✨ Financial Statements Notes
4550
NEW ZEALAND GAZETTE
TRANS POWER NEW ZEALAND LIMITED GROUP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1996
No. 173
(k) Taxation
The tax expense charged against the surplus for the year is the estimated liability in respect of that surplus plus any adjustments arising from prior years, after allowance for permanent differences and to the extent they are not, on a cumulative basis, expected to reverse in the foreseeable future, timing differences. This is the liability method of calculating deferred tax applied on a partial basis.
Under the application of this method, timing differences that are not recognised in the Statement of Financial Position are disclosed in Note 7.
Future tax benefits attributable to losses carried forward are recognised in the financial statements only where there is virtual certainty that the benefit of the losses will be utilised.
(l) Foreign Currencies
Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Monetary assets and liabilities at balance date are translated at exchange rates current at balance date. Where transactions are hedged they are translated at the hedge rate.
Gains and losses due to currency fluctuations on foreign currency receivables and payables are included in the Statement of Financial Performance. Gains or losses from exchange rate fluctuations do not arise in respect of hedged foreign currency borrowings.
Exchange differences and associated costs on hedging transactions undertaken to establish the price of a particular purchase, are deferred and are included in the measurement of the purchase transaction as at the transaction date.
(m) Financial Instruments
Financial instruments recognised in the Statement of Financial Position include cash and bank, trade receivables, other receivables, investments, bank overdraft, and debt. These instruments are entered into in the normal course of business.
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VUW Te Waharoa —
NZ Gazette 1996, No 173
NZLII —
NZ Gazette 1996, No 173
✨ LLM interpretation of page content
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Notes to the Financial Statements for Trans Power New Zealand Limited
(continued from previous page)
🏭 Trade, Customs & Industry5 November 1996
Financial Statements, Accounting Policies, Leased Assets, Finance Leases, Operating Leases, Statement of Cash Flows, Cash, Operating Activities, Investing Activities, Financing Activities