New Zealand Gazette – 1996 – No. 90

Page 2364

✨ Financial Statements and Notes



2364 No. 90

NEW ZEALAND GAZETTE

WAITOMO ENERGY SERVICES LIMITED

Electricity & Other Business Activity

Notes to the Financial Statements continued...

Capitalisation of Distribution Work

The Company carries out a program of patrolling each of its distribution lines and testing individual poles. Where work is carried out as a result of the program and the cost of the work is five times greater than the normal cost of maintaining the relevant segment of line, the cost is capitalised.

Taxation

The income tax charge to the Statement of Financial Performance includes both the current year taxation and the income tax effects of timing differences calculated using the liability method.

Tax effect accounting has been applied on a comprehensive basis to timing differences.

Financial Instruments

The Company has entered into transactions using financial instruments as part of its ongoing business activities. These transactions are accounted for on the basis of the accounting policies set out above. There are no off balance sheet financial instruments.

Changes in Accounting Policies

There have been no changes in accounting policies during the year. All accounting policies have been applied on a basis consistent with last year, with the exception of the format of the Statement of Financial Performance which shows total Revenue and Expenses.

NOTE 2: Taxation Expense

1996
$
Nominal Profit Before Taxation 1,570,000
Prima Facie Taxation @ 33% 518,100
Add/(Less) Effect of Permanent Tax Diff 61,492
Plus Prior Period Liability -4,347
Net Taxation Expense 583,939

NOTE 3: Customer Discount
Discount Declared 583,000
Less Taxation Effect 192,000
Net Customer Discount 391,000

NOTE 4:

Fixed Assets 1996 At Cost Accumulated Depreciation Net Carrying Value
$ $ $
Land 174,588 0 174,588
Buildings 736,788 26,377 710,411
MV Plant & Equipment 822,252 283,484 538,768
Generation 2,964,326 216,420 2,747,906
Total 4,697,954 526,281 4,171,673

NOTE 5: Deferred Taxation

1996
$
Represented by the following timing differences:
Accruals & Provisions (223,787)

NOTE 6: Contingent Liabilities

The Company has contingent liabilities of $786,667. Included in this is exposure to the Electricity Spot Market.



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Electricity, Financial Statements, Income, Expenses, Assets, Liabilities, King Country