New Zealand Gazette – 1997 – No. 177

Page 4196

✨ Natural Gas Corporation Financial Details



NEW ZEALAND GAZETTE

No. 177

  • Low Pressure Pipelines 25 to 50 Years
  • Compressors and Gate Stations 30 Years
  • Buildings 40-100 years
  • Plant and Equipment 5-15 years
  • Capital Spares 5-15 years

Depreciation of pipelines commences when the pipeline is physically complete and flowing gas.

v) Deferred Income

Contributions received from gas utilities and other parties towards the capital expenditure on pipelines are accounted for initially in a deferred income account. Amortisation to income of the deferred income account takes place only after the obligations in connection with the contributions are performed. The deferred income account is amortised to the statement of financial performance over the life of the pipelines to which they relate or over the life of the gas supply contract whichever is the shorter.

vi) Taxation

NGC recognises deferred taxation using the liability method and on a comprehensive basis. Income tax expense is recognised on the surplus before taxation. It is then adjusted for permanent differences between taxable and accounting income. The tax effect of all timing differences, which arise from items being brought to account in different periods for income tax and accounting purposes, is recognised in the statement of financial position as a future tax benefit or as deferred tax. The future tax benefit or deferred tax is stated at the income tax rates prevailing at balance date. Future tax benefits and deferred tax are offset. Future tax benefits and deferred tax are not recognised unless realisation of the asset is virtually certain.

vii) Deferred Expenditure

Deferred expenditure is expenditure which provides benefits beyond the current accounting period and is written off over periods up to twenty years. These expenditures relate to the connection of new customers to the gas system and the conversion of existing customers’ appliances to the use of natural gas.

2. Surplus before Taxation

$ Thousands
Surplus before Taxation is stated after charging:
Directors’ fees 11
Audit fees and expenses 6
Fees for other services paid to the Auditors 22
Depreciation 4,897
Leasing Costs 676

3. Income Tax

$ Thousands
The Income Tax Expense has been calculated as follows:
Surplus before Taxation 10,162
Income Tax at 33% 3,353
Adjustments to taxation for:
Non-deductible expenditure 60
Taxation charge in Statement of Financial Performance 3,293


Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1997, No 177


NZLII — PDF NZ Gazette 1997, No 177




✨ LLM interpretation of page content

🏭 Natural Gas Corporation Financial Position Statement (continued from previous page)

🏭 Trade, Customs & Industry
Natural Gas, Financial Position, Depreciation, Deferred Income, Taxation, Deferred Expenditure