New Zealand Gazette – 1996 – No. 136

Page 3278

✨ Financial Statements



Wairoa Power Limited - Other Businesses

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 1996

STATEMENT OF ACCOUNTING POLICIES (continued)

e) Income tax

The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method.

Tax effect accounting has been applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.

f) Inventories

Inventories are stated at the lower of cost, determined on weighted average cost and net realisable value.

Changes in Accounting Policies

There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.

Wairoa Power Limited - Other Businesses

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 1996 continued

1996 1995
NET PROFIT BEFORE TAXATION
After Charging:
Audit fees and expenses 6,304 14,739
Depreciation 98,070 99,430
Directors Fees 33,750 33,750
Interest - Local Authority loans 111,776 190,781
Interest - other - 7
Loss on disposal of fixed assets - -
After crediting
Interest received 176,558 164,070

3. TAXATION

1996 1995
Profit before taxation 44,509 26,626
Prima facie taxation 14,688 8,787
Plus/(Less) taxation effect of permanent differences
Non-deductible legal expenses - -
Other permanent differences 1,508 -
Recognition of Deferred Tax Asset - (38,854)
Taxation expense (benefit) 16,196 (30,067)

The taxation charge is represented by:

1996 1995
Current taxation 10,555 182
Deferred taxation 5,641 (30,249)
16,196 (30,067)

There are no income tax losses or unrecognised timing differences carried forward.

DEFERRED TAX ASSET

1996 1995
Balance as at 31 March 1995 - 30,249
Depreciation Movement for current year (5,641) -
Balance as at 31 March 1996 24,608 30,249

THE NEW ZEALAND GAZETTE

No. 136



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✨ LLM interpretation of page content

🏭 Notes to Financial Statements for Wairoa Power Limited - Other Businesses (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Income Tax, Inventories, Wairoa Power Limited

🏭 Notes to Financial Statements for Wairoa Power Limited - Other Businesses (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Net Profit, Taxation, Depreciation, Directors Fees, Wairoa Power Limited