Apata Limited and Group

Notes to the financial statements (year ended 31 March 2008)
apata (annual report 2007/08)
32
(l) Income tax expense
Income tax expense comprises current and deferred tax.
Income tax expense is recognised in the income statement
except to the extent that it relates to items recognised
directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable
income for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax
payable in respect of previous years.
Deferred tax is recognised using the balance sheet method,
providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for the initial recognition
of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable
profit. Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences when
they reverse, based on the laws that have been enacted or
substantively enacted by the reporting date.
A deferred tax asset is recognised to the extent that it is
probable that future taxable profits will be available against
which temporary difference can be utilised. Deferred tax
assets are reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the related
tax benefit will be realised.
(m) Segment reporting
A segment is a distinguishable component of the Group that
is engaged either in providing related products or services
(business segment), or in providing products or services
within a particular economic environment (geographical
segment), which is subject to risks and rewards that are
different from those of other segments. The Group operates
in one geographical area, New Zealand, and operates in
one significant business segment, post–harvest operations,
engaged in providing packing, storage and logistics services
to the kiwifruit and avocado industries.
(n) New standards adopted and interpretations not yet
adopted
A number of new standards and interpretations are not
yet effective for the year ended 31 March 2008, and have
not been applied in preparing these financial statements.
Those relevant to the Group are:
• NZ IAS 1 - Presentation of financial statements (revised).
Approved: November 2007. Effective 1 January 2009.
The revised standard introduces “total comprehensive
income”, and a “Statements of Comprehensive Income”.
All non–owner changes in equity are presented in one
statement (i.e. a Statements of Comprehensive Income)
or two statements (i.e. an Income statements and a
Statement of Comprehensive Income). The revised
standard also prohibits presenting components of
comprehensive income in the Statements of Changes
in Equity. This will result in revised disclosure, but does
not affect recognition or measurement of any balances
within the financial statements.
• NZ IFRS 8 - Operating Segments replaces NZ IAS
14 Segment Reporting and changes how operating
segments are defined and how their results are disclosed
in the notes to the financial statements. This revised
standard will be effective for annual reporting periods
beginning on or after 1 January 2009 and is not expected
to have any impact on the consolidated financial results.
The Group has not yet determined if there are additional
disclosure requirements.
• NZ IAS 27 – Consolidated and Separate Financial
Statements (revised). Effective 1 January 2009. The
amendments relate mainly to changes in the accounting
for non–controlled interest and loss of control of a
subsidiary. The Group has not yet determined the effect
of these changes, if any.
There are a number of other standards and interpretations
which are not yet effective and management consider they
will have no impact on the Group.
The non relevant standards and interpretations are:
NZ IFRS 2 – Amendments to Share Based Payments
NZ IFRS 3 – Business Combinations
NZ IFRS 4 – Insurance Contracts
NZ IAS 23 – Borrowing Costs
NZ IAS 32 – Amendment to Puttable Instruments
and obligations arising on liquidation
NZ IFRIC 12 – Service Concession Arrangements
NZ IFRIC 13 – Customer Loyalty Programmes