Apata Limited and Group

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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
Note 4 : Determination of fair values A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non–financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. (a) Non-derivative financial liabilities Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. Note 5 : Other income (b) Available-for-sale financial assets The fair value of available–for–sale financial assets is determined by reference to their quoted bid price at the reporting date, if available, or otherwise by reference to other market information. Where there is no active market for the equity instrument and their fair value cannot be reliably measured, the instrument is measured at cost. (c) Derivative financial instruments The fair value of interest rate swaps is based on broker quotes. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms of maturity for each contract and using market interest rates for a similar instrument at the measurement date. 2008 Group 2008 Company 2007 Group 2007 Company Net gain on sale of property, plant & equipment – – 67,666 67,666 Note 6 : Expenses The following items are included in expenses: Note 7 : Finance income and expense 2008 Group 2008 Company 2007 Group 2007 Company Operating materials and services 22,609,751 21,691,417 18,794,620 18,001,209 Employee benefits expense 12,488,843 12,488,843 7,895,803 7,895,803 Operating lease expenses 1,746,031 1,746,031 1,278,600 1,278,600 Auditor’s remuneration to KPMG 28,503 28,503 24,007 24,007 Other services provided by KPMG for transition to IFRS 4,500 4,500 – – Directors fees 94,750 94,750 109,250 109,250 Depreciation 1,596,799 1,596,799 1,326,458 1,326,458 Loss on sale of property, plant and equipment 18,267 18,267 135 135 38,587,444 37,669,110 29,428,873 28,635,462 Shareholder rebates of $288,499 (2007: $235,053) have been offset against revenue, in accordance with IAS 18. 2008 Group 2008 Company 2007 Group 2007 Company Interest income on bank deposits 198,938 158,649 210,131 171,831 Dividends received 32,229 32,229 21,432 21,432 Finance income 231,167 190,878 231,563 193,263 Net change in the value of derivative 31,372 31,372 – – financial instruments Interest expense on financial liabilities 585,339 585,339 309,752 309,752 measured at amortised cost Finance expense 616,711 616,711 309,752 309,752 Net finance costs (385,544) (425,833) (78,189) (116,489) apata (annual report 2007/08) 33
Page 1 and 2: Apata Limited and Group Financial S
Page 3 and 4: Balance sheet As at 31 March 2008 I
Page 5 and 6: Notes to the financial statements (
Page 7: (e) Leased assets Leases in terms o
Page 11 and 12: Market valuation The property, plan
Page 13 and 14: Note 15 : Capital and reserves Reco
Page 15 and 16: Note 17 : Employee benefits (Compan
Page 17 and 18: Note 20 : Operating leases Leases a
Page 19 and 20: SouthLink Limited / Southlink Suppl
Page 21 and 22: Statutory information - Year ended
Page 23 and 24: Securities Act Exemption Notice inf
Page 25 and 26: Company details Company name Apata

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