2011-2012 Annual Report - Full Version - PDF - Palmerston North ...

Note 19Joint venturePNCC and the Manawatu District Council (MDC) jointly own the Gordon Kear Forest first rotation crop. PNCC’sinterest in the Gordon Kear Forest crop joint venture is accounted for as a jointly controlled asset, where PNCCcurrently owns 76.7% and MDC own the remaining 23.3%. PNCC own 100% of the Gordon Kear Forest land, siteimprovements (these assets are not part of the joint venture) and second rotation tree crop.PNCC’s interest in the jointly controlled asset is as follows:CouncilGroupActual Actual Actual Actual2012 2011 2012 2011$000 $000 $000 $000Non-current assets 935 1,343 935 1,343Current liabilities 85 67 85 67Non-current liabilities 55 453 55 453Income from harvest sales 280 796 280 796Expenses 226 515 226 515Financial Statements Note 19Non-current asset value◊ Gordon Kear Forest crop was valued as at 30June 2012 at $1.2m (2011 $1.8m). PNCC’sinterest in the forest at that date was a 76.7%share, which is worth $0.9m (2011 $1.3m). Thereare amounts payable to MDC for net harvestproceeds of $85k (2011 $67k) included in tradeand other payables.◊PNCC’s share of the Gordon Kear Forest crop hasalso been included within Note 17 - ForestryAssets.Note 20Current and non-current liabilities◊ The JV forestry encouragement loans totalling$55k as at 30 June 2012 were drawn down solelyby PNCC. Manawatu District Council’s portion ofthe loan was repaid during 2011.Joint venture commitments and contingencies◊ There are no commitments or contingentliabilities arising from the group’s involvement inthe joint venture.Trade and other payables Council GroupActual Actual Actual Actual2012 2011 2012 2011$000 $000 $000 $000Trade payables 5,750 4,231 6,171 4,611Deposits and bonds 1,185 1,145 1,185 1,166Accruals and capital creditors 3,745 4,147 3,959 4,375Amounts due to related parties (note 28) 7 15 - -Fees and grants in advance 580 637 718 788Rates in advance 792 698 792 698Retentions 814 895 814 895Tax payable (includes GST payables) - - 107 47Other payables 613 642 613 687Total trade and other payables 13,486 12,410 14,359 13,267◊Trade and other payables are non-interestbearing and are normally settled on 30 dayterms, therefore the carrying value of trade andother payables approximates their fair value.166Palmerston North City Council Annual Report 2011/12