annual report 2005 - Pumpkin Patch investor relations

Pumpkin Patch Limited & Subsidiaries notes to and forming part of the financial statements
for the 12 months ended 31 July 2005
20. reconciliation of net profit after taxation to cashflow from operating activities
Group
Parent
Note
12 months
31 July 2005
$000
12 months
31 July 2004
$000
12 months
31 July 2005
$000
12 months
31 July 2004
$000
Net Profit After Tax 24,599 8,080 6,485 644
Add/(Less) non-cash items:
Depreciation expense 2 8,473 7,428 1,179 1,040
(Increase)/Decrease in deferred taxation 1,599 (3,190) 428 (1,337)
Provision for prelisting employee share scheme
restructuring
6 - 8,983 - 8,983
Fit out contributions amortised (1,207) (1,333) - -
Amortisation expense 2 63 51 - -
Add/(Less) movements in working capital items:
(Increase)/Decrease in receivables and prepayments (6,983) 208 3,849 (51)
Increase/(Decrease) in creditors and provisions (2,813) 7,625 (1,959) (3,289)
Increase/(Decrease) in creditors re stock in transit (734) 4,780 - -
(Increase)/Decrease in inventories on hand (8,003) (12,668) - -
(Increase)/Decrease in stock in transit 9,606 (4,893) - -
(Increase)/Decrease in related party balances - -
(2,284)
(30,233)
Net Cash Flow From Operating Activities 24,600 15,071 7,698 (24,243)
21. significant events after balance date
No significant events have occurred after balance date.
22. implementation of international financial reporting standards
As announced by New Zealand’s Accounting Standards Review Board in late 2002, all companies will be required to
prepare financial statements under New Zealand equivalents to International Financial Reporting Standards (“NZIFRS”)
for no later than the financial year beginning on or after 1 January 2007, including comparative financial information
for the financial year beginning on or after 1 January 2006.
During 2004 a project team was established to plan for the transition to NZIFRS and identify the impacts of
its implementation. A high level overview has been completed and reported to the Audit, Compliance and Risk
Management Committee of the Board. The project team has recommended adopting NZIFRS from 1 August 2006. This
means that the first NZIFRS compliant financial statements will be published for the half year ending 31 January 2008
and the full year ending 31 July 2008.
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To date the project team has identified a number of accounting policy changes that will be required although some of
these are subject to interpretation and further review before the impact on the Group is fully understood. The areas of
significant difference for the Group, between New Zealand Generally Accepted Accounting Practice (“NZ GAAP”) and
NZIFRS, are set out below: