✨ Financial Accounting Policies
f) Income Tax
The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method. Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
g) Stores
Stores are valued on the basis of weighted average cost price.
h) Leases
Group entities lease certain land and buildings.
Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased assets, are included in the determination of the operating profit in equal instalments over the lease term.
The cost of improvements to leasehold property is capitalised, disclosed as leasehold improvements, and amortised over the unexpired period of the lease or the estimated useful life of the improvements, whichever is shorter.
i) Foreign Currencies
Transactions in foreign currencies are converted at the New Zealand rate of exchange ruling at the date of the transaction.
Short-term transactions covered by forward exchange contracts are measured and reported at the forward rates specified in those contracts.
At balance date foreign monetary assets and liabilities are translated to New Zealand dollars at the balance date exchange rate and exchange variations arising from these translations are included in the statement of financial performance.
The exchange differences on hedging transactions undertaken to establish the price of particular sales or purchases, together with any costs associated with the hedge transactions, are deferred and included in the measurement of the purchase or sale of the transaction.
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VUW Te Waharoa —
NZ Gazette 1998, No 160
NZLII —
NZ Gazette 1998, No 160
✨ LLM interpretation of page content
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Mercury Energy Limited Financial Performance Statement
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🏭 Trade, Customs & IndustryFinancial Performance, Electricity, Mercury Energy Limited, Regulations