New Zealand Gazette – 1997 – No. 177

Page 4212

✨ Financial Statements



4212 NEW ZEALAND GAZETTE No. 177

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):

| High Pressure Pipelines | 50 Years |
| Compressors and Gate Stations | 50 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
Deferred taxation is recognised 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.

  1. Surplus before Taxation

1997
S Thousands

Surplus before Taxation is stated after charging:

| Audit fees and expenses | 30 |
| Depreciation | 12,568 |

  1. Income Tax

1997
S Thousands

a) The Income Tax Expense has been calculated as follows:

| Surplus before Taxation | 39,890 |
| Income Tax at 33% | 13,164 |



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✨ LLM interpretation of page content

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

🏭 Trade, Customs & Industry
Natural Gas, Financial Statements, Gas Transmission, Revenue, Taxation, Surplus, Depreciation, Deferred Income, Audit Fees, Income Tax