✨ Statement of Accounting Policies
11 AUGUST NEW ZEALAND GAZETTE 2147
TAUPO ELECTRICITY LIMITED
Statement of Accounting Policies (cont)
Investments
Short term investments consist of investments which mature or are otherwise realisable not more than 12 months from balance date. Short term investments are stated at market value (where available) and the resultant gains or losses taken to earnings.
Short term cash deposits are included in cash and short term investments.
Valuation of Liabilities
Taxation
The provision for current taxation is the estimated amount due for payment or receivable in the next twelve months.
The company adopts the partial liability method in determining its future deferred tax liability payable or benefit receivable. Under this method, deferred taxation does not account for timing differences that are expected to continue and accordingly no liability is expected to materialise.
Future taxation benefits are not brought to account unless realisation of the asset is assured beyond reasonable doubt. The amount of these benefits (including the unrecognised benefits disclosed in Note 2), is based on the assumption that no adverse change will occur in income tax legislation and the anticipation that the company will derive sufficient future assessable income and comply with the conditions of deductibility imposed by the law to permit future income tax benefits to be obtained.
Income tax on other net cumulative timing differences is set aside to the deferred taxation liability or benefit account at current taxation rates.
Term Loans
Term Loans are recorded at face value plus accrued interest less prepaid interest. Prepaid interest is amortised to interest expense included in the Profit and Loss Account on a yield to maturity basis over the period of the borrowing. Borrowing costs such as origination, commitment and transaction fees are expensed when incurred.
Term Loans due for repayment within 12 months are separately identified from total term liabilities and included in current liabilities. Revolving facilities are not recognised as due where the amount outstanding is less than the facility limit that will apply at the end of the next financial year.
Employee Benefits
Provision is made in respect of the company's liability for annual leave, long service leave and retiring gratuities at balance date. Long service leave and retiring gratuities are accrued for all employees with more than the requisite qualifying service with the company.
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VUW Te Waharoa —
NZ Gazette 1995, No 78
NZLII —
NZ Gazette 1995, No 78
✨ LLM interpretation of page content
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Statement of Accounting Policies for Taupo Electricity Limited
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Taupo Electricity Limited, Investments, Valuation of Liabilities, Taxation, Term Loans, Employee Benefits