✨ Financial Accounting Policies
NEW ZEALAND GAZETTE
No. 91
TOP ENERGY LIMITED
STATEMENT OF ACCOUNTING POLICIES
FOR THE 12 MONTHS ENDED 31 MARCH 1995
11. Financial Instruments
All financial instruments are recognised in the statement of financial position. The Directors have not entered into any off-balance sheet instruments. All financial instruments including cash, bank, accounts receivable and accounts payable are recognised at cost, with the exception of long-term debt which is adjusted.
Long-term debt has been taken up at cost plus a provision for debt restructuring in order to allow for the fact that the debt was incurred when interest rates were higher than at the present time. The debt is reassessed each year to adjust the balance owing for the cost of converting the debt to a fair market value.
CHANGES IN ACCOUNTING POLICIES
During the year the Company changed its policy in respect of capital contributions received, in order to comply with Exposure Draft 70 “Accounting for Grants and Donations” - a revision of SSAP 16. Capital contributions are now recognised as revenue in the year in which they are received. Formerly, capital contributions were credited against the cost of the relevant uneconomic supply facilities.
Because the amount involved for the previous period was not material, the financial statements of the prior period have not been restated to reflect the new policy. However, if the policy had applied in the previous period, the retained earnings and therefore the shareholders funds would have increased by $112,505 with a corresponding increase in the fixed assets of the same amount.
The effect on the current year’s profit is to increase income and the resultant profit before taxation by $291,197.
There have been no other material changes in accounting policies. The foregoing accounting policies have been applied on a consistent basis during the year.
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VUW Te Waharoa —
NZ Gazette 1995, No 91
NZLII —
NZ Gazette 1995, No 91
✨ LLM interpretation of page content
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Statement of Accounting Policies for Top Energy Limited
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Financial Instruments, Long Term Debt, Revenue Recognition