✨ Financial Statements Notes
30 NOVEMBER NEW ZEALAND GAZETTE 4535
TRANSPOWER NEW ZEALAND LIMITED GROUP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1998
(j) Statements of Cash Flows (cont.)
(iii) Investing activities comprise the purchase, holding and disposal of fixed assets and investments. Capitalised interest on capital work in progress is also included in investing activities.
(iv) Financing activities include changes in equity, borrowings and dividends paid on equity. Cash flows arising from short term loans are disclosed as a net cash movement due to the volume of transactions involved.
(k) Taxation
The Transpower Group follows the liability method of accounting for deferred tax applied on a partial basis.
The tax expense charged against the surplus for the year is the estimated liability in respect of that surplus after allowance for permanent differences plus any adjustments arising from prior years.
The partial basis considers the cumulative income tax effect of all timing differences. The income tax effect of timing differences is only recognised as deferred tax for those timing differences that can be expected to reverse in the foreseeable future.
Under the application of this method, timing differences that are not recognised in the Statements of Financial Position are disclosed in Note 7.
Future tax benefits attributable to losses carried forward are recognised in the financial statements only where there is virtual certainty that the benefit of the losses will be utilised.
(l) Foreign Currencies
Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Monetary assets and liabilities at balance date are translated at exchange rates current at balance date. Where transactions are hedged they are translated at the hedge rate.
Gains and losses due to currency fluctuations on foreign currency receivables and payables are included in the Statements of Financial Performance. Gains or losses from exchange rate fluctuations do not arise in respect of hedged foreign currency borrowings.
Exchange differences and associated costs on hedging transactions undertaken to establish the price of a particular purchase, are deferred and are included in the measurement of the purchase transaction as at the transaction date.
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VUW Te Waharoa —
NZ Gazette 1998, No 193
NZLII —
NZ Gazette 1998, No 193
✨ LLM interpretation of page content
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Transpower New Zealand Limited Notes to the Financial Statements
(continued from previous page)
🏭 Trade, Customs & IndustryInvesting Activities, Financing Activities, Taxation, Deferred Tax, Foreign Currencies, Cash Flows, Financial Reporting, Asset Valuation