New Zealand Gazette – 1997 – No. 131

Page 3050

✨ Financial Statements



NEW ZEALAND GAZETTE

No. 131

(ix) FINANCIAL INSTRUMENTS

Egmont Electricity Limited is party to financial instrument arrangements as part of its everyday operations, including both instruments which have been recognised in these financial statements and those which are off-balance sheet. The financial instruments which have been recognised in the financial statements include bank balances, short term deposits, receivables, payables and term loans. Revenues and expenses in relation to these are recognised in the Statement of Financial Performance. The financial instruments themselves are recognised in the Statement of Financial Position.

The financial instruments which are off-balance sheet comprise interest rate swaps. These are employed for the primary purpose of reducing exposure to fluctuations in interest rates. While these financial instruments are subject to risk that market rates may change subject to acquisition, such changes would generally be offset by opposite effects on the items being hedged. For interest rate swap agreements, the differential to be paid or received is accrued as interest rates change and is recognised as a component of interest expense over the life of the agreement.

(x) ACCOUNTING POLICIES

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

  1. SURPLUS BEFORE TAXATION AND ABNORMAL ITEMS

The Surplus Before Taxation is stated:

Lines Generation Energy Trading
$000 $000 $000
1997 1996 1997 1996 1997 1996

After charging:

Audit fees | 31 | 23 | 1 | 2 | 7 | 6 |
Board members fees and expenses | 82 | 57 | 41 | 36 | 41 | 10 |
Wages and salaries paid to employees | 2,313 | 2,402 | 7 | 10 | 541 | 611 |
Depreciation | 2,224 | 1,999 | 905 | 702 | 19 | 27 |
Interest | 849 | 958 | 1,723 | 1,946 | 0 | 0 |
Bad debts written off | 0 | 8 | 0 | 0 | 71 | 9 |
After crediting:
Investment income | 47 | 35 | 5 | 8 | 16 | 3 |
Foreign currency gains | 0 | 0 | 0 | 0 | 7 | 0 |
Gain on sale of investment | 0 | 0 | 0 | 0 | 0 | 1 |
(Loss)/Gain on disposal of asset | (101) | 20 | 0 | 0 | 0 | 0 |

  1. PROVISION FOR TAXATION
Lines Generation Energy Trading
$000 $000 $000
1997 1996 1997 1996 1997 1996

Accounting profit/(loss) before taxation | 1,821 | 2,748 | 4,434 | 3,441 | 337 | 624 |
Prima facie taxation | 601 | 907 | 1,463 | 1,136 | 111 | 206 |

Plus/(Less) taxation effect of:



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✨ LLM interpretation of page content

🏭 Statement of Financial Position for Egmont Electricity Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Revenue Recognition, Depreciation, Egmont Electricity Limited