✨ Financial Statements Notes
MERCURY ENERGY
MERCURY ENERGY LIMITED & SUBSIDIARIES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 1996 continued
(e) Accounts Receivable
Receivables are valued at their estimated realisable value.
(f) Income Tax
The income tax expense charged to the Statement of Financial Performance includes both the current years provision 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.
(g) Stores
Stores are valued on the basis of weighted average cost price.
(h) Leases
The group leases certain land and buildings. Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased assets, are included in the determination of the operating profit in equal instalments over the lease term. The cost of improvements to leasehold property is capitalised, disclosed as leasehold improvements and amortised over the unexpired period of the lease or the estimated useful life of the improvements, whichever is the shorter.
(i) Joint Venture
The group is party to several joint venture agreements. The group has accounted for its interest in these ventures by recognising its share of revenue and expenses. There are no assets owned by the joint venture, each party contributes its own share of assets.
(j) Other Investments
Investments in other companies are stated at cost.
(k) Long Term Prepayments
The group has entered into several contracts for the supply of gas. These are recorded at cost as long term prepayments.
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.
THE NEW ZEALAND GAZETTE
No. 158
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VUW Te Waharoa —
NZ Gazette 1996, No 158
NZLII —
NZ Gazette 1996, No 158
✨ LLM interpretation of page content
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Financial Statements and Notes
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Accounting Policies, Accounts Receivable, Income Tax, Stores, Leases, Joint Venture, Investments, Long Term Prepayments