The significant accounting policies adopted by the Company are as follows:
Basis of Preparation
The financial statements have been prepared in accordance with accounting standards generally accepted in Ireland and Irish statute comprising the Companies Acts, 1963 to 2009. Accounting standards generally accepted in Ireland in preparing financial statements giving a true and fair view are those issued by the Accounting Standards Board and published by the Institute of Chartered Accountants in Ireland.
Historical Cost Convention
The financial statements are prepared under the historical cost convention, modified by the revaluation of an Investment Property.
Turnover
Turnover comprises the value of all services provided to third parties exclusive of value added tax and is expressed by class of business in note 2 to the Financial Statements.
Port Dues:
Port Dues revenue arises from charges to port users and comprises of goods dues, vessel dues and other key services provided such as towage and pilotage. Goods Dues are charged by reference to a schedule of charges based on Standard International Trade Classifications. Vessel Dues are charged in respect of the arrival of a vessel and rates are based and chargeable on the greater of the net tonnage or half the gross tonnage of a vessel. Towage and Pilotage Services are charged based on usage.
Port Dues Revenue is recognised by reference to the date of arrival of the vessel in the port.
Rents:
Rental income arises mainly from port related rental properties and is recognised by reference to the period to which the rent relates. Rent is charged in accordance with the terms of the rental agreement.
Other:
Other income included in Turnover comprises East Link income, Licence Fees and income from the Company’s integrated Service Station and Truck Park. Revenue is recognised by reference to the period to which the income relates.
Tangible Fixed Assets
Tangible fixed assets are stated at cost less accumulated depreciation. Freehold land is not depreciated.
Depreciation is calculated in order to write off the cost of tangible fixed assets, other than freehold land and infrastructure assets, over their estimated useful lives by equal annual instalments.
Infrastructure assets are those assets characterised by having virtually infinite useful lives and which, in general, were constructed many years ago but are unlikely to be constructed in their existing format today. They include assets such as the North Bull Wall and Great South Wall. Infrastructure assets are carried at a nil valuation and the cost of their upkeep is charged to the Profit and Loss Account.
The estimated useful lives of tangible fixed assets by reference to which depreciation has been calculated are as follows:
| Buildings | 50 years |
| Dock structures, dry docks and quays | 30 - 50 years |
| Capital dredging | 30 years |
| Floating craft | up to 30 years |
| Cranes | up to 30 years |
| Plant and machinery | 2 - 30 years |
The Company does not adopt a policy of revaluing tangible fixed assets other than its Investment Property, which is stated at Open Market Value.
Investment Properties
The Company’s investment property is re-valued annually in accordance with SSAP 19 and the surplus or deficit on revaluation is transferred to the investment revaluation reserve unless a deficit below original cost, or its reversal, is expected to be permanent, in which case it is recognised in the Profit and Loss Account for the year.
Although the Companies Acts would normally require the systematic annual depreciation of fixed assets, the Directors believe that the policy of not providing depreciation is necessary in order for the financial statements to give a true and fair view, since the current value of the investment property, and changes to its value, are of prime importance rather than a calculation of systematic annual depreciation. Depreciation is only one of the many factors reflected in the annual valuation, and the amount, which might otherwise have been included, cannot be separately identified or quantified.
Capital Grants and Contributions to Fixed Assets’ Cost
Capital grants and contributions to fixed assets’ costs are treated as deferred credits, which are amortised to the Profit and Loss Account on the same basis as the related tangible fixed assets are depreciated.
Grants are recognised, by inclusion in the financial statements, when their ultimate cash realisation can be established with reasonable certainty.
Development Land
Development land comprises land which is not held for long-term business usage, but which is held for development or re-sale purposes and is carried at the lower of cost or market value.
Stocks
Stocks are stated at the lower of cost and net realisable value.
Cost includes cost of purchase, and where appropriate, import duties and transportation costs.
Net realisable value is determined as cost less provision for damaged, deteriorated, obsolete and unusable items.
Leases
All operating lease rentals are charged to the Profit and Loss Account on a straight-line basis.
Foreign Currencies
Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the Balance Sheet date and revenues, costs and non-monetary assets at the exchange rate ruling at the date of the transaction.
Profits and losses arising from foreign currency translation and on settlement of amounts receivable and payable in foreign currency are dealt with in the Profit and Loss Account.
Monetary assets are money held, and amounts to be received in money, all other assets are non-monetary assets.
Retirement Benefits
The Company has both defined benefit and defined contribution arrangements. Defined benefit pension scheme assets are measured at fair value. Defined benefit pension scheme liabilities are measured on an actuarial basis using the projected unit actuarial cost method. The excess of pension scheme liabilities over pension scheme assets is presented on the Balance Sheet as a liability net of related deferred tax. The defined benefit pension charge to Operating Profit comprises the current service cost and past service costs. The excess of the interest cost on the scheme liabilities over the expected return on scheme assets is presented in the Profit and Loss Account under “Net financing (expense)/income”. Actuarial gains and losses arising from changes in actuarial assumptions and from experience surpluses and deficits are recognised in the Statement of Total Recognised Gains and Losses for the year in which they occur. The contributions payable by the Company under the defined contribution schemes are charged to the Profit and Loss Account in the period in which they become payable.
Dredging
The cost of routine or ongoing dredging projects is charged to Profit and Loss Account as incurred. Capital dredging, which enhances Port access or infrastructure, is capitalised as part of the related fixed asset and depreciated over its estimated useful life.
Deferred Tax
Deferred tax is provided on all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date.
Timing differences are temporary differences between profits as computed for tax purposes and profits as stated in the financial statements, which arise because certain items of income and expenditure in the financial statements are dealt with in different years for taxation purposes.
Deferred tax is measured at the tax rates that are expected to apply in the years in which the timing differences are expected to reverse based on tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax is not discounted.
Interest-bearing loans and borrowings
All borrowings are initially stated at the fair value of the consideration received after deduction of issue costs. Issue costs, together with finance costs, are charged to the Profit and Loss Account over the term of the borrowings and represent a constant proportion of the balance of capital repayments outstanding.
Interest Rate Risk Management
Interest rate swaps/caps are used to hedge the Company’s exposure to interest rate movements. The amount payable or receivable on such hedging instruments is accrued in the same way as interest arising on borrowings.
Dividends
Dividends are recognised in the financial statements when they have been appropriately approved or authorised by the shareholders and are no longer at the discretion of the Company. Interim dividends declared by the Directors are recognised when paid.
Investment in Joint Venture
The investment in Joint Venture is stated at cost less provision for any permanent diminution in value.