted. The Deferred Tax asset of $640,000 has been netted against
the Deferred Tax Liability as per NZIAS 12 (74).
(d) Retained Earnings $000
Opening 16,894
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 (1,108)
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 in (e) (1,319)
IFRS transition adjusting entry (209)
C L O S I N G 26,749
The Deferred Tax Liability balance at Transition ($1,588,000) relating to Retained Earnings amounting to $1,259,000 has been adjusted against
Retained Earnings within the Deferred Tax Liability Adjustment.
(e) Asset Revaluation Reserve $000
Opening 47,551
Revaluation of PPE 27,455
Transfer from Retained earnings of credit balances relating to individual assets previously netted-off on a class basis 1,108
Transfer of accumulated revaluation increments for Investment Property (5,763)
Reversal of existing NZ GAAP Deferred Tax Liability balance at Transition 329
Deferred Tax Liability adjustment on depreciable revaluations on 1 July 2005 (2,616)
IFRS transition adjusting entry 209
C L O S I N G 68,272
The total revaluation increase of $32,924,000 consisted of $28,562,000 relating to PP&E and $5,469,000 relating to Investment Property. The
revaluation increment required an adjustment to reflect the Deferred Tax Liability effect on the depreciable assets revalued at 1 July 2005. The
adjustments resulted in a net $20,721,000 increase to the Revaluation Reserve account.
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