New Zealand Gazette – 1996 – No. 141

Page 3420

✨ Financial Statements



3420

NEW ZEALAND GAZETTE

No. 141

Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. The cost of fixed assets created or enhanced by the Company (self-constructed assets) is direct expenses incurred and an appropriate proportion of indirect expenses.

The cost of purchased fixed assets is the value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.

Depreciation

Fixed assets have been depreciated, so as to write off cost less estimated residual value over their estimated useful lives, on the following basis:

Distribution System 4% straight line
22% DV for system automation equipment

Buildings 2% straight line for majority of buildings (some at 1% straight line)

Plant & Equipment 20% and 25% DV for majority of items
40% DV for computer hardware and software

Motor Vehicles 20% and 25% DV for majority of vehicles

Investments

Investment in subsidiary is recorded at cost as described in Note 17.

Taxation

The statements of financial performance and movements in equity includes taxation expense on operating results.

The income tax expense charged to earnings includes both the current year expense and the income tax effects of timing differences calculated using the liability method.

Tax effect accounting is 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.

Principles of Consolidation

The consolidated financial statements are prepared from the financial statements of the parent and its subsidiary (as disclosed in Note 17) at 31 March 1996 using the purchase method.

CHANGES IN ACCOUNTING POLICY

During the period there have been no changes in accounting policies.

2. SALES For the year ended 31 March 1996

External sales to customers included:

Line Business 1996 $000 Other Business 1996 $000 Line Business 1995 $000 Other Business 1995 $000
Electricity Sales 18,762 18,048 17,641

Other sales including:

CP Construction ) 1,476 3,044 732 3,607

Retail Appliances sales )

Other Electrical )

3. NET PROFIT BEFORE TAXATION

Resulting net profit before taxation is stated Line Business 1996 $000 Other Business 1996 $000 Line Business 1995 $000 Other Business 1995 $000
After charging: 1,775 528 1,752 389
Directors Remuneration 97 6 87 5
Audit Fees 20 2 20 2
Other fees Paid or Due to Auditors 16 1 - -
Depreciation 2,304 146 2,025 144
Rent - 23 - 25
Bad Debts Written Off 137 - 89 -
Main Depot Complex Writedown 454 - - -
Customer Discounts 2,071 894 2,070 -
Loss on Disposal of Fixed Assets 39 - - -
After Crediting:
Interest and Sundryies 401 - 493 -
Gain on Disposal of Fixed Assets 481 - - -

4. TAXATION

Accounting profit before taxation Line Business 1996 $000 Other Business 1996 $000 Line Business 1995 $000 Other Business 1995 $000
1,775 528 1,752 389
Prima facie taxation 586 174 579 128
Plus/(less) taxation effect of permanent differences:
Non deductible expenses 12 - 15 -
Depreciation 15 - 15 -
Non assessable income - - (1) -
Tax effect of timing differences and overprovision in prior years 5 - (17) -
618 174 591 128
The taxation charge is represented by:
Current Taxation 432 174 377 128
Deferred Taxation 186 - 214 -
618 174 591 128
Deferred taxation is represented by:
Deferred taxation 1.4.95 438 - 224 -
Current charge 186 - 214 -
Deferred taxation 31.3.96 624 - 438 -
Imputation credit account:
Balance as at 1.4.95 1,462 - 971 -
Imputation credits attached to dividends paid during the period (1,470) - (246) -
Tax refunds received (147) - (229) -
Income tax payments made during the period 500 - 966 -
Balance as at 31.3.96 345 - 1,462 -

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✨ LLM interpretation of page content

🏭 Notes to and Forming Part of the Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Financial Reporting, Electricity Sales, Inventories