✨ Financial Statements Notes
26 NOVEMBER
NEW ZEALAND GAZETTE
3903
TRANSPOWER NEW ZEALAND LIMITED GROUP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1997
(j) Statements of Cash Flows
The following are the definitions of the terms used in the Statements of Cash Flows:
(i) Cash and bank means coins, notes and demand deposits. Cash includes liabilities which are the negative form of the above, such as the bank overdraft.
(ii) Operating activities comprise the transmission of bulk electricity, wholesale market services and related support, maintenance, administration, interest costs and dividends paid on equity.
(iii) Investing activities comprise the purchase, holding and disposal of fixed assets and investments. Capitalised interest on capital work in progress is also included in investing activities.
(iv) Financing activities include changes in equity and borrowings. Cash flows arising from short term loans are disclosed as a net cash movement due to the volume of transactions involved.
(k) Taxation
The Group follows the liability method of accounting for deferred tax applied on a partial basis.
The tax expense charged against the surplus for the year is the estimated liability in respect of that surplus after allowance for permanent differences plus any adjustments arising from prior years.
The partial basis considers the cumulative income tax effect of all timing differences. The income tax effect of timing differences is only recognised as deferred tax for those timing differences that can be expected to reverse in the foreseeable future.
Under the application of this method, timing differences that are not recognised in the Statements 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.
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1997, No 165
NZLII —
NZ Gazette 1997, No 165
✨ LLM interpretation of page content
🏭
TRANSPower New Zealand Limited Information Disclosure
(continued from previous page)
🏭 Trade, Customs & IndustryElectricity, Financial Statements, Accounting Policies, Reporting Entity, Measurement Base, Capital Work in Progress, Infrastructure Asset, Depreciation, Leased Assets, Cash Flows, Taxation, Deferred Tax, Liability Method