✨ Financial Statements Notes
4538 No. 139
NEW ZEALAND GAZETTE
TRANS POWER NEW ZEALAND LIMITED GROUP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1995
(j) Taxation
For periods up to 30 June 1994, Trans Power New Zealand Limited (Trans Power) and its subsidiaries were grouped with the Electricity Corporation of New Zealand Limited (ECNZ) for the purposes of taxation.
The partial basis of the liability method of accounting for deferred tax is used.
The tax charge against the profit for the year is the estimated liability in respect of that profit after allowance for permanent differences and timing differences, to the extent the timing differences are not, on a cumulative basis, expected to reverse in the foreseeable future.
Future tax benefits attributable to losses carried forward are recognised in the financial statements only where there is virtual certainty that the benefit of the losses will be utilised.
(k) Foreign Currencies
Unhedged foreign currency transactions are translated at the exchange rate ruling at the transaction date or at a rate approximating this rate.
Foreign monetary assets and liabilities arising from trading transactions are valued at closing rates as at balance date. Gains and losses due to currency fluctuations on these items are included in the Statement of Financial Performance up to settlement date.
Exchange differences and associated costs on hedging transactions undertaken to establish the price of a particular purchase, are deferred and are included in the measurement of the purchase transaction as at the transaction date.
(l) Financial Instruments
The Group enters into financial instruments with off-balance sheet risk to reduce its exposure to fluctuations in foreign currency exchange rates and floating interest rates on borrowings. Financial instruments entered into as hedges are accounted for on the same basis as the underlying position being hedged. The Group does not conduct any speculative trading, and as such no financial instruments are accounted for on a mark to market basis.
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VUW Te Waharoa —
NZ Gazette 1995, No 139
NZLII —
NZ Gazette 1995, No 139
✨ LLM interpretation of page content
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Notes to the Financial Statements for Trans Power New Zealand Limited
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🏗️ Infrastructure & Public WorksFinancial Statements, Accounting Policies, Revenue, Current Assets, Investments, Fixed Assets, Depreciation, Valuation, Capital Expenditure, Infrastructure Asset, Asset Management Plan, Operating Capability, National Grid, Taxation, Deferred Tax, Foreign Currencies, Financial Instruments