PUMPKIN PATCH LIMITED & SUBSIDIARIES STATEMENT OF ACCOUNTING POLICIES FOR THE 6 MONTHS ENDED 31 JANUARY 2004 (CONTINUED)
The financial statements for the “Group” are for the economic entity comprising Pumpkin Patch Limited and its subsidiaries.
Statutory Base Pumpkin Patch Limited is a company registered under the Companies Act 1993.
The financial statements have been prepared in accordance with the requirements of the Securities Regulations 1983.
Measurement Base The financial statements have been prepared on the historical cost basis.
The financial statements are prepared in accordance with New Zealand generally accepted accounting practice. The accounting policies that materially affect the measurement of financial performance, financial position and cash flows are set out below.
Group Financial Statements
The Group financial statements consolidate the financial statements of subsidiaries, using the purchase method. Subsidiaries are entities that are controlled, either directly or indirectly, by the Parent.
All material transactions between subsidiaries or between the Parent and subsidiaries are eliminated on consolidation.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of financial performance from the date of acquisition or up to the date of disposal.
Goods and Services
Revenue comprises the amounts received and receivable for goods and services supplied to customers in the ordinary course of business.
Dividend income is recognised in the period the dividend is declared. Interest and rental income are accounted for as earned.
The income tax expense recognised for the year is based on the accounting surplus, adjusted for permanent differences between accounting and tax rules.
The impact of all timing differences between accounting and taxable income is recognised as a deferred tax liability or asset. This is the comprehensive basis for the calculation of deferred tax under the liability method. A deferred tax asset, or the effect of losses carried forward that exceed the deferred tax liability, is recognised in the financial statements only where there is virtual certainty that the benefit of the timing differences, or losses, will be utilised.
Goods and Services Tax (GST)
The statement of financial performance and statement of cash flows have been prepared so that all components are stated exclusive of GST. All items in the statement of financial position are stated net of GST, with the exception of receivables and payables, which include GST invoiced.