New Zealand Gazette – 1998 – No. 168

Page 4008

✨ Financial Statements



NEW ZEALAND GAZETTE

No. 168

1.7 EMPLOYEE ENTITLEMENTS

Employee entitlements to salaries and wages, annual and long service leave and other benefits are recognised when they accrue to employees. Allowance is made for the present value of future staff retirement gratuity benefits. The calculations provide also for the probability of the employees completing the appropriate period of service.

1.8 FINANCIAL INSTRUMENTS

Financial instruments carried in the statement of financial position include cash and bank balances, receivables, trade creditors and borrowings. These instruments are generally carried at their estimated fair value. For example receivables are carried net of estimated doubtful receivables. Other financial instruments entered into by the company include foreign currency forward exchange contracts, and electricity price hedging contracts. The purpose of these instruments is to reduce exposure to fluctuations in foreign currency and electricity spot market prices. Because these hedging contracts have the effect of offsetting gains or losses on the underlying transactions in the physical market, there is no recognition in the financial statements until maturity of the contracts.

1.9 CHANGES IN ACCOUNTING POLICIES

The company has elected to apply the comprehensive basis for the calculation of deferred taxation. With significant timing differences arising this year the application of the comprehensive basis for calculation results in the establishment of future income tax benefits of $197,683 with a corresponding reduction in the taxation charge for this year. There have been no other changes in accounting policies.

2. OPERATING SURPLUS BEFORE TAXATION

Year Ended 31 March 1998 Network Operations Generation Business Energy Trading and Other
$ $ $
Year Ended 31 March 1997 Network Operations Generation Business Energy Trading and Other
$ $ $

The operating surplus before taxation has been determined after:

Crediting as revenue:
Interest Income (31,066) 115,216 63,287
Property Rentals 126,023
Surplus on Disposal of Fixed Assets 5,735 7,810
Year Ended 31 March 1997 (5,666) 140,220 172,281
51,953 (1,981)
68,295

Charging as expense:
Audit Fees Paid to Principal Auditor 39,935 1,333 6,132
Directors Fees 90,000
Depreciation 1,332,195 716,380 159,836
Interest on Term Debt 231,714 55,484 33,907
Research Expenditure 373,347
Receivables Written Off 24,706
Increase in Estimated Doubtful Debts 17,472 (1,613)
Donations (Educational Grants) 18,374
Rental Expense on Operating Leases 8,189
Year Ended 31 March 1997 45,055 2,000 9,000
75,000
1,249,010 635,045 166,563
469,494 29,526 78,497
48,137 32,223
16,080
8,189 12,173

3. GENERATION OPERATIONS

Marlborough Electric's own generation provided 51.5 GWh (1997: 61.2 GWh)

4. TAXATION

Year Ended 31 March 1998 Network Operations Generation Business Energy Trading and Other
$ $ $
Year Ended 31 March 1997 Network Operations Generation Business Energy Trading and Other
$ $ $

4.1 TAXATION CHARGE
Operating Surplus before Tax 3,938,950 2,640,216 608,548
Add/(deduct):
Non Deductible Costs 22,673 88,337
Non Assessable Income (6,421) (700,000)
Taxable Income 3,955,202 2,028,553 608,548
Taxation Charge @ 33% 1,305,217 669,422 200,821
Prior Year Under/(Over) Provision 8,876
Prior Period Timing Differences not Previously Accounted for (33,482) (62,306)
Tax Expense 1,271,735 678,298 138,515
Year Ended 31 March 1997 3,799,912 2,546,295 1,178,966
110,424 1,801 127,277
(142,205) (103,459)
3,768,131 2,548,096 1,202,784
1,243,481 840,871 396,918
(1,004) (2,141)
Tax Expense 1,242,477 840,871 394,777

The Income Tax Expense is represented by:
Tax Payable in Respect of the Current Year 1,336,234 678,298 271,700
Future Income Tax Benefits (64,499) (133,185)


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✨ LLM interpretation of page content

🏭 Marlborough Electric Limited Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
11 September 1998
Electricity, Financial Statements, Accounting Policies, GST, Income Tax, Depreciation, Marlborough Electric Limited