✨ Financial Statements
2828
NEW ZEALAND GAZETTE
No. 118
Distribution Network and equipment 80 years
Motor vehicles 5 years
Fixtures and fittings 5 years
(d) Taxation
The income tax expense charged against the surplus for the year is the estimated liability in respect of that surplus and is calculated after allowance for permanent differences and timing differences which are not expected to reverse in the future periods. This is the partial basis for the calculation of deferred tax. Tax effect accounting is applied on a partial basis using the liability method. 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.
(e) Valuation of inventories
Inventories are valued at the lower of cost (FIFO or weighted average) or net realisable value on a basis consistent with the previous year. An allowance for obsolescence has been assessed on inventories where appropriate.
Changes in accounting policies
In the current year the Company adopted the partial basis for accounting for its deferred tax. Previously it accounted for deferred tax using the comprehensive method. This change was made to bring in line the Company's policies with those adopted by the Parent Company. This change in accounting policy decreased the net surplus after tax for the Distribution and Retail operations by $22,345,366 and $1,806,693 respectively.
Internal sales
Due to the separation of the distribution business from the other contestable business activities, internal transactions between business activities have not been eliminated.
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VUW Te Waharoa —
NZ Gazette 1999, No 118
NZLII —
NZ Gazette 1999, No 118
✨ LLM interpretation of page content
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Financial Position Statement for Orion New Zealand Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial statements, Accounting policies, Reporting entity, Measurement base, Fixed assets, Depreciation, Taxation, Valuation of inventories, Changes in accounting policies, Internal sales