✨ Financial Statements Continuation
3550 NEW ZEALAND GAZETTE No. 147
Changes In Accounting Policies
The following changes to the accounting policies have taken place during the current year.
(i) The basis of accounting for deferred taxation has been changed from the partial basis to the comprehensive basis of applying the liability method. This is a reversal of the approach adopted in 1997 and is a result of identifying that all timing differences will reverse in the future. The effect of this change is to reinstate the deferred tax asset by posting a credit for taxation to the Statement of Financial Performance for both the Line Business and Other Business which reduces the taxation expense by $1.06 million for the Line Business and $0.298 million for the Other Business.
(ii) The depreciation rate used for distribution assets has been changed following the revaluation, which took place on 31 March 1997. The change takes into consideration the standard life of these types of asset and depreciates the assets over their assessed residual lives as determined by the ODV valuation. The effect of this change is an increase in the depreciation charge to the Line Business Statement of Financial Performance of $1.28m in comparison to the distribution assets being depreciated using historic cost and prior years’ depreciation rates.
All other policies have been applied on bases consistent with those used in the previous year.
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VUW Te Waharoa —
NZ Gazette 1998, No 147
NZLII —
NZ Gazette 1998, No 147
✨ LLM interpretation of page content
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Tasman Energy Limited Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry11 August 1998
Financial Statements, Accounting Policies, Deferred Taxation, Depreciation Rates, Distribution Assets, Liability Method, Taxation Expense, ODV Valuation