✨ Financial Statements
4204 NEW ZEALAND GAZETTE No. 177
Natural Gas Corporation – Gas Retailing Activities
Notes to the Financial Statements
For the year ended 30 June 1997
1. Statement of Accounting Policies
a) Accounting Entity
The financial statements are those of Natural Gas Corporation – Gas Retailing Activities (NGC). Gas Retailing Activities involves the supply of gas to a consumer.
b) Special Purpose Financial Statements
The financial statements have been prepared in accordance with the Gas (Information Disclosure) Regulations 1997 and generally accepted accounting principles.
c) General Accounting Policies
The general accounting policies recognised as appropriate for the measurement and reporting of earnings and the financial position under the historical cost method have been followed in the preparation of these financial statements. This includes the going concern concept and the matching of revenue and expenses under the accrual concept.
d) Particular Accounting Policies
The following particular accounting policies which materially affect the measurement of financial performance and financial position have been adopted:
i) Revenues and Expenses
Revenues and Expenses are stated exclusive of Goods and Services Tax (GST).
ii) Valuation of Fixed Assets
All fixed assets are included at cost less accumulated depreciation.
iii) Current Assets
Accounts receivables are valued at their estimated realisable value. Inventories are valued at the lower of cost and net realisable value. Cost is determined on a first in first out basis. All other current assets are valued at their estimated realisable value.
iv) Depreciation
The rates of depreciation vary according to the nature and economic lives of the assets and fall within the following ranges (on a straight line basis):
- Plant and Equipment 5-15 years
- Buildings 40-100 years
v) 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 are not recognised unless realisation of the asset is virtually certain. Future tax benefits and deferred tax is offset.
vi) 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.
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VUW Te Waharoa —
NZ Gazette 1997, No 177
NZLII —
NZ Gazette 1997, No 177
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Natural Gas Corporation Financial Position
(continued from previous page)
🏭 Trade, Customs & Industry2 December 1997
Natural Gas, Financial Statements, Gas Retailing, Assets, Liabilities, Equity