PUMPKIN PATCH LIMITED & SUBSIDIARIES STATEMENT OF ACCOUNTING POLICIES FOR THE 6 MONTHS ENDED 31 JANUARY 2004 (CONTINUED)
Transactions denominated in a foreign currency are converted to New Zealand dollars at the exchange rates in effect at the date of the transaction, except when forward currency contracts have been taken out to cover short-term forward currency commitments. Where short-term forward currency contracts have been taken out, the transaction is translated at the rate contained in the contract.
Monetary assets and liabilities arising from trading transactions, such as inventory, trade debtors, cash and trade creditors, or overseas borrowings are translated at closing rates from the following currencies at the closing rate as at the financial period end:
Share Schemes and Employee Ownership Plans
Exchange differences arising from the translation of integrated foreign operation are recognised in the statement of financial performance.
The results of integrated foreign operations are translated in the same way as if the underlying transactions had been entered into by the reporting entity.
Gains and losses due to currency fluctuations on these items are included in the statement of financial performance.
The Company operates employee share ownership plans for certain employees. The initial purchase of shares by the scheme is funded by advances from the company, the advances being recognised as assets in the
statement of financial position. Where shares are issued in lieu of bonus, the expense is recognised in the
statement of financial performance.
The Company operates share schemes for certain executive employees. No compensation expense is recognised in the statement of financial performance.
Deferred Landlord Contributions
Landlord contributions to fit-out costs are capitalised as deferred contributions and amortised to the statement of financial performance over the lesser of the minimum period of the lease or the useful life of the asset.
Property, Plant and Equipment
The cost of purchased property, plant and equipment is the value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.